poland insurance market forecast

8/8/2019 Poland Insurance Market Forecast

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Poland Insurance Market Forecast (2008-2012)

The Polish insurance market has performed reasonably well over the past couple of years except 2009 when thefinancial crisis hit the market badly. It grew at a CAGR of over 13% during 2005-2009. The Polish insurancemarket is dominated by life insurance segment that has shown more consistent growth and outperformed non-lifecounterpart over the last few years. However, life insurance fell sharply in 2009 owing to adverse economicconditions.

According to our new research report ³Poland Insurance Market Forecast (2008-2012)´, demand for lifeinsurance products in Poland has again picked up with the revival of economy and improvement in income level.This is evident from the fact that the gross written premium by life insurers has increased by around 4% duringthe first quarter of 2010 over the same period last year. With this revival in demand for life insurance products,the gross premium written by life insurer is expected to grow at a CAGR of around 16% during 2009-2013.

The report provides an extensive research and objective analysis of the growing insurance industry in Poland, itsstructure and demand potential. The report has also identified the important players operating in the sector. Thekey players section talks about business profiling of all leading players. Moreover, it has analyzed all theemerging trends, important drivers and key challenges to help investors understand the market conditions.

The report has also identified the possible growth areas for expansion of the Polish insurance industry. Mostimportantly, the report has figured out the expected insurance sales of both life insurance and non-life insurance

segments. The forecast is based on the correlation between past market growth and growth in base drivers,penetration level, rise in living standard, GDP growth and competitive structure and government support.

Saudi Arabia Insurance Market to 2012

The Saudi Arabian insurance industry has emerged as one of the fastest growing insurance industries across theworld. While the global economic crisis has severely hit other industrial sectors, the insurance industry hasmarinated its 30-35% annual growth rate on the back of compulsory insurance lines.

According to our new research report ³Saudi Arabia Insurance Market to 2012´, protection & savings andhealth insurance are the fastest growing insurance lines in the country, with health insurance accounted for around 50% of the overall insurance market at the end of 2009. The health insurance sector is expected to growat fast pace on the back of increasing involvement of private companies and the obligation for foreign nationalsand foreign pilgrims to buy insurance covers. In addition, the most recent introduction of compulsory health

insurance for private employees, irrespective of the size of the company they are working with, will further boostthe health insurance market in the country.

Moreover, the general insurance category has shown substantial growth despite being heavily hit by the financialcrisis. It is expected to grow at a CAGR of more than 24% between 2010 and 2012 owing to rising motor andenergy insurance. Property and aviation insurance are expected to emerge as the fastest growing generalinsurance segments over the forecast period.

The motor insurance segment is projected to grow at a CAGR of 30% between 2010 and 2012. The fast growthrate will be achieved on the back of promotional strategies deployed by government. With the strong prospectivegrowth in auto sales, the premium of motor insurance will increase as vehicle insurance has been madecompulsory in the country.

³Saudi Arabia Insurance Market to 2012´ is an outcome of extensive research and detailed study of theinsurance sector in Saudi Arabia. The report discusses each of the insurance products in detail. Most importantly,it helps clients to get an idea about the direction in which the sector is likely to move in the coming years. Thereport also analyzes the pattern of macroeconomic variables and their impact on the insurance sector. It alsodiscusses the emerging industry trends which will decide the insurance sector future in the country.

UAE Insurance Market Forecast to 2012

Driven by factors such as low insurance penetration levels and favorable demographic profile, the UAE insuranceindustry has been witnessing noteworthy upsurge for the past few years. The huge untapped insurance market inthe country has been providing tremendous opportunities for expansion to the existing as well as new players.



According to our new research report ³UAE Insurance Market Forecast to 2012´, the industry witnessed aCAGR of around 30.5% during 2006-2009, and we anticipate that the future prospects of the industry will alsoremain buoyant, owing to strong economic growth and government initiatives like separate licenses for life andnon-life insurance products. Moreover, high demand for various insurance products, like life insurance, motor insurance, engineering insurance and home insurance, will also provide the impetus for the growth of theindustry. In this regard, we have done extensive research and analysis of the UAE insurance industry and itsvarious segments.

Our research also indicates that the non-life segment of the insurance industry will show significant growth incoming years. The baseline for optimistic future projection of the market is created by more underwriting funds topromote new non-life products in the market. Besides this, takaful insurance, private pension funds andbancassurance will also pave the way for the growth of the UAE insurance market over the forecast period (2010-2013).

Our report also emphasizes that the future growth trend, to some extent, will be impacted by the financial turmoiland credit squeeze. Nevertheless, the overall trend will remain positive over the forecast period. The governmenthas been taking various initiatives for the promotion of the insurance sector. As the medical insurance has beenmade compulsory from 2010, it is expected that the premiums from the medical insurance segment will make asignificant contribution to the non-life insurance sector.

³UAE Insurance Market Forecast to 2012´ provides a rational analysis and reliable statistics of the insuranceindustry in UAE. The report thoroughly examines current market trends, industrial developments and competitivelandscape to enable clients understand the market structure and its progress in coming years. Besides this, the

report also provides brief overview of the key market players in the UAE insurance industry.

Vietnam Insurance Sector Forecast to 2013

With the limited penetration and huge potential, Vietnam offers ample opportunities for international insurers. TheVietnam insurance market is one of the fastest growing insurance markets in the world. This is evident from thefact that while the insurance markets worldwide were facing financial crisis, the Vietnam insurance market wasenjoying robust double digit growth. It grew at a CAGR of close to 20% during 2007-2009.

According to our new research report "Vietnam Insurance Sector Forecast to 2013", the non-life insurancesector, which accounts for over half of the insurance market, has witnessed robust growth over the past couple of years. It is expected to grow at a CAGR of around 25% during 2010-2013. Strong demand for motor vehicleinsurance products, property and health insurance products are the major factors for the prospective growth.

The life insurance also recorded healthy growth in 2009. In fact, it witnessed an increase in growth rate comparedto previous years as more and more people seek insurance cover to protect themselves from different kinds of risks. The life insurance premium grew at a CAGR of around 10% during 2005-2009.

The report provides extensive research and objective analysis of the growing Vietnam insurance industry, itsstructure and demand potential. The report has identified important players operating in the sector. The keyplayers section talks about business profiling of all leading players. Moreover, it has analyzed all the emergingtrends including important drivers and key challenges to help investors understand the market conditions.

The report has identified the possible growth areas for the expansion of Vietnam insurance industry. Mostimportantly, the report has figured out the expected insurance sales of both life and non-life insurance products.The forecast is based on the correlation between past market growth and growth in base drivers, penetrationlevel, rise in living standard, GDP growth and competitive structure and government support.

Middle East Insurance Market Forecast to 2012

The Middle East insurance market is growing and changing rapidly. Although in comparison to other parts of theworld, this market is relatively small, the scope for further expansion is huge. The insurance market in the regionis expected to grow at a CAGR of around 25% during our forecast period (2010-2013) mainly due to the highlyuntapped market, rising awareness level, health consciousness and initiatives taken by governments of variouscountries in the region, says ³Middle East Insurance Market Forecast to 2012´.

The report covers GCC nations including Kuwait, Bahrain, Saudi Arabia, Qatar, United Arab Emirates and Oman.In addition to these, the insurance industry of Turkey, Iran, Israel and Jordan have also been analyzed. The



report details the market size of all these countries and states that Israel was the largest market in the region for insurance premium, followed by Turkey and UAE. Also, the report forecasts the future growth rates of theinsurance markets in all these countries. Saudi Arabia will witness the highest CAGR of around 36%, followed byBahrain and UAE during the forecast period.

Evaluation of Life and Non-life insurance segments has also been provided in the report. Non-life insurancesegments like health, motor, marine, fire insurance have been thoroughly discussed. Islamic Insurance is another growing area in Middle East and the report covers takaful share in different countries as well. Key drivers of the

Middle East insurance industry like low penetration, young educated population, and Government initiatives havebeen critically evaluated in the report.

The report provides extensive research and in-depth analysis of the insurance sector in the Middle East. It willhelp clients to analyze the leading-edge opportunities critical to the success of the insurance industry in theregion. Detailed data and analysis will help clients to navigate through the evolving insurance markets in theregion.

The forecast given in this report is not based on a complex economic model, but is intended as a rough guide tothe direction in which the market is likely to move. This forecast is based on a correlation between past marketgrowth and growth of base drivers.

Booming Health Insurance in India

Indian health insurance market has emerged as a new and lucrative growth avenue for both the existing playersas well as the new entrants. It represents one the fastest growing and second largest non-life insurance segmentin the country. Despite adverse economic environment across the world, the Indian health insurance marketcontinued to post record growth in the last two fiscals (2008-09 and 2009-10). Moreover, as per our estimations,the health insurance premium is expected to grow at a CAGR of over 25% for the period spanning from 2009-10to 2013-14.

Currently, the market is dominated by public sector insurers, and all the private health insurers put together account for less than half the total health insurance premium written in the country. However, with the fastexpanding private health insurers, the trend is to get reversed soon; and in next few years, the market will bedominated by private insurers.

According to our latest research report ³Booming Health Insurance in India´, although the Indian healthinsurance market has seen rapid expansion in the past couple of years, it remains largely underpenetrated

because of various shortcomings that must be looked upon. We have figured out some of the criticalshortcomings including low awareness, non-coverage of out-patient care & existing diseases, inefficient costmanagement, product reach in rural areas and weak retail distribution model.

The report provides relevant statistics and in-depth analysis on the Indian health insurance market. It highlightsall the emerging trends including the key factors driving the market growth and the key challenges confronted bythe industry. The report also identifies what could be the possible growth areas for expansion and gives adetailed overview of the competitive landscape.

Moreover, the report presents industry forecast based on correlation of past drivers, challenges and opportunitiesfor expansion. In this way, the report provides a comprehensive and coherent analysis of the Indian healthinsurance market that will certainly prove decisive for clients.

China Insurance Sector Forecast to 2013

China¶s insurance industry is one of the fastest growing insurance industries on the globe. It is expected to growat a CAGR of 28-30% during 2009-2013. While most of countries worldwide are busy in finding ways to come outfrom the financial crisis, China¶s insurance industry is already on the way to make great headways and growrobustly in coming years. Last year (2008), the insurance industry grew at the fastest pace since 2002 on risinginsurance awareness level and government support. It recorded YOY growth of over 39% in 2008. Personalinsurance products including life, health and personal accidents led the majority of growth, accounting for over three-fourth of total insurance premium written in the country.

Non-life (property) insurance products are also growing at rapid pace. The market is mainly concentrated into twosegments: Motor and Commercial Property insurance. Motor insurance accounts for over 70% of premium written



in non-life insurance segment. But there are many other emerging non-life insurance products like productliability, credit, marine insurance etc, which will decide long-term viability of the non-life insurance market.Therefore, there is a strong need to focus on these emerging insurance segments.

However, the insurance market in China still remains largely untapped. With insurance penetration (in terms of GDP) at mere 3.2% at the end of December 2008, China stands far behind than the global average of insuranceindustry penetration over 7%. So the future of industry looks certainly promising but growth rate is expected to bemarginally lower in near term as demand for life insurance products, particularly investment linked insurance

products, may see a downturn amidst the financial crisis.

³China Insurance Sector Forecast to 2013́ is an outcome of extensive research and in-depth study of insurance market in China. The report discusses each of the insurance segments in detail, including personalinsurance, property insurance, etc. Most importantly, it also tells clients the direction in which the market is likelyto move in coming years. Additionally, the report analyses pattern of macroeconomic variables and their impacton the insurance market. It also contains information about emerging industry trends, which will decide future of China¶s insurance market.

South Korean Insurance Industry Forecast to 2012

The South Korean insurance market is one of the largest insurance markets in the world. After the Asian financialcrisis of 1998, it has rapidly expanded on the back of regulatory developments, government support, economic

growth and rising income level to become the 7th largest market globally in terms of market share. The marketwill continue to grow at a fast pace in coming years, says our new research report, ³South Korean InsuranceIndustry Forecast to 2012´.

Given the impact of global economic crisis on the industry, there will be a limited demand for insurance productsin short term. However, the growth scenario will change for the medium term because it holds huge potential for improvement with recovery of real income growth and higher exports. Thus, the total amount of direct premiumscollection for the forecast period (FY 2009 ± FY 2012) is expected to grow at a CAGR of over 6%, with the mainimpetus coming from the non-life insurance sector.

Analyzing the current market trends, we have done a comprehensive analysis of the South Korean insurancemarket to give an outline of industry¶s progress in future. The report covers various segments of the insurancemarket. It gives detailed product wise analysis of the insurance market by studying it in terms of life-insurance,non-life insurance, premiums collected and claims paid.

Our research also highlights the factors which are responsible for the growth of South Korean insurance marketover the forecast period. It says that the growth in real income of the Korean population along with perennial

demand for private health insurance is the main drivers of the insurance industry. This trend, coupled withgovernment¶s initiatives, is playing a critical role in promoting reforms and competitiveness.

Since deregulation in 1987, the life insurance sector has seen many new entrants, but the largest three,Samsung Life, Korea Life and Kyobo Life, still dominate the market, accounting for about 69% of all life-insuranceassets at the end of December 2008. The non-life sector is similarly concentrated with Samsung Fire & Marine,Hyundai Fire & Marine, Dongbu Fire & Marine and LG Insurance accounting for around 68% of all non-life-insurance assets at the end of December 2008.

Russian Insurance Industry Forecast to 2012

Russian insurance market is one of the fastest growing markets in the world. It has been rapidly expandingover the past few years on the back of regulatory developments, government support, economic growth andrising income level, says our new research report, ³Russian Insurance Industry Forecast to 2012́ . TheRussian insurance market will continue to maintain its growth pace in coming years.

According to our report, there will be a limited demand for insurance products in the short term because of global economic crisis, but the market holds strong growth potential for the medium term as real income beginsto recover. As the penetration rate of insurance is still low as compared to more developed economies, themarket represents enormous growth opportunities for insurance players. Moreover, the financial crisis will havesome positive impact on the sector as unqualified and undercapitalized players will fail, leaving those that



remain more transparent and customer friendly.

The total amount of premiums collected grew at a CAGR of around 24.5% between 2005 and 2008. It isexpected that the introduction of laws on compulsory property insurance will boost the overall insurance marketin future.

Anticipating the upward movement in future, we have done a comprehensive analysis of the Russian insurance

market. The report covers various segments of the insurance market and gives detailed information of them,such as life-insurance, non-life insurance, premiums collected, premiums paid, voluntary insurance, compulsoryinsurance, distribution network and reinsurance.

Our research also highlights the factors which are responsible for growth in the Russian insurance market. Itsays that the rising real income of the Russian population is the main driver behind the growth. This trend,coupled with the government¶s initiatives, is playing a critical role in promoting reforms and competitiveness.

With immense growth potential, our research foresees enormous opportunities for various market players likeRosgosstrakh, Ingosstrakh and Reso-Garantia. Moreover, the overall prospects for foreign investors are good.Foreign insurance companies have a number of advantages compared with local insurers, including higher credibility with customers, solvency supported by larger capital resources, and experience with bestinternational practices.

South African Insurance Industry Forecast to 2013

South Africa is known for its well-developed, highly liberalized financial sector. Particularly, the insuranceindustry of the country is the most developed in the entire African continent. As per our research report "SouthAfrican Insurance Industry Forecast to 2013́ , South Africa account for the bulk of the Africa¶s total insurancebusiness, i.e. a lion¶s share of around 85%. In this way, it has left Tanzania and other 51 African countries witha collective share of merely 15%.

In the course of our research, we found that the South African insurance industry showed a remarkableresilience to the economic turmoil of 2008 that entangled most of the industries across the world. In fact, thelong-term insurance sector of the country continued the trend of positive growth during this adverse time andregistered about 11.5% growth rate during 2008. In future also, it is anticipated to maintain the healthy growth

rate.

Most importantly, the policyholders not only maintained their premiums for life and disability insurance and fundpolicies in 2008, but they also continued to increase them. The life insurance industry managed to attract newindividual recurring as well as single premiums of ZAR 65 Billion during 2008, an increase of 14% over 2007.

The report also highlights that with the increased demand of medical, motor and property insurance, short-terminsurance industry is also set to rollout tremendously in the coming years. By net premium, short-terminsurance industry is expected to grow at a CAGR of about 11% during 2009-2013. Growing demand for liabilityand engineering insurance will favor the future growth.

"South African Insurance Industry Forecast to 2013´ provides extensive research and in-depth analysis of the insurance sector of South Africa. The report will help clients to evaluate the leading-edge opportunitiescritical to the success of the country¶s insurance industry. It also provides future outlook on the key segments of the industry, besides shedding light on the key players in the industry (including both domestic as well asforeign players).

The forecast given in the report is not based on a complex economic model, but is intended as a rough guide tothe direction in which the market is likely to move. This forecast is based on a correlation between past marketgrowth and growth of base drivers.



Indian Insurance Industry: New Avenues For Growth2012

With an annual growth rate of 15-20% and the largest number of life insurance policies in force,the potential of the Indian insurance industry is huge. Total value of the Indian insurance market

(2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the

insurance and banking services¶ contribution to the country's gross domestic product (GDP) is 7%

out of which the gross premium collection forms a significant part. The funds available with the

state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.

Till date, only 20% of the total insurable population of India is covered under various life

insurance schemes, the penetration rates of health and other non-life insurances in India is also

well below the international level. These facts indicate the of immense growth potential of the

insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as major structural changes tookplace with the ending of government monopoly and the passage of the Insurance Regulatory and

Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing

foreign players to enter the market with some limits on direct foreign ownership.

Though, the existing rule says that a foreign partner can hold 26% equity in an insurance

company, a proposal to increase this limit to 49% is pending with the government. Since opening

up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the

Indian market and 21 private companies have been granted licenses.

Indian Insurance Industry Forecast (2007-2009)

RNCOS¶ report, ³Indian Insurance Industry Forecast (2007-2009)´ , provides extensiveresearch and objective analysis of the growing insurance industry, its product quality, and services

in India. This report helps to analyze the leading-edge opportunities critical to the success of the

insurance Industry in India. Detailed data and analysis helps investors, financial service providers,

and global banking players to navigate through the evolving insurance market in India.

Key Findings

- Taking into account the changing socio-economic demographics, rate of GDP growth, changing

consumer behavior and occurrences of natural calamities at regular intervals, the Indian life

insurance market is expected to reach the value of around Rs 1683 Billion in the year 2009. The

market is expected to grow at a CAGR of more than 200% YOY from the year 2006.

- In 2006-07, pension premium contributed about 22.11% to total premium income of insurers.

Interestingly, the figure in the first nine months to December 2005 was 25.22%.- In the non-life segment, the established players control 65% of the market. So it is

their monthly performance that determines how the market as a whole would perform.

- In Motor Insurance Business, Public sector covers almost 68% of the market value whereas the

private sector just had 32% market share till September 2006.

- In Accident Insurance Business, private sector players have almost 53% market share

with ICICI Lombard as the lead player. Public sector players constitute about 47% market value

with New India as the leading player followed by United India.

Key Issues and Facts Analyzed



The research report also addresses the issues and facts that are critical to business success:

- What are the marketing strategies of the players in the insurance industry?

- How is the growth in Health and Group insurance are driving the Insurance sector in India?

- What are the opportunities for the players in this industry and what are the challenges

to sustain the Insurance market in India?

- What will be the prospective areas of investments in the insurance industry in the near future?

- Which factors will lead to the growth of Life and Non-life insurance in India?

Key Products Analyzed

Key products like Life and Non-life insurance have been analyzed, supported by facts like revenue

and market trends.

Key Players

This section provides an overview of some of the key players in this industry like Bajaj Allianz, ING

Vysya, AMP Sanmar Assurance Limited, SBI Life, Tata AIG Life, HDFC Standard, ICICI Prudential

Life Insurance, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra Old Mutual, Max New York Life,

Met Life, Sahara Life, LIC, Royal Sundaram, Tata-AIG General, Reliance General, IFFCO-Tokio,

ICICI-Lombard, HDFC Chubb, New India Assurance Company Limited, National Insurance

Company Limited, United India Insurance Company Limited and Oriental Insurance Limited.

Research Methodology Used

Information Sources

Information has been sourced from various sources namely, Books, Newspapers, trade journals,

and white papers, industry portals, government agencies, trade associations, monitoring industry

news and developments, and through access to access to more than 3000 paid databases.

Analysis Methods

The analysis methods includes the following:

Ratio Analysis, Historical Trend Analysis, Linear Regression Analysis using software tools,

Judgmental Forecasting and Cause and Effect Analysis.

Insurance

Last Updated: June 2010

The US$ 41-billion Indian life insurance industry is considered the fifth largest life insurance market, and growing at a rapid pace of 32 -34 annually, according to the Life Insurance Council.

Life Insurance Corporation of India (LIC) registered an 83 per cent increase in new business income in March 2010, while priv ate players p47 per cent growth in new business premium.

Moreover, according to IRDA, insurers sold 10.55 million new policies in 2009 -10 with LIC selling 8.52 million and private companies 2.0million policies. At the end of March 2010, LIC held 65 per cent market share in terms of new business income collection with the private scontributing the remaining 35 per cent share in 2009-10.

According to IRDA, total premium collected in 2009 -10 was US$ 24.64 billion, an increase of 25.46 per cent ove r US$ 19.64 billion collect2008-09.

A growth of 18 per cent is expected in total premium income and is likely to cross the US$ 64.93 billion mark, according to B Mathur, SecrGeneral, Life Insurance Council.



General Insurance

Vehicle financing firm, Magma Fincorp has applied to IRDA for approval and expects clearance in 2010. The firm is entering th e general in

business in a joint venture with Germany -based company HDI-Gerling International Holding AG.

According to data released by IRDA, the general insurance industry recorded 13.42 per cent growth in gross premium collected during 2009The industry collected gross premium of US$ 7.84 billion in 2009 -10 compared with US$ 6.91 billion in 2008-09.

The public sector players posted 13.85 per cent growth in gross premium in 2009 -10. At the same time, private players recorded a 12.82 perincrease in gross premium till March 2010.

During April-May 2010, non-life insurers mopped up US$ 1.59 billion against US$ 1.34 billio n in the previous year, registering an increase per cent according to IRDA data.

The four state-run insurers fared better than their private counterparts, with New India Insurance collecting the maximum premium of US$ 2million in April and May 2010, compared to US$ 253.15 million in the previous year, growing by 16.34 per cent.

According to the IRDA's Summary Reports of Motor Data of Public and Private Sector Insurers - 2008-09, nearly 30 million vehicle policieissued and a total premium worth US$ 1.83 billion was collected.

Health Insurance

The Indian health insurance market has emerged as a new and lucrative growth avenue for both the existing players as well as the new entraAccording to a latest research report "Booming Health Insur ance in India" by research firm RNCOS released in April 2010,all emerging trenincluding the key factors driving the market growth. Furthermore, the report also identifies what could be the possible growt h areas for expand gives a detailed overview of the competitive landscape. The Indian health insurance market has continued to post record growth in the lasfiscals (2008-09 and 2009-10). Moreover, as per the RNCOS estimates, the health insurance premium is expected to grow at a compound angrowth rate (CAGR) of over 25 per cent for the period spanning from 2009 -10 to 2013-14.

According to a report published by Yes Bank and an industry body in November 2009, the medical insurancesector would account for US$ 3 billion in the next three years.

Health insurance premium collections touched US$ 1.45 billion in 2008-09 compared with US$ 1.13 billion in theprevious year, IRDA said in its annual report for 2008-09.

Moreover, total premium between April and December 2009 was US$ 1.35 billion, up from US$ 1.12 billion, anincrease of 20 per cent, as per figures released by the regulator.

Bancasssurance

Private insurers have adopted bancassurance in a much bigger way than the state-owned Life InsuranceCorporation (LIC) in recent years. Bancassurance is distribution of insurance products through a bank's network.

In 2008-09, private insurers forked out US$ 44.64 million as commission for bancassurance, while the payout byLIC for this distribution model was only US$ 26,075, as per official data.

According to Towers Watson India, Bancassurance Benchmarking survey 2009-10, released in May 2010,bancassurance will play a crucial role in the overall development of the Indian insurance sector with the channelexpected to generate 40 per cent of private insurers premium income by 2012, compared to the current 25-28 per cent. In general insurance, presently 17 per cent of premium income comes from bancassurance.

Investments

y The Indian insurance unit of Dutch financial services firm ING plans to invest US$ 51 million in 2010/11to fund expansion in India.

y Private life insurer Future Generali India will expand its distribution network by opening around 100branches in addition to its existing network of 91 branches during 2010. It will also increase the agencyforce by 21,000 to 65,000 people.



y Max Bupa, the health insurance JV between UK's Bupa and the Max Group plans is set to invest afurther US$ 134.9 million in its health insurance segment over the next five years. Besides the existingsix cities, it plans to foray into Surat, Jaipur and Ludhiana by the end of 2010.

Investment Policy

y According to a guidance note released by IRDA, the regulator has increased the lock-in period for all

unit-linked insurance plans (ULIPS) to five years from the current three years, thereby making themlong-term financial instruments, which basically provide risk protection. The commission and expenseshave also been reduced by evenly distributing them throughout the lock-in period. Moreover, IRDA saidthat insurers will provide a mortality cover or a health cover to all ULIPS, other than pension and annuityproducts, thereby increasing the risk cover component on them.

y IRDA has ordered life insurers to offer customers a guaranteed return of 4.5 per cent per annum onpension and annuity plans.

Exchange rate used: 1 USD = 46.38 INR (as on June 2010)

Vietnam Insurance Sector Forecast to 2013

With the limited penetration and huge potential, Vietnam offers ample opportunities for internationalinsurers. The Vietnam insurance market is one of the fastest growing insurance markets in the world.

This is evident from the fact that while the insurance markets worldwide were facing financial crisis, the

Vietnam insurance market was enjoying robust double digit growth. It grew at a CAGR of close to 20%

during 2007-2009. ( http://www.bharatbook.com/detail.asp?id=99026&rt=Vietnam-Insurance-Sector-

Forecast-to-2013.html )

According to our new research report "Vietnam Insurance Sector Forecast to 2013", the non-life

insurance sector, which accounts for over half of the insurance market, has witnessed robust growth

over the past couple of years. It is expected to grow at a CAGR of around 25% during 2010-2013.

Strong demand for motor vehicle insurance products, property and health insurance productsare the

major factors for the prospective growth.

The life insurance also recorded healthy growth in 2009. In fact, it witnessed an increase in growth rate

compared to previous years as more and more people seek insurance cover to protect themselves from

different kinds of risks. The life insurance premium grew at a CAGR of around 10% during 2005-2009.

The report provides extensive research and objective analysis of the growing Vietnam insurance

industry, its structure and demand potential. The report has identified important players operating in the

sector. The key players section talks about business profiling of all leading players. Moreover, it has

analyzed all the emerging trends including important drivers and key challenges to help investors

understand the market conditions.

The report has identified the possible growth areas for the expansion of Vietnam insurance industry.

Most importantly, the report has figured out the expected insurance sales of both life and non-

life insurance products. The forecast is based on the correlation between past market growth and

growth in base drivers, penetration level, rise in living standard, GDP growth and competitive structure

and government support.

Thailand Insurance Sector

Thailand is the 2nd largest economy in Southeast Asia, after Indonesia. It ranks midway

in the wealth spread in South East Asia and is the 4th richest nation per capita, after

Singapore, Brunei, and Malaysia. The Thai economy in 2008 is forecasted to grow at



5.6% (in the forecasted range of 5.0-6.0%). This figure is an improvement on 4.8%

growth in the

previous year according to Fiscal Policy Office (FPO), Ministry of Finance. In 2008

accelerated public sector spending led to recovery in domestic demand which is expected

to be far more balanced economic expansion. Government policy would then be forced to

stimulate the domestic economy. This happens when external demand is likely to be

softened from possible global economic slowdown. External stability in 2008 will remain

strong with current account surplus estimated to be 0.5% of GDP (in the range of 0.3 -

0.8% of GDP). In contrast, internal stability in 2008 may have some risk with increasing

headline inflation at 4.5% (in a range of 4.3 -4.8%). This is mainly due to rising energy

and food prices in the world markets.

According to µThe Economist¶, real GDP growth will slow down by 1.15% p.a over the

next 4 years (2008-12), as compared to 5.3% p.a in past 3 years since 2007. This

sluggishness of GDP can be attributed to various negative factors, such as political

uncertainty, instability of foreign exchange rates, and continuous high petroleum prices

in 2006.

The Thai insurance industry, along with the wider Thai economy, has now however

recovered from the depths of the Asian financial crisis and is experiencing noteworthy

growth. The trend is expected to continue as public awareness of the need for insurance

increases.

Market Performance and Forecast

Within a span of 7 years (2000 - 2007), Thai Insurance Sector has experienced a growth

of 191% currently valuated at $9,434.72 million. The Knowledge Centre predicts, the

overall market size will increase by 72.5% further and is expected to touch the highs of

$13,012.75 million by 2011.



The life insurance market in Thailand between 2000 and 2007 increased at a CAGR of

16.57%. The Knowledge Centre envisages that this trend would continue and the market

will see CAGR of 5.75% in 5 years and reach $8,3 06.21 million in 2011.

The non-life insurance market in Thailand between 2000 and 2007 increased at a CAGR

of 10.73%. The Knowledge Centre also forecasts that the growth will continue and the

market will see CAGR of 8.34% in the next 5 years with the premiums reaching $4,706

million by 2011.

Competitive Landscape

Some of the top foreign insurance companies in Thailand are ACE, AIG, Allianz, AXA,

Generali, ING, Millea Holdings, Manulife, New York Life and Prudential (UK). The market

is dominated by AIA, the local name of AIG that accounted for approx. 29% of all of

gross premiums in 2007. Thai Life (TLI) is considered to be the second largest player

overall with a market share of approx. 14%. The next largest group is considered to be a

joint venture between non-life insurer Ayudhya, local conglomerate Charoen Pokphand

and Allianz (AACP) with a market share of approx. 14%. Other major players in this

market are Ocean Life, Finansa, local associates of AXA (Krungthai) and ING.

Non-life insurance sector in Thailand is further sub-categorized under Fire, Marine &

Transportation, Hull, Cargo, Automobile, Compulsory, Voluntary, Miscellaneous,

Industrial All Risks, Public Liability, Engineering Insurance, Aviation Insurance, Personal

Accident, Health Insurance, Crop Insurance and Other Insurance. Some of the top

companies in this sector are Bangkok Insurance, Dhipaya Insurance, Phatra Insurance,

New Hampshire Insurance, Ayudhya Insurance, Mitsui Sumitomo Insurance, MSIG

Insurance, Sri Muang Insurance, Siam Commercial Samaggi, South East Insurance,

Viriyah Insurance, Synmunkong Insurance, Krungthai Panich etc.

Driving factors

- Balanced economic expansion and supporting role of the government



- Recent reforms and government¶s regulatory initiatives

- Re-defined financial practices and strengthening of corporate governance

- Relaxation of restrictions on directors and senior executives of insurance companies

- Amendment of clauses governing the evaluation of assets & debts of a life insurance

company

- Merger or consolidation of the large number of local insurers

- Middle income industrial developing nation

- Growing interest in Bancassurance

- Adoption of THBFix and Bibor

- Establishment of Insurance Commission

Major trends, issues and opportunities

- Mergers and acquisitions in Thailand's insurance industry are likely to drop off

- Thailand's economy is slowing as the effects of high oil prices, rising interest rates and

long-running political uncertainty take their toll.

- Political uncertainty and instability of foreign exchange rates

- Bullish trend in fixed deposit rates

- Government regulations laying a strong foundation for future growth

- Increase in foreign ownership limits

- Move towards a knowledge economy through skills development

- Issues in Health Insurance Systems

Topics covered in the report

- Thai economy, its performance, future outlook for 2008-09

- Government¶s economic policies, macroeconomic factors, trends and analysis

- Economic and Insurance environment in Thailand

- Market performance and forecast for Thai Insurance Sector between 2000, 2007 and

2011

- Market performance and forecast for Thai Life Insurance Sector between 2000, 2007 &

2011



- Market performance and forecast for Thai Non-Life Insurance Sector between 2000,

2007 & 2011

- Recent reorganization of financial institutions and setting up of Insurance Commission

- Corporate Finance Legislation and other major regulatory developments

- Role of Bancassurance

- Specific regulations and norms by the Thai Government for insurance sector.

- Sub-categorization of life and non-life insurance sector

- Competitive landscape & market share of companies in life and non-life insurance

sector

- Company profiles of top players in life and non-life insurance sector

OVERVIEW OF INDIAN INSURANCE SECTOR

INTRODUCTION The Insurance sector in India governed by Insurance Act, 1938, the Life InsuranceCorporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts.With such a large population and the untapped market area of this population Insurancehappens to be a very big opportunity in India. Today it stands as a business growing at therate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to

the country¶s GDP .In spite of all this growth the statistics of the penetration of the insurancein the country is very poor. Nearly 80% of Indian populations are without Life insurance

cover and the Health insurance. This is an indicator that growth potential for the insurancesector is immense in India. It was due to this immense growth that the regulations were

introduced in the insurance sector and in continuation ³Malhotra Committee´ wasconstituted by the government in 1993 to examine the various aspects of the industry. The

key element of the reform process was Participation of overseas insurance companies with26% capital. Creating a more efficient and competitive financial system suitable for the

requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The competition LIC started

facing from these companies were threatening to the existence of LIC .since the liberalization of the

industry the insurance industry has never looked back and today stand as the one of the most

competitive and exploring industry in India. The entry of the private players and the increased use of

the new distribution are in the limelight today. The use of new distribution techniques and the IT

tools has increased the scope of the industry in the longer run.



HISTORY OF INSURANCE SECTOR

The business of life insurance in India in its existing form started in India in the year 1818with the establishment of the Oriental Life Insurance Company in Calcutta. Some of theimportant milestones in the life insurance business in India are given in the table 1.

Table 1: milestones in the life insurance business in India

Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business

1928 The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses

1938 Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalised. LIC formed by an Act of Parliament, viz.

LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government

of India.

The General insurance business in India, on the other hand, can trace its roots to the TritonInsurance Company Ltd., the first general insurance company established in the year 1850in Calcutta by the British. Some of the important milestones in the general insurance businessin India are given in the table 2.



Table 2: milestones in the general insurance business in India

Year Milestones in the general insurance business in India

1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact allclasses of general insurance business

1957 General Insurance Council, a wing of the Insurance Association of India, frames

a code of conduct for ensuring fair conduct and sound business practices

1968 The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972 The General Insurance Business (Nationalisation) Act, 1972 nationalised the

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companiesviz. the NationalInsurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.

Indian Insurance Market ± History

Insurance has a long history in India. Life Insurance in its current form was introduced in1818 when Oriental Life Insurance Company began its operations in India. General Insurance

was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalisation b) Nationalisation and c) Post Nationalisation. Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating theoperations of various insurance companies. General Insurance followed suit and wasnationalized in 1973. General Insurance Corporation of India was set up as the controlling

body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform

process which commenced from 1991. For this purpose Malhotra Committee was formedduring this year who submitted their report in 1994 and Insurance Regulatory DevelopmentAct (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for privatecompanies and Private Insurance Company effectively started operations from 2001.

Insurance Market- Present:

The insurance sector was opened up for private participation four years ago. For years now,the private players are active in the liberalized environment. The insurance market havewitnessed dynamic changes which includes presence of a fairly large number of insurers bothlife and non-life segment. Most of the private insurance companies have formed joint venture

partnering well recognized foreign players across the globe.



There are now 29 insurance companies operating in the Indian market ± 14 private lifeinsurers, nine private non-life insurers and six public sector companies. With many more

joint ventures in the offing, the insurance industry in India today stands at a crossroads ascompetition intensifies and companies prepare survival strategies in a detariffed scenario.

There is pressure from both within the country and outside on the Government to increase the

foreign direct investment (FDI) limit from the current 26% to 49%, which would help JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed. Less than10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first licencefor a standalone health company in the country as many more players wait to enter. Thehealth insurance sector has tremendous growth potential, and as it matures and new playersenter, product innovation and enhancement will increase. The deepening of the healthdatabase over time will also allow players to develop and price products for larger segmentsof society.

State Insurers Continue To Dominate There may be room for many more players in a large

underinsured market like India with a population of over one billion. But the reality is that theintense competition in the last five years has made it difficult for new entrants to keep pacewith the leaders and thereby failing to make any impact in the market.

Also as the private sector controls over 26.18% of the life insurance market and over 26.53%of the non-life market, the public sector companies still call the shots.

The country¶s largest life insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers ± New India Assurance, National Insurance,Oriental Insurance and United India Insurance ± had a combined market share of 73.47% as

of October 2005. ICICI Prudential Life Insurance Company continues to lead the privatesector with a 7.26% market share in terms of fresh premium, whereas ICICI LombardGeneral Insurance Company is the leader among the private non-life players with a 8.11%market share. ICICI Lombard has focused on growing the market for general insurance

products and increasing penetration within existing customers through product innovationand distribution.

Reaching Out To Customers No doubt, the customer profile in the insurance industry ischanging with the introduction of large number of divergent intermediaries such as brokers,corporate agents, and bancassurance.

The industry now deals with customers who know what they want and when, and are moredemanding in terms of better service and speedier responses. With the industry all set tomove to a detariffed regime by 2007, there will be considerable improvement in customer service levels, product innovation and newer standards of underwriting.

Intense Competition In a de-tariffed environment, competition will manifest itself in prices, products, underwriting criteria, innovative sales methods and creditworthiness. Insurancecompanies will vie with each other to capture market share through better pricing and clientsegmentation.



The battle has so far been fought in the big urban cities, but in the next few years, increasedcompetition will drive insurers to rural and semi-urban markets.

Global Standards While the world is eyeing India for growth and expansion, Indian

companies are becoming increasingly world class. Take the case of LIC, which has set itssight on becoming a major global player following a Rs280-crore investment from the Indian

government. The company now operates in Mauritius, Fiji, the UK, Sri Lanka, Nepal and willsoon start operations in Saudi Arabia. It also plans to venture into the African and Asia-Pacific regions in 2006.

The year 2005 was a testing phase for the general insurance industry with a series of catastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have successfully managedto tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurance premiums being0.65% of GDP, the opportunities in the Indian market place is immense. The next five years

will be challenging but those that can build scale and market share will survive and prosper.

LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956 by an Act of Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from theGovernment of India. The then Finance Minister, Shri C.D. Deshmukh, while piloting the

bill, outlined the objectives of LIC thus: to conduct the business with the utmost economy, ina spirit of trusteeship; to charge premium no higher than warranted by strict actuarialconsiderations; to invest the funds for obtaining maximum yield for the policy holdersconsistent with safety of the capital; to render prompt and efficient service to policy holders,thereby making insurance widely popular.

Since nationalisation, LIC has built up a vast network of 2,048 branches, 100 divisions and 7zonal offices spread over the country. The Life Insurance Corporation of India also transacts

business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associatedwith joint ventures abroad in the field of insurance, namely, Ken-India Assurance CompanyLimited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and LifeInsurance Corporation (International) E.C. Bahrain. The Corporation has registered a jointventure company in 26th December, 2000 in Kathmandu, Nepal by the name of LifeInsurance Corporation (Nepal) Limited in collaboration with Vishal Group Limited, a localindustrial Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been

set up in 2001 to tap the African insurance market.Some Areas of Future Growth

Life Insurance

The traditional life insurance business for the LIC has been a little more than a savings policy. Term

life (where the insurance company pays a predetermined amount if the policyholder dies within a

given time but it pays nothing if the policyholder does not die) has accounted for less than 2% of the



insurance premium of the LIC (Mitra and Nayak, 2001). For the new life insurance companies, term

life policies would be the main line of business.

Health Insurance

Health insurance expenditure in India is roughly 6% of GDP, much higher than most other countries

with the same level of economic development. Of that, 4.7% is private and the rest is public. What iseven more striking is that 4.5% are out of pocket expenditure (Berman, 1996). There has been an

almost total failure of the public health care system in India. This creates an opportunity for the new

insurance companies.

Thus, private insurance companies will be able to sell health insurance to a vast number of families

who would like to have health care cover but do not have it.

Pension

The pension system in India is in its infancy. There are generally three forms of plans: provident

funds, gratuities and pension funds. Most of the pension schemes are confined to government

employees (and some large companies). The vast majority of workers are in the informal sector. As a

result, most workers do not have any retirement benefits to fall back on after retirement. Total

assets of all the pension plans in India amount to less than USD 40 billion.

Therefore, there is a huge scope for the development of pension funds in India. The finance minister

of India has repeatedly asserted that a Latin American style reform of the privatized pension system

in Indiawould be welcome (Roy, 1997). Given all the pros and cons, it is not clear whether such a

wholesale privatization would really benefit India or not (Sinha, 2000).

M ARKET SHARE OF INDIAN INSURANCE INDUSTRY

The introduction of private players in the industry has added value to the industry. The

initiatives taken by the private players are very competitive and have given immensecompetition to the on time monopoly of the market LIC. Since the advent of the private

players in the market the industry has seen new and innovative steps taken by the players inthis sector. The new players have improved the service quality of the insurance. As a result

LIC down the years have seen the declining phase in its career. The market share wasdistributed among the private players. Though LIC still holds the 75% of the insurance sector

but the upcoming natures of these private players are enough to give more competition to LICin the near future. LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).The following companies has the rest of the market share of the insurance industry. Table

3 shows the mane of the player in the market.



TABLE NO: 3 NAME OF THE INSURANCE COMPANY AND THE SHARE

HOLDING PATTEN

Name of the Insurance Company Shareholding

Agricultural Insurance Co Bank and Public Ins Co

Bajaj Allianz General Insurance Co. Ltd. Privately Held

Cholamandalam MS General Insurance Co. Ltd. Privately Held

Export Credit Guarantee Company Public Sector

HDFC Chubb General Insurance Co. Ltd. Privately Held

ICICI Lombard General Insurance Co. Ltd. Privately Held

IFFCO-Tokio General Insurance Co. Ltd. Privately Held

National Insurance Co. Ltd. Public Sector

New India Assurance Co. Ltd. Public Sector

Oriental Insurance Co. Ltd. Public Sector

Reliance General Insurance Co. Ltd. Privately Held

Royal Sundaram Alliance General Insurance Co. Ltd. Privately Held

Tata AIG General Insurance Co. Ltd. Privately Held

United India Insurance Co. Ltd. Public Sector

There are a total of 13 life insurance companies operating in India, of which one is a Public Sector

Undertaking and the balance 12 are Private Sector Enterprises.

List of Companies are indicated below:-

TABLE NO: 4 NAME OF THE LIFE INSURANCE COMPANY AND THE SHAREHOLDING PATTEN



Name of the company Nature of Holding

Allianz Bajaj Life Insurance Co Private

Aviva Life Insurance Private

Birla Sun Life Insurance Co Private

HDFC Standard Life Insurance Co Private

ICICI Prudential Life Insurance Co Private

ING Vysya Life Insurance Co. Private

Life Insurance Corporation of India Public

Max New York Life Insurance Co. Private

MetLife Insurance Co. Private

Om Kotak Mahindra Life Insurance Private

Reliance insurance Private

SBI Life Insurance Co Private

TATA- AIG Life Insurance Company Private



TABLE 5. NAME OF THE PLAYER MARKET SHARE (%)

Name of the Player Market share (%)

LIFE INSURANCE CORPORATION OF INDIA 82.3

ICICI PRUDENTIAL 5.63

BIRLA SUN LIFE 2.56

BAJAJ ALLIANZ 2.03

SBI LIFE INSURANCE 1.80

HDFC STANDARD 1.36

TATA AIG 1.29

MAX NEW YARK 0.90

AVIVA 0.79

OM KOTAK MAHINDRA 0.51

ING VYSYA 0.37

MET LIFE 0.21

PRESENT SCENARIO OF INSURANCE INDUSTRY

India with about 200 million middle class household shows a huge untapped potential for

players in the insurance industry. Saturation of markets in many developed economies has

made the Indian market even more attractive for global insurance majors. The insurance

sector in India has come to a position of very high potential and competitiveness in the

market. Indians, have always seen life insurance as a tax saving device, are now suddenlyturning to the private sector that are providing them new products and variety for their

choice.

Consumers remain the most important centre of the insurance sector. After the entry of the

foreign players the industry is seeing a lot of competition and thus improvement of the

customer service in the industry. Computerisation of operations and updating of technology



has become imperative in the current scenario. Foreign players are bringing in international

best practices in service through use of latest technologies

The insurance agents still remain the main source through which insurance products are

sold. The concept is very well established in the country like India but still the increasing useof other sources is imperative. At present the distribution channels that are available in the

market are listed below.

Direct sellingy

Corporate agentsy

Group sellingy

Brokers and cooperative societiesy

Bancassurancey

Customers have tremendous choice from a large variety of products from pure term (risk)

insurance to unit-linked investment products. Customers are offered unbundled products

with a variety of benefits as riders from which they can choose. More customers are buying

products and services based on their true needs and not just traditional moneyback policies,

which is not considered very appropriate for long-term protection and savings. There is lots

of saving and investment plans in the market. However, there are still some key new

products yet to be introduced - e.g. health products.

The rural consumer is now exhibiting an increasing propensity for insurance products. A research conducted exhibited that the rural consumers are willing to doleout anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurancethe awareness level for life insurance is the highest in rural India, but the consumersare also aware about motor, accidents and cattle insurance. In a study conducted byMART the results showed that nearly one third said that they had purchased somekind of insurance with the maximum penetration skewed in favor of life insurance.The study also pointed out the private companies have huge task to play in creatingawareness and credibility among the rural populace. The perceived benefits of buyinga life policy range from security of income bulk return in future, daughter's marriage,children's education and good return on savings, in that order, the study adds.



TABLE No: 6 Financial Results For 2003/2004 of General Insurance Companies

INR Millions

Fire Portfolio

Natio

nal

New

India

Orien

tal

Unite

d

India

Bajaj

Allian

z

Chola

Mandal

am

HDF

C

CHU

BB

ICICI

Lomb

ard

IFFCO

Tokio

Relia

nce

Gene

ral

Royal

Sundar

am

TAT

A

AIG

Total

Gross

Premiu

m

5,195.

30

10,676

.90

5,355.

80

6,313.

20

1,202.

90

254.50 3.60 2,639.

00

1,428.

90

463.6

0

505.30 784.

50

34,823.50

Net

Earned

Premiu

m

3,482.

80

7,941.

93

3,291.

37

4,211.

69

264.0

7

33.75 0.20 238.7

8

243.2

1

90.02 134.04 82.2

7

20,013.

73

Net

Incurre

d

Claims

900.8

8

2,613.

37

1,061.

65

1,108.

19

60.57 18.26 40.4

3

93.56 118.3

2

67.21 40.43 27.1

2

6,149.9

9

Operati

ng

Profit/Loss

1,974.

26

2,947.

70

1,616.

30

2,334.

59

225.1

9

4.02 5.42 383.1

3

156.6

4

59.95 92.28 196.

26

9,984.9

0

TABLE No: 7 Financial Results for 2003/2004 of Marine Insurance Companies

Marine Portfolio

Natio

nal

New

India

Orient

al

Unite

d

India

Bajaj

Allia

nz

Chola

Mandal

am

HDF

C

CHU

BB

ICICI

Lomb

ard

IFFC

O

Toki

o

Relian

ce

Gener

al

Royal

Sundar

am

TAT

A

AIG

Total

Gross

Premiu

m

1,888.

79

3,056.

50

2,286.

40

3,001.

40

207.

30

58.30 0.20 471.0

0

244.

90

132.0

0

133.80 309.

00

11,789.

59

Net 1,981. 2,004. 1,287. 1,316. 69.5 15.01 -0.01 64.86 101. 18.05 69.15 151. 7,081.2



Earned

Premiu

m

63 32 93 96 5 86 92 3

Net

Incurred

Claims

914.5

1

819.3

8

674.9

4

717.0

4 92.19

13.83

44.04

127.4

5

117.

45

13.32 44.04 119.

41

3,697.6

0

Operati

ng

Profit/L

oss

1,121.

28

1,096.

89

596.4

4

460.1

3

-

33.5

7

-8.17 -0.25 -70.24 -

43.8

0

3.65 5.87 -

20.5

8

3,107.6

5

TABLE No: 8 Financial Results for 2003/2004 of Insurance Companies

Miscellaneous Portfolio

National New

India

Oriental United

India

Bajaj

Allianz

Chola

Mandalam

HDFC

CHUBB

ICICI

Lombard

IFFCO

Tokio

Reliance

General S

Gross

Premium

26,915.60 35,481.30 21,355.20 21,320.10 3,355.10 657.70 1,125.70 2,209.90 1,548.60 1,015.00 1

Net

Earned

Premium

18,413.69 25,948.30 15,145.27 15,837.66 1972.75 189.52 398.00 487.17 657.21 155.14

Net

Incurred

Claims

19,283.60 23,703.04 14,139.88 16,596.45 1,353.30 176.8 811.58 479.53 492.75 156.88

Operating

Profit/Loss

-3,327.23 -2,959.21 762.88 -1,141.40 31.26 -168.01 -295.75 -43.01 -55.98 -60.50

TABLE No: 9 Financial Results for 2003/2004 of Total portfolio



Total

National New

India

Oriental United

India

Bajaj

Allianz

Chola

Mandalam

HDFC

CHUBB

ICICI

Lombard

IFFCO

Tokio

Reliance

General S

Gross

Premium

33,999.69 49,214.70 28,997.40 30,634.70 4,765.30 970.50 1,129.50 5,319.90 3,222.40 1,610.60 2

Net

Earned

Premium

23,878.12 35,894.55 19,724.57 21,366.31 2,306.37 238.28 397.79 790.81 1,002.28 263.21 1

Net

Incurred

Claims

21,098.99 27,135.79 15,876.47 18,421.68 1,506.06 208.89 896.05 700.54 728.52 237.41

OperatingProfit/Loss

-231.69 1,085.38 2,975.62 1,653.32 222.88 -172.16 -301.42 269.88 56.86 3.10

TABLE No: 10 Gross and Net Premium in India for last 10 years



TABLE No: 11 Net Worth Movement for the Past Three Years

Net Worth Movement For The Past Three Years

INR Millions

Nation

al

New

India

Orienta

l

United

India

Bajaj

Allianz

Chola

Mandal

am

HDFC

CHUB

B

ICICI

Lomba

rd

IFFCO

Tokio

Relian

ce

Gener

al

Royal

Sundar

am

TATA

AIG

200

1-02

9,639.2

0

31,893.

90

6,728.0

0

13,018.

80

1,010.

00

1,094.

00

1,000.

00

1,020.

00

1,300.0

0

1,093.

00

200

2-

03

10,721.

70

34,040.

00

8,336.5

0

14,446.

70

1,313.

43

1,050.0

0

1,002.

20

1,095.

98

1,068.

93

1,235.

83

1,297.9

3

1,234.

97

200 8,851.9 39,434. 11,219. 13,018. 1,094. 1,419.6 1,193. 2,259. 1,104. 1,325. 1,298.9 1,234.



3-

04

0 40 00 80 75 0 95 32 82 73 6 97



APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE SECTOR

There is a evolutionary change in the technology that has revolutionized the entire insurance sector.

Insurance industry is a data-rich industry, and thus, there is a need to use the data for trend analysis

and personalization.

With increased competition among insurers, service has become a key issue. Moreover, customers

are getting increasingly sophisticated and tech-savvy. People today dont want to accept the current

value propositions, they want personalized interactions and they look for more and more features

and add ones and better service

The insurance companies today must meet the need of the hour for more and more personalized

approach for handling the customer. Today managing the customer intelligently is very critical for

the insurer especially in the very competitive environment. Companies need to apply different set of

rules and treatment strategies to different customer segments. However, to personalize

interactions, insurers are required to capture customer information in an integrated system.

With the explosion of Website and greater access to direct product or policy information, there is a

need to developing better techniques to give customers a truly personalized experience.

Personalization helps organizations to reach their customers with more impact and to generate new

revenue through cross selling and up selling activities. To ensure that the customers are receiving

personalized information, many organizations are incorporating knowledge database-repositories of

content that typically include a search engine and lets the customers locate the all document and

information related to their queries of request for services. Customers can hereby use the

knowledge database to mange their products or the company information and invoices, claim

records, and histories of the service inquiry. These products also may be able to learn from the

customers previous knowledge database and to use their information when determining therelevance to the customers search request.

CONCLUSION

There is a probability of a spurt in employment opportunities. A number of web-sites are coming up

on insurance, a few financial magazines exclusively devoted to insurance and also a few training

institutes being set up hurriedly. Many of the universities and management institutes have already

started or are contemplating new courses in insurance. Life insurance has today become a mainstay

of any market economy since it offers plenty of scope for garnering large sums of money for long

periods of time. A well-regulated life insurance industry which moves with the times by offering itscustomers tailor-made products to satisfy their financial needs is, therefore, essential if we desire to

progress towards a worry-free future.



Current Scenario of Insurance Sector

Introduction

Global integration of financial markets resulted from de-regulating measures, technological informatioexplosion and financial innovations. Liberalisation and Globalisation have allowed the entry of foreign

players in the Insurance sector. With the entry of private and foreign players in the Insurance businepeople have got a lot of options to choose from. Radical changes are taking place in customer profile

to the changing life style and social perception, resulting in erosion of brand loyalty. To survive, the f

of the modern insurers shifted to a customer-centric relationship. The paper focuses the current positof insurance industry.

Liberalisation and Privatisation

India's economic development made it a most lucrative Insurance market in the world. Before the ye

1999, there was monopoly state run LIC transacting life business and the General Insurance Corporaof India with its four Subsidiaries transacting the rest. In the wake of reform process and passing

Insurance Regulatory and Development Authority (IRDA) Act through Indian parliament in 1999, Indi

Insurance was opened for private companies.

Liberalisation on the Insurance sectors has allowed the foreign players to enter the market with theirIndian partners. Most of the foreign Insurers have joined within the local market. India offers immens

possibilities to foreign Insurers since it is the world's most populous country having over a billion peo

Insurance industry had ten and six entrants in life and non-life sector respectively in the year 2000-2

The industry again saw two and three entrants in the life and non-life business respectively in the yea2001-2002. One additional entrant was made both in the life and in non -life business in 2004 and 20respectively. At present there are fourteen companies each in Life and General Insurance. The Fundsearlier generated by the state owned insurers have been diversified with other new insurers. We shou

wait and see how the new players are going to boost up our economy.

Competition

Private and Foreign entrants in the Insurance Industry made others difficult to retain their market. Hi

customer aspirations lead to new expectations and compel him to move towards the insurer who provhim the best service in time. It becomes less viable for them even to maintain the functional network

competitive standards and services. To survive in the Industry they analyse, the emerging requireme

of the policyholders / insurers and they are in the forefront in providi ng essential services and introdunovel products. Thereby they become niche specialists, who provide the right service to the right pers

in right time.

The following table shows the market share of life and non -life insurers

MARKET SHARE (%)

LIFE INSURERS NON ± LIFE INSURERS 1. LIC 76.07 1. New India 21.41

2. ICICI Prudential 6.91 2. National 17.11 3. Bajaj Allianz 4.75 3. United India 17.11 4. HDFC Standard 2.98 4. Oriental 17.02

5. Brila Sunlife 1.72 5. ICICI-

Lombard 8.04

6. Tata AIG 1.66 6. Bajaj Allianz 6.15 7. SBI Life 1.46 7. IFFCO-Tokio 4.00

8. Max New York 1.28 8. Tata-AIG 2.89



9. Aviva 1.08 9. ECGC 2.50 10. Kotak Mahindra Old Mutual 0.71 10. Royal

Sundaram 2.17

11. ING Vysya 0.54 11. Cholamandalam

1.22

12. AMP Sanmar 0.46 12. HDFC-Chubb 0.89

13. Met Life 0.37 13. RelianceGeneral

0.75

14. Sahara Life 0.03 14. AgricultureInsurance Co.

--

Private total 23.93 Private total 27.35

Public total 76.07 Public total 72.65 Grand total 100.00 Grand total 100.0

Source : www.irdaindia.org

In the above table shows, the private players in the life insurance business have increased their mark

share to 23.93 per cent. Among them ICICI prudential is ranked first in capturing the market followe

Bajaj Allianz and HDFC Standard. In the General Insurance sector the private players have captured27.35 per cent. Among them ICICI-Lombard is ranked first, followed by Bajaj Allianz and IFFCO-Toki

The healthy competition in the sector enabled the State owned insurers of our mother country to red

its market share to 76.07 per cent and 72.65 percent in life and non-life business respectively. Moreoprivate insurers have planned to increase their market share in the next five years. The public insurehave to enrich its approach to withhold its share.

Information Technology

Insurers are the earlier adopters of technology. Because of the Information revolution, customers areto choose from a wide range of new and innovative products. The Insurance companies are utilizing tInformation technology applications for better customer service, cost reduction, new product design a

development and many more.

New technology gives the policyholders / insured better, wider and faster access to products and servThe impact of Information Technology in Insurance business is being felt at an accelerating pace. In t

initial years IT was used more to execute back office functions like maintenance of accounts, reconcilbroker accounts, client processing etc. With the advent of "database concepts", these functions are bintegrated in an administrative efficiency.

The real evolution is however emerged out of Internet boom. The Internet has provided brand new

distribution channels to the Insurers. The technology has enabled the Insurer to innovate new producprovide better customer service and deeper and wider insurance coverage to them. At present, Insur

companies are giving customers a distinct claim id to track claims on-line, entertaining on-line

enrollment, eligibility review, financial reporting, and billing and electronic fund transfer to its benefit customers.

Product Innovations

Insurers are continuously innovating new products based on forward -looking models. They have

developed new products addressing the new challenges in society and products to address the hazard

from new environmental issues. Companies will need to constantly innovate in terms of productdevelopment to meet ever-changing consumer needs. Understanding the customer better will enable

Insurance companies to design appropriate products, determine price correctly and to increaseprofitability. Since a single policy cannot meet all the Insurance objectives, one should have a portfol

policies covering all the needs. Product development is made possible by integrating actuarial, ratingclaims and illustration systems. At present, the Life Insurers are concentrating on the pension schem



and the Non-Life Insurers on many innovative schemes of various realms and thereby enriching theirmarket share. Moreover, with increased commoditization of insurance products, brand building is goinplay a vital role.

Distribution Network

While companies have been successful in product innovation, most of them are s till grapping with rig

mix of Distribution Channels for capturing maximum market share to build brand equity, building stro

and effective customer relationships and cost effective customer service. While the traditional channetied up advisors or agents would be the chief distribution channel, insurer should innovate and find ne

methods of delivering the products to customers. Corporate agency, brokerage, Banc assurance, e-insurance, cooperative societies and panchayats are some of the channels, which can be tapped by thinsurers to reach the appropriate market segments. Now days, the urban masses are tapped with the

techniques provided by Information Technology through Internet. Rural masses are attracted by theconsultative approach adopted by the Insurers. Moreover, they attract the customers through telepho

and mobile also.

Customer Education and Services

Insurance is a unique service industry. The key industry drivers are related to life style issues in term

perceiving insurance as a savings instrument rather than for risk cover, need based selling, quality ofservice and customers awareness.

In the present competitive scenario, a key differentiator is the professional customer service in termsquality of advice on product choice along with policy servicing. Servicing focus is on enhancing thecustomer's experience and maximizing his convenience. This calls the effective CRM system, which

eventually creates sustainable competitive advantage and enables to build long lasting relation ship.

MODERN MARKETING APPROACH

Marketing strategies for insurance in the emerging scenario could be understood in terms of the followsteps:

Having done market research and finalizing on segmentation, targeting and positioning the strategy

would focus on the marketing mix namely, Product, Price, Place and Promotion. While determining th

implementation methodology, the four characteristics viz. Intangibility, Inseparability, Perish ability aVariability gives rise to certain unique requirements that deserve careful attention while formulating

marketing strategy for insurance. After implementation, the insurers should concentrate on the effect

control that would enhance their business.

In India Insurance is sold and not bought. The agents / Advi sors by using various strategies sell theproduct by convincing the customers. Moreover, they push Policies with the highest premium to pock

higher commission. The consultative approach to selling is the modern approach, which helps customand prospects to buy. A consultant makes calls and sells just like any other sales person. The differen

in their attitude, their approach and their commitment. Here, the customer is seen as a person to be

served and not a person to be sold. It helps the purchaser to make an intelligent decision. The four-s

process includes:

* Need discovery

* Selection of the product* Need satisfaction presentation, and* Serving the sale

This approach to selling their products requires understanding of concepts and principles borrowed fro

the fields of psychology, communications, and sociology and needs a lot of personal commitments an



self ± discipline from the seller.

The commitments referred are:

y Finding and understanding the needs of the customers.

y Partnering with the customers.y Helping the customers to achieve his business and other objectives by the purchase of the pro

or service.

y Believing that your products / services are a great fit with your customer's needs, andy Believing in yourself and your ability to help the customers in solving their problems.

Conclusion

A consultant is willing to forego short -term gains to achieve greater long ± term benefit to him and tocustomers he serves. He builds relationships on a foundation of trust, respect and performance.Moreover, consultants don't sell ± they're specialists who make recommendations to help the prospec

buy. They act as a professional and offer real±world solutions that make sense to the customer. Toda

the insurers adopt this technique and thereby go on increasing their market share.

Reference

y Various issues of insurance journalsy Internet sources

Research and Markets: Indian Insurance Sector Growth

and Forecast

DUBLIN -- Research and Markets (http://www.researchandmarkets.com/research/5150f4/indian_insurance_s)

has announced the addition of the "Indian Insurance Sector Growth and Forecast" report to their offering.

The present report covers overall insurance industry in India, including life and general insurance and their

products such as marine, motor and health insurance. It provides the structure and process of the i ndustry.

Market density and penetration gives an idea of the chances of further development of the industry. Health

insurance is offering opportunities in the insurance sector. Future outlook helps to form new strategies and

provide better understanding of upcoming market growth.

Over a period of time many developments have been seen in the Indian Insurance sector, now private players are

actively participating and their market shares are also growing. Globally India is regarded as the fifth largest life

insurance market. There are approximately 22 life insurance companies. People perceptions towards insurance

products have been changing from only a tax saving instrument to a strong investment tool.

A strong demand coming for ULIP products which are new in the market due to reliability and extra benefits

provided by private players to differentiate their products and save their piece of market share. During the

financial year 20092010 in the first 9 months, 50% of the total amount invested by foreign institut ional investors

(FII) has been injected into equities by the life insurance companies all over India.

The Life insurance market has changed from the monopolistic one to highly competitive market with the entry

of foreign players. Innovative thinking like introducing new products, capturing new distribution channels and

improving service standards have helped them build upon their market share. The new business premium for the



life insurance increased at a CAGR of -% during the year from 2004 to 2008. United linked insurance plans

(ULIPs) accounted for the major part of this growth.

The general insurance market is also growing at a slower pace. However, motor and health insurance are the two

sub segments of the general insurance segment which have shown the potential and are growing fast. Non life

segment witnessed an increase in premium income by 4.66% in the first quarter of 2009 as compared to the

same period a year back. This growth can be attributed to other factors such as GDP performance and growth in

services in the Q1 2009 and well established health segment.

In providing healthcare access to individuals across India, Health insurance is expected to play a crucial role.

The industry has shown a steady increase with the changes in the regulatory systems & introduction of new

Government Health insurance schemes. The largest proportion of the gross premium for all players has come

from the Motor insurance. It is been one of the most successful segments of the non life insurance business. As

compared to the life insurance sector, the growth of non life insurance sector has been lagging behind because of

the limitations in the distribution network across the country, an untapped market which leads to low consumer

preference.

The present report covers overall insurance industry in India, including life and general insurance and their

products such as marine, motor and health insurance. It provides the structure and process of the industry.

Market density and penetration gives an idea of the chances of further development of the industry. Health

insurance is offering opportunities in the insurance sector. Future outlook helps to form new strategies and

provide better understanding of upcoming market growth.

Key Topics Covered:

1. Financial Sector in India 1.1 Stock Markets

2. Insurance Sector in India 2.1 Insurance Industry Process 2.2 Life Insurance Sector Performance 2.3 Position

of Domestic General Insurance companies

3. Market Size and Growth 3.2 Industry Segmentations 3.3 Market Density & Penetration

4. Market Share of Industry Players

5. Insurance Industry Trends 5.1 Private Insurers Continue to Gain Market Share 5.2 Motor Insurance Driving

Growth 5.3 Demand for Terror Insurance 5.4 Changes in Regulatory Environment 5.5 Strong Influence of

Agricultural Insurance over the Industry

6. Health Insurance- A Growing Sector in India

7. Industry Outlook: Forecast and Projections For more information

visithttp://www.researchandmarkets.com/research/5150f4/indian_insurance_s

poland insurance market forecast

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