Presentation on Indian Insurance SectorSubmitted to: Prof. Kaushik Das Submitted by: Prashant Maharshi ISBE/PGP/SS/2011-13
What is Insurance? Insurance is concerned with protection of economic value of assets. Tangible assets are human beings, house, furniture, motor cycle etc. Intangible assets are liabilities History of Insurance It started from Lloyd’s coffee house London First policy issued in England in 1583 In India first policy issued in 1870 Classes of Insurance A. Life insurance B. General insurance General insurance is further classified:- 1.Fire insurance 2.Marine insurance 3.Miscellaneous insurance
Players in Life Insurance Companies 1.Bajaj Allianz Life Insurance Company Ltd 2.Birla Sun Life Insurance Company Ltd 3.HDFC Standard Life Insurance Company Ltd 4.ICICI Prudential Life Insurance Company Ltd 5.Max New York Life Insurance Company Ltd 6.SBI Life Insurance Company Ltd 7.Tata AIG Life Insurance Company Ltd 8.Reliance Life Insurance Company Ltd, etc. Players in General Insurance Companies 1.Bajaj Allianz General Insurance Company Ltd 2.Icici Lombard General Insurance Company Ltd 3.Reliance General Insurance Company Ltd 4.Bharti AXA General Insurance Company ltd 5.SBI General Insurance Company Ltd 6.L & T General Insurance Company Ltd 7.Tata AIG General Insurance Company Ltd 8.Agriculture Insurance Company Of India Ltd, etc.
Regulatory Body Insurance Regulatory & Development Authority (IRDA) is the controlling and regulatory apex body in the country for insurance sector and its chairman and members are appointed by Government of India. IRDA’s HQ is located at Hyderabad. It was constituted as a body to regulate and develop the insurance industry in 1999, and was incorporated as a statutory body in April, 2000. The Key objectives of IRDA is promotion of competition to satisfy customer choice with lower premiums. The IRDA opened up market in August 2000. Foreign companies were allowed ownership up to 26%. Role of IRDA : Protecting the interest of policyholders. Establishing guidelines for the operations of insurers, and brokers. Specifying the code of conduct, qualifications, and training for insurance intermediaries and agents. Promoting efficiency in the conduct of insurance business. Regulating the investment of funds by insurance companies.
PEST Analysis Political factors affecting insurance industry Insurance business in rural/ social sector Capital requirement Renewal of registration Requirement as to capital Investment of funds outside India Power to investigation or inspection Tax policy and insurance sector Economical factors affecting insurance industry Adequacy of capital Increased economical activity Interest rates Inflation rate Market related factors Customer satisfaction
Socio-Cultural factors affecting insurance industry Population Life style Educational level Level of earning Societal benefits Technological factors affecting insurance industry Maintaining the database E-business insurance in India
SuggestionsThe present scenario is such that the products sold with the help of Internet.The technological advancement is such that force the companies to take suchsteps.Still the full-fledged use of Internet is not done in our country. As suggestionearlier the Internet based life insurance will help the companies to reduce thetransaction cost and time. At the time it can improve the quality of service to itscustomers, which is the mission of the company.Company should concentrate on the quality of the premium received this willhelp the companies to reduce its underwriting losses. Appointing of proper andefficient agent as well as effective direct marketing could do this.By way of training the excessive staff, which is a major problem in the company,the company could reduce management expense to a large extent.