The document discusses the insurance industry in India. It provides background on what insurance is and its history in India. It describes the regulatory body IRDA and outlines the structure of the Indian insurance industry, including the public and private sectors in both life and general insurance. The document also performs a PEST analysis and SWOT analysis of the Indian insurance industry. It examines factors like opportunities for growth and new technologies. Finally, it briefly discusses career opportunities in insurance.

1. INSURANCE SCENARIO IN INDIA –
ISSUES AND OPPORTUNITIES
Presented by,
Mahak ( MBA_GEN 1st year)
Roll no.-14101082

2. BASICS OF INSURANCE
What is Insurance?
 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.
 History of Insurance
 It started from Lloyd’s coffee house London
 First policy issued in England in 1583
 In India first policy issued in 1870
 Classes of Insurance
A. Life insurance
B. General insurance
General insurance is further classified:-
1.Fire insurance
2.Marine insurance
3.Miscellaneous insurance

3. INSURANCE HISTORY
Pre liberalization Liberalization Post liberalization

4. Regulatory Body
Insurance Regulatory & Development Authority (IRDA) is the controlling and
regulatory apex 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 IRDA 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 49%
Role of IRDA :
 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.

5. STRUCTURE OF INDIAN INSURANCE INDUSTRY
 Life insurance
 Public sector undertaking( life insurance
corporation of India)
 Private sector undertaking(22 companies)
 General insurance
 Public sector undertaking(general insurance
corporation of India)+4 subsidiaries
 Private sector undertaking(21comapnies)

6. • Life insurance in its modern form came to India from England in the
year 1818.
• Oriental life Insurance company, started by Europeans In Calcutta was
the first life Insurance company on Indian soil.
• Before 1912 India had no Legislation to Regulate Insurance Business.
• In the year 1912, the life insurance companies act the provident fund
act were passed.

7. LIFE INSURANCE SECTOR OF INDIA -OVERVIEW
Market destiny Market shares
http://www.ibef.org/industry/insurance-sector-
india.aspx

8. GENERAL INSURANCE CORPORATION OF INDIA
 The entire general insurance business in India was nationalized by
the Government of India (GOI) through the General Insurance Business
(Nationalization) Act (GIBNA) of 1972. 55 Indian insurance companies and 52
other general insurance operations of other companies were nationalized
through the act.
 The General Insurance Corporation of India (GIC) was formed in pursuance
of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under
the Companies Act, 1956 as a private company limited by shares. GIC was
formed to control and operate the business of general insurance in India.

9. GENERAL INSURANCE INDUSTRY- AN
OVERVIEW

10. PEST Analysis- a tool for accessing insurance
industry
 Political factors affecting insurance industry
 Insurance business in rural/ social sector
 Capital requirement
 Renewal of registration
 Investment of funds outside India
 Power to investigation or inspection
 Tax policy and insurance sector
 Economical factors affecting insurance industry
 Adequacy of capital
 Increased economical activity
 Interest rates
 Inflation rate
 Market related factors
 Customer satisfaction

11.  Socio-Cultural factors affecting insurance industry
 Population
 Life style
 Educational level
 Level of earning
 Societal benefits
 Technological factors affecting insurance industry
 Maintaining the database
 E-business insurance in India

12. SWOT ANALYSIS (ACC. TO INSURANCE IN
INDIA)
 Strengths
 A large number of products
 Geographical shared
 Huge funding
 Social obligations
 Weaknesses
 Poor customer services
 Inadequate responsiveness
 Lesser technical knowledge
 Social awareness

13. CONTINUED…
 Opportunities
 Subsequent potential for growth with existing
products
 Formation with joint ventures
 Exploring untapped areas
 Threats
 Targets profitable segments by new enters
 Better CRM by private corporate bodies
 Surplus staff dealing

14. CHANGING W-S AND T- O- AS FEW
 Encouragements for foreign investment
 Use of technology i.e. E-insurance
 Better claims settlement
 better HR practices
 Rigidities in pricing system

15. EMERGING CHARACTER OF INDIAN
INSURANCE – A GLANCE AT FUTURE
 Several new players
 Radical restricting of present public sectors
 Closely regulated but not controlled
 Competition based running
 Usages of technology

16. CAREER IN INSURANCE(1.5% OF MBA’S OPTED
INSURANCE AS A CAREER -2013)
Traditional courses Modern courses
 MBA(finance)
 MBA(banking and
insurance)
 MBA(insurance)
MBA(acturial science)-
NM-Mumbai
PGDM(life,/gen ins.)
BA(insurance)

17. REFERENCES
 insurance in India-sage publication
 Insurance management- palande
 Life insurance-IC-33
 Licindia.com
 Icfai jounals