Download - Challenges in the Field of Insurance Sector
-
7/29/2019 Challenges in the Field of Insurance Sector
1/17
-
7/29/2019 Challenges in the Field of Insurance Sector
2/17
PRESENTEDBY:-
Name Roll no.
Archana Gupta 16
Manju Gupta 17
-
7/29/2019 Challenges in the Field of Insurance Sector
3/17
CONTENTS
What is Insurance?
Evolution
Types of InsuranceGlobal Players Indian Mergers
Market Share
Current ScenarioChallenges
Conclusion
-
7/29/2019 Challenges in the Field of Insurance Sector
4/17
WHATISINSURANCE? Insurance is a form of contract or agreement under one party agrees in
return of a consideration to pay an agreed amount of money to anotherparty to make goods for a loss, damage, injury to something of value
Insurance, in law and economics, is a form of risk management primarily
used to hedge against the risk of a contingent loss.
Insurance is defined as the equitable transfer of the risk of a potential
loss, from one entity to another, in exchange for a premium.
Insurance rate is a factor used to determine the amount, called thepremium, to be charged for a certain amount of insurance coverage
Risk management, the practice of appraising and controlling risk, has
evolved as a discrete field of study and practice
-
7/29/2019 Challenges in the Field of Insurance Sector
5/17
EVOLUTION INDIA
1818 - Oriental Life Insurance Company 1stInsurance
Company.
1870 - Bombay Mutual Life Assurance Society 1st Life
Insurance Company.
1912 - The Indian Life Assurance Companies Act enacted the 1st
Law to Regulate the Life Insurance Business.
1928 - The Indian Insurance Companies Act enacted to enable
the government to collect statistical information about both
life & non-life insurance businesses.
-
7/29/2019 Challenges in the Field of Insurance Sector
6/17
CONTINUED
1938: Earlier legislation consolidated & amended the InsuranceAct with the objective ofprotecting the interests of theinsuring public.
1956: 245 Indian & foreign insurers & provident societiesare taken over by the central government & nationalized.
LIC formed by an Act of Parliament, viz. LIC Act, 1956, with acapital contribution of Rs. 5 crore from the Government of
India.
The first General Insurance Company established in the year1850 in Calcutta by the British.
-
7/29/2019 Challenges in the Field of Insurance Sector
7/17
TYPESOF INSURANCE
LIFE INSURANCE NON- LIFE INSURANCE
Property (eg. Builders risk insurance)
Aviation(eg. Private aircraft insurance)
Marine (eg. Marine hull insurance)
Miscellaneous (eg. Purchase insurance)
-
7/29/2019 Challenges in the Field of Insurance Sector
8/17
American International Group, Inc.
(AIG)
Prudential PLC
http://images.google.co.in/imgres?imgurl=http://www.business-insurance-cardiff.co.uk/assets/170_0269_1_w.jpg&imgrefurl=http://donklephant.com/2007/05/07/worlds-oldest-insurer-states-global-warming-is-real/&h=779&w=980&sz=197&hl=en&start=14&tbnid=qQ52pdsmG-0cYM:&tbnh=118&tbnw=149&prev=/images?q=global+insurance+company&gbv=2&svnum=10&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.business-insurance-cardiff.co.uk/assets/170_0269_1_w.jpg&imgrefurl=http://donklephant.com/2007/05/07/worlds-oldest-insurer-states-global-warming-is-real/&h=779&w=980&sz=197&hl=en&start=14&tbnid=qQ52pdsmG-0cYM:&tbnh=118&tbnw=149&prev=/images?q=global+insurance+company&gbv=2&svnum=10&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.business-insurance-cardiff.co.uk/assets/170_0269_1_w.jpg&imgrefurl=http://donklephant.com/2007/05/07/worlds-oldest-insurer-states-global-warming-is-real/&h=779&w=980&sz=197&hl=en&start=14&tbnid=qQ52pdsmG-0cYM:&tbnh=118&tbnw=149&prev=/images?q=global+insurance+company&gbv=2&svnum=10&hl=en -
7/29/2019 Challenges in the Field of Insurance Sector
9/17
MAJOR PLAYERS
-
7/29/2019 Challenges in the Field of Insurance Sector
10/17
MARKET SHARE
-
7/29/2019 Challenges in the Field of Insurance Sector
11/17
CURRENT SCENARIO
Growing at the rate of 15-20% annually
75% population has no insurance
Adds 7% to countrys GDP
LIC market share come down to 75% and private
insurers increased over 24%
Annuity or pension product have over 33% of
market
-
7/29/2019 Challenges in the Field of Insurance Sector
12/17
REASONSFOR GROWTH Provides value for money
Flexibility
Transparency.
Good products to offer.
Innovative Offers,Customer-Centric Products,
Increasing Awareness Levels of Consumers,
Enhanced Service Standards,
Reaching out to the customer through a numberof distribution and communications channels,
Use of customer feedback in improvement of offers.
-
7/29/2019 Challenges in the Field of Insurance Sector
13/17
RURAL MARKETANDITSCHALLENGESFORLIFEINSURANCEINDUSTRY
72% of Indian population belongs to rural area. Rural literacy rate have swollen to 59% from 37%.
53% of the total FMCG consummation is of rural market.
59% of the total durable goods get consumed in rural
market alone. Products like TV, DVD players and mobile phones have
registered 200% growth.
If the above mentioned figure arent seems impressiveconsider this, Rural households have more than 42million saving bank accounts then 27 million of urban.
-
7/29/2019 Challenges in the Field of Insurance Sector
14/17
CHALLENGESOFREGULATOR
Development of insurance sector.
Confidence of general public.
Insurance policy regulation (establishing market
discipline). Granting of license to new Insurers.
Foreign direct Investment (FDI).
Solvency Regulations
2/14/2013
-
7/29/2019 Challenges in the Field of Insurance Sector
15/17
New Comer Poses threat-With more companies coming up everyday with the
growing demand of the industry the market very competitive. Until and unless theexisting companies makes a mark and create their very own brand name it wouldbe quite tough to sustain their position in the market.
There is also probability of big companies taking over the new emergingcompanies.
Supplier Power: The people providing the capital dont act as big terror asopportunity always lies in the big hands and they can any day attract good insurerfrom small companies to their own company.
Buyer Power: Individual never stands a chance in front of big corporate sectorsas they dominate the insurance industries with high potential of negotiationpower.
Presence of substitutes: the insurance industry is full of replacement option andlarge insurance companies offer the same service as of others be it in any sectorof home, commercial ,auto, health or life.
CHALLENGESININSURANCE SECTOR
-
7/29/2019 Challenges in the Field of Insurance Sector
16/17
CONCLUSION
Insurance can be summed up as
Praying for the best
.
-
7/29/2019 Challenges in the Field of Insurance Sector
17/17