Submitted byReeturaj Borgohain 168

INDIAN INSURANCE INDUSTRY :

AN OVERVIEW

Evolution

Services

SWOT Analysis

Insurance companies

The road ahead

OUR AGENDA

EVOLUTION of

insurance industry

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Oriental Life Insurance Company started functioning

LIC formed by an Act of Parliament, viz. LIC Act

Bombay Mutual Life Assurance Society started its business.

The Indian Life Assurance Companies Act enacted

1818 1870 1912 1956

HISTORY

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The Insurance Act improved for regulating investments

government opened up the insurance sector

The General Insurance Business (Nationalization) Act.

RN Malhotra Committee appointed

1968 1972 1993 1999

HISTORY

SERVICES

Insurance

Life Insurance

Term Life Insurance

Permanent Life Insurance

General Insurance

Fire Insurance

Marine Insurance

Mediclaim

Accidental

Motor Vehicle

SERVICES IN INSURANCE SECTOR

GENERAL

•Primary Functions1• Secondary Functions2• other Functions3

BASIC FUNCTIONS OF INSURANCE

Providing

protection 

Collective risk bearing 

Evaluating risk 

Provide Certainty 

PRIMARY FUNCTIONS

Preventing losses 

Covering larger risks with small capital

Helps in the

development of larger

industries

SECONDARY FUNCTIONS

savings and investment tool 

Medium of earning foreign exchange

Risk Free trade 

indemnity or reimbursement

OTHER FUNCTIONS

INTE

RNA

L FA

CTO

RSIN

TERN

AL

FACT

ORS

EXTE

RNAL

FAC

TORS

EXTE

RNAL

FAC

TORS

STRENGTHSSTRENGTHS WEAKNESSESWEAKNESSESSW

O

1.large population 2. increase in its per capita income3. middle income is rapidly increasing 4. new products had been launched

1.India’s improving economic fundamentals2. Strong growth can be sustained for 30–40 years 3. there is plenty of room for growth

HARMFULTo achieving the objectives

HARMFULTo achieving the objectives

HELPFULTo achieving the objectives

HELPFULTo achieving the objectives

1.the lowest-spending nations in Asia2. the public sector Domination3. Share of foreign investment low

T1.Natural catastrophes2. Floods3.Storm4. Earthquake

OPPORTUNITIESOPPORTUNITIES THREATSTHREATS

84%

number of lives covered under group single premium

LICreliance lifesbi lifetata aigHDFCICICIKotak Mahindramax newyorkshriram lifebajaj

63%

Individual single premium

LICICICISBI lifeHDFCRelianceBajaj allianzothers

245 companies

Rs. 5 crores

1956

19565 crores

1993 200 crores

20101,83,233 crores

2010Rs.867,935 crores

2009Rs.717,002 crores

Total value of its investments from policy holders funds

LIC has clocked arobust 72.53 % jump in fresh premium collection in January 2009

LIC

SBI L

ife

ICICI Pru

dential

Bajaj A

llianz

HDFC St

andard

0

10000

20000

30000

40000

50000

60000

70000

80000

2008-092009-2010

TOP 5 INSURANCE PLAYERS IN NEW BUSINESS

Sovereign Guarantee

Distribution network

Other factors

LIC DOMINATION IN INSURANCE INDUSTRY

3rd most attractive FDI destination

Presently FDI has 26% share

The proposal to hike that figure to 49%

FDI IN INSURANCE

The road ahead

Life insurance covers

only 3% of the Indian population

Indian insurance market is the

19th largest globally and ranks

5th in Asia

In the next 3 years, health insurance is poised to become the second largest business for non-life insurers after motor insurance

Home insurance sector is likely to

achieve a 100% growth

Regulations

• Investment regulation• Less invasive regulations

pricing• Risk differentiated pricing

structure• Price liberalization

Untapped Market• Private pension market• Foreign reinsurance

SUGGESTIONS

Thank you