INSURANCE SECTOR IN INDIA

Presented by
Aparna R
Pradhipa S
Preethi R
Sakshi Jain
INTRODUCTION

The insurance industry of India consists of 53

insurance companies of which 24 are in life
insurance business and 29 are non-life
insurers.

Among the life insurers, Life Insurance

Corporation (LIC) is the sole public sector
company. Apart from that, among the non-life
insurers there are six public sector insurers.
 2015- Present 2000-14
In 2015, Government Post liberalization, the
introduced Pradhan Mantri
insurance industry recorded
Suraksha BimaYojna and significant growth; the
Pradhan Mantri Jeevan number of private players
Jyoti Bima Yojana increased to 44 in 2012
Government introduced The industry has been spurred
Atal Pension Yojana and by product innovation, vibrant
distribution channels, coupled
Health insurance in 2015
with targeted publicity and
As per Union Budget promotional campaigns by the
2016-17, new health insurers
insurance scheme under In December 2014,
the National Health
Government approved the
Protection Scheme has ordinance increasing FDI limit
been introduced in Insurance sector from 26
per cent to 49 per cent. This
would likely to attract
investment of USD7-8
billion
INSURANCE SECTOR
EVOLUTION OF THE INDIAN
199399 195672
Before 1956
Malhotra Committee
recommended opening All life insurance The life
up the insurance sector companies were insurance sector
to private players nationalized to form LIC
was made up of
IRDA, LIC and GIC in 1956 to increase
154 domestic life
Acts were passed in penetration and protect
insurers, 16
1999, making IRDA policy holders from
foreign life
the statutory regulatory mismanagement
insurers and 75
body for insurance and The non-life insurance
ending the monopoly business was
provident funds
of LIC and GIC
nationalized to form
GIC in 1972
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

Life Public (1)

insurance
(24 players) Private (23)

Insurance
Ministry of Regulatory and Non-life Public (6)
Finance Development insurance
Authority (28 players) Private (22)
(Government
(IRDA)
of India)
Re
insurance
(1 Public (1)
player)
 ADVANTAGE OF INDIA
Growing demand
Growing interest in insurance among
people; innovative products and
distribution channels aiding growth
Increasing demand for insurance
offshoring
Growing use of internet has started
increasing demand
Attractive opportunities
Life insurance in low-income urban
areas
Health insurance, pension segment
Strong growth potential for
micro insurance, especially from rural
areas
Increasing investments
As of March 2016, rising participation by
private players led to increase in their
market share in the life insurance
market, with the market share reaching
29.6 per cent in FY16 from 2 per cent in
FY03
Increase in FDI limit to 49 per cent from
26 per cent, as proposed in 2012, will
further fuel investments
Policy support
Tax incentives on insurance products
Passing of Insurance Bill gives IRDA
flexibility to frame regulations
Clarity on rules for insurance IPOs would
infuse liquidity in the industry
Repeated attempts to make the sector
more lucrative for foreign participants
Market Size
Government's policy of insuring the uninsured has gradually
pushed insurance penetration in the country and proliferation
of insurance schemes are expected to catapult this key ratio
beyond 4 per cent mark by the end of this year, reveals the
ASSOCHAM latest paper.

The number of lives covered under Health Insurance

policies during 2015-16 was 36 crore which is
approximately 30 per cent of India's total population. The
number has seen an increase every subsequent year as 28.80
crore people had the policy in the previous fiscal.
 During April 2015 to March 2016 period, the life insurance
industry recorded a growth rate of 22.5 per cent.

The general insurance industry recorded a 12 per cent

growth in Gross Direct Premium.

The life insurance industry reported 9 per cent increase in

overall annual premium .
 Indias life insurance sector is the biggest in the world with
about 360 million policies which are expected to increase at a
Compound Annual Growth Rate (CAGR) of 12-15 per
cent over the next five years. The insurance industry plans to
hike penetration levels to five per cent by 2020.

The general insurance business in India is currently at Rs

78,000 crore (US$ 11.44 billion) premium per annum
industry and is growing at a healthy rate of 17 per cent.
Life Insurance Corporation of India
Life Insurance Corporation (LIC) is the biggest life insurer in India and totally
owned by the union government. It specializes in individual life insurance,
pension plans, and group insurance plans. It has several subsidiaries including
the following:
Life Insurance Corporation of India International
LIC Housing Finance
LIC Nepal
LICHFL Care Homes
LIC Lanka
The organization has in excess of 12 million policyholders and more than 9
lakh agents. Till date it has issued in excess of 120 million policies. A major
reason for the organizations success over the years has been its adaptability.

Life Insurance Corporation of India: Clain settlement ratio 98.14 %

 BIRLA SUN LIFE

Parent Company Aditya Birla Group & Sun Life Financial Services

Category NBFC

Sector Insurance Services

Zindagi ke utar chadav mei jiyo vishwas ke saath;

Tagline/ Slogan Leaving nothing to chance

USP Expertise in Insurance across Continents

Birla Sun Life Insurance

Birla Sun Life Insurance Claim Settlement

Raito 88.45 %
Birla Sun Life Insurance Company Limited
(BSLI) is a joint venture between the Aditya
Birla Group, a well known Indian conglomerate
and Sun Life Financial Inc, one of the leading
international financial services organizations
from Canada.
Vision & Mission

To be a leader and role model in a broad based

and integrated financial services business.
Services Offered
PROTECTION
Secure your familys future in this increasingly uncertain
world and dont leave their dreams to fate.

HEALTH & WELLNESS

Plan and ensure that you spend time with your loved ones
when they need you the most rather than worrying about
medical expenses.

CHILDRENS FUTURE
Give your child the freedom to pursue his/her real passion by
ensuring that you give him the right financial support.
WEALTH WITH PROTECTION
your familys dreams and live through lifes highs and lows
with confidence while you reach your financial milestones as
planned.

SAVINGS WITH PROTECTION

Strike the right balance between living comfortably today and
staying financially secure in the future with small disciplined
savings at regular intervals.

RETIREMENT
Plan your retirement well to build a good corpus because
during retired life, income stops but expenses dont.
Statistics

Total Premium Collected : Rs 5,580 Cr.(Y-o-Y

Growth 6.62%)
Profit After Tax: Rs140 Cr.
Assets under Management (AUM): Rs 30,811 Cr.
(Y-o-Y Growth 2.08%)
Total Market Share 7.6%
data as on March 31, 2016; 5 Year CAGR
SWOT Analysis
Strengths
1. Has Network of 600 branches and advisors spread over 1500 towns in India having over 130,000
advisors
2. Backed By Aditya Birla Brand and Sun Life financial services
3. Emphasis on Customer Satisfaction through Transparent Functioning
4. Strong Capital Base

Weaknesses
1. Low Presence in Rural Market
2. Lesser advertising as compared to competitors

Opportunities
1. Growing potential in the Rural Market
2. Alignment with Government Schemes
3. Better awareness amongst people for getting insurance

Threats
1. Economic crisis and economic instability
2. Entry of new NBFCs in the sector
THANK YOU