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CHANGING TIMES

CHANGING TIMES

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Ipp ppt Ipp ppt Presentation Transcript

  • Presented By Sidharth Bijoor (42) Rohit Pareek(51) Smriti Chopra (52) Sagar Jogani (53) Sunil Kheria (55) Rituparna Dutta (58)
  • INTRODUCTION OF THE INSURANCE INDUSTRY IN INDIA  Insurance in India has a deep rooted history. 1818 saw the advent life insurance business in India with the establish of the oriental life insurance company in India.  In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business.  The Government of India issued an Ordinance on 19 January 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year.  In 1914, the Government of India started publishing returns of Insurance Companies in India. An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year
  • In India, since 2000, Government allowed Private players and FDI up to 26% and recently Cabinet approved a proposal to increase it to 49%. Life Insurance in India was nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
  • LIBERALIZATION OF INSURANCE SECTOR • Globalization will provide opportunities to the customers. • Better production with more reasonable and affordable prices. • The customer will get better services. • It will enhance the saving rate. • Long term funds for infrastructure development will be available to the country. • It will secure for India larger inflow of foreign capital need to sustain our GDP growth
  • WHY INSURANCE IN INDIA? We live in the information age. People are becoming more aware of the importance of insurance in their life. Today, natural disasters on a large scale occur regularly and even terrorism is increasing day by day. Specialized software is used in actuarial science to accurately predict life expectancy and mortality. But natural disasters are difficult to predict.
  • When LIC was formed in 1956 through the amalgamation of 225 private companies, its business objectives complemented its social objectives. The main objective is to spread life insurance to every nook and corner of the country especially rural areas, to socially and economically backward classes and provide them reasonably-priced financial cover against death. Even today after 50 years, the core value of social commitment has not changed. What have changed in recent times are customers’ expectations and the environment in which the life insurance sector operates.
  • Insurance companies in India: IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business.
  • KEY PRIVATE PLAYERS IN INDIAN LIFE INSURANCE INDUSTRY: • ING. VYSYA LIFE INSDURANCE • OM KOTAK MAHINDRA LIFE INSURANCE • ICICI PRUDENTIAL LIFE INSURANCE • BIRLA SUN LIFE • AVIVA • TATA AIG
  • INTRODUCTION OF LIC LIC has an excellent money back policy which provides for periodic payments of partial survival benefits as long as the policy holder is alive. 20% of the sum assured is payable after 5, 10, 15 and 20 years and the balance 40% is payable at the 20th year along with accrued bonus. LIC offers 66 different plans; plans are formulated for specific occasions – whole life plans, term assurance plans, money back plan for women, child plans, plans for the handicapped individuals, endowment assurance plans, plans for high worth individuals, pension plans, unit linked plans, special plans, social security schemes – diversified portfolio of products. HDFC SLIC could diversify its product portfolio. It could add more plans for high worth individuals and women.
  • Objective of LIC: Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. Maximize mobilization of people's savings by making insurance- linked savings adequately attractive. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. Act as trustees of the insured
  • Mission/vision: Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development." Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
  • COMPANY PROFILE HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new business premium income at Rs. 1,624 Crores. The company has covered over 8,77,000 lives year ending March 31, 2007.
  • GROUP COMPANIES • HDFC Bank: World Class Indian Bank- among the top private banks in India. • HDFC AMC: One of the top 3 Amc’s in India- Preferred investment manager. Intel net Global: BPO services for international customers. • CIBIL: Credit Information Bureau India Limited. • HDFC Chubb: Upcoming Private companies in the field of General Insurance. • HDFC Mutual Fund • HDFC reality. COM: Helps to search properties in all major cities in India • HDFC securities
  • KEY STRENGTH: Financial Expertise :a joint venture of leading financial services groups Range of Solutions: HDFC has a range of individual and group solutions, which can be easily customized to specific needs
  • PRODUCTS & SERVICES • Endowment Plan • Money Back Policy • Group Insurance Policy • Term Insurance Policy
  • COMPARISON Insurance: A promise of compensation for specific potential future losses in exchange of a consideration. •LIC and state owned general insurance companies have limited policies to offer to their subscribers •Private insurance companies offer many policies and the premium amount as well as the maturity period is much competitive as against those of government owned insurance companies •The private sector insurance players have started exploring the rural markets in which until recently, the state owned insurance companies had monopoly.India’s life insurance premium, as a percentage of GDP is 1.8 percent
  • •Indian insurance sector is likely to register unprecedented growth of 200 percent and attain a size of more than INR 2000 billion by the year 2012-13 •A private sector insurance business will achieve a growth rate of 140 percent as a result of aggressive marketing technique being adopted by them against 35-40 percent growth rate of state owned insurance companies •In rural markets, the share of private insurance players would increase substantially as these have been able to generate a faith among their rural consumers
  • Term Life Insurance Plans (comparison) Insurer LIC ICICI Prudential HDFC Term 30 years 30 years 30 years Sum Assured INR 25 lakh INR 25 lakh INR 25 lakh Smoking Non-smoker Non- smoker Non-smoker Premium INR 7,300 INR 3,350 INR 4,200
  • Some hint details are at IRDA site. COMPANY-----------------CLAIM REJECTION % (2009-10) Aegone Religare - 44% Aviva-9.75 % Bajaj Allianz-5.20% Bharti AXA-22.20% Birla Sunlife-10.62% Future Generali-29.36% ING Vysya-4.26% ICICI Prudential-3.27% Max New York-12.31% Reliance Life-7.05% SBI Life-14.75% Tata AIG-12.93% HDFC- 2.75% LIC-1.21% Now it is your decision you like cheaper or fair claim.
  • Insurance Plans Comparison: Attributes Birla Sun Life Insurance LIC Bajaj Allianz Life Insurance Corporate Life Insurance Group Protection Plans, Group Scheme Plans, Group Term Insurance Plans Group Critical Illness Rider, Group Gratuity Plans, Group Leave Encashment Plan, Group Mortgage Redemption Assurance, Group Scheme Plans, Group Term Insurance Plans, Social Security Plan Group Gratuity Plans, Group Protection Plans, Group Scheme Plans, Group Term Insurance Plans Agent No No No Affiliation Birla Sun Life Insurance Life Insurance Corporation (LIC) Bajaj Allianz Types Life Insurance Life Insurance Corporation (LIC) Life Insurance SMS Short Code 56161 - - Individual Life Insurance Children Plans, Endowment Assurance Plans, Money Back Plans, Protection Plans, Special Plans For Women, Term Assurance Plans Children Plans, Endowment Assurance Plans, Joint Life Plans, Money Back Plans, Plans For Handicapped Dependents, Plans For High Worth Individuals, Protection Plans, Retirement Pension Plans, Special Plans For Women, Term Assurance Plans, Unit Linked Insurance Plans (ULIPS), Whole Life Plans Children Plans, Endowment Assurance Plans, Money Back Plans, Protection Plans, Retirement Pension Plans, Savings And Investment Plans, Special Plans For Women, Term Assurance Plans, Whole Life Plans
  • SWOT ANALYSIS OF HDFC STRENGTHS: Domestic image of HDFC supported by standard life international image is strength of the company. Strong and well spread network of qualified intermediaries and sales person. Strong capital and reserve base. The company provides customer service of the highest order WEAKNESS: Heavy management expenses and administrative costs. Low customer confidence on the private players.
  • OPPORTUNITIES: Insurable population –According to ING only 10% of the population is insure which represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured. There will be inflow of managerial and financial expertise from the world’s leading insurance markets. Further the burden of educating consumers will also be shared among many players. THREATS Reorganization of PSU’s. The all PSU’s have started to redefine their services to attract customer’s attention. A few foreign Insurance companies have been permitted to increase their number branches and its entry has taken away some business of the existing companies.
  • SWOT ANALYSIS OF LIC STRENGTHS: India’s top insurance company and best among Public sector company. Provide better infrastructure than any other Public company. WEAKNESSES: Average waiting time for the customer is 15 to 20 minutes. No separate customer care unit
  • OPPORTUNITIES: Setup a marketing cell at the local branch. Ensure that policies are diversified across several customer segments THEREATS: Growth of private players has led to shifting emphasis from public sector companies.
  • CONCLUSION The products of HDFC Std. LIFE & LIC are no doubt very good and it provides the customized solution to its customer the products offerings are made so very flexible and adaptable in order to get with the customer requirements. All the products and the special offering at LIC loaded with lot of benefits for the customer. LIC is always there to serve its customers with great speed. LIC has a wide network of branches amongst the private sector insurance companies.