V Insurance is defined as the equitable transfer of

the risk of a loss, from one entity to another

V An [
 is a company selling the insurance;
an [
 or [
 is the person or
entity buying the insurance policy
V ›ife Insurance - Insurance guaranteeing a
specific sum of money to a designated
beneficiary upon the death of the insured, or to
the insured if he or she lives beyond a certain
age.
V Health Insurance - Insurance against expenses
incurred through illness of the insured.
V ›iability Insurance - This insures property such
as automobiles, property and
professional/business mishaps.
V ›ife insurance is a contract between the insurer
and policy owner Insurer is agreed to pay an
amount to the person insured or his nominee
either at the date or maturity or a periodic
intervals or unfortunate death of the policy
owner. Policy owner has to pay a fixed amount
called premium in periodic intervals. This can
be monthly, quarterly, half yearly or yearly.
Policy owner is allowed to choose the type of
payment and payment cycle. There are many
life insurance schemes availability today in
India.
 ›ife Insurance provides protection to your
family - your family gets a specified sum in
a lump sum when they need it the most i.e.
when you are not around. While the emotional
loss cannot be mitigated, the lump sum
received from an insurance company can help
take care of your family·s financial future. ›ife
Insurance policies also offer tax benefits.
V ›ife insurance in India was nationalized in 1956 by
incorporating ›ife Insurance Corporation of India
and all private life insurance companies were
taken over by ›IC
V In 2000 Govt. of India passed a new insurance bill

  
  
  
and appointed a new insurance regulator ²
Insurance Regulatory and Development Authority
to issue license to private insurance companies
V This again opened door to private players and
major Indian financial companies tied up with
global insurance giants to get more share in Indian
life insurance market.
V ›[ 
  is the fastest growing sector [
 [ since 2000 as Government allowed
Private players and FDI up to 26%. ›ife
Insurance in India was nationalised by
incorporating ›ife Insurance Corporation (›IC)
in 1956. All private life insurance companies at
that time were taken over by ›IC
V The life insurance sector of India has added up
to 4.1% of the GDP in 2009
V The contribution in FDI by the life insurance
segment was recorded at US $ 1.3 billion
V life insurance industry witnessed a steady growth in
2009-10 financial year, with an 18% increase in total
premium received during the year to Rs 2,61,025 crore
over the previous fiscal.

V 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 per cent annually

V India's life insurance industry is expected to grow by

around 10 per cent in 2010 over the previous year

V Considering the above factors, life insurance industry

has become one of the main contributors towards the
country's long-term infrastructure growth.
V
×
 [  [ 

     
›IC Government of India None 70.92

ICICI Prudential ICICI Bank ›td Prudential, UK 6.92

Bajaj Allianz Bajaj Auto Allianz, 4.79

Germany

SBI ›ife SBI BNP Paribas, 3.25

France

HDFC Standard ›ife HDFC Standard ›ife, 2.51

UK

Birla Sun ›ife Aditya Birla Group Sunlife, Canada 2.06

Reliance Reliance Group None 2.22

V ›ife insurance Corporation of India continues to be
the dominant life insurer in India with 2048 fully
computerized branches, 100 divisional offices and
7 zonal offices. All divisional offices are
interconnected with Metro Area Network and ›IC
has tied up with some banks to offer online
premium collection in selected cities
V In private sector ICICI Prudential ›ife Insurance is
the no.1 player. It is a joint venture between ICICI
Bank, India·s no.1 private bank and Prudential.
V In today·s Indian life insurance market, the
challenge to insurers and intermediaries is two
pronged:
V ‡ Building faith about the company in the
mind of the clients.
V Intermediaries being able to build personal
credibility with the clients.
V ›[ [
  
 
 
V ›[ [
  
[
 
V ›[ [
  
  [ 
{     

V The Indian market is highly brand oriented, it
is difficult to introduce new brand.
V The acceptability of new brand is also very low.

V Tax exemption structure makes the industry

attractive
V Now a day competition is increasing in the
each and every sector, and as a competition in
the market increase the bargaining power of
the buyer will get increase. So buyers
bargaining power is high
V Market is highly segmented
V Buyers in this industry are very return oriented
and it switches easily.
· Policy designer tend to have less leverage to
bargain over premium and other terms of sale
when the company they are supplying a major
customer.
V ›ife insurance sector can be featured in three
factors. They are saving, risk and tax benefit
V £
 
V Term deposits in bank
V Investment in government securities
V Money market investment
V £ ×

 
V For risk coverage, there is no close substitute of
the products. The risk protection is provided
by this sector only.
V   ! There are various substitute of
this feature of life insurance. Some of the
substitute which provides tax benefit is«
V ‡ PPF
V ‡ NSE
V ‡ POST OFFICE SECURITIES.
V ‡ INVESTMENT IN THE MUTUA› FUND.
V ‡ OTHER TAX SAVING INSTRUMENT
V There is cut- thought competitions among
rivals in life insurance industry
V There are mainly 23 private organizations and
one public organization in life insurance
competition.
V All the insurance companies deal in identical
policies, as service levels offered are similar.
Hence, there is no product differentiation.
V ··
 [[

V Today·s human life becomes full uncertain, so
they prefer protection against the risk.
Therefore they prefer life insurance. This is the
opportunity for the life insurance sector.
V To enter into rural market where customer
awareness about insurance is low by effective
and efficient marketing strategies.
V To sell insurance products through electronic
Medias
V Interest rate of P.F and bank saving create
threat to insurance sector. All other saving is
obviously the threat for life insurance sector
V Indian ›ife Insurance Segment is growing at a
rapid rate due to more liberal approach from
Govt. of India and due to the upward trends in
Indian economy and share market. More
financial groups and banks including global
players are eyeing the Indian ›ife Insurance
Market