INSURANCE SCENARIO IN INDIA –ISSUES AND OPPORTUNITIESPresented by,

Mahak ( MBA_GEN 1st year)

Roll no.-14101082

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 InsuranceA. Life insurance

B. General insurance General insurance is further classified:-

1.Fire insurance2.Marine insurance3.Miscellaneous insurance

INSURANCE HISTORY

Pre liberalization Liberalization Post liberalization

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.

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)

LIFE INSURANCE CORPORATION OF INDIA

• 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.

LIFE INSURANCE SECTOR OF INDIA -OVERVIEW

Market destiny Market shares

http://www.ibef.org/industry/insurance-sector-india.aspx

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.

GENERAL INSURANCE INDUSTRY- AN OVERVIEW

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

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

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

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

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

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

CAREER IN INSURANCE(1.5% OF MBA’S OPTED INSURANCE AS A CAREER -2013)

MBA(finance) MBA(banking and

insurance) MBA(insurance)

MBA(acturial science)-NM-Mumbai

PGDM(life,/gen ins.)BA(insurance)

Traditional courses Modern courses

REFERENCES

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