PUBLISHED BY ANCHAL GOEL ON THE TOPIC - INSURANCE INDUSTRY IN INDIA

3.  A financial device or contract to mitigate or eliminate risk of loss
to life and property.
 Form of risk management used to hedge against the risk of a
contingent or uncertain loss.
 Insurance can be defined as- A legal contract b/w two parties
whereby one party (insurer) undertakes to pay a fixed amount of
money on the happening of a particular event, which may be
certain or uncertain.
 Premium: The other party (insured/ assured) pays in exchange a
fixed sum of money.
 Policy: The document which embodies the contract.

4. General characteristics
 Risk sharing: A device to share the financial loss which may be
afflict the individual or his/ her family members.
 Risk assessment
 Cooperation: among the large number of persons who come together
voluntarily to share the financial loss.
 Payment at the time of contingency: For payment to be made at the
time of contingency.
 Quantum of compensation: value of compensation depends on the
extent of loss suffered by the insured from a particular risk.
 Larger the number, Better the care: small no. of insured- higher
premium- unaffordable- unpopular.

5. PRINCIPLES
Principle of Insurable interest.
 Principle of Utmost Good Faith.
 Principle of Indemnity.
 Principle of Subrogation.
 Principle of Contribution.
 Principle of Causa Proxima (Nearest Cause).
 Principle of Mitigation of Loss.

9. The Insurance Act, 1938 to govern all form of insurance
and to provide strict control over insurance business.
 Insurance Regulatory And Authority Act, 1999 (to
provide) for the establishment of an authority to protect the
interest of the holder of insurance policy, to regulate,
promote and ensure orderly growth of insurance industry
and for matter connected therewith or incidental thereto
and future to amend the Insurance Act, 1938, the Life
Insurance Corporation Act, 1956 and the general insurance
business (Nationalization) act, 1972.
The Actuaries Act, 2006: An Act to provide for
regulating and developing the profession of Actuaries and
for matters connected therewith or incidental thereto.

10.  Insurance Regulatory & Development Authority is
regulatory and development authority under
Government of India in order to protect the interests of
the policyholders and to regulate, promote and ensure
orderly growth of the insurance industry.

11.  There are mainly two large organisations in indian
insurance industry:
i) ii)

12. 12
Historical Perspective
(i) Prior to 1956 242 companies operating
(ii) 1956 – 2001 Nationalisation – LIC
Monopoly player
Government control
(iii) 2001 Opened up sector
(iv) Present structure Fully owned by Government

13. 1. Bajaj Allianz Life Insurance Co. Ltd.
2. Birla Sun Life Insurance Co. Ltd. (BSLI)
3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE)
4. ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU)
5. ING VYSYA Life Insurance Co. Ltd. (ING VYSYA)
6. Max New York Life Insurance Co. Ltd. (MNYL)
7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE)
8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
9. SBI Life Insurance Co. Ltd. (SBI LIFE)
10. TATA AIG Life Insurance Co. Ltd. (TATA AIG)
11. AMP Sanmar Assurance Co. Ltd. (AMP SANMAR)
12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)
13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE)

14.  Life Insurance is the only sector which garners long
term savings
 Spread of financial services in rural areas and
amongst socially less privileged
 Long term funds for infrastructure
 Strong positive correlation between development of
capital markets and insurance /pension sector
 Employment generation

15.  The government nationalised the general insurance
business in1972.
 107 insurers, including branches of foreign companies
operating in india, were amalgamated and grouped
into four companies namely: The national insurance
company limited (kolkata); The new india Assurance
co. ltd.(mumbai); The oriental insurance co. ltd.
(delhi); and The united india Assurance co.
ltd.(chennai).

16. Life Insurance General Insurance
Life Insurance Corporation of India. General Insurance Corporation of India.
1. Oriental Insurance Company Ltd.
2. New India Assurance Company Ltd.
3. National Insurance Company Ltd.
4. United India Insurance Company Ltd.
ICICI Prudential Life Insurance Ltd. Bajaj Alliaz General Insurance Company Ltd.
Tata AIG Life Insurance Corporation Ltd. Reliance General Insurance Company Ltd.
ING Vysya Life Insurance Corporation Ltd. Tata AIG General Insurance Company Ltd.
Kotak Mahindra Life Insurance Corporation
Ltd.
Royal Sundaram Alliance Insurance Company
Ltd.

17. The Insurance Industry in 2015: Trends and Innovation
Posted by Parker Beauchamp on Feb 18, 2015
 4 Important Insurance Trends for 2015: Growing connectivity between the real and digital worlds will
determine major and innovative trends in 2015. Insurance companies will continue to invest in digital tools
needed to enhance products and services delivered to policyholders, increase operations efficiencies, and better
connect networks of partners and providers. Below are four technologies insurance companies should strive to
integrate in 2015:
i) Big Data Analysis : Analysis based programs can help insurers improve their efficiency in a variety of ways,
such as assessing fraudulent claims or improving the rate at which business changes to meet changing client
needs and expectations.
ii) Mobile: Thanks to advancements in mobile technology, digitizing life activities become the new standard in
2014. From tablets to mobile phones and the up-coming smart watches, consumers are looking for ways to
further mobilize their spending and management practices in nearly every aspect of life.
Most major insurance companies already offer mobile apps for easy access to accounts, insurance quotes,
claims support or even roadside assistance. The key in 2015 will be to further connect policyholders to the
insured in order to more quickly exchange information and expedite the claim report and response process.
iii) Re-Engineering Underwriting : Assessing income risk is more thorough than ever. Using spatial data, such as
information from Google Maps to public statistics on crime, education, income and health care, will help
insurers assess risks and liabilities in new and sophisticated ways in the coming year.
iv) Cloud/Client Computing: About half of insurance carriers today are “in the cloud,” and this tech trend should
continue to grow this year. Cloud computing is a tech term for the practice of sharing a network of remote
Internet servers to store, manage and process information. Operating in the cloud enables organizations to
optimize IT and will prepare businesses for everything from product growth to potential data loss disasters.