Trends in insurance sector

TYBBI TRENDS IN INSURANCE SECTOR

1

INTRODUCTION

Insurance may be defined as: -

It is a contract between two parties where by one party undertakes to

compensate the party for the loss arising due to an uncertain events for

which the another party agrees to pay a certain amount regularly.´

In India, insurance has a deep-rooted history. Insurance in India has evolved

over time heavily drawing from other countries, England in particular. The

insurance sector in Indiahas come a full circle from being an open

competitive market to nationalization and back to aliberalized market again.

The business of life insurance in India in its existing form started inIndia in

the year 1818 with the establishment of the Oriental Life Insurance

Company inCalcutta.

The Insurance Act, 1938 was the first legislation governing all forms of

insurance to provide strict state control over insurance business.Today there

are 14 general insurancecompanies and 14 life insurance companies

operating in the country. But today also theinsurance companies are trying

to capture Indian markets as not many people are aware of it.

The insurance sector is a colossal one and is growing at a speedy rate of 15

20%.Together with banking services, insurance services add about 7% to

the country GDP. A well-developed and evolved insurance sector is a boon

for economic development as it provides long-term funds for infrastructure


2

development at the same time strengthening the risk taking abilityof the

country.

India is about 200 million middle class household shows a huge untapped

potential for players inthe insurance industry. Saturation of markets in many

developed economies has made the Indianmarket even more attractive for

global insurance majors. The insurance sector in India has come to a

position of very high potential and competitiveness in market.The main

objective of the researcher through this study is to understand the market

scenario bystudying different companies and their strategies, their

objectives and management

What is Insurance:

System whereby individual and companies concerned about potential

hazards pay premiumto an insurance company.Which reimburses (in whole

or part) them in the event of loss. Theinsurer profits by investing the

premiums it receives. Some common forms of insurancecover business risk,

automobiles, homes, boats workers compensation and health lifeinsurance

guarantees payment to the beneficiaries when the insurance person dies. In

a boardeconomic sense, insurance transfer risk from individual to a larger

group which is better ableto pay for losses.

The Importance of Insurance:

When you hear the word insurance, the words boring and mundane

probably enter your mind. It is realized that insurance is not a fun topic to

discuss or think about, yet it is important and servesto protect your financial

future. It is comforting to think that nothing will ever happen to you andthat

you are invincible. But odds are that you are likely to get into a car accident

or have some type of health problem at some point in your life, and when

that happens, you will want to have insurance. So when you question

whether you need insurance, the answer is a resounding yes, you definitely


3

need insurance.It may seem like insurance is a waste of resources- spending

money on something that may or may not happen. Since you cannot predict

the future, it is important to protect yourself and your possessions against

damage and harm. Insurance is all about protection- it protects you against

an unfortunate incident such as a car accident, a robbery, or an illness. The

moment an unexpected ill-fated event happens, you will be so glad you

have insurance. Medical bills from a minor accident can deplete your

savings and force you into bankruptcy. Insurance is not a rip off, but rather

an essential financial service.

DEFINITION

General definition:

In the words of John Magee, ―Insurance is a plan by which large number of

people associate themselves and transfer to the shoulders of all, risks that

attach to individuals.‖

Fundamental definition:

In the words of D.S. Hansel, ―Insurance may be defined as a social

device providing financial compensation for the effects of misfortune, the

payment being made from the accumulated contributions of all parties

participating in the scheme.‖

Contractual definition:


4

In the words of justice Tindal, ― Insurance is a contract in which a sum of

money is paid to the assured as consideration of insurer’s incurring the risk

of paying a large sum upon a given contingency.‖

INSURANCE SECTOR IN INDIA

Insurance sector in INDIA is booming up but not to level comparative with

the developed economies such as Japan, Singapore etc. Also with the

opening of the insurance sector to the private players have provided stiff

competition resulting into quality products. Also there is a need to

restructure the Indian Government owned ― Life insurance Corporation of

India ― so as to maximizerevenue and in turn profits. IRDA regulations and

norms for the allocation of fundsneed to have a comprehensive look. In the

phase of declining interest rates and rising inflation the funds need to be

applied in productive areas so as to generatehigh returns. Also in terms of

clients servicing areas such as premium payments,after sales service, policy

dispatch, redressal of grievances has to be amended. Inthe current scenario,

LIC has to provide flexible products suited to the customer’srequirements.

Also a proper and systematic risk management strategy needs to beadopted.

After the increase in terrorism and destructive events around the

globalworld such as September 11 attack on World Trade Centre, US –

Taliban war, US – Iraq war etc.. An alternative to reinsurance such as asset

backed securities isemerging out in the developed economies. Catastrophe

bonds are one of thealternatives for reinsurance. Finally some policies such

as pure term and pensionschemes needs to be addressed massively at both

the urban and the rural segments as to generate high premium income which

will help in the development andgrowth of the economy.


5

HISTORICAL BACKGROUND

Oriental insurance co. Was the first British insurance company to start its

business in 1818.

Bombay mutual life assurance society was the first insurance company in

India (1870).

Life insurance business was nationalised in 1956.

General insurance was nationalised in 1971.


6

The insurance sector is divided in two parts life and general or non-life.

Insurance

Life Non-life/General

Life insurance deals with only human lives and non-life deals

with other than human life. Insurance is divided into two

segments i.e. Life and non-life/general and each segment have

developed independently therefore it is being discussed

separately in the following paragraphs.

In 2000, Indian insurance sector has taken U turn i.e.

Privatization (private insurance companies to nationalization

(Government Companies) to Privatization/mixed economy

(Private/Government companies). Before we discuss how it

has happened we would like to enlighten you the past history

of insurance in India in brief.

LIFE INSURANCE

In 1870 two British life insurance companies entered in India

and attempted to do life insurance business on Indian lives.

After that many Indian & foreign companies started business

in India and by the year 1955 there were 255 insurance

companies operating in India and transacting the business to

the extent of Rs 200 crores. Due to the following reasons the

Government decided to nationalize the life insurance industry

w.e.f 1/7/1956.

1. No full guarantee to the Policyholders (who are insured).

2. The concept of trusteeship (confidence) was lacking.

3. Many insurance companies went into liquidation

(bankrupt).

4. There was malpractice in the business.

5. Non-Spreading of life insurance.

6. No insurance in rural areas.

7. No group insurance

8. No social security


7

To overcome the abovementioned problems the life insurance

business was nationalized and formed Life Insurance

Corporation with following features:

1. The Central Govt. guaranteed the Policyholders through

the LIC.

2. Being a Corporation formed under Special Act Passed by

the Parliament therefore the public can trust.

3. The LIC cannot be liquidated without the order of the

Central Govt.

4. Under the LIC Act, all day-to-day functions of the

Corporation and the method of Investment in Govt.

Securities were defined. Therefore, the malpractices were

eliminated.

1.3 GENERAL INSURANCE

Prior to nationalization of the General Insurance Business in

1972 by enactment of the General Insurance Business

Nationalization Act 1972 (GIBNA 1972) there were 55 Indian

Companies and 52 non-Indian Companies carrying of the

business of General Insurance in India.

―The primary objective of nationalization of general Insurance

was to make it meaningful to the common man, to carry its

message to the remotest corner of the country and to give it

its rightful place in the economy of the country. When it was

in the private sector it was a mere handmaid to trade and

industry and served to cater to the interests of a limited

clientele. Worse still it functioned in a manner favoring the

interests of a few at the expense of, needless to say, the

majority. There were allegations of malpractices on a big scale.‖

―It was the objective of nationalization to remove these

malpractices and usher in an era of Insurance run on sound

business principles and functioning on healthy and egalitarian

lines. The emphasis should be on spreading the message of


8

Insurance as widely as possible and on ensuring that it gives

the right weightage to the weaker sections of the society. The

principle of competition must have its useful role to play, but

not at the expense of unhealthy rivalry.‖

―General Insurance is a service and proper and efficient service

is due to the policyholder as a matter of right. The Corporation

exists for the benefit of the policyholder.‖

―Business must cease to work under purely mercenary motives.

Whenever, one feels the need for protection against an

unpredictable contingency, a suitable Insurance cover should

be available. No excuse should be given that a particular cover

is not conventionally given or that other markets of the world

do not give it.‖ ―Healthy employer-employees relationship is

of vital importance to achieve the main objectives of

nationalization.‖

Recent trends in insurance sector


9

CHANGING TRENDS IN LIFE INSURANCE POLICY:

Along with the other objectives of insurance like financial security, tax

benefits etc. one of the major objectives is saving and investment.

Traditional life insurance policies like endowment were becoming

unattractive and not meeting the aspirations of the policyholders as the

policyholder found that the sum assured guaranteed on maturity had really

depreciated in real value because of the depreciation in the value of money.

The investor was no longer content with the so called security of capital

provided under a policy of life insurance and started showing a preference

for higher rate of return on his investments as also for capital appreciation.

It was, therefore found necessary for the insurance companies to think of a

method whereby the expectation of the policyholders could be satisfied.

The objective of providing a hedge against the inflation through a contract

of insurance pushed insurer to link the insurance policy with market and

thus the industry observed the beginning of Unit linked insurance policy

(ULIP).

Current trends of the general insurance market

The recent development in the general insurance sector is the activities by the insurance regulator. The IRDA has been very stringent and has been keeping a close-watch on the functioning of all the insurance companies. The latest regulation from IRDA is on health insurance portability. In the future, general insurance industry will be very much in the limelight than any other industry facing recession now.

Online selling of insurance policies to discerning customers, who access the Internet will gain momentum. Typically motor, travel and health policies will be sold more online. Many insurers have already realised this and are creating separate verticals to exploit this segment. The interplay of technology & telecom solutions will be a major factor determining the growth of the industry in the future.

Till recently, micro-insurance on the lines of micro-finance, is thought to be a magic word and insurers

planned to bring retail products to suit this segment.

One major problem affecting the industry, like in all developing economies is the shortage of trained insurance professionals and technicians at all levels. So companies that are able to recruit and grow talent that continue to provide innovative insurance solutions for the underserved Indian market will be the ones that will rise and shine in the general insurance industry. The market is large and set for rapid growth but the ones that take the required calculated risks, have the right


10

technical expertise, do not blindly go after market share and are customer-centric in their approach to the market will be the ones to benefit from this growth and become one of the biggest and best run insurance companies in the world.

OBJECTIVE OF TRENDS

Government of India initiated certion changes through its new economic

policy in 1991. This policy attempted some of the following objectives of

trends

Reform in industrial policy and indusrial licencing.

Developing and partial convertibility of rupee.

Reform in trade policy.

Reduction of fiscal policy.

Simplification of bureaucratic control and procedures.

Simplification of foreign investment norms.

Reduction of inflationary pressures.

Reducing control of investment norms.


11

Change in enactment like FERA ( FOREIGN EXCHANGE

REGULATORY AUTHORITY) and MRTP ( MONOPOLIES AND

RESTRICTIVE TRADE PRACTICE )

Opening up of insurance to the private sector will substially help in

enhancing saving mobilization offering anew range of insurance products,

covering a large population and increasing the average per capita insurance

premium.

POLICIES OF TRENDS

These policies are in 5 parts:

A)The general policies of developing nongovernmental sectors and

preventing the government section to become larger.

B )The general policies of cooperative sections.

C)The general policies of developing nongovernmental sectors via

assigning activities of the government sector and their donation.

D).The general policies of privatization.

E).The general policies and government practices to avoid monopoly.


12

Policies And Measures To Develop Insurance Market

The Authority has taken a pro-active role in the establishment

of a vibrant Insurance market in the country by taking the

following steps:

i) The market regulation by prudential norms,

ii) The registration of players who have the necessary

financial strength to withstand the demands of a growing

and nascent market,

iii) The necessity to have ―fit and proper‖ person in-charge of

businesses,

4 The implementation of a solvency regime that ensures

continuous financial stability, and above all,

v) The presence of an adequate number of insurance

companies to provide competition and choice to customers

all these steps lead to the establishment of a regime

committed to an overall development of the market in

normal times.

vi) Prescribed rural and social sector norms in respect of

Insurance business being underwritten by the companies.

vii) The companies have also been asked to devise insurance

policy to specific sector in the economically weak

population.

Research and Development Activities Undertaken by

the Insurance companies

The insurers have been conducting market research either

in-house or through professional agencies

i) to introduce tailor-made products targeted at specific

segments of the population so that Insurance can become

more meaningful and affordable.

ii) Risk assessment studies are being carried out for

measuring accumulation of risk of a particular place at

any one point of time.

iii) Consumer awareness campaigns are being encouraged

to improve insurance literacy levels by conducting


13

workshops, distributing literature etc.

Protection of Interests of Policyholders

To protect the interests of holders of Insurance policies and to

regulate, promote and ensure orderly growth of the Insurance

industry the Authority has taken the following steps:

i) a leading consumer activist has been inducted into the

Insurance Advisory Committee.

ii) In addition to this member, this committee has drawn

representation form the industry, Insurance agents,

women’s organizations and other interest groups.

iii) While the Government has taken steps to strengthen the

Boards of the State-run companies by inducting

representatives from consumer organization and

policyholder,

iv) the Authority, on it part, was careful to ensure that all

the new private companies registered have a director

representing consumer interests on their Boards.

v) In addition to this measure all insurers have been advised

to streamline their grievance redressal machinery and

set benchmarks for efficient and effective service.

vi) All insurance companies are adhering to the Insurance

Ombudsman scheme formulated by the Government and

complaints against insurance companies are being referred

to them by the aggrieved policyholders from time to time.

vii) The Authority is conscious of the fact that the fine print

should not take away what the bold print promises and

in this regard has come out with the Insurance

Advertisement and Disclosure Regulations which ensure

that the Insurance companies adhere to fair trade practices

and transparent disclosure norms while addressing the

policyholders or the prospects.

viii) All Insurance intermediaries, before obtaining a licence,

or at the time of renewal of licence, are required to

undergo compulsory training to ensure that they can

service the policyholders better by being well trained and

informed.


14

ix) Guidelines have been issued to insurers to file their

existing and new products with the Authority. In case of

new products insurers are required to submit details of

� premium rating,

� policy conditions,

� proposal form,

� claim form,

� underwriting manual and

� the system in vogue to review the rates, terms and

conditions in future.

� In addition to this, they are required to furnish

certificates from advocates and actuaries that the

statements made are true and accurate and are not

in violation of any law and

� that the policy wordings are simple and easily

understandable to a policyholder.

A FEW ALTERNATIVE DISTRIBUTION CHANNELS

HAVE EVOLVED IN THE RECENT YEARS SUCH AS:

online and internet

The internet penetration in India has been on the

rise, whereby increased number of

people have access to internet both

through computers as well as through

mobile phones, including population in

tier-2 and tier-3 cities.

Direct marketing and telemarketing

With increasing telecom penetration in

India, the use of direct marketing via

database marketing is growing. Direct

access to the customer and savings in


15

intermediary cost make it an attractive

option for the companies and is the key

in development of the channel

Customer Service

One of the innovations that some of the insurers have

introduced is opening up of ―call centers‖ which are functioning

on a 24x7 basis. These centers act not only as enquiry offices

for new business to be developed but also function as points

of reference and records for claims, which have arisen. It is

note worthy to find that some of the new insurers have found

it possible to settle claims within 24 to 48 hours.

STRATEGIES FOR BETTERMENT AFTER trends in insurance

sector

Maximising customer satisfaction.

Introducing new technologies.

Improving promotional mix.

Updating research and development.

Strategic approach to fund management.

Diversification.

Minimum government interference.


16

OPPORTUNITIES

Mass Marketing:

India is a highly populated country and would continue to be so in the near

future.New players may tend to favour the "creamy" layer of the urban

population. But, indoing so, they may well miss a large chunk of the

insurable population. A strongcase in point is the current business

composition of the dominant market leader -the Life Insurance Corporation

of India. The lion's share of its new business comesfrom the rural and semi-

rural markets. In a country of 1 billion people, massmarketing is always a

profitable and cost-effective option for gaining market share.The rural

sector is a perfect case for mass marketing.

Job Opportunities:

Job opportunities are likely to increase manifold. The liberalization of

theinsurance sector promises several new job opportunities for those who

areequipped with degrees in finance. Finance professionals who had

witnessed aslump in the job market would be much relieved.There will be

demand for marketing specialists, finance experts and humanresource

professionals.

Reinsurance:

Huge capacity is likely to be created in the area of reinsurance. Apart from

purereinsurance activities, which involve providing insurance protection,

there will bea revolution in service-related fields like training, seminars,

workshops, know-howtransfer regarding risk assessment and rating, risk

inspections, risk managementand devising new policy covers, etc.


17

Marketing Strategies:

Also, with more players in the market, there will be significant increase

inadvertising, brand building, and this will benefit whole lot of ancillary

industries.A substantial shift is likely to take place in the distribution of

insurance in India.Many of these changes will echo international trends.

Worldwide, insuranceproducts move along a continuum from pure service

products to pure commodityproducts. Initially, insurance is seen as a

complex product with a high advice andservice component. Buyers prefer a

face-to-face interaction and place a highpremium on brand names and

reliability.

Bancassurance:

In other markets, notably Europe, this has resulted in bank assurance:

banksentering the insurance business. The Netherlands led with financial

services firmsproviding an entire range of products including bank

accounts, motor, home andlife insurance, and pensions. Other European

markets have followed suit. InFrance, over half of all life insurance sales

are made through banks. In the UK,almost 95% of banks and building

societies are distributing insurance productstoday.In India too, banks hope

to maximize expensive existing networks by selling a range of products.

Information Technology

Worldwide interest in E-commerce and India's predominant position

inInformation Technology and software development are also likely to be

majorfactors in the marketing of insurance products in the immediate

future. The numberof Internet account is increasing and the trend has

already been set by some of theleading insurers and insurance brokers

worldwide.


18

CHALLENGES

1)Technology:

In today's highly competitive financial services environment,

effectiveorganizations will employ technology in a strategic way so to

achieve acompetitive edge. Technology will play an increasing role in

aiding design andadministering of products, as well in efforts to build life-

long customerrelationships. At the same time, investment in technology will

only help as long asfirms find the right people: people with the right

attitude, values, and ethics,commitment to excellence, and focus on

customer service.

Competition:

Thus, apart from the normal issues facing any new company, many new

Indianprivate insurance players will need to cope with the challenges of

working with ajoint venture partner. They will be competing with large and

well-entrenchedgovernment-owned players. They have to overcome

regulatory hurdles, change theattitude of new recruits and satisfy some very

high customer expectations. Also,the players will have to consider the

Indian market as a long-term investment, andmaintain clear-cut objectives

and constant monitoring at all levels.


19

List of Private Insurance Companies in India

Following is a list of leading private non life insurers in India and their

gross premium statistics for June 2012, and June 2011:

Company Figure for

June 2012 in

INR crores

Figure for

June 2011 in

INR crores

Royal Sundaram 64.78 77.46

Tata AIG 47.14 36.50

Reliance General

Insurance

80.45 79.03

IFFCO Tokio 36.55 58.23

ICICI Lombard 348.98 423.54

Bajaj Allianz 136.20 109.84

HDFC Ergo 143.86 123.40

Cholamandalam 87.21 51.71

Future Generali 32.29 37.30

Universal Sompo 17.57 12.22

Bharti AXA 66.30 39.33

SBI 1.99 1.45

L&T 3.94 0.10


20

Star Health &

Allied Insurance

176.90 406.13

Apollo Munich 97.31 67.73

Max Bupa 36.39 14.13

ALLIANZ BAJAJ LIFE INSURANCE

COMPANY LTD

Bajaj Allianz Life Insurance

Co. Ltd. is a joint venture

between Allianz SE, one of the

world's largest insurance

companies, and Bajaj Finserv.

Allianz SE is a leading

insurance corporation globally

and one of the largest asset managers in the world, that manage assets worth

over a Trillion. With over 115 years of financial experience, Allianz SE is

present in over 70 countriesaround the world. Bajaj Allianz is into both life

insurance and general insurance. Today, Bajaj Allianz is one of India's

leading and fastest growing insurance companies. Currently, it has presence

in more than 550 locations with over 60,000 Insurance Consultants. In June

2008, Bajaj Allianz entered into partnership with Thomas Cook India to

provide travel finance. Bajaj Allianz Life Insurance ensures excellent

insurance and investment solutions by offering customized products,

supported by the best technology.

Contact Address

Bajaj Allianz Life Insurance Co. Ltd.

GE Plaza, Airport Road

Yerawada, Pune - 411006

Website: www.bajajallianzlife.co.in

http://www.bajajallianzlife.co.in/


21

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

ICICI Prudential Life Insurance Company is a

joint venture between ICICI Bank, which is one of India's foremost

financial services companies, and Prudential plc, which is a leading

international financial services group headquartered in the United Kingdom.

ICICI Prudential began the operations in December 2000. Today, this

company has over 2100 branches, which include 1,116 micro-offices, over

290,000 advisors and 18 banc assurance partners. ICICI Prudential Life

Insurance Company is the first life insurer in India that received a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI

Prudential has been voted as India's Most Trusted Private Life Insurer for

three consecutive years. ICICI Prudential Life Insurance Company has

various insurance plans that have been designed for different individuals, as

every individual has different insurance needs.

Contact Address

ICICI Pru Life Towers

1089 Appasaheb Marathe Marg

Prabhadevi, Mumbai - 400025

Website: www.iciciprulife.com

CONCLUSION

Privatization is a widely applied economic policy. It has, incontestably,

produced substantial economic benefits by raising profitability and

efficiency in firms, by providing financial resources to strapped


22

governments, and by signaling to creditors, investors and donors the

seriousness and credibility of a government’s shift in economic regime. In

developing countries, privatization has most successfully been applied in

commercial, industrial, manufacturing and service firms operating in

competitive markets. This form of privatization has generally proven its

worth: Consumers appreciate improvements in terms of quality and quantity

of good or services produced—even when prices increase, which is far from

the general case. In most countries, complaints about this sort of

privatization have been relatively muted and short-lived. Citizenries may

not like the job losses or the foreign ownership of breweries, banks, mines

and hotels, but the matter rarely reaches the level of street demonstrations.

The more important issue, economically and politically, is that of

infrastructure privatization.

SUGGESTIONS

After conducting the suitable survey we came to know so many relevant

suggestions given by people and our valuable experience at time of survey

which can be describe as follows:

Private Insurance Company should improve the Service.


23

Insurance companies should make the procedure of the claim simple and

understandable.

Insurance company should make more promotion of insurance in rural

area.

Real time gross settlement can play a very important role.

The need of the customer should properly be understood so that customer

feelssatisfied. The relationship value should be maintained.

ESSENTIAL TO MEET THE CHALLENGES

Indian insurance industry needs the following to meet the global challenges:

1 Understanding the customer better will enable insurance companies to

design appropriate products determine price correctly and increase

profitability.

2 Selection of right type of distribution channels among with prudent &

efficient management.

3 An effective CRM system, which would create a sustainable and long

lasting relationship.


24

4 Should increase the customer base in se mi urban and rural areas, which

offer huge potential.

Life Insurance in India, Key Trends and Opportunities to 2015

India’s insurance sector is expected to grow even faster than the country’s overall

economic growth, opening up new business avenues across the industry. With a

large number of insurance providers already operating in the country, the Indian

insurance industry has shown early signs of entering a consolidation phase, and an

improved distribution infrastructure, the adoption of new channels and

differentiated product offerings will continue to change the competitive landscape

significantly.

India’s low life insurance penetration rate and the rising awareness of the need for

insurance will be key growth factors in the Indian insurance industry. Favorable

foreign investment policies and increased capital-raising options will also create an

environment for collaborations and joint ventures. India’s reinsurance market is

also expected to continue growing, driven mainly by growth in non-life and

accident and health insurance.

The report provides top-level market analysis, information and insights of the

Indian life insurance industry, including:

- The Indian life insurance industry’s growth prospects by product category and

customer segment

- The various distribution channels in the Indian life insurance industry

- The competitive landscape in the life insurance industry

- A description of the life reinsurance market in India

This report provides a comprehensive analysis of the life insurance market in

India:


25

- It provides historical values for India’s life insurance industry for the report’s

2006–2010 review period and forecast figures for the 2011–2015 forecast period

- It offers a detailed analysis of the key sub-segments in India’s life insurance

industry, along with market forecasts until 2015

- It covers an exhaustive list of parameters, including written premium, incurred

loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total

assets, total investment income and retentions

- It analyses the various distribution channels for life insurance products in India

- Using Porter’s industry-standard ―Five Forces‖ analysis, it details the competitive

landscape in India for the life insurance business

- It provides a detailed analysis of the reinsurance market in India and its growth

prospects

- It profiles the top life insurance companies in India, and outlines the key

regulations affecting them

Reasons to Buy:

- Make strategic business decisions using top-level historic and forecast market

data related to the Indian life insurance industry and each sector within it

- Understand the demand-side dynamics, key market trends and growth

opportunities within the Indian life insurance industry

- Assess the competitive dynamics in the life insurance industry, along with the

reinsurance segment

- Identify the growth opportunities and industry dynamics within seven key

product categories

- Gain insights into key regulations governing the Indian insurance industry and its

impact on companies and the industry's future

Key Highlights

- The significant growth in the Indian life insurance market in the review period

can be attributed to key growth drivers such as population growth, robust economic

growth, lucrative tax benefits, the rising disposable income of India’s middle-class

population, and increased awareness of the need for insurance, especially among


26

younger people

- India is the world’s twelfth-largest life insurance market, and the fourth-largest in

the Asia-Pacific region

- By 2015, it is expected to surpass South Korea to emerge as the third-largest life

insurance Asia-Pacific market after China and Japan

- In 2010, the individual life insurance segment accounted for 74.8% of the total

Indian life insurance industry, whereas the group life insurance market had a

considerably lower market share of 25.2%

- Indian customers are increasingly demanding insurance products that offer

assured income through annuities

- Distribution channels such as bancassurance have gained significant market share

in the review period


27

Documents

Trends in insurance sector