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Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
Trends in insurance sector
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Trends in insurance sector

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  • 1. TYBBI TRENDS IN INSURANCE SECTOR 1 INTRODUCTION Insurance may be defined as: - It is a contract between two parties where by one party undertakes to compensate the party for the loss arising due to an uncertain events for which the another party agrees to pay a certain amount regularly.´ In India, insurance has a deep-rooted history. Insurance in India has evolved over time heavily drawing from other countries, England in particular. The insurance sector in Indiahas come a full circle from being an open competitive market to nationalization and back to aliberalized market again. The business of life insurance in India in its existing form started inIndia in the year 1818 with the establishment of the Oriental Life Insurance Company inCalcutta. The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business.Today there are 14 general insurancecompanies and 14 life insurance companies operating in the country. But today also theinsurance companies are trying to capture Indian markets as not many people are aware of it. The insurance sector is a colossal one and is growing at a speedy rate of 15 20%.Together with banking services, insurance services add about 7% to the country GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long-term funds for infrastructure
  • 2. TYBBI TRENDS IN INSURANCE SECTOR 2 development at the same time strengthening the risk taking abilityof the country. India is about 200 million middle class household shows a huge untapped potential for players inthe insurance industry. Saturation of markets in many developed economies has made the Indianmarket even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in market.The main objective of the researcher through this study is to understand the market scenario bystudying different companies and their strategies, their objectives and management What is Insurance: System whereby individual and companies concerned about potential hazards pay premiumto an insurance company.Which reimburses (in whole or part) them in the event of loss. Theinsurer profits by investing the premiums it receives. Some common forms of insurancecover business risk, automobiles, homes, boats workers compensation and health lifeinsurance guarantees payment to the beneficiaries when the insurance person dies. In a boardeconomic sense, insurance transfer risk from individual to a larger group which is better ableto pay for losses. The Importance of Insurance: When you hear the word insurance, the words boring and mundane probably enter your mind. It is realized that insurance is not a fun topic to discuss or think about, yet it is important and servesto protect your financial future. It is comforting to think that nothing will ever happen to you andthat you are invincible. But odds are that you are likely to get into a car accident or have some type of health problem at some point in your life, and when that happens, you will want to have insurance. So when you question whether you need insurance, the answer is a resounding yes, you definitely
  • 3. TYBBI TRENDS IN INSURANCE SECTOR 3 need insurance.It may seem like insurance is a waste of resources- spending money on something that may or may not happen. Since you cannot predict the future, it is important to protect yourself and your possessions against damage and harm. Insurance is all about protection- it protects you against an unfortunate incident such as a car accident, a robbery, or an illness. The moment an unexpected ill-fated event happens, you will be so glad you have insurance. Medical bills from a minor accident can deplete your savings and force you into bankruptcy. Insurance is not a rip off, but rather an essential financial service. DEFINITION General definition: In the words of John Magee, ―Insurance is a plan by which large number of people associate themselves and transfer to the shoulders of all, risks that attach to individuals.‖ Fundamental definition: In the words of D.S. Hansel, ―Insurance may be defined as a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all parties participating in the scheme.‖ Contractual definition:
  • 4. TYBBI TRENDS IN INSURANCE SECTOR 4 In the words of justice Tindal, ― Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.‖ INSURANCE SECTOR IN INDIA Insurance sector in INDIA is booming up but not to level comparative with the developed economies such as Japan, Singapore etc. Also with the opening of the insurance sector to the private players have provided stiff competition resulting into quality products. Also there is a need to restructure the Indian Government owned ― Life insurance Corporation of India ― so as to maximizerevenue and in turn profits. IRDA regulations and norms for the allocation of fundsneed to have a comprehensive look. In the phase of declining interest rates and rising inflation the funds need to be applied in productive areas so as to generatehigh returns. Also in terms of clients servicing areas such as premium payments,after sales service, policy dispatch, redressal of grievances has to be amended. Inthe current scenario, LIC has to provide flexible products suited to the customer’srequirements. Also a proper and systematic risk management strategy needs to beadopted. After the increase in terrorism and destructive events around the globalworld such as September 11 attack on World Trade Centre, US – Taliban war, US – Iraq war etc.. An alternative to reinsurance such as asset backed securities isemerging out in the developed economies. Catastrophe bonds are one of thealternatives for reinsurance. Finally some policies such as pure term and pensionschemes needs to be addressed massively at both the urban and the rural segments as to generate high premium income which will help in the development andgrowth of the economy.
  • 5. TYBBI TRENDS IN INSURANCE SECTOR 5 HISTORICAL BACKGROUND Oriental insurance co. Was the first British insurance company to start its business in 1818. Bombay mutual life assurance society was the first insurance company in India (1870). Life insurance business was nationalised in 1956. General insurance was nationalised in 1971.
  • 6. TYBBI TRENDS IN INSURANCE SECTOR 6 The insurance sector is divided in two parts life and general or non-life. Insurance Life Non-life/General Life insurance deals with only human lives and non-life deals with other than human life. Insurance is divided into two segments i.e. Life and non-life/general and each segment have developed independently therefore it is being discussed separately in the following paragraphs. In 2000, Indian insurance sector has taken U turn i.e. Privatization (private insurance companies to nationalization (Government Companies) to Privatization/mixed economy (Private/Government companies). Before we discuss how it has happened we would like to enlighten you the past history of insurance in India in brief. LIFE INSURANCE In 1870 two British life insurance companies entered in India and attempted to do life insurance business on Indian lives. After that many Indian & foreign companies started business in India and by the year 1955 there were 255 insurance companies operating in India and transacting the business to the extent of Rs 200 crores. Due to the following reasons the Government decided to nationalize the life insurance industry w.e.f 1/7/1956. 1. No full guarantee to the Policyholders (who are insured). 2. The concept of trusteeship (confidence) was lacking. 3. Many insurance companies went into liquidation (bankrupt). 4. There was malpractice in the business. 5. Non-Spreading of life insurance. 6. No insurance in rural areas. 7. No group insurance 8. No social security
  • 7. TYBBI TRENDS IN INSURANCE SECTOR 7 To overcome the abovementioned problems the life insurance business was nationalized and formed Life Insurance Corporation with following features: 1. The Central Govt. guaranteed the Policyholders through the LIC. 2. Being a Corporation formed under Special Act Passed by the Parliament therefore the public can trust. 3. The LIC cannot be liquidated without the order of the Central Govt. 4. Under the LIC Act, all day-to-day functions of the Corporation and the method of Investment in Govt. Securities were defined. Therefore, the malpractices were eliminated. 1.3 GENERAL INSURANCE Prior to nationalization of the General Insurance Business in 1972 by enactment of the General Insurance Business Nationalization Act 1972 (GIBNA 1972) there were 55 Indian Companies and 52 non-Indian Companies carrying of the business of General Insurance in India. ―The primary objective of nationalization of general Insurance was to make it meaningful to the common man, to carry its message to the remotest corner of the country and to give it its rightful place in the economy of the country. When it was in the private sector it was a mere handmaid to trade and industry and served to cater to the interests of a limited clientele. Worse still it functioned in a manner favoring the interests of a few at the expense of, needless to say, the majority. There were allegations of malpractices on a big scale.‖ ―It was the objective of nationalization to remove these malpractices and usher in an era of Insurance run on sound business principles and functioning on healthy and egalitarian lines. The emphasis should be on spreading the message of
  • 8. TYBBI TRENDS IN INSURANCE SECTOR 8 Insurance as widely as possible and on ensuring that it gives the right weightage to the weaker sections of the society. The principle of competition must have its useful role to play, but not at the expense of unhealthy rivalry.‖ ―General Insurance is a service and proper and efficient service is due to the policyholder as a matter of right. The Corporation exists for the benefit of the policyholder.‖ ―Business must cease to work under purely mercenary motives. Whenever, one feels the need for protection against an unpredictable contingency, a suitable Insurance cover should be available. No excuse should be given that a particular cover is not conventionally given or that other markets of the world do not give it.‖ ―Healthy employer-employees relationship is of vital importance to achieve the main objectives of nationalization.‖ Recent trends in insurance sector
  • 9. TYBBI TRENDS IN INSURANCE SECTOR 9 CHANGING TRENDS IN LIFE INSURANCE POLICY: Along with the other objectives of insurance like financial security, tax benefits etc. one of the major objectives is saving and investment. Traditional life insurance policies like endowment were becoming unattractive and not meeting the aspirations of the policyholders as the policyholder found that the sum assured guaranteed on maturity had really depreciated in real value because of the depreciation in the value of money. The investor was no longer content with the so called security of capital provided under a policy of life insurance and started showing a preference for higher rate of return on his investments as also for capital appreciation. It was, therefore found necessary for the insurance companies to think of a method whereby the expectation of the policyholders could be satisfied. The objective of providing a hedge against the inflation through a contract of insurance pushed insurer to link the insurance policy with market and thus the industry observed the beginning of Unit linked insurance policy (ULIP). Current trends of the general insurance market The recent development in the general insurance sector is the activities by the insurance regulator. The IRDA has been very stringent and has been keeping a close-watch on the functioning of all the insurance companies. The latest regulation from IRDA is on health insurance portability. In the future, general insurance industry will be very much in the limelight than any other industry facing recession now. Online selling of insurance policies to discerning customers, who access the Internet will gain momentum. Typically motor, travel and health policies will be sold more online. Many insurers have already realised this and are creating separate verticals to exploit this segment. The interplay of technology & telecom solutions will be a major factor determining the growth of the industry in the future. Till recently, micro-insurance on the lines of micro-finance, is thought to be a magic word and insurers planned to bring retail products to suit this segment. One major problem affecting the industry, like in all developing economies is the shortage of trained insurance professionals and technicians at all levels. So companies that are able to recruit and grow talent that continue to provide innovative insurance solutions for the underserved Indian market will be the ones that will rise and shine in the general insurance industry. The market is large and set for rapid growth but the ones that take the required calculated risks, have the right
  • 10. TYBBI TRENDS IN INSURANCE SECTOR 10 technical expertise, do not blindly go after market share and are customer-centric in their approach to the market will be the ones to benefit from this growth and become one of the biggest and best run insurance companies in the world. OBJECTIVE OF TRENDS Government of India initiated certion changes through its new economic policy in 1991. This policy attempted some of the following objectives of trends Reform in industrial policy and indusrial licencing. Developing and partial convertibility of rupee. Reform in trade policy. Reduction of fiscal policy. Simplification of bureaucratic control and procedures. Simplification of foreign investment norms. Reduction of inflationary pressures. Reducing control of investment norms.
  • 11. TYBBI TRENDS IN INSURANCE SECTOR 11 Change in enactment like FERA ( FOREIGN EXCHANGE REGULATORY AUTHORITY) and MRTP ( MONOPOLIES AND RESTRICTIVE TRADE PRACTICE ) Opening up of insurance to the private sector will substially help in enhancing saving mobilization offering anew range of insurance products, covering a large population and increasing the average per capita insurance premium. POLICIES OF TRENDS These policies are in 5 parts: A)The general policies of developing nongovernmental sectors and preventing the government section to become larger. B )The general policies of cooperative sections. C)The general policies of developing nongovernmental sectors via assigning activities of the government sector and their donation. D).The general policies of privatization. E).The general policies and government practices to avoid monopoly.
  • 12. TYBBI TRENDS IN INSURANCE SECTOR 12 Policies And Measures To Develop Insurance Market The Authority has taken a pro-active role in the establishment of a vibrant Insurance market in the country by taking the following steps: i) The market regulation by prudential norms, ii) The registration of players who have the necessary financial strength to withstand the demands of a growing and nascent market, iii) The necessity to have ―fit and proper‖ person in-charge of businesses, 4 The implementation of a solvency regime that ensures continuous financial stability, and above all, v) The presence of an adequate number of insurance companies to provide competition and choice to customers all these steps lead to the establishment of a regime committed to an overall development of the market in normal times. vi) Prescribed rural and social sector norms in respect of Insurance business being underwritten by the companies. vii) The companies have also been asked to devise insurance policy to specific sector in the economically weak population. Research and Development Activities Undertaken by the Insurance companies The insurers have been conducting market research either in-house or through professional agencies i) to introduce tailor-made products targeted at specific segments of the population so that Insurance can become more meaningful and affordable. ii) Risk assessment studies are being carried out for measuring accumulation of risk of a particular place at any one point of time. iii) Consumer awareness campaigns are being encouraged to improve insurance literacy levels by conducting
  • 13. TYBBI TRENDS IN INSURANCE SECTOR 13 workshops, distributing literature etc. Protection of Interests of Policyholders To protect the interests of holders of Insurance policies and to regulate, promote and ensure orderly growth of the Insurance industry the Authority has taken the following steps: i) a leading consumer activist has been inducted into the Insurance Advisory Committee. ii) In addition to this member, this committee has drawn representation form the industry, Insurance agents, women’s organizations and other interest groups. iii) While the Government has taken steps to strengthen the Boards of the State-run companies by inducting representatives from consumer organization and policyholder, iv) the Authority, on it part, was careful to ensure that all the new private companies registered have a director representing consumer interests on their Boards. v) In addition to this measure all insurers have been advised to streamline their grievance redressal machinery and set benchmarks for efficient and effective service. vi) All insurance companies are adhering to the Insurance Ombudsman scheme formulated by the Government and complaints against insurance companies are being referred to them by the aggrieved policyholders from time to time. vii) The Authority is conscious of the fact that the fine print should not take away what the bold print promises and in this regard has come out with the Insurance Advertisement and Disclosure Regulations which ensure that the Insurance companies adhere to fair trade practices and transparent disclosure norms while addressing the policyholders or the prospects. viii) All Insurance intermediaries, before obtaining a licence, or at the time of renewal of licence, are required to undergo compulsory training to ensure that they can service the policyholders better by being well trained and informed.
  • 14. TYBBI TRENDS IN INSURANCE SECTOR 14 ix) Guidelines have been issued to insurers to file their existing and new products with the Authority. In case of new products insurers are required to submit details of �premium rating, �policy conditions, �proposal form, �claim form, �underwriting manual and �the system in vogue to review the rates, terms and conditions in future. �In addition to this, they are required to furnish certificates from advocates and actuaries that the statements made are true and accurate and are not in violation of any law and �that the policy wordings are simple and easily understandable to a policyholder. A FEW ALTERNATIVE DISTRIBUTION CHANNELS HAVE EVOLVED IN THE RECENT YEARS SUCH AS: online and internet The internet penetration in India has been on the rise, whereby increased number of people have access to internet both through computers as well as through mobile phones, including population in tier-2 and tier-3 cities. Direct marketing and telemarketing With increasing telecom penetration in India, the use of direct marketing via database marketing is growing. Direct access to the customer and savings in
  • 15. TYBBI TRENDS IN INSURANCE SECTOR 15 intermediary cost make it an attractive option for the companies and is the key in development of the channel Customer Service One of the innovations that some of the insurers have introduced is opening up of ―call centers‖ which are functioning on a 24x7 basis. These centers act not only as enquiry offices for new business to be developed but also function as points of reference and records for claims, which have arisen. It is note worthy to find that some of the new insurers have found it possible to settle claims within 24 to 48 hours. STRATEGIES FOR BETTERMENT AFTER trends in insurance sector Maximising customer satisfaction. Introducing new technologies. Improving promotional mix. Updating research and development. Strategic approach to fund management. Diversification. Minimum government interference.
  • 16. TYBBI TRENDS IN INSURANCE SECTOR 16 OPPORTUNITIES Mass Marketing: India is a highly populated country and would continue to be so in the near future.New players may tend to favour the "creamy" layer of the urban population. But, indoing so, they may well miss a large chunk of the insurable population. A strongcase in point is the current business composition of the dominant market leader -the Life Insurance Corporation of India. The lion's share of its new business comesfrom the rural and semi- rural markets. In a country of 1 billion people, massmarketing is always a profitable and cost-effective option for gaining market share.The rural sector is a perfect case for mass marketing. Job Opportunities: Job opportunities are likely to increase manifold. The liberalization of theinsurance sector promises several new job opportunities for those who areequipped with degrees in finance. Finance professionals who had witnessed aslump in the job market would be much relieved.There will be demand for marketing specialists, finance experts and humanresource professionals. Reinsurance: Huge capacity is likely to be created in the area of reinsurance. Apart from purereinsurance activities, which involve providing insurance protection, there will bea revolution in service-related fields like training, seminars, workshops, know-howtransfer regarding risk assessment and rating, risk inspections, risk managementand devising new policy covers, etc.
  • 17. TYBBI TRENDS IN INSURANCE SECTOR 17 Marketing Strategies: Also, with more players in the market, there will be significant increase inadvertising, brand building, and this will benefit whole lot of ancillary industries.A substantial shift is likely to take place in the distribution of insurance in India.Many of these changes will echo international trends. Worldwide, insuranceproducts move along a continuum from pure service products to pure commodityproducts. Initially, insurance is seen as a complex product with a high advice andservice component. Buyers prefer a face-to-face interaction and place a highpremium on brand names and reliability. Bancassurance: In other markets, notably Europe, this has resulted in bank assurance: banksentering the insurance business. The Netherlands led with financial services firmsproviding an entire range of products including bank accounts, motor, home andlife insurance, and pensions. Other European markets have followed suit. InFrance, over half of all life insurance sales are made through banks. In the UK,almost 95% of banks and building societies are distributing insurance productstoday.In India too, banks hope to maximize expensive existing networks by selling a range of products. Information Technology Worldwide interest in E-commerce and India's predominant position inInformation Technology and software development are also likely to be majorfactors in the marketing of insurance products in the immediate future. The numberof Internet account is increasing and the trend has already been set by some of theleading insurers and insurance brokers worldwide.
  • 18. TYBBI TRENDS IN INSURANCE SECTOR 18 CHALLENGES 1)Technology: In today's highly competitive financial services environment, effectiveorganizations will employ technology in a strategic way so to achieve acompetitive edge. Technology will play an increasing role in aiding design andadministering of products, as well in efforts to build life- long customerrelationships. At the same time, investment in technology will only help as long asfirms find the right people: people with the right attitude, values, and ethics,commitment to excellence, and focus on customer service. Competition: Thus, apart from the normal issues facing any new company, many new Indianprivate insurance players will need to cope with the challenges of working with ajoint venture partner. They will be competing with large and well-entrenchedgovernment-owned players. They have to overcome regulatory hurdles, change theattitude of new recruits and satisfy some very high customer expectations. Also,the players will have to consider the Indian market as a long-term investment, andmaintain clear-cut objectives and constant monitoring at all levels.
  • 19. TYBBI TRENDS IN INSURANCE SECTOR 19 List of Private Insurance Companies in India Following is a list of leading private non life insurers in India and their gross premium statistics for June 2012, and June 2011: Company Figure for June 2012 in INR crores Figure for June 2011 in INR crores Royal Sundaram 64.78 77.46 Tata AIG 47.14 36.50 Reliance General Insurance 80.45 79.03 IFFCO Tokio 36.55 58.23 ICICI Lombard 348.98 423.54 Bajaj Allianz 136.20 109.84 HDFC Ergo 143.86 123.40 Cholamandalam 87.21 51.71 Future Generali 32.29 37.30 Universal Sompo 17.57 12.22 Bharti AXA 66.30 39.33 SBI 1.99 1.45 L&T 3.94 0.10
  • 20. TYBBI TRENDS IN INSURANCE SECTOR 20 Star Health & Allied Insurance 176.90 406.13 Apollo Munich 97.31 67.73 Max Bupa 36.39 14.13 ALLIANZ BAJAJ LIFE INSURANCE COMPANY LTD Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the world's largest insurance companies, and Bajaj Finserv. Allianz SE is a leading insurance corporation globally and one of the largest asset managers in the world, that manage assets worth over a Trillion. With over 115 years of financial experience, Allianz SE is present in over 70 countriesaround the world. Bajaj Allianz is into both life insurance and general insurance. Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants. In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide travel finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment solutions by offering customized products, supported by the best technology. Contact Address Bajaj Allianz Life Insurance Co. Ltd. GE Plaza, Airport Road Yerawada, Pune - 411006 Website: www.bajajallianzlife.co.in
  • 21. TYBBI TRENDS IN INSURANCE SECTOR 21 ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which is one of India's foremost financial services companies, and Prudential plc, which is a leading international financial services group headquartered in the United Kingdom. ICICI Prudential began the operations in December 2000. Today, this company has over 2100 branches, which include 1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners. ICICI Prudential Life Insurance Company is the first life insurer in India that received a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI Prudential Life Insurance Company has various insurance plans that have been designed for different individuals, as every individual has different insurance needs. Contact Address ICICI Pru Life Towers 1089 Appasaheb Marathe Marg Prabhadevi, Mumbai - 400025 Website: www.iciciprulife.com CONCLUSION Privatization is a widely applied economic policy. It has, incontestably, produced substantial economic benefits by raising profitability and efficiency in firms, by providing financial resources to strapped
  • 22. TYBBI TRENDS IN INSURANCE SECTOR 22 governments, and by signaling to creditors, investors and donors the seriousness and credibility of a government’s shift in economic regime. In developing countries, privatization has most successfully been applied in commercial, industrial, manufacturing and service firms operating in competitive markets. This form of privatization has generally proven its worth: Consumers appreciate improvements in terms of quality and quantity of good or services produced—even when prices increase, which is far from the general case. In most countries, complaints about this sort of privatization have been relatively muted and short-lived. Citizenries may not like the job losses or the foreign ownership of breweries, banks, mines and hotels, but the matter rarely reaches the level of street demonstrations. The more important issue, economically and politically, is that of infrastructure privatization. SUGGESTIONS After conducting the suitable survey we came to know so many relevant suggestions given by people and our valuable experience at time of survey which can be describe as follows: Private Insurance Company should improve the Service.
  • 23. TYBBI TRENDS IN INSURANCE SECTOR 23 Insurance companies should make the procedure of the claim simple and understandable. Insurance company should make more promotion of insurance in rural area. Real time gross settlement can play a very important role. The need of the customer should properly be understood so that customer feelssatisfied. The relationship value should be maintained. ESSENTIAL TO MEET THE CHALLENGES Indian insurance industry needs the following to meet the global challenges: 1 Understanding the customer better will enable insurance companies to design appropriate products determine price correctly and increase profitability. 2 Selection of right type of distribution channels among with prudent & efficient management. 3 An effective CRM system, which would create a sustainable and long lasting relationship.
  • 24. TYBBI TRENDS IN INSURANCE SECTOR 24 4 Should increase the customer base in se mi urban and rural areas, which offer huge potential. LifeInsuranceinIndia,KeyTrendsandOpportunitiesto2015 India’s insurance sector is expected to grow even faster than the country’s overall economic growth, opening up new business avenues across the industry. With a large number of insurance providers already operating in the country, the Indian insurance industry has shown early signs of entering a consolidation phase, and an improved distribution infrastructure, the adoption of new channels and differentiated product offerings will continue to change the competitive landscape significantly. India’s low life insurance penetration rate and the rising awareness of the need for insurance will be key growth factors in the Indian insurance industry. Favorable foreign investment policies and increased capital-raising options will also create an environment for collaborations and joint ventures. India’s reinsurance market is also expected to continue growing, driven mainly by growth in non-life and accident and health insurance. The report provides top-level market analysis, information and insights of the Indian life insurance industry, including: - The Indian life insurance industry’s growth prospects by product category and customer segment - The various distribution channels in the Indian life insurance industry - The competitive landscape in the life insurance industry - A description of the life reinsurance market in India This report provides a comprehensive analysis of the life insurance market in India:
  • 25. TYBBI TRENDS IN INSURANCE SECTOR 25 - It provides historical values for India’s life insurance industry for the report’s 2006–2010 review period and forecast figures for the 2011–2015 forecast period - It offers a detailed analysis of the key sub-segments in India’s life insurance industry, along with market forecasts until 2015 - It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions - It analyses the various distribution channels for life insurance products in India - Using Porter’s industry-standard ―Five Forces‖ analysis, it details the competitive landscape in India for the life insurance business - It provides a detailed analysis of the reinsurance market in India and its growth prospects - It profiles the top life insurance companies in India, and outlines the key regulations affecting them Reasons to Buy: - Make strategic business decisions using top-level historic and forecast market data related to the Indian life insurance industry and each sector within it - Understand the demand-side dynamics, key market trends and growth opportunities within the Indian life insurance industry - Assess the competitive dynamics in the life insurance industry, along with the reinsurance segment - Identify the growth opportunities and industry dynamics within seven key product categories - Gain insights into key regulations governing the Indian insurance industry and its impact on companies and the industry's future Key Highlights - The significant growth in the Indian life insurance market in the review period can be attributed to key growth drivers such as population growth, robust economic growth, lucrative tax benefits, the rising disposable income of India’s middle-class population, and increased awareness of the need for insurance, especially among
  • 26. TYBBI TRENDS IN INSURANCE SECTOR 26 younger people - India is the world’s twelfth-largest life insurance market, and the fourth-largest in the Asia-Pacific region - By 2015, it is expected to surpass South Korea to emerge as the third-largest life insurance Asia-Pacific market after China and Japan - In 2010, the individual life insurance segment accounted for 74.8% of the total Indian life insurance industry, whereas the group life insurance market had a considerably lower market share of 25.2% - Indian customers are increasingly demanding insurance products that offer assured income through annuities - Distribution channels such as bancassurance have gained significant market share in the review period
  • 27. TYBBI TRENDS IN INSURANCE SECTOR 27

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