LIFE INSURANCE CORPORATION OF INDIA (Insurance Industry)

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Transcript of LIFE INSURANCE CORPORATION OF INDIA (Insurance Industry)

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    Stage 1

    Presentation

    On

    Insurance Industry

    Presenters

    Salil Shrivastava

    Prateek Thakur

    Vijay patel

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    Introduction what is Insurance?

    Insurance is basically a sharing device. The losses toassets resulting from natural calamities like fire, flood,earthquake; accidents, etc. are mate out of thecommon pool contributed by large number of personwho is exposed to similar risks.

    Milestone of Indian life insurance industry:-

    1912:The Indian Life Assurance Companies Act enacted as thefirst statute to regulate the life insurance business.

    1928:The Indian Insurance Companies Act enacted to enable thegovernment to collect statistical information about both life andnon-life insurance businesses.

    1938:Earlier legislation consolidated and amended to by theInsurance Act with the objective of protecting the interests of

    the insuring public.

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    Life Insurance Corporation

    Founded 1 September 1956

    Products Individual Life Insurance ,GroupInsurance and Pension Plans

    Total assets Rs. 8 trillion (US$ 178.4 billion)

    Life Insurance Corporation of India currentlyhas 8 zonal Offices and 101 divisional offices

    located in different parts of India, at least2048 branches located in different cities andtowns of India along with satellite Officesattached to about some 50 Branches, andhas a network of around 1.2 million agents forsoliciting life insurance business from the

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    VISION

    A trans-nationally competitive financial

    conglomerate of significance to societiesand Pride of India".

    MISSION

    "Explore and enhance the quality of life of peoplethrough financial security by providing productsand services of aspired attributes with competitivereturns, and by rendering resources for economic

    development."

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    Customer Composition

    Children Plans

    Plan for handicap dependent

    Endowment insurance planMoney back plan

    Special money back plans

    Whole life plan

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    Many employers sponsor group insurancepolicies for their employees, providing not

    just life insurance, but sickness andaccident benefits and old-age pensions.Employees contribute a certainpercentage of the premium for these

    policies.

    These Practices emphasis on importance

    of insurance among the employees

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    Market Share

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    LIC (Life Insurance Corporation of India) stillremains the largest life insurance companyaccounting for 64% market share. Its share,however, has dropped from 74% a year before,

    mainly owing to entry of private players withinnovative products and better sales force.

    ICICI Prudential Life Insurance Co Ltd is the biggestprivate life insurance company in India. It experienced

    growth of 58% in new business premium, accountingfor increase in market share to 8.93% in 2007-08 from6.97% in 2006-07.

    Bajaj Allianz Life Insurance Co Ltd has reported a

    growth of 52% and its market share went up to 6.98%in 2007-08 form 5.66% in 2006-07. The company

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    HDFC Standard Life Insurance Co Ltd withan income of Rs 2,680 crore in FY2007-08,registering a year-on-year growth of 64%. Its

    market share is 2.88% and it ranks 6 th among theinsurance companies and 5th amongst the privateplayers.

    Birla Sun Life Insurance Co Ltd market share ofthe company increased from 1.22% to 2.11% in

    2007-08. The company moved to the 7th positionin 2007-08 from 8the a year before, pushing downMax New York Life insurance company.

    Max New York Life Insurance Co Ltd has reported

    growth of 73% in 2007-08. Total new business

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    Kotak Mahindra Old Mutual Life InsuranceLtd the fiscal 2007-08, the company reportedgrowth of 80%, moving from the 11th position

    to 9th. It captured a market share of 1.19% in2007-08. Last year the company doubled itsbranch network to 150 from 74.

    Aviva Life Insurance Company India Ltd

    ranking dropped to 10th in 2007-08 from 9thlast year. It has presence in more than 3,000locations across India via 221 branches andclose to 40 bank assurance partnerships.

    Aviva Life Insurance plans to increase its

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    SBI Life Insurance Co Ltd in terms of newnumber of policies sold, the companyranked 6th in 2007-08. New premiumcollection for the company was Rs4,792.66 crore in 2007-08, an increase of87% over last year.

    Reliance Life Insurance Co Ltd Totalcollected was Rs 2,792.76 crore and itsmarket share went up to 2.96% from

    1.23% a year back. It now ranks 5th in

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    Competitor Composition

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    SWOT

    Strength

    brand image, govt.gurantee,pan-indiapresence,cliam settlement

    Weakness

    lethargic staff, large scale of corruption,ultra slow decision

    Opportunitiespension market, health market

    Threats

    New players, internal discord

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    Conclusion

    Conclusions:

    The insurance business is at a critical stage

    in India. Over the next two decades we arelikely to witness high growth in the insurancesector for three reasons.Financial deregulation always speeds up the

    development of the insurance sector.Growth in income also helps the insurancebusiness to grow.In addition, increased longevity and Aging

    population will also spur growth in health andpension segments.