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1. INSURANCE
For securing you from risks
By : Lekshmi Narayanan K

2. INTRODUCTION
 Definition:
Insurance is a form of risk management primarily used
to hedge against the risk of a contingent, uncertain loss.
 Insurance, whether life or non-life, provides people with
a reasonable degree of security and assurance that they will
be protected in an event of a calamity or failure of any sort.

3. HOW IT WORKS ?
 Economies of Scale, i.e. the insurer collects premium from a large group of
people individually through a policy and invests them in many forms which
brings high returns. Once an insured person claims, the benefit is provided for
the deceased.
 Underwriting and investing
The business model is to collect more in premium and investment income than is paid out in losses
Profit = Earned premium + Investment income - Incurred loss -
Underwriting expenses.
 Insurers make money in two ways:
 Through underwriting, the process by which insurers select the risks to insure and
decide how much in premiums to charge for accepting those risks.
 By investing the premiums they collect from insured parties.

4. EVOLUTION
 Insurance in modern form originated in the Mediterranean during the
13th century.
 Marine insurance is the oldest form of insurance followed by
life insurance and fire insurance.
 The history of life insurance in India dates back to 1818 when it was
conceived as a means to provide for English Widows.

5. INDIAN EVOLUTION
 Oriental life Insurance Company was the first insurer and was
incorporated at Calcutta in 1818
 Insurance regulation formally began in India through the passing of two
acts
- Life Insurance companies Act of 1912
- Provident Fund Act of 1912
 By 1938 there were 176 insurance companies.
 Nationalization of insurance business took place in 1956

6. CURRENT SCENARIO
 In 1993, Malhotra Committee was formed and several
Insurance Reforms were made.
 Redesigned the Structure
 Increased Competition
 Regulatory body (IRDA)
 Investments
 Customer Service

7. KEY TERMS
 Agent - Individual who sells and services insurance policies.
 Annuity - An agreement by an insurer to make periodic payments.
 Coverage - The scope of protection provided under an insurance policy.
 Claim - A request for payment for a loss under the terms of an
insurance policy
 Policy - The written contract effecting insurance, or the certificate.
 Premium - The price of insurance protection for a specified risk for a
specified period of time.

8. Agricultural Insurance
Credit Insurance
Property Insurance
Mortgage Insurance
Pet Insurance
Interest Rate Insurance
Income Protection

9. IMPORTANCE
 Protection for dependants
 Savings for Old Age
 Encourage Savings
 Initiates Investments
 Credit worthiness
 Social Security
 Tax Benefits

10. Public Sector :
National Insurance Co Ltd
New India Assurance Co Ltd
Oriental Insurance Co Ltd
United India Insurance Co Ltd
LIST OF INSURANCE COMPANIES IN INDIA
Private Sector
Bajaj Allianz Bharti AXA Cholamandalam Future Generali
General Insurance General Insurance MS India Insurance
ICICI Lombard Universal Sompo Royal Sundaram SBI General
General Insurance Insurance
Shriram General Reliance General Tata AIG General HDFC ERGO
Insurance Insurance
Magma HDI L & T General Liberty Videocon IFFCO Tokio
General Insurance Insurance General Insurance

11. 1) LIC
2) ICICI
3) HDFC

12. MARKET STATISTICS
Life Insurance Funds accounts to 15% of household Savings &
may grow upto 20% in future.
Insurance Penetration in India is 2.6% of GDP compared to
Korea(6.77%) & Singapore(6.38%).
India is ranked 19th position in Insurance with a growth of 19%
p.a.
Non Life Insurance have lower penetration and rural people
needs awareness.
620 tn rupees investment is anticipated for infrastructure
development in future.

13. STRATEGIC POLICIES
 Identification of Markets
 Assessment of Risks
 Penetration and exploitation of markets
 control over investment and operating costs
 Finding best prospects
 Newer Marketing Strategies

14. SWOT ANALYSIS
Strengths Weakness
•Strong capital and reserve •High administration & management
expenses
•Technically Skilled Manpower
•Vertical organisational structure
•Innovative product for different
demography •Lower Reliability on Pvt. Players
Opportunities Threats
•Inflow of global managerial & financial •Cut-throat competition
expertise
•New Entrants
•Liberalization results to wider choices
•customers switching to other company
•Introduce global innovations and
practises

15. CONCLUSION
 Today most of the insurance companies are recruiting agents who
are professionals who can sell their unsought insurance products.
 Companies also provide better policies based on customer needs
and demands.
 In this Competitive market companies provide better service
Quality, Pricing, Advertisement and Promotional activities.
 CRM is used to retain the customers and communicate with
them.
 By another 20 yrs 50% of population is expected to have at least
one sort of an insurance.

16. Aviva Life Insurance Company India ING Vysya Life Insurance Company Ltd. Met Life India Insurance Company Ltd.
Limited ING Term Life Plus MET Suraksha - TROP
Life Shield ING Term Life MET Suraksha
Met -MortgageMet-Mortgage Protector
AEGON Religare Life Insurance ICICI Prudential Life Insurance Co. Ltd
Company Limited. Life Guard Return of Premium Reliance Life Insurance Company
Decreasing Term Plan Life Guard Regular Premium Limited.
Increasing Term Plan Home Assure Loan cover term insurance Reliance Simple Term Plan
Level Term Plan Life Guard Single Premium Reliance Special Credit Guardian Plan
Reliance Special Term Plan
Birla Sun Life Insurance Co. Ltd IDBI Fortis Life Insurance Company Ltd. Reliance Credit Guardian Plan
Birla Sun Life Insurance Premium Back Home Assurance
Term Plan Sahara India Life Insurance Co, Ltd.
Birla Sun Life Insurance Term Plan Kotak Mahindra Old Mutual Life Insurance Sahara Kavach
Birla Sub Life Insurance HNWI Term Plan Limited
Kotak Premium Return Plan Shriram Life Insurance Co. Ltd.
Bharti AXA Life Insurance Company Ltd. Kotak Term / Preferred Term Plan Shri Suraksha
Secure Confident
Life Insurance Corporation of India SBI Life Insurance Co. Ltd
Bajaj Allianz Life Insurance Company The Convertible Term Assurance Policy SBI Swadhan
Limited Mortgage Redemption SBI Shield
Protector New Bima Gold
New Risk Care Two Year Temporary Assurance Policy Tata AIG Life Insurance Company
Term Care Anmol Jeevan-I Limited
Amulya Jeevan-I Tata AIG Life LifePlus
Future Generali India Life Insurance Tata AIG Life Raksha 10/15/20/25
Company Limit Max New York Life Insurance Co. Ltd Tata AIG Life Assure
Future Care Five Yr Renewable and Convertible Plan (Non -
Par)
Level Term Plan HDFC Standard Life Insurance Co. Ltd
Loan Cover Term Assurance Plan
Term Assurance Plan
Home Loan Protection Plan

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