The document discusses the insurance sector in India. It explains that insurance transfers risk from the insured to the insurer in exchange for premiums. The main types of insurance are life insurance and general insurance. The regulatory body IRDAI was established in 1999 to regulate and develop the insurance industry in India and opened the sector to private companies. Major players in life insurance include LIC, ICICI Prudential, and SBI Life. In general insurance, major players are New India Assurance, National Insurance, and HDFC Ergo. The insurance sector has grown significantly since liberalization and is projected to reach $280 billion by 2020.

1. Insurance Sector In India For
securing you from risks

2. PRESENTED BY-
Rajni Singh
Rohit Singh
Insurance Sector In
India For securing you
from risks
2INSURANCE COMPANY

3. INTRODUCTION
•The life and property of an individual are surrounded by the
risk of death, disability or destruction. These risks may result
in financial losses. Insurance is a prudent way to transfer such
risks to an insurance company.
•The party which transfers the potential loss is termed as the
‘Insured’ and the party which indemnifies or undertakes to
compensate the other party of such potential loss is termed
as ‘Insurer’.
•The Insurer provides the coverage for the potential financial
loss for a fee or a consideration which is called the ‘Premium’.
3INSURANCE COMPANY

4. TYPES OF INSURANCE
General
Insurance
life Insurance
4INSURANCE COMPANY

5. 5INSURANCE COMPANY

6. 6INSURANCE COMPANY

7. 7INSURANCE COMPANY

8. 8INSURANCE COMPANY

9. 9INSURANCE COMPANY

10. 10INSURANCE COMPANY

11. 11INSURANCE COMPANY

12. MAIN DIFFERENCE B/W LIFE INSURANCE & GENERAL INSURANCE
12INSURANCE COMPANY

13. EVOLUTION OF INSURANCE SECTOR IN INDIA
Some of the important milestones in the life insurance
business in India are:
 1818: Oriental Life Insurance Company, the first life
insurance company on Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first
Indian life insurance company started its business.
1912: The Indian Life Assurance Companies Act enacted
as the first statute to regulate the life insurance business.
1938: Earlier legislation consolidated and amended to by
the Insurance Act with the objective of protecting the
interests of the insuring public.
13INSURANCE COMPANY

14. 1956: 245 Indian and foreign insurers and provident societies are
taken over by the central government and nationalized. LIC formed
by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs 5 core from the Government of India.
Similarly, in 1972, 107 general insurers were nationalized through
the passing of General Insurance Business (Nationalization) Act,
1972.
The existing 107 insurers were amalgamated and grouped into
Five companies, viz., National Insurance Company (NIC), New India
Assurance Company (NIAC), Oriental Insurance Company (OIC),
United India Insurance Company (UIIC), and General Insurance
Corporation (GIC).
 Then insurance industry transformed into monopoly and
Oligopolistic state or public sector insurance industry in India.
CONTINUED….
14INSURANCE COMPANY

15. Insurance Regulatory & Development Authority of India
(IRDAI) is the controlling and regulatory 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 IRDAI 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%.
REGULATORY BODY
15INSURANCE COMPANY

16. ROLE OF IRDAI
 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.
16INSURANCE COMPANY

17. MAJOR PLAYERS IN LIFE INSURANCE COMPANIES
1) LIC Insurance Corporation Of India.
2) ICICI Prudential Life Insurance.
3) SBI Life Insurance.
4) HDFC Standard Life Insurance.
5) Max Life Insurance.
6) Bajaj Allianz Life Insurance.
7) Birla Sun Life Insurance.
8) Reliance Nippon Life Insurance.
17INSURANCE COMPANY

18. MAJOR PLAYERS IN GENERAL INSURANCE
COMPANIES
•New India Assurance Company Limited.
•National Insurance Company Limited.
•HDFC ERGO General Insurance Co. ...
•Bajaj Allianz General Insurance Company Limited.
•United India Insurance Company Limited.
•ICICI Lombard General Insurance Company Limited.
18INSURANCE COMPANY

19. GROWTH OF INSURANCE SECTOR
1. Globally, the share of life insurance business in
total premium was 56.8 %. However, the share of
life insurance business in Asian region was only
28.9 %, which is in contradiction with the global
trend.
2. For India, the share of life insurance business in
total insurance business was very high at 80.2 %
while the share of non- life insurance business was
small at 19.8 %.
19INSURANCE COMPANY

20. CONTINUED….
• The overall market for insurance is expected to be $ 280
bn by 2020.
• Gross premiums in India reached $ 94.48 bn in FY 18. Of
this number, the split between life insurance and general
insurance was as follows:
• Life insurance: $ 71.1 bn
• General insurance: $ 23.38 bn
20INSURANCE COMPANY

21. 21INSURANCE COMPANY

22. 22INSURANCE COMPANY

23. 23INSURANCE COMPANY

24. 24INSURANCE COMPANY