The document provides an overview of the insurance industry in India. Some key points:
- The insurance industry in India is expected to reach $280 billion by 2020, with life insurance growing 12-15% annually for the next 3-5 years.
- Gross premiums written reached Rs. 5.53 trillion (US$94.48 billion) in FY18, with life insurance accounting for Rs. 4.58 trillion and non-life at Rs. 1.51 trillion.
- Private sector participation is increasing, with private players having a 50.7% market share in non-life insurance and 33.51% in new business in life insurance.
briefly decsription on insurance sector and customers perception towards insurance and exide life insurance in odisha...
it will help in marketing as well as finance student those who comes from BBA,MBA, and also management studies...
A Project Report on - FINANCIAL PERFORMANCE OF LIC AND PRIVATE SECTOR LIFE...Karteek Chedadeepu
FINANCIAL PERFORMANCE OF LIC AND PRIVATE SECTOR LIFE INSURANCE COMPANIES IN INDIA
- A COMPARATIVE ANALYSIS USING CARAMEL MODEL..
This is my project report. I did my project on the financial performance of private and public sector of Life insurance companies India by using CARAMEL model.
Life insurance (or life assurance, especially in the Commonwealth), is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.
,
marine insurance
,
types of marine insurance policy
,
features of marine ins. contract
,
marine perils
,
general average loss vs particular average loss
,
differences bet. the marine and fire ins
hi frnd this a pdf version of my own created file containing the history of insurance in world and in India..moreover there is a brief description of LIC is given.i think it wl b veru useful for u.and kindly mail me if u have ne prob ao if u wanna me to do ne correction.....
thanx
briefly decsription on insurance sector and customers perception towards insurance and exide life insurance in odisha...
it will help in marketing as well as finance student those who comes from BBA,MBA, and also management studies...
A Project Report on - FINANCIAL PERFORMANCE OF LIC AND PRIVATE SECTOR LIFE...Karteek Chedadeepu
FINANCIAL PERFORMANCE OF LIC AND PRIVATE SECTOR LIFE INSURANCE COMPANIES IN INDIA
- A COMPARATIVE ANALYSIS USING CARAMEL MODEL..
This is my project report. I did my project on the financial performance of private and public sector of Life insurance companies India by using CARAMEL model.
Life insurance (or life assurance, especially in the Commonwealth), is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.
,
marine insurance
,
types of marine insurance policy
,
features of marine ins. contract
,
marine perils
,
general average loss vs particular average loss
,
differences bet. the marine and fire ins
hi frnd this a pdf version of my own created file containing the history of insurance in world and in India..moreover there is a brief description of LIC is given.i think it wl b veru useful for u.and kindly mail me if u have ne prob ao if u wanna me to do ne correction.....
thanx
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
2. Table of Content
Executive Summary……………….….…….3
Advantage India…………………..….……...4
Market Overview …………………….….…..6
Trends and Strategies..………...…………..23
Growth Drivers……………………................21
Opportunities…….……….......…………...…26
Useful Information……….......…………...….31
3. For updated information, please visit www.ibef.orgInsurance3
EXECUTIVE SUMMARY
The insurance industry in India is expected to reach US$ 280 billion by 2020. Life insurance industry in the
country is expected grow by 12-15 per cent annually for the next three to five years.
Gross premiums written in India reached Rs 5.53 trillion (US$ 94.48 billion) in FY18, with Rs 4.58 trillion
(US$ 71.1 billion) from life insurance and Rs 1.51 trillion (US$ 23.38 billion) from non-life insurance.
Overall insurance penetration (premiums as % of GDP) in India reached 3.69 per cent in 2017 from 2.71 per
cent in 2001.
Rapidly growing
insurance segments
The market share of private sector companies in the non-life insurance market rose from 13.12 per cent in
FY03 to 50.70 per cent in FY19 (up to November 2018).
In life insurance segment, private players had a market share of 33.51 per cent in new business in FY19 (up
to December 2018).
Increasing private
sector contribution
Crop insurance segment contributed 17 per cent to gross direct premiums of non-life insurance companies
in FY19 (up to November 2018), growing 17 per cent year-on-year.
Enrolments under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) reached 130.41 million in 2017-18.
Strong growth in the automotive industry over the next decade to be a key driver of motor insurance.
Crop, health and motor
insurance to drive
growth
Source: Swiss-Re, IRDAI, General Insurance Council, Life Insurance Council, Economic Survey 2017-18
Note: Updated data for insurance penetration is expected after June 2019
5. For updated information, please visit www.ibef.orgInsurance5
ADVANTAGE INDIA
Growing interest in insurance among people;
innovative products and distribution channels
aiding growth.
Over FY12–18, new business premiums of life
insurers in India have increased at a 14.44 per
cent CAGR, while premiums for non-life
insurers increased have increased at 16.65 per
cent CAGR in the same period.
Growing use of internet has pushed
the demand .
Insurance reach is still low in India. Overall
insurance penetration (premiums as % of
GDP) in India was 3.69 per cent in 2017,
providing a huge underserved market.
Life insurance in low-income urban areas.
Health insurance, pension segment.
Strong growth potential for micro insurance,
especially from rural areas
Insurance sector companies in India
raised around Rs 434.3 billion (US$ 6.7
billion) through public issues in 2017.
Increase in FDI limit to 49 per cent
from 26 per cent, approved in 2016,
will further fuel investments.
Tax incentives on insurance products
Insurance Bill gives the Insurance
Regulatory and Development Authority
(IRDAI) full flexibility to frame
regulations for the sector.
Clarity on rules for insurance IPOs
would infuse liquidity in the industry.
Repeated attempts to make the sector
more lucrative for foreign participants.
ADVANTAGE
INDIA
Source: , IRDA - Insurance Regulatory and Development Authority, Motilal Oswal Research, Aranca Research
Note: Updated data for insurance penetration is expected after June 2019
7. For updated information, please visit www.ibef.orgInsurance7
EVOLUTION OF THE INDIAN INSURANCE SECTOR
Source: IRDA
Notes: LIC - Life Insurance Corporation of India, GIC - General Insurance Corporation of India, IRDA - Insurance Regulatory and Development Authority
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
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
National Health Protection Scheme will
be launched under Ayushman Bharat,
as per Union Budget 2018-19.
Insurance companies raised more than
US$ 6 billion from public issues in 2017.
Malhotra Committee recommended opening
up the insurance sector to private players
IRDA, LIC and GIC Acts were passed in
1999, making IRDA the statutory regulatory
body for insurance and ending the monopoly
of LIC and GIC.
In 2015, Government introduced Pradhan
Mantri Suraksha Bima Yojna and Pradhan
Mantri Jeevan Jyoti Bima Yojana
Government introduced Atal Pension Yojana
and Health insurance in 2015.
1956-72 1993-99 20152000-14
2017
onwards
8. For updated information, please visit www.ibef.orgInsurance8
IRDA GOVERNS THE INDIAN INSURANCE SECTOR
Insurance Regulatory and Development Authority (IRDA)
• Established in 1999 under the IRDA Act
• Responsible for regulating, promoting and ensuring orderly growth of the insurance and re-insurance business in India
Ministry of Finance
Government of India)
Insurance Regulatory and
Development Authority
(IRDA)
Source: IRDA
Private (23) Private (17)
Life insurance (24
players)
General insurance
(21 players)
Specialised
Insurers
(2 players)
Standalone Health
Insurance
(6 player)
Public (1) Public (4) Public (2) Private (6)
Re-insurance
(2 players)
Public (1)
Private (1)
Foreign
Reinsurers’
branches
Private (7)
9. For updated information, please visit www.ibef.orgInsurance9
INCREASING PENETRATION AND DENSITY OF
INSURANCE OVER THE YEARS
Source: Swiss Re Institute
2.6
2.72 2.72 2.76
0.7
0.72 0.77
0.93
0
0.5
1
1.5
2
2.5
3
3.5
4
2014 2015 2016 2017
Life Non-Life
Insurance Penetration (Premiums as % of GDP) Insurance Density (Premiums Per Capita) (US$)
At 3.69 per cent, India was ranked 41st in 2017 in terms of insurance penetration with life insurance penetration 2.76 per cent and non-life
insurance penetration at 0.93 per cent.
In terms of insurance density India was ranked 73rd in 2017 with overall density at US$ 73.
44 43.2
46.5
5511 11.5
13.2
18
0
10
20
30
40
50
60
70
80
2014 2015 2016 2017
Life Non-Life
3.3
3.44 3.49
3.69
55 54.7
59.7
73
Note: Updated data expected after June 2019
10. For updated information, please visit www.ibef.orgInsurance10
VIBRANT LIFE INSURANCE MARKET
13.4
17.7
18.6
17.6
21.5
27.2
30.1
19.6
26.3
27.3
30.1
33.3
35.3
37.7
41.0
8.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19*
New Business Premium Renewal Premium
Source: Insurance Regulatory and Development Authority, Deloitte – Redefining Insurance
Life Insurance Premiums (US$ billion)
Life insurance in India has a huge growth potential. By 2020, it is expected to account for 35 per cent of India’s total savings.
Gross premium collected by life insurance companies in India increased from Rs 2.56 trillion (US$ 39.7 billion) in FY12 to Rs 4.58 trillion (US$ 71.1
billion) in FY18.
Over FY12–18, premium from new business of life insurance companies in India have increased at a 14.44 per cent CAGR to reach Rs 1.94 trillion
(US$ 30.1 billion).
In FY19 (up to December 2018), premium from new life insurance business increased 2.41 per cent year-on-year to Rs 1.42 trillion (US$ 19.62
billion).
49.0
56.0
60.7
64.0
71.8
84.7
94.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18
Gross Premiums Written in India (US$billion)
Note: * New business premium is up to December 2018 and Renewal premium is up to June 2018
11. For updated information, please visit www.ibef.orgInsurance11
INCREASING PRIVATE SECTOR ACTIVITY IN LIFE
INSURANCE SEGMENT
Source: IRDA, Life Insurance Council
Note: Figures are as per latest data available, share based on new business premium collection
Over the years, share of private sector in life insurance segment has grown from around 2 per cent in FY03 to 33.51 per cent in FY19 (up to
December 2018).
98.00%
2.00%
Public sector
Private sector
Share of public and private sector in life insurance segment (%)
FY03
Share of public and private sector in life insurance segment (%)
FY19 (up to December 2018)
66.5%
33.5%
Public sector
Private sector
12. For updated information, please visit www.ibef.orgInsurance12
LIC CONTINUES TO DOMINATE LIFE INSURANCE
SEGMENT
Source: Life Insurance Council, IRDAI
Visakhapatnam port traffic (million tonnes)
Market Share in First Year Life Insurance Premiums (Apr-Dec 2018)
As of FY19 (up to November 2018), life insurance sector had 23
private players in comparison to only four in FY02.
With a 66.49 per cent share new business market share in FY19
(up to December 2018), Life Insurance Corporation of India, the
only public sector life insurer in the country, continues to be the
market leader
As of December 2018, in the private sector, HDFC Standard Life
Insurance is leading with a share of 7.02 per cent in new business
premium, followed by SBI Life Insurance at 6.69 per cent and
ICICI Prudential Life Insurance at 4.82 per cent.
66.49%
7.02%
6.69%
4.82%
14.98%
LIC
HDFC Standard
Life
SBI Life Insurance
ICICI Prudential
Life Insurance
Others
13. For updated information, please visit www.ibef.orgInsurance13
STRONG GROWTH IN NON-LIFE INSURANCE MARKET
Source: IRDAI, General Insurance Council
Gross direct premiums of non-life insurers in India reached Rs 1.51 trillion (US$ 23.38 billion) in FY18. In FY19 (up to November 2018), gross
direct premiums reached Rs 1.09 trillion (US$ 15.07 billion), showing a year-on-year growth rate of 13.14 per cent.
Over FY12-18, non-life insurance premiums (in Rs) increased at a CAGR of 16.65 per cent.
The number of policies issued increased from 65.55 million in FY08 to 182.8 million in FY18, at a CAGR of 10.8 per cent.
65.55
67.06
88.49
91.65
100.29
109.5
116.68
126.06
126.48
161.17
182.8
0
20
40
60
80
100
120
140
160
180
200
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
9.28
11.05
12.03
13.14
14.95
19.89
23.38
15.07
0.00
5.00
10.00
15.00
20.00
25.00
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19*
CAGR 16.65%
Gross Direct Premiums of Non-Life Insurers (US$ billion) Number of Non-Life Insurance Policies (million)
CAGR 10.8%
Note: * up to October 2018, CAGR is up to FY18
14. For updated information, please visit www.ibef.orgInsurance14
SHARES IN NON-LIFE INSURANCE MARKET: MOTOR
INSURANCE LEADS
Source: General Insurance Council, IRDAI
Non-Life Insurance Gross Direct Premiums (Apr-Nov 2018) Non-Life insurers include general insurers, standalone health
insurers and specialised insurers.
Motor insurance accounted for 38.2 per cent of non-life insurance
premiums earned in India in Apr-Nov 2018, followed by 25.7 per
cent share by health insurance and 17 per cent by crop insurance.
Private players accounted for a share of around 50.7 per cent in
the gross direct premiums generated in non-life insurance sector
while public sector companies and specialised insurers garnered
around 49.3 per cent share between Apr-Nov 2018.
Major private players are ICICI Lombard, Bajaj Allianz, IFFCO
Tokio, HDFC Ergo, Tata-AIG, Reliance, Cholamandalam, Royal
Sundaram and other regional insurers
38.20%
25.70%
6.90%
2.00%
27.20%
Motor
Health
Fire
Marine
Others
15. For updated information, please visit www.ibef.orgInsurance15
HIGHER PRIVATE SECTOR PARTICIPATION IN NON-
LIFE SEGMENT
Source: General Insurance Council, IRDAI
Note: * up to November 2018
The market share of private sector companies in non-life insurance segment rose from 15 per cent in FY04 to 46.6 per cent in FY18.
The Gross Direct Premium of private companies increased at 15 per cent CAGR between FY08-18 to reach Rs 70,178 crore (US$ 10.89 billion )
in FY18. Between Apr-Nov 2018, it reached Rs 551.21 billion (US$ 7.64 billion).
2.7 2.7 2.9
3.8
4.7
5.1
5.7
6.3
5.9
9.25
10.89
7.64
0
2
4
6
8
10
12
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Growing share of private sector Non-life insurance premium of private sector (US$ billion)
49.3%
50.7%
Apr-Nov 2018
75%
15%
FY04
Public sector Private sector
16. For updated information, please visit www.ibef.orgInsurance16
KEY PLAYERS IN THE NON-LIFE INSURANCE
SEGMENT
Source: General Insurance Council
Visakhapatnam port traffic (million tonnes)
Market share of major companies in terms of Gross Direct
Premium collected (FY18)
There were 33 non-life insurers in India in FY18.
Public sector insurers lead the non-life insurance market in India with
New India Assurance, United India Insurance and National insurance
Company having market shares of 15.1 per cent, 11.5 per cent and
10.9 per cent, respectively in FY18.
In the private sector, ICICI-Lombard was the leader in FY18 with a
market share of 8.2 per cent, followed by Bajaj Allianz at 6.3 per cent.
The public sector companies accounted for a cumulative share of
about 53.39 per cent of the total Gross Direct Premium in the non-life
insurance segment FY18.
15.1%
11.5%
10.9%
8.2%
7.6%6.3%
40.5%
New India Assurance
United India Insurance
National Insurance Company
ICICI-Lombard
Oriental Insurance Company
Bajaj Allianz
Others
Total size:
US$ 23.38
billion
17. For updated information, please visit www.ibef.orgInsurance17
SHIFT TOWARDS NON-LINKED INSURANCE PLANS
41%
42%
37%
24%
17%
15%
12%
13%
13%
14%
59%
58%
63%
76%
83%
85%
88%
87%
87%
86%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Linked Premium Non linked Premium
Source: IRDA Annual Report, Life Insurance Council
Notes: *Growth rate in INR terms
Visakhapatnam port traffic (million tonnes)Share of linked and non-linked insurance premium 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 85.4 per cent in FY18.
19. For updated information, please visit www.ibef.orgInsurance19
NOTABLE TRENDS
New distribution channels like bancassurance, online distribution and NBFCs have widened the reach and
reduced costs
Firms have tied up with local NGOs to target lucrative rural markets
In October 2018, Indian e-commerce major Flipkart entered the insurance space in partnership with Bajaj
Allianz to offer mobile insurance.
Amazon India is also expected to enter the insurance market as an agent.
In September 2018, India Post Payments Bank (IPPB) also partnered with Bajaj Allianz to distribute their
products.
Emergence of new
distribution channels
Source: IRDAI, General Insurance Council, Life Insurance Council. News sources
Over the years, share of private sector in life insurance segment has grown from around 2 per cent in FY03 to
31.8 per cent in FY19 (up to September 2018).
In the non-life insurance segment, share of private sector increased to 46.6 per cent in FY18 from 14.5 per cent
in FY04
Growing market share of
private players
The life insurance sector has witnessed the launch of innovative products such as Unit Linked Insurance Plans
(ULIPs)
Other traditional products have also been customised to meet specific needs of Indian consumers
In September 2018, HDFC Ergo launched ‘E@Secure’ a cyber insurance policy for individuals.
Launch of innovative
products
Large insurers continue to expand, focusing on cost rationalisation and aligning business models to realise
reported Embedded Value (EV), and generate value from future business rather than focus on present profits
Mounting focus on EV
over profitability
20. For updated information, please visit www.ibef.orgInsurance20
STRATEGIES ADOPTED
Source: Aranca Research
Players in industry are investing in Information Technology to automate various processes and cut costs without
affecting service delivery. It is estimated that digitisation will reduce 15-20 per cent of total cost for life insurance and
20-30 per cent for non-life insurance
From October 2016, IRDAI has mandated having an E-insurance (electronic insurance) account to purchase
insurance policies
Cost optimisation
Companies are trying to differentiate themselves by providing wide range of products with unique features. For
example, New India Assurance launched Farmers’ Package Insurance to covering farmer’s house, assets, cattle etc.
United India launched Workmen Medicare Policy to cover hospitalisation expenses arising out of accidents during
and in the course of employment
In March 2017, HDFC Life in collaboration with Haptik, has announced the launch of the country’s first life insurance
chatbot which will help the customer as a financial guide to aid them to choose the most suitable plans befitting their
needs.
Differentiation
Focus on providing one kind of service help insurance companies in differentiation. For example, SBI is
concentrating on individual regular premium products as against single premium and group products
Focus
22. For updated information, please visit www.ibef.orgInsurance22
GROWTH DRIVERS FOR INSURANCE IN INDIA… (1/2)
India’s robust economy is expected to sustain the growth in insurance
premiums written.
Higher personal disposable incomes would result in higher household
savings that will be channelled into different financial savings
instruments like insurance and pension policies.
Per capita GDP of India is expected to reach US$ 3,274 in 2023 from
US$ 2,135 in 2018.
1,482
1,486
1,610
1,639
1,749
1,983
2,135
2,334
2,539
2,762
3,007
3,274
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Visakhapatnam port traffic (million tonnes)GDP Per Capita at Current Prices* (US$)
Source: International Monetary Fund, World Economic Outlook Database, April 2018
Notes: * estimates after 2013
23. For updated information, please visit www.ibef.orgInsurance23
GROWTH DRIVERS FOR INSURANCE IN INDIA… (2/2)
Source: EY - Insurance industry - Challenges, reforms and realignment
Increasing number of insurance providers with various sophisticated products at competitive prices.
Regulations which are conducive for growth of the industry.
Competition
Increase in potential insurance customers – individuals and companies across different industries, small and
medium enterprises, multinational companies.
Expansion due of insurance universe due to professionalization of companies
Innovation and
Efficiency
Overall growth in the financial industry; increasing working population with higher disposable income.
Increasing awareness about financial products including insurance
Growth in Financial
Industry
Increase in micro insurance due to increased focus of government on financial inclusion.
Increase in demand of motor insurance as a by-product of rapidly expanding auto industry.
Increase in health insurance due to focus on improvement in healthcare.
Group insurance has also been a big driver of insurance growth in the country. Number of lives covered under
private life insurance companies reached 36.20 million up to June 2018, showing year-on-year growth rate of 27.48
per cent.
Growth in specific
segments
24. For updated information, please visit www.ibef.orgInsurance24
FAVOURABLE POLICY MEASURES AID THE SECTOR
IRDAI recently allowed life insurance companies that have completed 10 years of operations to raise capital
through Initial Public Offerings (IPOs). Companies will be able to raise capital if they have embedded value of twice
the paid up equity capital
SBI Life has already raised funds through its IPO.
Life insurance
companies allowed
to go public
The government will merge three of the public sector insurance companies - The Oriental Insurance Co. Ltd,
National Insurance Co. Ltd and United India Insurance Co. Ltd and list the merged entity. The merger is expected to
be finalised by FY21.
In September 2018, National Health Protection Scheme was 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 is expected to increase
penetration of health insurance in India from 34 per cent to 50 per cent, according to a report by Crisil.
Union Budget
2018-19
Insurance products are covered under the exempt, exempt, exempt (EEE) method of taxation. This translates to an
effective tax benefit of approximately 30 per cent on select investments (including life insurance premiums) every
financial year
In 2015, Tax deduction under Health Insurance Scheme has been increased to US$409.43 from US$245.66 and for
senior citizens tax deduction has been increased to US$491.32
Tax incentives
Revival package by government will help companies get faster product clearances, tax incentives and ease in
investment norms. FDI limit for insurance company has been raised from 26 per cent to 49 per cent, providing
safeguard and ownership control to Indian owners.
Approval of
increase in FDI limit
and revival package
Source: Crisil
25. For updated information, please visit www.ibef.orgInsurance25
RISING PRIVATE SECTOR INVESTMENT IN
INSURANCE
Source: Towers Watson; Assorted news articles, EY
In January 2019, online insurance distribution platform, Turtlemint
raised US$ 25 million in funding.
As of November 2018, HDFC Ergo is in advanced talks to acquire
Apollo Munich Health Insurance at a valuation of around Rs 2,600
crore (US$ 370.05 million).
In August 2018, a consortium of WestBridge Capital, billionaire
investor Mr Rakesh Jhunjunwala announced that it would acquire
India’s largest health insurer Star Health and Allied Insurance in a
deal estimated at around US$ 1 billion.
In June 2018, Warburg Pincus invested US$ 104 million as growth
capital in IndiaFirst Life Insurance.
In 2017, insurance sector in India saw 10 merger and acquisition
(M&A) deals worth US$ 903 million.
In December 2017, the Insurance Regulatory and Development
Authority of India (IRDAI) allowed private equity investors to become
promoters in unlisted insurance companies. The move is expected to
enhance PE investments in the sector.
In 2015, Insurance Bill was passed that will raise the stake of foreign
investors in the insurance sector to 49 per cent, fuelling the
participation of private sector investment in the insurance sector in
the country
Most of the existing players are tying up with banks to expand their
distribution network.
Major Deals in Insurance Sector in 2018
Company Investor
Deal Size (US$
million)
Star Health and Allied
Insurance Co Ltd
Madison India,
Westbridge Capital
1,000
ICICI Lombard General
Insurance Company Ltd
Warburg Pincus 282
Star Health and Allied
Insurance Co Ltd
Motilal Oswal, Apis
Growth, Sequoia &
Others
745
27. For updated information, please visit www.ibef.orgInsurance27
INDIA’S INSURANCE MARKET OFFERS A HOST OF
OPPORTUNITIES ACROSS BUSINESS LINES
Opportunities for
Indian
insurance market
Low-income urban and
pension markets
Crop insurance
Motor insurance
markets
Micro-insurance
Health insurance
markets
28. For updated information, please visit www.ibef.orgInsurance28
NON-LIFE INSURERS: MOTOR INSURANCE MARKETS
Source: IRDA, ACMA, SIAM, Aranca Research
Note: E -estimates, CAGR - Compound Annual Growth Rate, ACMA - Automotive Component Manufacturers Association of India,
Strong growth in the automotive industry over the next decade will be a key driver of motor insurance. Automobiles sales in India increased at 7.01
per cent CAGR between FY13-18 to reach 24.97 million vehicles.
Proposed IRDA draft envisages a 10–80 per cent rise in premium rates for the erstwhile loss-making third party motor insurance.
In FY18, Motor insurance constituted 39.40 per cent of the non-life insurance market in India
Breakup of non-life insurance market in India FY18 Automobile Sales in India (million units)
39.40%
25.20%
7.20%
1.90%
26.3%
Motor
Health
Fire
Marine
Others
17.79 18.42
19.72
20.47
21.86
24.97
0.00
5.00
10.00
15.00
20.00
25.00
30.00
FY13 FY14 FY15 FY16 FY17 FY18
29. For updated information, please visit www.ibef.orgInsurance29
NON-LIFE INSURERS: HEALTH INSURANCE MARKETS
Only 1.5–2 per cent of total healthcare expenditure in India is currently covered by insurance providers.
Only 18 per cent of people in urban areas and 14.1 per cent in rural areas are covered under any kind of health insurance scheme..
Gross direct premium from health insurance reached Rs 378.97 billion (US$ 5.88 billion) in FY18 and contributed 25.2 per cent to the gross direct
premiums of non-life insurance companies in India.
Absence of a government-funded health insurance makes the market attractive for private players. In August 2018, coverage of mental illness
under health policies was also mandated by the URDAI.
Introduction of health insurance portability expected to boost the orderly growth of the health insurance sector.
In July 2016, IRDA issued Health Insurance Regulations, 2016. These regulations replace the Health Insurance Regulations, 2013. As per these
new norms, companies will provide better data disclosure, pilot products, coverage in younger years, etc.
Private insurance coverage is estimated to grow by nearly 15 per cent annually till 2020.
Government-sponsored programmes expected to provide coverage to nearly 380 million people by 2020, driven by initiatives such as RSBY and
ESIC.
RSBY is a centrally sponsored scheme to provide health insurance to Below Poverty Line (BPL) families and eleven other defined categories of
unorganised workers, namely building and other construction workers, licensed railway porters, street vendors, MGNREGA workers, etc.
Note: RSBY - Rashtriya Swasthya Bima Yojana, ESIC – Employees’ State Insurance Corporation, MREGA – Mahatma Gandhi National Rural Employment Guarantee Act., NSSO
30. For updated information, please visit www.ibef.orgInsurance30
STRONG POTENTIAL IN CROP INSURANCE
Source: Agricultural Insurance Company of India Annual Report, Department of Agriculture and Cooperation, IRDA, Livemint, PTI
Awareness about crop insurance in India is 38.8 per cent and still
crop insurance market in India is the largest in the world.
Over 47.9 million famers were benefitted under Pradhan Mantri Fasal
Bima Yojana (PMFBY) in 2017-18.
To provide crop insurance to farmers, Government has launched
various schemes like National Agriculture Insurance Scheme (NAIS),
Modified National Agriculture Insurance Scheme (MNAIS) and
Weather-based Crop Insurance Scheme (WBCIS)
In September 2018, Government of India increased the number of
risks to be covered in the Pradhan Mantri Fasal Bima Yojana
(PMFBY) to empower farmers in a better way. From now, farmers will
be protected against hailstorms, crop fires, damage from animals,
landslides and rainstorms.
Farmers Insured Under PMFBY
43.70
34.91
13.79 13.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
2016-17 2017-18
Loanee Non-Loanee
Note: Figures are as per latest available data
32. For updated information, please visit www.ibef.orgInsurance32
INDUSTRY ORGANISATIONS
3rd Floor, Parisrama Bhavan, Basheer Bagh, Hyderabad–500 004
Phone: 91-040-23381100
Fax: 91-040-66823334
E-mail: irda@irda.gov.in
Insurance Regulatory and Development Authority (IRDA)
5th Floor, Royal Insurance Building, 14, Jamshedji TATA Road,
Churchgate, Mumbai–400020
Phone: 91-22-22817511, 22817512
Fax: 91-22-22817515
E-mail: gicouncil@gicouncil.in
General Insurance Council
4th Floor, Jeevan Seva Annexe Bldg. S. V. Road, Santacruz (W),
Mumbai–400054
Phone: 91-22-26103303, 26103306
E-mail: ninad.narwilkar@lifeinscouncil.org
Life Insurance Council
33. For updated information, please visit www.ibef.orgInsurance33
GLOSSARY
CAGR: Compound Annual Growth Rate
IRDA: Insurance Regulatory and Development Authority
IPO: Initial Public Offering
FDI: Foreign Direct Investment
LIC: Life Insurance Corporation of India
GIC: General Insurance Corporation of India
NBFC: Non-Banking Financial Company
NGO: Non-Governmental Organisation
RSBY: Rashtriya Swasthya Bima Yojana
PFRDA: Pension Fund Regulatory and Development Authority
GDP: Gross Domestic Product
ESIC: Employees State Insurance Corporation
FY: Indian Financial Year (April to March)
So, FY12 implies April 2011 to March 2012
GOI: Government of India
INR: Indian Rupee
US$ : US Dollar
Where applicable, numbers have been rounded off to the nearest whole number
34. For updated information, please visit www.ibef.orgInsurance34
ANNEXURE…(2/2) - EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Q1 2018-19 67.04
Q2 2018-19 70.18
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve Bank of India, Average for the year
35. For updated information, please visit www.ibef.orgInsurance35
DISCLAIMER
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation
with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or
incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval
of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
reliance placed or guidance taken from any portion of this presentation.