TOPIC<br />Expansion of distribution channel<br />
Needs of Insurance<br />Protection Against Uncertainties<br />To Cover Risks<br />To Secure Life After Retirement<br /> Tax Relief<br />Financial Aid<br />
MILESTONES<br /><ul><li>1818- The business of Life Insurance in India started with the establishment of the Oriental Life Insurance Company in Kolkata.
1956 - 245 Indian and foreign insurers and provident societies 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 crore from the Government of India.</li></li></ul><li>I R D A<br /><ul><li>Enacted on 19 april,2000 to govern insurance industry
Government stake in the Insurance Companies to be brought down to 50% and should be given greater freedom
Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to enter the industry
Foreign companies may be allowed to enter the industry in collaboration with the domestic companies with 26% stake</li></li></ul><li>List of some leading Insurance Industries<br />Life Insurance Corporation of India<br />ICICI Prudential Life Insurance<br />Bajaj Allianz Life Insurance<br />SBI life Insurance<br />HDFC Standard Life Insurance<br />Birla Sun Life Insurance<br />Reliance Life Insurance<br />Max New York Life Insurance<br />
Kotak Mahindra Life Insurance<br />Aviva Life Insurance<br />Tata AIG<br />Met Life<br />ING Vysya<br />Shriram Life<br />BhartiAxa Life<br />
Market shares of different insurance companies in India IN 2009<br />
Market survey<br />The following is the market survey ,with a sample size of 100 individuals , within the <br />Age group of 25-45,on their choice of Insurance company..<br />Number <br />Of<br />people<br />Name of the companies <br />
Number<br />Of<br />people<br />Reason of the preferences<br />
PORTERS FIVE FORCES ANALYSISOF INSURANCE INDUSTRY<br /><ul><li>Threat of New Entrants </li></ul> The insurance industry has been budding with new entrants every other day. Therefore the companies should carve out niche areas such that the threat of new entrants might not be a hindrance. There is also a chance that the big players might squeeze the small new entrants. <br /><ul><li>Power of Suppliers</li></ul>Those who are supplying the capital are not that big a threat. For instance, if someone as a very talented insurance underwriter is presently working for a small insurance company, there exists a chance that any big player willing to enter the insurance industry might entice that person off. <br /><ul><li>Power of Buyers</li></ul>No individual is a big threat to the insurance industry and big corporate houses have a lot more negotiating capability with the insurance companies. Big corporate clients like airlines and pharmaceutical companies pay millions of dollars every year in premiums. <br /><ul><li>Availability of Substitutes</li></ul>There exist a lot of substitutes in the insurance industry. Majorly, the large insurance companies provide similar kinds of services – be it auto, home, commercial, health or life insurance. <br />
Role of Distribution Channels in Value Creation in insurance companies<br /><ul><li>Distribution accounts for the largest element in insurers’ costs and impact the profitability.
Distribution capabilities strongly influence product design in insurance.
Distribution channels have a direct impact on the insurers’ market image.
Integrity of distribution channel is the key concern of the regulatory mechanism.</li></li></ul><li>Importance of Distribution Channels<br /><ul><li>We need more alternative channels in India to sharply increase penetration levels.
Emergence of new channels is in the interest of consumers.
Widening and strengthening the channels will help the insurance industry to become more competitive and healthy.</li></li></ul><li>CONCLUSION<br />TO SUM UP EXPERIENCE IN MAX NEW YORK LIFE WAS <br />AMAZING IT OPENED MY EYES TO ROUGH CORPORATE <br />LIFE. IT ALSO HELPED IN UNDERSTANDING INSURANCE <br />INDUSTRY IN MUCH MORE POSITIVE WAY.<br />