Inclusive Insurance in India A Case Study · IRDA Re-entry of private players Rural and Social...
Transcript of Inclusive Insurance in India A Case Study · IRDA Re-entry of private players Rural and Social...
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Inclusive Insurance in India – A Case Study
Arman Oza
National Insurance VimoSEWA Cooperative ltd. India
Inclusive Insurance 2014
International Forum
April 16-17, 2014
Ulaanbaatar Mongolia
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Indian Insurance Industry - Timeline
2
India’s first
Life Insurer
registered
India’s first
General
Insurer
registered
Insurance Act
– the first
intensive
insurance law
enacted.
Life
Insurance
nationalised
General
Insurance
nationalised
Microinsura
nce
Regulations
enacted
Birth of
IRDA
Re-entry of
private
players
Rural and
Social
Sector
Obligations
1818 1850 1938 1956 1973 2000-01 2005
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1 6 1
23 21
Life Non-life Reinsurance
Public Sector Private Sector
Fig. 2: No. of Insurers
34,8
5,8
13,1
4,7
0
10
20
30
40
50
60
Life Non-life
Public Sector Private Sector
Fig. 3: Gross Premium 2012-13 (USD Billion)
Brazil
Germany
South Africa
Unites States
China
South Korea
Thailand
India
0
2
4
6
8
10
12
14
16
Fig. 1: Insurance Penetration & Density
-10
0
10
20
30
40
50
2202-03 2005-06 2008-09 2011-12
Life Non-life
Fig. 4: Premium Growth (%)
Indian Insurance Industry – A Snapshot
Source: Annual Report 2012-13, IRDA 3
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The Changing Face of Microinsurance
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Individ
ual
Instt./Govt. co-
contribution
Partially
Subsidised
Fully Govt.
Subsidised
Individual
Semi-
formal
Instt.
Insurer
Govt.
CBO
Community
R
I
S
K
C
A
R
R
I
E
R
RSIK
FINANCIER
Informal
Insurance
Social Security
Fig. 5: Coventional Structure
Microinsurance
Individ
ual
Instt./Govt.
co-
contribution
Partially
Subsidised
Fully Govt.
Subsidised
Individual
Semi-
formal
Instt.
Insurer
Govt.
CBO
Community
R
I
S
K
C
A
R
R
I
E
R
RISK
FINANCIER
Informal Insurance
Social
Security
Fig. 6: The New Paradigm
Microinsurance Social
Micro
insurance
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Current Status of Microinsurance in India
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• Total Coverage – 422.11 mn • Social MI coverage 311 mn • 31% growth in coverage • 49% growth in premium • 69.6% - India’s share in Asian growth
Rural & Social Sector Obligation
Microinsurance Products
Mutuals
Social Microinsurance
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How is Microinsurance Delivered?
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Subsidized Model
Voluntary Model
Compulsory Model
Governments
Insurers Insurers Mutuals/ Insurers
Mutuals / CBOs / NGOs
MFIs/ Banks
Absent
State Exchequer
Insured Members
Insured Members
MFIs / Banks
Mutuals / CBOs / NGOs
Driver
Risk Carrier
Distributor
Financier
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What Has Been The Expereince?
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Parameter Subsidized
Model
Compulsory
Model
Voluntary
Model
Scale High High Low
Client Value Low Low High
Sustainability
Potential
High High Low
Renewal Rates Low Low High
Utilization Erratic Stable Stable
Vulnerability to
Adverse Selection
Low Low High
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The Challenge
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Client Value & Utilization
Scale and Sustainability
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Manufacturers
Distributors
The Current Scenario
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Looking Ahead
10
Manufacturers
Distributors
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THANK YOU