A

SUMMER TRANING REPORT

ON
GLOBALIZATION OF INSURANCE



PREFACE
Practical training is an important part of the theoretical studies. It is of
an immense importance in the field of management. It offers the student
to explore the valuable treasure of experience and an exposure to real
work culture followed by the industries and thereby helping the
students to bridge gap between in the theories explained in the books
and their practical implementations.
Research Proect plays an important role in future building of an
individual so that he!she can better understand the real world in which
they have to work in future. "he theory greatly enhances our knowledge
and provides opportunities to blend theoretical with the practical
knowledge.
I have completed the proect on
Globalization of Insuran!"
I have tried to cover each and every aspect related to the topic with best
of my capability hope that this research would help many.

CONTENTS
#.no. Particulars Page No.
$. Introduction
a% Industry profile
b% &ompany profile
c% Introduction to the topic
'. Obectives of the study
(. Importance of the study
). Research *ethodology
a% Research + its type
b% Research design
c% #ources of data
d% #ample si,e
e% #ample area
-. .ata Analysis + Interpretation
/. 0indings
1. 2imitations of the study
3. #uggestions
4. &onclusion
$5. 6ibliography
$$. Annexure
IN#USTR$ PROFILE
Lif! Insuran! Cor%oration Of In&ia7
'ISION
8"o be the preferred life insurer of the people of 0ii by providing
innovative life insurance products and world class service at affordable
rates9.
MISSION
Explore and enhance the quality of life of people through financial
security by providing products and services of aspired attributes
with competitive returns, and by rendering resources for economic
development.
OB(ECTI'ES OF LICI)
o #pread 2ife Insurance widely and in particular to the rural areas
and to the economically backward classes with a view to
reaching all insurable people in the country and providing them
ade:uate financial cover against death at a reasonable cost
o *aximi,e mobili,ation of people;s savings by making
insurance linked savings ade:uately attractive
o &onduct business with utmost economy and with the full
reali,ation that the moneys belong to the policyholders
o Promote amongst all agents and employees of the 2I&I a sense
of participation< pride and ob satisfaction through the discharge
of their duties with dedication towards achievement of the
&orporate obectives
CURRENT STATUS)
Over its existence of around -5 years< life insurance
&orporation of India< which commanded a monopoly of soliciting and
selling life insurance in India created huge surpluses and contributed around
1= of India>s ?.P in '55/. 2I& is continuously winning the reader>s digest
trusted brand award @3%. According to the brand trust report @4% '5$$< 2I& is
the 3
th
*ost trusted brand of India.
*#FC Stan&ar& Lif! Insuran!)
A.0& #tandard 2ife Insurance 2td.< is one of the India>s leading
private insurance company< which offers a range of individual and
group insurance solutions. It is a oint venture between Aousing
.evelopment 0inance &orporation 2imited @A.0& 2td.%< India>s
leading housing finance Institution and a group company of the
#tandard 2ife BC. A.0& as on .ec. ($
st
< '551 holds 1'.(3= of e:uity
in the oint venture.
'ISION)
8"he most successful + admired 2ife Insurance &ompany which means
that we are the most trusted &ompany< the easiest to deal with< offer the
best value of money< + set the standards in the industry.9
MISSION)
"o be the top new 2ife Insurance &ompany in the market. "his does not
ust mean being the largest or the most productive company in the
market< rather it is a combination of several things7
D &ustomer service of the highest order
D Ealue of money
D Bse technology to improve service standards
ICICI PRU#ENTIAL LIFE INSURANCE
'ISION)
"o be the leading provider of financial services in India and a maor ?lobal
bank.

MISSION)
Fe will leverage over people technology< speed and financial capital to7
$%.6e the banker of first choice for our customer by delivering high
:uality< Forld G class product and services.
'%. Hxpand the frontiers of our business globally. Play a proactive role
in the full Relation of India>s potential. *aintain a healthy financial profile
and diversify our earnings across business and geographic.

*ISTOR$)
"he industrial credit and Investment &orporation of India limited @I&I&I%
Incorporated at the initiation of the Forld 6ank< the government of India
and Representative of Indian industry< with the obective of creating a
development. 0inancial institution for providing medium G term and long
term proect 0inancing to Indian business. *r. A. Ramaswami mudaliar
elected as the first &hairmen of I&I&I limited I&I&I emerges as the maor
sources of foreign &urrency loans to Indian industry. 6eside funding from
the Forld 6ank and Other multiD lateral agencies I&I&I was also among the
first Indian companies "o raise fund from international market.
I&I&I Prudential 2ife Insurance &ompany is a oint venture between
I&I&I 6ank< a premier financial powerhouse and Prudential plc< a leading
international financial services group head:uartered in the Bnited Cingdom.
I&I&I Prudential 2ife Insurance &ompany was established in '555 with a
commitment to expand and reshape the life insurance industry in India. "he
company was amongst the first private sector companies to begin operations
after receiving approval from Insurance Regulatory and .evelopment
Authority @IR.A% and in the time since< has taken several steps towards
reali,ing its goal.

"he company>s wide range of products< distribution strengths and
powerful brand has driven its growth across a crossDsection of people and
cities. On *arch ($< '55' the company crossed the $<55<555 policies
milestone with a premium income of around Rs. $'' crore and a total sum
assured of '155 crore to establish itself as the No. $ Private life insurer in
the country.

COMPAN$ PROFILE
Ma+ Lif! Insuran! Co,%an-
Eenture between max India ltd and *itsui #umitomo insurance co. ltd. *ax
India is a leading Indian multiDbusiness corporate< while *itsui #umitomo
insurance is a member of *# + A. insurance group< which is currently
amongst the top $5 general insurers in the world. *ax life insurance offers
comprehensive life insurance and retirement solutions for long terms savings
and protection. A financially stable company with sound investment
expertise< *ax life insurance has a strong customerDcentric approach
focused on advice based sales and :ualifies services.
*ax life insurance has positioned itself on the :uality platform. In line with
its vision to be the most admired life insurance company in India< it has
developed a strong corporate governance model based on the core values of
excellence< honesty< knowledge< caring< integrity and teamwork.
It is incorporated in '555 by Analit #ingh< max life started commercial
operation in '55$and today is one of the India>s leading private life
insurance companies. the company offers individual and group life insurance
products and is present across the country through a wide distribution
network of multi channel distribution.
*ax life has '( individual life and health insurance products and 4 riders
that can be customi,ed. 6esides this< the company offers a products and
1riers in group insurance business. "he company>s paid up capital as on ($
st
march< '5$$ was rs $41/ crore.
'ision
"o become the most admired life insurance company in India for all
stakeholders.
Mission
Amongst top - private life insurance companies by profitable new
6usiness sales
National player
6rand of choice
Hmployer of choice
Principle of choice for distribution + suppliers
'alu!s
"his vision is to become India>s most admired life insurance paradigm by
focusing on customers first. "he service process is responsive< personali,ed<
humane and empathetic. Hvery individual who represents the company is for
us our brand.
*on!st-).Aonesty is the heart of the life insurance business. It is all about
trust. "ransparence< integrity and dependability form the cornerstone of the
max life insurance experience. "he company ensures that everyone who
represents the brand carries a promise7 we careD in word as well as deed.
E+!ll!n!).Hxcellence at max life insurance implies the ability to perform
at a consistently high level. 0ocused on the values of a continue
improvement in people< processes and the organi,ation< the company strives
for the highest standards of :uality in every aspects of its business.
/no0l!&1!7DCnowledge leads to expertise and our expertise is in helping
people protect themselves. Perfectly combining global expertise with local
knowledge< we are India>s life insurance specialist. *ax life insurance
believes that for knowledge to be of value it must be focused< current< tested
and shared..
T!a,0or27D"eamwork implies ability to share exchange and provide
information and support team members which is at the core of any
successful venture. #elflessly putting the team interest above personal
agenda enables the company to perform better in every aspect.
(ourn!- of Ma+ Lif! insuran!
*ax 2ife Insurance< the largest nonDbank private life insurer< is a oint
venture between *ax India 2td. and *itsui #umitomo Insurance &o. 2td.
*ax India is a leading Indian multiDbusiness corporate< while *itsui
#umitomo Insurance is a member of *#+A. Insurance ?roup< which is
currently amongst the top $5 general insurers in the world. *ax 2ife
Insurance offers comprehensive life insurance and retirement solutions for
longDterm savings and protection. A financially stable company with sound
investment expertise< *ax 2ife Insurance has a strong customerDcentric
approach focused on advice based sales and :uality service.
*ax 2ife Insurance has positioned itself on the :uality platform. In line with
its vision to be the most admired life insurance company in India< it has
developed a strong corporate governance model based on the core values of
excellence< honesty< knowledge< caring< integrity and teamwork.
*ax 2ife Insurance offers comprehensive life insurance and retirement
solutions for longDterm savings and protection to over thirty lakh customers.
It has a countryDwide diversified distribution model including the country;s
leading agent advisors< exclusive arrangement with Axis 6ank and several
other partners. *ax 2ife Insurance is a :uality business focused on
delivering excellence to customers through advice based sale process<
customer centric approach to business< financial stability + investment
expertise and strong human capital.
In the financial year '5$$D$' *ax 2ife Insurance ranked fourth among
private life insurers with a market share of 3./=. "he &ompany has been
one of the fastest growing life insurance companies with total revenue of Rs.
/<(4$ crore and enterprise profit of Rs. 1(( crore for the 0inancial Iear
'5$$D$'. "he &ompany;s share capital of Rs. '<$'1 crore with a solvency
margin of -()= and solvency surplus of Rs. $<-5/ crore is indicative of its
financial strength and stability. As on ($st *arch '5$'< *ax 2ife Insurance
had assets under management of Rs. $1<'$- crore.
*ax 2ife Insurance has a diversified distribution network spread across
more than $<555 cities. "he distribution is based on three pillars G agency
distribution< banc assurance and partnership distribution. Agency
distribution forms its core distribution channels with advice based sales
process through its well trained and knowledgeable agent advisors. "hese
agent advisors are e:uipped to engage with prospective customers and offer
customi,ed solutions for their life stage needs.
In banc assurance< the &ompany has a strong relationship with Axis 6ank
which in a short span of two years becomes the largest nonDcaptive banc
assurance relationship in India with its network of over $<)55 branches
providing life insurance solutions to its customers. Partnership .istribution<
the third pillar of *ax 2ife Insurance;s distribution model is e:ually
important and successful with long standing relationship with large
distributors of financial products such as Amsure and Peerless. "hese three
key distribution channels are complemented by ?roup Insurance and
&ustomer Advocacy teams.
*ax 2ife Insurance offers a comprehensive suite of 2ong "erm #avings and
Protection oriented products. It currently has ') products covering and 4
riders that can be customi,ed to suit every life stage need of the customer.
6esides this< the company offers ) products and 1 riders in group insurance
business.
At *ax 2ife Insurance< providing a superior customer experience is central
to its vision and the &ompany is committed to provide superior service
experience to the customer. As a proactive step towards service excellence<
*ax 2ife Insurance has launched the J"reating &ustomer 0airlyJ @"&0%
policy. "he "&0 policy aims to raise standards in the way the &ompany
interacts with customers at every touch point right from the preDsales
engagement to the payment of benefits.
*ax 2ife Insurance follows a prudent investment philosophy to optimi,e
risk management in its bid to provide maximi,e returns to policyholders.
Investments are in instruments which are safe and provide good returns in
the long run.
"he company values human capital and considers it to be its competitive
advantage. *ax 2ife Insurance believes that people are its biggest
organi,ational assets and hence lays a strong emphasis on employee friendly
practices leading to high levels of employee engagement and motivation.
"his is reflected in the recognition that the company received from the ?reat
Places "o Fork Institute< India< as one of the best workplaces in the industry.
*ax 2ife insurance works closely with *ax India 0oundation< an
independent social service organi,ation of the *ax India ?roup for all its
&#R activities. "he company has taken up immuni,ation programme as a
societal agenda to ensure protection against maor ailments for the next
generation of the country. "he programme covers vaccines like 6&?<
Aepatitis 6 vaccine< Polio drops< .P"< . "ap< *easles vaccine< **R<
"yphoid< d" and "". Along with *ax India 0oundation and *anav #ewa
#anidhi *ax 2ife Insurance also organi,e artificial limbs and polio caliper
camps. In each such camp more than (-5 beneficiaries are provided artificial
limbs.
A0ar&s an& Aola&!s
*ax 2ife Insurance has always believed in setting new benchmarks in
:uality of service and product offerings to its stakeholders and its efforts
have been duly recogni,ed over the years. #ome of the awards and accolades
won by *ax 2ife Insurance are as follows7
6" *ercerD"N# #urvey Ranked *ax 2ife Insurance No.1 in the
J6est companies to Fork 0orJ and J"he Ranked -th in ;India;s *ost
Respected &ompanies; by 6usiness world G '55) and '55/
best life insurance company to work for in IndiaJ D '553
&IO $55 award for I" excellence G '553 D '5$$
B2IPs funds recogni,ed as top :uartile in performance by Outlook
*oney G '553< '554< '5$$
Received Asia Insurance Industry Award for Innovation D '554
Amongst the top '- companies in ;?allup ?reat Fork Place; Award D
'554
Awarded the &IIDHxim 6ank &ommendation &ertificate for 6usiness
Hxcellence G '553< '554< '5$5
A,on1 t3! to% 45 o,%ani!s to 0or2 for in In&ia< according to
6usiness world '55( ;?reat Forkplaces of India;
Received ;B!st Si+ Si1,a Pro6!t; award at #akal #ix #igma
Hxcellence Awards G '55/
In&o.A,!rian Cor%orat! E+!ll!n! A0ar& for 6est IndoDB#
company in 0inancial #ervices &ategory in '55/
Among top ( in Asia 2ife Insurance &ompany of the Iear Award '551
instituted by Asia Insurance Review
Gol&!n P!ao2 A0ar& for Hxcellence in Product Innovation for
*ax Eiay
&IO $55 "echnology Award '553 D '5$$
CII National Si+ Si1,a r!o1nition for 6est #ix #igma Proect D
'554
Outlook *oney survey D recogni,ed as the only company to have
funds amongst the top :uartile in all funds category
7CI #L S3a3 Awards for 6est #ix #igma Proect on economics of
Kuality G '5$'
So,! of t3! in&ustr- firsts
0irst company to provide 0ree look period of $- days to the customer.
"his was later made mandatory by the regulator
0irst company to start toll free line for agent service
0irst and the only life insurance company in India to implement 2ean
methodology of service excellence in service industry
0irst life insurance company in India to provide various services to the
agents and customers over phone
0irst Indian life insurance company to start service center at the
regional level
0irst life insurance &ompany in India to be awarded I#O 455$7'553
certifications.
COMPAN$8S #IFFERENTIATORS
9: Finanial str!n1t3) *ax 2ife insurance is a strong< profitable< and
successful institution built on strong foundations with a customer base
of over (5 lakh customers. In the financial year '5$$D$'< the
&ompany has become the largest non bank private life insurer< with
total revenue of Rs. /<(4$ crore and enterprise profit of Rs. 1(( crore.
Our financial strength and stability is evident in the solvency ratio of
-()= which is (.- times the mandatory re:uirement. As on ($
st
*arch
'5$'< we had Assets under *anagement of Rs. $1<'$- crore.
4: 7ualit- of A&;i!7 *ax 2ife Insurance firmly believes in its
consultative sales model. Our agency distribution is industry
benchmark with well trained and knowledgeable agent advisors who
are completely e:uipped to engage with you and offer customi,ed
solutions for life stage needs.
<: #i;!rsifi!& &istribution ,o&!l) *ax 2ife Insurance has one of the
most balanced diversified distribution model based on three pillars G
agency distribution< bancassurance and partnership distribution. In
addition to the fact that *ax 2ife Insurance agents advisors are one of
the most productive in the market< the company also has the largest
non captive bancassurance relationship with Axis 6ank and a strong
Partnership .istribution with financial services distributors like
Peerless and Amsure. "his ensures our presence in more than $$55
cities of India.
=: Co,%r!3!nsi;! %ro&ut %ortfolio) *ax 2ife Insurance offers a
comprehensive suite of life insurance and retirement solutions for
long term savings and protection needs consisting of a healthy mix of
both traditional and B2IPs. It now has ') individual life and health
insurance products and 4 riders that can be customi,ed to suite every
need of the customer. 6esides this< the company offers ) products and
1 riders in group insurance business.
5: Custo,!r !ntriit-7 Providing superior customer experience is
central to *ax 2ife Insurances vision of becoming the most admired
life insurance company in India. "he company has always focused on
upgrading its service offering to customers and distributors< thus
creating competitive differentiation in the market.
>: O%!n an& !t3ial ultur!7 *ax 2ife Insurance has always believed
that human capital is the key to the success of any organi,ation. "he
company has processes that are effective and transparent and engender
employee trust and commitment. *ax 2ife Insurance;s employee
value proposition differentiates the company from others. Our ethical
and value driven corporate culture ensures greater commitment to the
company;s principle of customer centricity.

INTRO#UCTION TO
T*E TOPIC
Intro&ution to insuran!
"he word J0earJ has only four alphabets like love but both of them have
very different meaning. Fhatever man @male or female% does for the love of
their families always starts with the background of fear. ?enerally so many
times we have been asking our selves that< what will happen if we were not
there< but we keep on asking rather then doing something for it. "ime is
precious< it never stops for any one and we are living in the world of
uncertaintyL the uncertainty of ob< the uncertainty of money< the uncertainty
of property and like this the story goes continuous for the whole life of a
man.
A thriving insurance sector is of vital importance to every modern economy.
0irstly< because it encourages the habit of saving< secondly because it
provides a safety net to rural and urban enterprises and productive
individuals. And perhaps most importantly it generates longD term invisible
funds for infrastructure building. "he nature of the insurance business is
such that the cash inflow of insurance companies is constant while the
payout is deferred and contingency related.
"his characteristic feature of their business makes insurance companies the
biggest investors in longDgestation infrastructure development proects in all
developed and aspiring nations. "his is the most compelling reason why
private sector @and foreign% companies< which will spread the insurance habit
in the societal and consumer interest are urgently re:uired in this vital sector
of the economy. Opening up of insurance to private sector including foreign
participation has resulted into various opportunities and challenges in India.
"he business of insurance is related to the protection of the economic value
of assets. Hvery asset has a value. "he asset would have been created
through the efforts of the owner< in the expectation that< either through the
income generated there from or some other output< some of his needs would
be met. "here is normally expected lifetime for the asset during which time
it is expected to perform. "he owner< aware of this can< manages his affair
that by the end of that life time< a substitute is made available to ensure that
the value or income is not lost. Aowever< f the assets get lost earlier< being
destroyed or made non functional< through an accident or other unfortunate
event< the owner and those deriving benefits there from suffer. Insurance is a
mechanism that helps to reduce such adverse conse:uences.
Assets are incurred< because they are likely to be destroyed or made nonD
functional< through an accidental occurrence. #uch possible occurrences are
called perils.
Fe can define insurance as follows7D
Insurance is a contract between the insurance company @insurer% and the
policy holder @insured%. In return of a consideration @the premium%< the
insurance company promises to pay a specified amount to the insured on the
happening of a specific event.
Globalization an& insuran! in&ustr-
.ue to tremendous losses connected to the current global financial crisis<
insurance giants< such as AI? and 0ortis< are being rescued by their
governments and are being nationali,ed in the process. "hese insurance
companies face losses because they too had invested their funds in mortgage
securities and credit default swaps and were highly leveraged. If these
companies failed< the fallout would have been felt worldwide< with defaults
on all types of insurances and loans that were underwritten. Already AI?>s
credit problems are still reverberating< as it has already spent most of the
bailout funds.
"he purpose of insurance is to spread risk over time. "he risk of an event
where insurance money is paid out is assessed based on the probability of its
occurrence. Insurance companies charge a premium based on the risks and
the potential loss associated with that risk.
Insurance companies also defer risk through reinsurance< in which a
reinsurance company insures the risk of insurance companies< thus allowing
the insurance companies to offer higher levels of protection to the
policyholder< since they do not have to worry about covering the full losses.
#ometimes events are deemed too risky for private insurance and the loss
associated with that event is either paid outDofDpocket or by government
intervention @by helping defer costs after the event has taken place or by
offering an alternative insurance option%. 0or example< in the B.#. many
private insurance companies do not offer flood insurance< hence federal
government offers National 0lood Insurance Program @N0IP% to insure
property for flood damage and the 0ederal &rop Insurance &orporation
@0&I&% to protect crops for flood and drought damage.
"he insurance sector is deeply tied to trends in globali,ation. "he outcomes
of trade agreements< environmental problems< global health pandemics<
volatility in financial market< terrorists attacks and security problems< and
basically any worldwide trend< will impact individuals< companies< and
governments< all of whom own insurance policies.
G!n!ral Tr!n&s for t3! Global Insuran! In&ustr-
#ince the $445>s< the following trend have been broadly experienced by the
global insurance industry7
1. Con!ntration an& !ntralization %ro!ss!s7 formation of strategic
alliances between insurance and reinsurance companiesL fusion of
banks< insurance companies< and credit companies to form
transnational financial groupsL mergers between small and medium
insurance companies to form large international insurance companies.
2. Mo&ifiation to tra&itional for,s an& t-%!s of insuran! s!r;i!s
an& n!0 insuran! %ro&uts7 organi,ing insurance coverage through
securiti,ationL insurer participation in pension insurance and reduced
participation of governments in providing payment of oldDage and
disability pensionsL new insurances against political< military< security<
and informational risks.
. C3an1! of ,ar2!t !n;iron,!nts7 Internet sales of insurance and
reinsurance productsL insurances losses due to urbani,ation< climate
change< and private property cost increaseL liberali,ation of state and
supraDstate regulations of financial and insurance markets.
Globalization of Insuran!)
?lobali,ation has been the basic mantra after $44$. "he liberali,ation<
privati,ation and globali,ation have become the basic concepts of succession
all accepts of development. ?lobali,ation brings about single< integrated
global economy7 Insurance being an integral part of financial service could
not claim immunity to the impact of the globali,ation process and opened up
to private and global players world over< including India. *any
multinational corporations are new entering into the insurance sector which
is now a booking sector in India. IR.A Act< $444 marked the opening Act of
the insurance sector to private participation and foreign investment. #ince
$44( the following trends have been broadly experienced by the global
insurance industry.
Insurance business in India is now opened to private and foreign players
also. At present 2ife Insurance is offered by thirteen companies. NonD2ife
insurance @and health% is handled by four public #ector Insurers @?I&
companies% and fourteen other companies as at the end of .ec. '55(.
@a% Con!ntration an& C!ntralization Pro!ss ) "he concentration and
centrali,ation process found in the global insurance industry are 0ormation
of strategic alliances between insurance and reinsurance companies< mergers
between small and medium insurance companies to form large international
insurance companies.
@b% Mo&ifiation to tra&itional for,s) Fith the globali,ation of insurance
industry< modifications have been made to traditional forms and types of
insurance services and new insurance products.
@c% C3an1! of ,ar2!t !n;iron,!nt) ?lobali,ation of insurance industry
has led to change of market environment. "he environmental changes that
took place are internet sales of insurance and reDinsurance products<
liberali,ation< regulations of financial and insurance markets.
"he globali,ation of insurance industry has been accelerating as mergers and
ac:uisitions have continued to cross country borders. "he insurance market
is booming in India and taken a new hori,on of marketing.
E;olution of insuran! in In&ia
In India< insurance has a deepDrooted history. Insurance in various forms has
been mentioned in the writings of *anu @*anusmrithi%< Iagnavalkya
@.harmashastra% and Cautilya @Arthashastra%. "he fundamental basis of the
historical reference to insurance in these ancient Indian texts is the same i.e.
pooling of resources that could be reDdistributed in times of calamities such
as fire< floods< epidemics and famine. "he early references to Insurance in
these texts have reference to marine trade loans and carriers; contracts.
Insurance in its current form has its history dating back until $3$3< when
Oriental 2ife Insurance &ompany was started by Anita 6asra in Colkata to
cater to the needs of Huropean community. "he preDindependence era in
India saw discrimination between the lives of foreigners @Hnglish% and
Indians with higher premiums being charged for the latter. In $315< 6ombay
*utual 2ife Assurance #ociety became the first Indian insurer.
At the dawn of the twentieth century< many insurance companies were
founded. In the year $4$'< the 2ife Insurance &ompanies Act and the
Provident 0und Act were passed to regulate the insurance business. "he 2ife
Insurance &ompanies Act< $4$' made it necessary that the premiumDrate
tables and periodical valuations of companies should be certified by an
actuary. Aowever< the disparity still existed as discrimination between Indian
and foreign companies. "he oldest existing insurance company in India is
the National Insurance &ompany 2td.< which was founded in $45/. It is in
business.
"he ?overnment of India issued an Ordinance on $4th Manuary< $4-/
nationali,ing the 2ife Insurance sector and 2ife Insurance &orporation came
into existence in the same year. "he 2ife Insurance &orporation @2I&%
absorbed $-) Indian< $/ nonDIndian insurers as also 1- provident societiesN
')- Indian and foreign insurers in all. In $41' with the ?eneral Insurance
6usiness @Nationali,ation% Act was passed by the Indian Parliament< and
conse:uently< ?eneral Insurance business was nationali,ed with effect from
$st Manuary< $41(. $51 insurers were amalgamated and grouped into four
companies< namely National Insurance &ompany 2td.< the New India
Assurance &ompany 2td.< the Oriental Insurance &ompany 2td and the
Bnited India Insurance &ompany 2td. "he ?eneral Insurance &orporation of
India was incorporated as a company in $41$ and it commence business on
Manuary $st $41(.
"he 2I& had monopoly till the late 45s when the Insurance sector was
reopened to the private sector. 6efore that< the industry consisted of only two
state insurers7 2ife Insurers @2ife Insurance &orporation of India< 2I&% and
?eneral Insurers @?eneral Insurance &orporation of India< ?I&%. ?I& had
four subsidiary companies.
Fith effect from .ecember '555< these subsidiaries have been deDlinked
from the parent company and were set up as independent insurance
companies7 Oriental Insurance &ompany 2imited< New India Assurance
&ompany 2imited< National Insurance &ompany 2imited and Bnited India
Insurance &ompany 2imited.
IMPACT OF GLOBALISATION
Fhile nationali,ed insurance companies have done a commendable ob in
extending the volume of the business< opening up insurance sector to private
players was a necessity in the context of globali,ation of financial sector. If
traditional infrastructural and semipublic goods industries such as banking<
airlines< telecom< power etc.< have significant private sector presence<
continuing a state of monopoly in provision of insurance was indefensible
and therefore< the globali,ation of insurance has been done as discussed
earlier. Its impact has to be seen in the form of creating various opportunities
and challenges.
"he introduction of private players in the industry has added colors to the
dull industry. "he initiatives taken by the private players are very
competitive and have given immense competition to the on time monopoly
of the market 2I&. #ince the advent of the private players in the market the
industry has seen new and innovative steps taken by the players in the sector.
"he new players have improved the service :uality of the insurance.
As a result 2I& down the years have seen the declining in its career. "he
market share was distributed among the private players. "hough 2I& still
holds 1-= of the insurance sector the upcoming nature of these private
players are enough to give more competition to 2I& in the near future. 2I&
market share has decreased from 4-= @'55'D5(% to 3$= @'55)D5-%. "he
following company holds the rest of the market share of the insurance
industry
"A62H7
#r. no Name of player *arket share
$ 2I& 3'.(
' I&I&I PRB.HN"IA2 -./(
( 6IR2A #BN 2I0H '.-/
) 6AMA A22IANO './(
- #6I 2I0H $.35
/ A.0& #"AN.AR. $.(/
1 "A"A AI? $.'4
3 *AP 2I0H 5.45
4 AEIEA 5.14
$5 O* CO"AC *AAIN.RA 5.-$
STATUS AN# GRO?T* OF INSURANCE SECTOR
After privati,ation< insurance industry has seen significant growth. .ue to
low penetration and huge potential< many foreign and domestic players have
entered the sector. *oreover< several reforms and policy measures have
provided a favorable environment for insurance companies to flourish in the
country.
"he insurance sector in India is primarily divided into life and nonDlife< apart
from a very small segment comprising reDinsurance. 6oth the life and nonD
life insurance segments< which were nationali,ed in the $4-5s and $4/5s<
respectively< witnessed an acrossDtheDboard liberali,ation process in '555.
After the reforms< the number of players has increased from one in life
insurance and four in nonDlife insurance in '555 to '( players in life
insurance sector + ') in nonDlife segment till #ept. '5$5 @including one reD
insurer in the nonDlife segment%
OPPORTUNITIES FOR GRO?T*
$. It is estimated from the survey of literature that Qaspirers> will comprise
)/= of the population by '5$'< representing a formidable emerging
bankable class. Insurance is seen as long term savings instrument by this
segment of the society providing higher return at low risk< given the lack
of alternative investment options. Cey challenges in this segment are
managing profitability due to low ticket si,e + high underwriting risk.
'. After the recent financial crisis< insurance companies want to reduce their
costs and outsourcing some of the nonDcore processes like claims
processing< policy management etc< can help them to reduce their cost and
focus on the core processes.
(. "he health insurance sector is one of the booming sectors of the insurance
industry as
people are becoming more aware about the health insurance and their
health care so taking advantage of this< private sector insures are more
competitive in this segmenst.
2ife insurer companies are likely to primarily target the young population to
amorti,e the risk over the policy term.
). According to the Old Age #ocial and Income #ecurity @OA#I# Report<
$444%< there will be $$( million Indian>s over /5 years of age by '5$/ and
$14 million by '5'/. On the one hand< this is good news as the life
expectancy has increased but on the other hand< it has also increased the
risk that people will outlive their savings. Indians will have an expected
life span of 35 years< i.e. live a full '5 nonDearnings years.
Aealth care costs have also increased many folds eroding retiree>s
purchasing power.
-. #ocial security provided by the ?overnment of India is very limitedL in
fact that less than )= of the population is covered under any social security
scheme. Only
?overnment employees are entitled to pension benefits after retirement.
Opening up of the pension sector and the establishment of a new pension
regulator have made this segment highly attractive. Aence< insurance
products are being considered as the next best option to secure the future.
"o facilitate insurance and social security cover for the economically
weaker sections of society< the Pension 0und Regulatory +
.evelopment Authority @PHR.A% has launched a pension scheme< since
April '5$5< for rickshawDpullers< barbers< daily wage earners etc.
/. Fith the entry of private players< it is expected that insurance business
roughly )55 billion rupees per year now< more than '5 per cent per year even
leaving aside the relatively under developed sectors of health insurance< pen
*ore importantly< it will also ensure a great mobili,ation of funds that can
be utili,ed for purpose of infrastructure development that was a factor
considered for globali,ation of insurance.
Rol! of t3! Insuran! R!1ulator- an& #!;!lo%,!nt Aut3orit-
@IR#AA
"he Insurance Regulatory and .evelopment Authority @IR.A% was
constituted to regulate and develop insurance business in India. As a key part
of its role< it is responsible to protect the rights of policyholders. In order to
create awareness about IR.A< it;s role< duties and responsibilities are stated
here under7
IR.A provides a certificate of registration to a life insurance
company.
IR.A is responsible for the renewal< modification< withdrawal<
suspension or cancellation of this certificate of registration.
IR.A frames regulations on protection of policyholders; interests.
It offers policyholders the right to voice their complaints against
insurers or insurance companies.
"he IR.A has set up the grievance redressed cell to take up the
complaints of the policyholder.
It specifies the re:uisite :ualifications< code of conduct and practical
training for intermediaries or insurance intermediaries and agents.
It specifies the code of conduct for surveyors and loss assessorsL
It promotes efficiency in the conduct of insurance businessesL
It promotes and regulates activities of professional organi,ations
connected with life insuranceL
It levies fees and other charges to carry out the purposes of the IR.A
ActL
It can call for information from< undertake the inspection of< conduct
en:uiries and investigations including the auditing of insurers<
intermediaries< insurance intermediaries and other organisations
connected with the business of life insuranceL
It specifies the form and manner in which books of account should be
maintained and statements of accounts should be rendered by insurers
and other insurance intermediariesL
It regulates the investment of funds by insurance companiesL
It regulates the maintenance of margins of solvencyL
It adudicates disputes between insurers and intermediaries or
insurance intermediariesL
It specifies the percentage of premium income of the insurer to
finance schemes for the promotion and regulation of certain specified
professional organisationsL
OB(ECTI'ES OF T*E STU#$
"he main obectives of the study are as follows7D
"o study the current status of 2ife Insurance market in India
"o study the maor issues and challenges that is facing the life insurer
in India in the globali,e environment.
"o assess the future marketing strategies of insurance industries.
"o suggest measures based on the findings of the study.
"o study about the weather the people know about the Insurance or
not.
IMPORTANCE OF T*E STU#$)
It helps to know about the changes occurs by the ?lobali,ation.
It helps to know about the different issues and challenges related to
insurance industry.
It helps to choose the better option to the insurance sector.
It helps to knowing about the preference given by the people to
insurance companies.
RESEARC*
MET*O#OLOG$
RESEARC* MET*O#OLOG$)

Research may be defined as< A scientific and systematic search for pertinent
information on a specific topic. In fact< Research is an art of scientific
investigation.
According to &lifford woody<9 Research comprises< defining + redefining
problems< formulating hypothesis or suggested solutions< collecting<
organi,ing + evaluating dataL making deductions and researching
conclusionsL and at least carefully testing the conclusions to determine
whether they fit the formulating hypothesis9.
TITLE)
"o determine the changes came in insurance industry in India after
globali,ation.
RESEARC* #ESIGN7 .escriptive + diagnosi
SOURCES OF #ATA
Pri,ar- #ata) It is that data which is collected by personal visiting +
interviews.
I used Kuestionnaire + Interterviews.
S!on&ar- #ata) #econdary data is that data which is already in existence.
It has been collected mainly from 6ank>s ournals< &atalogues< Newspapers
+ *aga,ines etc.
In this research I have take help from 6ooks and Febsites.
SAMPLE SIZE) 9BB
SAMPLE AREA) Curukshetra
Tools and Technuques of analysis : Average percentage method
#ATA ANAL$SIS
AN#
INTERPRETATION
79:?3at o,!s in -our ,in& 03!n -ou 3!ar about CInsuran!8D
R!s%ons! E of R!s%on&!nts
2I& )-=
Investment '$=
"ax #aver (5=
.on>t know )=
INTERPRETATION )
0rom the above table + diagram we interpret that
there are )-= people who aware about 2I&< '$= about Investment< (5=
"ax #aver< + )= have no knowledge about Insurance.
74: #o -ou 3a;! an- insuran! %oli-D
R!s%ons! E of R!s%on&!nts
Ies 3-
No $-
INTERPRETATION )
"here are 3-= persons who has Insurance Policy + only $-= who has no
any insurance policy. #o the persons who have insurance policy are more as
compare to the who have no policy.
7<: Ar! Insuran! Co,%ani!s no0 %ri;atiz!&D
R!s%ons! E of R!s%on&!nts
Ies 1-=
No '5=
&an>t #ay -=
INTERPRETATION)
"here are 1-= persons which are in opinion that Insurance &o. are now
Privati,ed< + who are not are '5= + -= have no opinion.
7=: ?3i3 Insuran! Poli- &o -ou 3a;!D
Poli- E of R!s%on&!nts
2ife /-=
NonD2ife $1=
6oth 3=

INTERPRETATION)
"he persons which have the 2ife insurance policy are /-= + is more than as
compare to NonD2ife which is $1= and the persons who have the 6oth are
3=.
75: ?3at o,!s in -our ,in& 03il! ta2in1 Insuran! %oli-D
R!s%ons! E of R!s%on&!nts
#aving (5=
"ax 6enefits '5=
#ecure 0uture -5=
INTERPRETATION)
"here are (5= people who are taking insurance policy for the #aving
purpose< and for "ax benefits are '5= + most of the people i.e.< -5= are
taking policy for 0uture #ecuring.
7>: ?3i3 Co,%an-8s Insuran! %oli- -ou %r!f!r t3! ,ostD
Co,%an- E of R!s%on&!nts
2I& //=
I&I&I $5=
Reliance 2ife Ins. /=
*ax 2ife Ins. /=
#6I 2ife Ins. 3=
Others -=
INTERPRETATION)
0rom the above table we find that there are most of the persons i.e.< //=
who prefer 2I&< $5= I&I&I< Reliance 2ife Ins. /=< *ax 2ife Ins. /=< #6I
2ife Ins. 3= + for Others is -=.
7F: ?3i3 f!atur!s of -our %oli- attrat -ou to bu- itD
F!atur!s E of R!s%on&!nts
2ow Premium '4=
*oney 6ack ?uarantee ((=
*ore Risk &overage $1=
Reputation of "he &ompany $-=
Any Other /=
INTERPRETATION)
"he 0eatures which attract the persons most is *oney back guarantee i.e.<
((=< then 2ow premium i.e.< '4=< *ore Risk &overage is $1=< Reputation
of the co. is $-=< + Any others are /=.
7G: Ar! -ou %lannin1 for n!0 in;!st,!ntsD
R!s%ons! E of R!s%on&!nts
Planning 3-=
Not Planning $5=
&an>t #ay -=
INTERPRETATION )
"here are 3-= persons who are Planning for investment< $5= Not
Planning for investment + only -= who &an>t #ay anything.
And we can say that there are more persons @3-=% who are Planning for
investment
7H: Ar! -ou satisfi!& 0it3 t3! %oli-D
R!s%ons! E of R!s%on&!nts
#atisfied 1'=
Not #atisfied $1=
Not Responding $$=
INTERPRETATION )
"he ratio of the persons who are satisfied with their policy i.e.< 1'= is more
as compare to others like Not #atisfied are $1= + there are $$= who not
give their responses.
79B: ?oul& -ou 1o for Insuran! if a s!r;i! %ro;i&!r a0a- fro, t3!
it- off!rs b!tt!r s!r;i! I %ro&utsD
R!s%ons! E of R!s%on&!nts
Ies ))=
No )(=
Bncertain $(=
INTERPRETATION )
"here are ))= persons who would go for insurance if a service provider
away from the city offers better service + products< )(= says No + $(=
have Bncertain about it.
FIN#INGS)
People think Insurance as a Protection tool.
People mostly purchase Insurance for taking 0uture 6enefits + some
of others for #aving purpose or "ax benefits.
*ost of the people used to prefer 2I& instead of other private co.>s
Nearly 35= of the persons have policys in urban areas.
Fhile taking the policy people think about the various features like
$. 2ow premium
'. *oney back guarantee
(. *ore risk coverage Htc.
*ost of the persons choose insurance because of their safety needs
LIMITATIONS OF T*E STU#$)
2imited scope because of restricted availability of time.
2imited number of funds available in study.
Not collecting data from the Primary sources.
As data is collected by the secondary sources so< there is the
possibility of some error.
"ime and other factors< which
are beyond the human limitation< have also bearing on the study.
RECOMMEN#ATION AN# SUGGESTIONS
$. 0or the development of the life insurance sector< improvement in the
insurance .ensity and insurance penetration is a must. Aence< efforts need to
be instituted for such improvement. .evelopment of insurance products
including special group policies to cater to different categories should be a
priority< especially in rural areas.
'. "he life insurers should conduct more extensive market research before
introducing insurance products targeted at specific segments of the
population so that insurance can become more meaningful and affordable.
(. Bnderstanding the customer better will enable insurance companies to
design appropriate products< determine price correctly and increase
profitability.
). An efficient &R* system< which would eventually create sustainable
competitive advantages and build a longDlasting relationship
-. Insurers must follow best investment practices and must have a strong
asset management company to maximi,e returns
.
/. Proper steps for the promotion of 6ank assurance.
1. Policy holders should be made aware of their rights and obligations.
Policy holders should know the essential aspects of sales talk< insurance
policy< claim form< claims process etc.
3. &onsumer awareness campaign should be encouraged to improve
financial literacy! insurance literacy levels by conducting workshops<
distributing leaflets< distributing literature etc. in both urban and rural areas.
4. 2ife insurance companies should comply with the advertisement code as
prescribed by the A#&I @advertisement #tandard &ouncil of India% to ensure
that misleading advertisement not issued.
CONCLUSION
"hus< in the last on basis of above the study< I conclude that need for private
sector entry is ustifiable on the basis of enhancing the efficiency of
operation< achieving greater density and insurance coverage in the country
and for greater mobili,ation of longDterm savings for long gestation
infrastructure proects. In the wake of such competition it is essential for the
government monopolies @2I& and ?I&% that they :uickly up grade their
technology< restructure themselves on more efficient lines and operate as
broad run enterprise.
?lobal integration of financial markets resulted from deDregulating
measures< technological information explosion and financial innovations.
2iberali,ation and ?lobali,ation have allowed the entry of foreign players in
the Insurance sector. Fith the entry of private and foreign players in the
Insurance business< people have got a lot of options to choose from.
Radical changes are taking place in customer profile due to the changing life
style and social perception< resulting in erosion of brand loyalty. "o survive<
the focus of the modern insurers shifted to a customerDcentric relationship.
"here are lots of opportunities in insurance industry.
Opening up the sector will certainly mean new products< better packaging
and improved customer service. 6oth new and existing players will have to
explore new distribution and marketing channels. Potential buyers for most
of this insurance lie in the middle class. New insurers must segment the
market carefully to arrive at appropriate products and pricing.
BIBLIOGRAP*$
Books:
Kothari, C.R. Marketing Research, vishwaprakashan, New Delhi
Beri, G.C. Market research, New Delhi
Wesites!
http!""www.socialmarketing.com
http!""www.licindia.in
http!""www.estrategicmarketing.com
http!""www.asiatradeh#.com
http!""www.e$inearticle.com
www.google.com
http!""en.wikipedia.org"wiki


ANNEJURE
7UESTIONNAIRE)
Name7
Age7
Occupation7
Address7
K$.Fhat>s come in your mind when you hear about InsuranceR
a% 2I& @ % b% Investment @ % c% "ax #aver @ %
d% .on>t Cnow @ %

K'. .o you have any insurance policyR
a% Ies @ % b% No @ %
K(. Are Insurance &ompanies now privati,edR
a% Ies @ % b% No @ % c% .on>t Cnow @ %
K). Fhich Insurance Policy do you haveR
a% 2ife @ % b% NonD2ife @ % c% 6oth @ %

K-. Fhat comes in your mind while taking Insurance policyR
a% #avings @ % b% "ax 6enefits @ %
c% #ecure 0uture @ %
K/. Fhich &ompany>s Insurance policy you prefer the mostR
a% 2I& @ % b% I&I&I @ %
c% Reliance 2ife Insurance @ % d% *ax 2ife Insurance @ %

e% #6I 2ife Insurance @ % e% Any Other @ %
K1. Fhich features of your policy attract you to buy itR
a% 2ow Premium @ % b% *oney back ?uarantee @ %
c% *ore Risk &overage @ % d% Reputation of the &o. @ %
e% Any Other @ %
K3. Are you planning for new investmentsR
a% Planning @ % b% Not Planning @ %

c% &an>t #ay @ %
K4. Are you satisfied with the policyR
a% #atisfied @ % b% Not #atisfied @ %
c% Not Responding @ %

K$5. Fould you go for Insurance if a service provider away from the city
offers better service + productsR
a% Ies @ % b% No @ % c% Bncertain @ %