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insurance

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insurance

  1. 1. Insurance :- A happiness BeyondLife’s Barrier By:- Chandramauli Pandey M.B.A. 2nd Sem. 1
  2. 2. LifeInsurance Non-LifeInsurance 2
  3. 3. LIFE INSURANCE Life insurance is a contract between an Insurance Policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones. LIC is the largest insurance company and accounted for the market share of 70 per cent in FY11 Share of private sector has been increasing over the years; it increased from around 2 per cent in FY03 to around 30 per cent in FY11 3
  4. 4. Non-Life Insurance/(General Insurance) A form of insurance mainly concerned with protecting the policy holder from loss or damage caused by specific risks The non life insurance market has grown from USD2.6 billion in FY02 to USD9.1 billion in FY11 . Over FY03-11, non life insurance premiums have increased at a CAGR of 14.5 per cent 4
  5. 5. 2000 onwards 1993-99 1956-1972 •Post Malhotra liberalization, the Committee insurance industry recommended has recorded opening up the significant growth insurance sector and the number of to private private players •All life insurance players. companies were increased to 41 inBefore 2011* nationalised to form1956 LIC in 1956 to •IRDA, LIC and Customers are increase penetration GIC Acts were more conscious of and protect policy passed in 1999, the benefits of •The life holders from making IRDA insurance and its mismanagement. the statutory insurance regulatory body importance. sector was •The non life for insurance made up of 154 domestic life insurance business and ending the insurers, 16 was nationalised to monopoly of LIC 5 foreign life form GIC in 1972 and GIC insurers and 75 provident funds
  6. 6. ADVANTAGE INDIA Strong demand Policy support Growing interest towards •Tax incentives on insurance products. insurance among people. •Passing of Insurance Bill gives IRDA flexibility to frame Innovative products and regulations distribution channels Advantage India Increasing investments Attractive•Growing participation of the private opportunities sector with market share of 30 per •Life insurance in low-income urban cent in FY11 as against 2 per cent in areas. FY01. 2015E – Expected Market size: 6 Government’s proposed increase in USD139 billion for 2015; estimate FDI limit to 49 per cent from 26 per according to BMI; cent will further fuel investments.
  7. 7. Types of Insurance Automobile insurance Credit insurance Property insurance Fire insurance Earthquake insurance Flood insurance Home insurance Boiler insurance Terrorism insurance 7
  8. 8. INSURANCE COMPANIES IN INDIA HDFC Standard Life Insurance Co. Ltd. Max New York Life Insurance Co. Ltd. ING Vysya Life Insurance Co. Pvt. Ltd. Life Insurance Corporation of India. ICICI Prudential Life Insurance Co. Ltd. Kotak Mahindra Life Insurance Co. Ltd. Iffco Tokyo General Insurance Co. Ltd. Metlife India Insurance Co. Pvt. Ltd. Oriental Insurance Co. Ltd. SBI Life Insurance Co. Ltd. National Insurance Co. Ltd. Reliance General Insurance Co. Ltd. 8
  9. 9. IRDA GOVERNS THE INDIAN INSURANCE SECTOR Public(1) Life Insurance (24 players) Private (23) Public(6) Insurance Non-Life Ministry of Finance Regulatory and Insurance Development(Government of Authority (24 players) India) (IRDA) Private (18) Re-insurance (1 player) Public (1) 9
  10. 10. INSURANCE REGULATORY &DEVELOPMENT AUTHORITY (IRDA) The regulator for insurance business in India is IRDA. IRDA was established in 2000 IRDA’s functions: To regulate, promote and ensure orderly growth of the insurance business and reinsurance business in India To protect the interests of policy holders 10
  11. 11. CONCLUSION Share of private sector players has increased to 30 per cent from 2 per cent over FY03-11. Enormous opportunities available. Penetration rate of Life Insurance has increased to 4.4 per cent in FY11 from 2.2 per cent in FY02 (i.e. Above Global avg. of 4.0 percent) 11
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