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EMERGING TRENDS AND
OPPORTUNITIES IN PRIVATE
INSURANCE SECTOR
Submitted to – ProfAvnish Mishra
Date – 08/04/2018
MEMBERS
 Shubham Patil
 RaghavToshniwal
 Vivek Shrotriya
 Sourabh Deshmukh
CONTENT
 Insurance
 Industry Overview
 IRDA
 Bancassurance
 Trends
 Opportunities
INSURANCE
 Insurance in India refers to the market for insurance in India which covers both the public
and private sector organizations. It is listed in the Constitution of India in the Seventh
Schedule as a Union List subject, meaning it can only be legislated by the Central
government.
 An arrangement by which a company or the state undertakes to provide a guarantee of
compensation for specified loss, damage, illness, or death in return for payment of a
specified premium
INDUSTRY OVERVIEW
 Reached Rs 4.18 trillion by year 2017 by growth of 14.04%
 Consist 57 companies in India (24 Life insurance, 33 non life insurance)
 Major Players
 HDFC Standard Life, Birla Sun Life, ICICI Prudential,Tata AIG, SBI Life Insurance, Max
NeyYork Life, Bajaj Allianz, Met Life India, INGYysya
 Market share
LIC, 92.03
Other Companies,
7.97
Market Share
LIC Other Companies
IRDA
 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
 Objectives
 To take care policyholders interest
 To open insurance sector for private sector
 To ensure financial soundness and solvency
 To regulate insurance companies
 To eliminate dishonesty and unhealthy competition
 To supervise activities of intermediators
IRDA
 Functions
 Licensing and regulating
 Protecting interest of policyholder
 Regulating investment of funds
 Regulating maintenance of margins of solvency of insurer
 Adjudication disputes
 Promoting efficiency
BANCASSURANCE
 Bank issuing insurance policy under it’s name
 Recorded tremendous growth in Europe and not impressive growth in US,
Canada, France, Italy and Spain
 Advantages
 Service Synergies
 Infrastructure Advantage
 Universal banking Platform
 Cross selling
 Increase customer base
 Enhancements in bank revenue
 Satisfy risk needs
 Employee loyalty
BANCASSURANCE
 Advantage to customers
 Convivence
 New Products
 Better Service
TRENDS
 Becoming more familiar:-
 The coming year will assume a significant position in the history of Indian
insurance industry.
 It denotes completion of a decade of open-market; ending of oligopoly and
entry of private sector insurance companies; and the regime of a new
development oriented regulatory authority—the IRDA
(Insurance Regulatory and Development Authority).
 Entry of new players:-
 At present, the general insurance market has 20+ players already and some
more large international ones are expected to enter shortly
 . Companies today are coming up with new ideas to stand out and they are
offering the existing and prospective customers, new technology platforms
that would streamline the business and would also be beneficial to them.
TRENDS
 Digitization –
 Use of internal and external data to get insight of consumer behavior.
 Using Machine learning to intelligent, predictive and learning capabilities to offer
virtual devices and automate decision making.
 New product for sharing economy:-
 The shift towards sharing economy is bringing forth many complex situations that are
typically excluded or not accounted for in traditional insurance products.
 In auto insurance, insurers are partnering with ride- sharing companies such as Uber to
offer ride sharing coverage.
BANCASSURANCE
 Use of Analytics for improved profitability and customer experience:-
 Availability of exponentially higher volume of data through unstructured sources such
as social media and real time data through connected devices.
 Sophisticated statistical modeling techniques.
 Availability of parallel computing power.
 Greater use of internet of things for building data and new models
 The IOT refers to the network of physical objects that contain embedded technology to gather information
about specific objects with the ability to transmit information.
 The data transmitted by IOT can be further analyzed using data processing techniques for useful insights.
OPPORTUNITIES
 Awareness-
 Low insurance penetration
 Untouched market
 Multiple Channel of Distribution-
 Use of data mining
 Linking insurance with allied finance Products(loans)
 further, wider and deeper reach
 Professionalism in Insurance market-
 Influence of IRDA bill
 Agency license and written test become necessary
 Guiding customer so they can get what they need
OPPORTUNITIES
 Huge Untapped Market
 Gives all players to grow
 Middle class are more aware
 Need of money for education, marriage and old age needs( pension plan & child career
plan)
 Threat of health and life
 Unexpected deaths
 Pollution in big cities
 Heavy work load and mental stress
OPPORTUNITIES
 Regulation of IRDA-
 Protection of policy holder
 Benchmarking of service, settlement of claims
 Duties and responsibilities of insurance agents
 Companies can’t provide deficient customer service
 Mass Marketing-
 Focusing on non creamy layer
 Profitability and cost effectiveness
 Focus on rural market
ThankYou

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Emerging trends and opportunities in private insurance sector

  • 1. EMERGING TRENDS AND OPPORTUNITIES IN PRIVATE INSURANCE SECTOR Submitted to – ProfAvnish Mishra Date – 08/04/2018
  • 2. MEMBERS  Shubham Patil  RaghavToshniwal  Vivek Shrotriya  Sourabh Deshmukh
  • 3. CONTENT  Insurance  Industry Overview  IRDA  Bancassurance  Trends  Opportunities
  • 4. INSURANCE  Insurance in India refers to the market for insurance in India which covers both the public and private sector organizations. It is listed in the Constitution of India in the Seventh Schedule as a Union List subject, meaning it can only be legislated by the Central government.  An arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium
  • 5. INDUSTRY OVERVIEW  Reached Rs 4.18 trillion by year 2017 by growth of 14.04%  Consist 57 companies in India (24 Life insurance, 33 non life insurance)  Major Players  HDFC Standard Life, Birla Sun Life, ICICI Prudential,Tata AIG, SBI Life Insurance, Max NeyYork Life, Bajaj Allianz, Met Life India, INGYysya  Market share LIC, 92.03 Other Companies, 7.97 Market Share LIC Other Companies
  • 6. IRDA  INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY  Objectives  To take care policyholders interest  To open insurance sector for private sector  To ensure financial soundness and solvency  To regulate insurance companies  To eliminate dishonesty and unhealthy competition  To supervise activities of intermediators
  • 7. IRDA  Functions  Licensing and regulating  Protecting interest of policyholder  Regulating investment of funds  Regulating maintenance of margins of solvency of insurer  Adjudication disputes  Promoting efficiency
  • 8. BANCASSURANCE  Bank issuing insurance policy under it’s name  Recorded tremendous growth in Europe and not impressive growth in US, Canada, France, Italy and Spain  Advantages  Service Synergies  Infrastructure Advantage  Universal banking Platform  Cross selling  Increase customer base  Enhancements in bank revenue  Satisfy risk needs  Employee loyalty
  • 9. BANCASSURANCE  Advantage to customers  Convivence  New Products  Better Service
  • 10. TRENDS  Becoming more familiar:-  The coming year will assume a significant position in the history of Indian insurance industry.  It denotes completion of a decade of open-market; ending of oligopoly and entry of private sector insurance companies; and the regime of a new development oriented regulatory authority—the IRDA (Insurance Regulatory and Development Authority).  Entry of new players:-  At present, the general insurance market has 20+ players already and some more large international ones are expected to enter shortly  . Companies today are coming up with new ideas to stand out and they are offering the existing and prospective customers, new technology platforms that would streamline the business and would also be beneficial to them.
  • 11. TRENDS  Digitization –  Use of internal and external data to get insight of consumer behavior.  Using Machine learning to intelligent, predictive and learning capabilities to offer virtual devices and automate decision making.  New product for sharing economy:-  The shift towards sharing economy is bringing forth many complex situations that are typically excluded or not accounted for in traditional insurance products.  In auto insurance, insurers are partnering with ride- sharing companies such as Uber to offer ride sharing coverage.
  • 12. BANCASSURANCE  Use of Analytics for improved profitability and customer experience:-  Availability of exponentially higher volume of data through unstructured sources such as social media and real time data through connected devices.  Sophisticated statistical modeling techniques.  Availability of parallel computing power.  Greater use of internet of things for building data and new models  The IOT refers to the network of physical objects that contain embedded technology to gather information about specific objects with the ability to transmit information.  The data transmitted by IOT can be further analyzed using data processing techniques for useful insights.
  • 13. OPPORTUNITIES  Awareness-  Low insurance penetration  Untouched market  Multiple Channel of Distribution-  Use of data mining  Linking insurance with allied finance Products(loans)  further, wider and deeper reach  Professionalism in Insurance market-  Influence of IRDA bill  Agency license and written test become necessary  Guiding customer so they can get what they need
  • 14. OPPORTUNITIES  Huge Untapped Market  Gives all players to grow  Middle class are more aware  Need of money for education, marriage and old age needs( pension plan & child career plan)  Threat of health and life  Unexpected deaths  Pollution in big cities  Heavy work load and mental stress
  • 15. OPPORTUNITIES  Regulation of IRDA-  Protection of policy holder  Benchmarking of service, settlement of claims  Duties and responsibilities of insurance agents  Companies can’t provide deficient customer service  Mass Marketing-  Focusing on non creamy layer  Profitability and cost effectiveness  Focus on rural market