The document discusses the insurance industry in India. It provides definitions of key insurance terms and describes the different types of public and private insurance. It also outlines the major types of insurance coverage available for individuals and businesses. The document summarizes the current state of the insurance industry in India and initiatives by the government to expand insurance coverage. It predicts continued strong growth in the future as incomes rise and more Indians gain access to insurance products.

1. INSURANCE
INDUSTRY
Group 4
MV Gopi Chand - 171239
Sri Pradan – 171287
K Sai Sri Anuhya – 171292
VUK Sunaina - 171315

2. INSURANCE
• Insurance is a contract represented by a policy,
in which individual or entity receives financial
protection or reimbursement against losses from
an insurance company.
• The company pools clients risks to make
payments more affordable to the insured.
• For example, it reimburses for losses from
specified perils such as fire, hurricane and
earthquake.

3. TERMS INVOLVED
• INSURER
• INSURED
• PREMIUM

4. PUBLIC VS
PRIVATE
INSURANCE
• Public insurance
includes Social
security, Medicare,
temporary disability
insurance and few
are funded through
government plans.
• Private insurance
plans offer all types
of coverage offered
by private
corporations and
organisations.

5. TYPES OF INSURANCE FOR THE
INDIVIDUAL
LIFE INSURANCE:
• It is a contract between an insurer and a policy holder in
which the insurer guarantees payment of a death benefit to
named beneficiaries upon the death of the insured.
• The insurance company promises a death benefit in
consideration of the payment of premium by the insured.
It is again of 2 types:
1. Term insurance
2. Whole-life insurance

6. Health Insurance:
It covers the cost of
hospitalization, visits to the
doctor’s office and prescribed
medicines.
Most useful policy-covers 100%
of the costs of being
hospitalized and 80% of the
charges for medicine and a
doctors service.
Disability insurance:
This policy pays a certain %
of an employee’s wages (or a
fixed sum)weekly or monthly
if the employee becomes
unable to work through
illness or an accident.

7. Other type of insurances
• Homeowner’s insurance
• Automobile insurance
• Disability insurance etc

8. Types of Business Insurance
• Workers Compensation
• Automobile insurance
• Property Insurance
• Malpractice Insurance
• Liability Insurance etc

9. Insurance Repository
• On 16 September 2013, IRDA launched "insurance repository" services in
India.
• This system enables policy holders to buy and keep insurance policies in
dematerialised or electronic form.
• Policyholders can hold all their insurance policies in an electronic format in a
single account called electronic insurance account (eIA).

10. Cont..
• Insurance Regulatory and Development Authority of India has issued
licences to five entities to act as Insurance Repository:
1. CDSL Insurance Repository Limited (CDSL IR),
2. SHCIL Projects Limited
3. Karvy Insurance repository Limited
4. NSDL Database Management Limited
5. CAMS Repository Services Limited

11. Insurance industry in India
(57 Insurance companies)
Life
Insurance
(24)
General Insurance/Non-life insurers
(33)
Motor
Insurance
Fire
Insurance
Health
Insurance
Marine
Insurance

12. • Life Insurance Corporation (LIC) – Sole public sector Company
• General Insurance Corporation of India (GIC Re) - sole national re-insurer
• Out of 33 non-life insurance companies, five private sector insurers are registered to
underwrite policies exclusively in health, personal accident and travel insurance segments.
• Star Health and Allied Insurance Company Ltd
• Apollo Munich Health Insurance Company Ltd
• Max Bupa Health Insurance Company Ltd
• Religare Health Insurance Company Ltd
• Cigna TTK Health Insurance Company Ltd
• Two more specialised insurers belonging to public sector, namely, Export Credit Guarantee
Corporation of India for Credit Insurance and Agriculture Insurance Company Ltd for
crop insurance.

13. 71.1
23.38
Gross premiums
Insurance
Non- life insurance
2.1
3.69
0
1
2
3
4
2001 2017
Overall Insurance Penetration in India
Overall Insurance Penetration in India
 In FY19 (up to August 2018), premium from new life insurance business increased 6.20
per cent year-on-year to Rs 755.88 billion (US$ 11.28 billion).
 In FY19 (up to July 2018), gross direct premiums of non-life insurers reached Rs
49,067.47 crore (US$ 7.32 billion), showing a year-on-year growth rate of 13.91 per cent

14. Investments and Recent developments
• In September 2018, HDFC Ergo launched ‘E@Secure’ a cyber insurance
policy for individuals.
• Insurance sector companies in India raised around Rs 434.3 billion (US$ 6.7
billion) through public issues in 2017.
• In 2017, insurance sector in India saw 10 merger and acquisition (M&A)
deals worth US$ 903 million.

15. Government Initiatives
• National Health Protection Scheme will be launched under Ayushman Bharat
to provide coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million
vulnerable families. The scheme will be launched on September 25, 2018.
• Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima
Yojana (PMFBY) in 2017-18.
• The Insurance Regulatory and Development Authority of India (IRDAI) plans to
issue redesigned initial public offering (IPO) guidelines for insurance companies in
India, which are to looking to divest equity through the IPO route.

16. Road Ahead
• The overall insurance industry is expected to reach US$ 280 billion by 2020.
• Demographic factors such as growing middle class, young insurable
population and growing awareness of the need for protection and retirement
planning will support the growth of Indian life insurance.
Exchange Rate Used: INR 1 = US$ 0.0149 as on June 29, 2018

17. Insurance Companies
in India

18. EVOLUTION OF INSURANCE
INDUSTRY IN INDIA
• All life insurance companies were nationalised to form LIC in
1956 to increase penetration and protect policy holders from
mismanagement
• The non-life insurance business was nationalised to form GIC in
1972
• Post liberalisation, the insurance industry recorded significant
growth; the number of private players increased to 46 in 2017

19. • The industry has been spurred by product innovation, vibrant
distribution channels, coupled with targeted publicity and
promotional campaigns by the insurers
• In December 2014, Government approved the ordinance
increasing FDI limit in Insurance sector from 26 per cent to 49
per cent. This would likely to attract investment of US$ 7-8 billion
• Insurance companies raised more than US$ 6 billion from public
issues in 2017.
• National Health Protection Scheme will be launched under
Ayushman Bharat, as per Union Budget 2018-19.

20. Growth in Insurance sector
Overall insurance industry is expected to reach US$ 280 billion by 2020.
• The domestic life insurance industry registered 17.65 per cent y-o-y growth for new business
premium in 2017-18, generating a revenue of Rs 1.65 trillion (US$ 25.44 billion). Premium
income of the life insurance segment had increased 14.04 per cent in FY17 to Rs 4.18
trillion (US$ 64.92 billion).
• Gross direct premiums for non-life insurance industry increased by 17.54 per cent y-o-y in
FY18.
• Overall insurance penetration in India reached 3.49 per cent in FY17 from 2.71 per cent in
2001.

21. Changes
in
Premiums

22. Life Insurance industry
• The life insurance market grew from US$ 10.5
billion in FY02 to US$ 64.92 billion in FY17.
• Share of private sector in life insurance segment
has grown from around 2 per cent in FY03 to
29.69 per cent in FY18.
• With 70.31 per cent share market share in
FY18*, LIC continues to be the market leader,
followed by HDFC Standard Life at 5.65 per
cent

23. Structure of IRDAI

24. ULIP and Non
ULIP
• The industry is
witnessing a shift
towards the traditional
non-linked insurance
plans.
• The share of non-
linked insurance
increased from 59.1 per
cent in FY09 to 86.21
per cent in FY18

25. Risks facing by Industry
• Insufficient funds to satisfy policyholders’ claims:
• Poor return on investments
• Liquidity risk of investments
• Credit risk
• Operational risk
• Mortality risk
• Longevity risk
• Moral Hazards

26. INDIAN INSURANCE SECTOR: STEPPING
INTO THE NEXT DECADE OF GROWTH
The Indian insurance industry: At the crossroads of development
• Significantly untapped latent potential
• Recent regulatory developments that govern the current market state
What will drive market development in the Indian insurance industry? There
• Distribution channels
• Focus on financial inclusion
• Consumer needs and preferences

27. The Future Of Insurance Sector In India
• Though LIC continues to dominate the Insurance sector in India, the
introduction of the new private insurers will see a vibrant expansion and
growth of both life and non-life sectors in 2017.
• With the increase in income and exponential growth of purchasing power as
well as household savings, the insurance sector in India would introduce
emerging trends like product innovation, multi-distribution, better claims
management and regulatory trends in the Indian market.

28. • The government also strives hard to provide insurance to
individuals in a below poverty line by introducing schemes like the
• Pradhan Mantri Suraksha Bima Yojana (PMSBY),
• Rashtriya Swasthya Bima Yojana (RSBY) and
• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
• Introduction of these schemes would help the lower and lower-
middle income categories to utilize the new policies with lower
premiums in India.

29. • Some demographic factors like the growing insurance awareness of the
insurance, retirement planning, growing middle class and young insurable
crowd will substantially increase the growth of the Insurance sector in India.
• With several regulatory changes in the insurance sector in India, the future
looks pretty awesome and promising for the life insurance industry.