Insurance
Content
erging-Trends-in-Insuranceector
PRESENTED BY:RUBY JHA
INTRODUCTION
Insurance is nothing but a system of spreading the
risk of one onto the shoulders of many.
While it becomes somewhat impossible for a man
to bear by himself 100% loss to his own property or
interest arising out of an unforeseen contingency,
Basic Human trait is to be averse to the idea of risk
taking.
OBJEC
TIVE
To
To
un
udnedresrtsatnadndthe
thelifleifeinin
susruarnacnecesec
InIdnid
ai.a.
setcotroirnin
To
To
lelaeranrnabaobut
ouLt ILCIC&&ICIICCI p
To
ICI rpurduednetnia
To
knkonw
. l.
owthtehescsocpoep of
tila
e olif fliefeinin
susruarnacnecein I
innIdnid
ai.a.
SCOPE
Effect of liberalization
Trends in insurance sector
Impact of budget on insurance sector
Product offered by LIC & ICICI Prudential
Impact of financial crisis on LIC
LIMITATION
Life Insurance is a vast subject. It is not possible
to provide information regarding all the
different types of policies which provides
different benefits. The project would have
been much better if the comprehensive
study of all the different types of policy
provided by different companies is
undertaken.
NSURANCE
INSURANCEINDUSTRY:
INDUSTRY:
LASSIFICATION
CLASSIFICATION
Working of Insurance
y
r
t
s
u
d
n
I
l
a
b
Glo
s
c
i
t
s
i
t
a
St
Emerging Markets
(Total Premium, figures in $billion)
Taiwan
17.3
China
13.4
India
7.2
Hong Kong
6.1
Israel
5.8
Singapore
5.0
Globalization of Life Insurance Market
Significant channel for household savings into
capital formation
GDP penetration of 4.1%
Statutory requirements
to provide reach to
rural areas
Life Insurance
Total Assets Under Management of Life
Insurance Cos. as on March 31, 2008- Rs.
8,50,000 crores
2nd largest financial
service in India after
banking
Total number of lives
insured and on books as
on March 31, 2008- 22
Crs
Age at entry
18 – 70 years last birthday
18- 60 years
Deferment period
2 - 35 years
Min. term = 5 years
Max. term = 30 years
Vesting age
50 -79 years last birthday
50- 70 years
Minimum single premium
Rs. 10,000
Min. SA = Rs. 50,000/-
Mode of premium payment
Single ,yearly, half yearly, quarterly, monthly , SSS
----
Minimum amount of annual
RS 2500
----
Yearly, half-yearly, quarterly & monthly
Yearly, half-yearly, quarterly &
premium
Mode of annuity payment
monthly
Tax benefits
Tax benefits u/s 80CCC(I) for
Same as in case of Jeevan Suraksha –I.
investment up to Rs. 10,000/(deducted from taxable income).
Choice of retirement date
Flexibility option not available.
The annuitant has the
flexibility to postpone the
vesting from originally chosen
vesting date up to a maximum of 70
years of age.
Open Market Option
Flexibility option not available.
This option gives annuitant
the flexibility to buy a pension
from any other Company of his choice.
FINDINGS
1. Hybrid distribution channel
2. Difficulty in designing Marketing Mix
3. Regulatory trend
4. Claim Management
5. Customer Servicing
6. FDI and growth
RECOMMENDATION
Corporate must go to the basics of service marketing
such as “under promise and over delivery”
Customization of offerings, mainly in product and
distribution
“Pockets of service” is to be done for quicker service and
other operation
Advanced knowledge in the insurance is to be imparted
to the employees in Insurance industry
“Digitalization and Relationship” is to be kept in policy
marketing
CONCLUSION
ase
h
p
g
n
i
v
l
se
o
a
v
h
e
p
n
g
a
n
i
n
v
owwi in an evofl actions inin
n
s
i
t
e
k
r
a rket is no ect a lot o f actions
heemm
1. T
xppect a lot o
annee
1. Thhere oane cc
x
w here one .a
n
w ing days .
igg
e
r
o
f
r
o
f
s
i
m ing days ediment s for fore nn
coo
p ediment ity cap o
c mcurrent imm
quuity cap onrole of
hee current i lipke 26% ee
2. T
q gulatory ole of
2. Tahrticipationn– – like 26%
eddreregulatory ernt
p articipatio er, ill definn
m e nt
p ign partn er, ill defi ery developp
reeign partn e Regulatoory develo tm
foo
) inin
c e Regulat the indussrtyry
f rA (Insurann
)
c tchdog of the indu
IRDDA (Insurae w
a tchdog of
IR hority- th e w
t hority- th ssaetc
Auu
e ss etc
A tsion businn
i
n
peension bus e
p
The will need to make sure right now that
all their infrastructure is in place so that
they can reap the benefit of an "unlimited
potential."
In this paper, the trend is more of general.
It is important to study segment wise,
may be rural & urban, unit linked and nonunit linked etc.
PRESENTED BY:RUBY JHA
INTRODUCTION
Insurance is nothing but a system of spreading the
risk of one onto the shoulders of many.
While it becomes somewhat impossible for a man
to bear by himself 100% loss to his own property or
interest arising out of an unforeseen contingency,
Basic Human trait is to be averse to the idea of risk
taking.
OBJEC
TIVE
To
To
un
udnedresrtsatnadndthe
thelifleifeinin
susruarnacnecesec
InIdnid
ai.a.
setcotroirnin
To
To
lelaeranrnabaobut
ouLt ILCIC&&ICIICCI p
To
ICI rpurduednetnia
To
knkonw
. l.
owthtehescsocpoep of
tila
e olif fliefeinin
susruarnacnecein I
innIdnid
ai.a.
SCOPE
Effect of liberalization
Trends in insurance sector
Impact of budget on insurance sector
Product offered by LIC & ICICI Prudential
Impact of financial crisis on LIC
LIMITATION
Life Insurance is a vast subject. It is not possible
to provide information regarding all the
different types of policies which provides
different benefits. The project would have
been much better if the comprehensive
study of all the different types of policy
provided by different companies is
undertaken.
NSURANCE
INSURANCEINDUSTRY:
INDUSTRY:
LASSIFICATION
CLASSIFICATION
Working of Insurance
y
r
t
s
u
d
n
I
l
a
b
Glo
s
c
i
t
s
i
t
a
St
Emerging Markets
(Total Premium, figures in $billion)
Taiwan
17.3
China
13.4
India
7.2
Hong Kong
6.1
Israel
5.8
Singapore
5.0
Globalization of Life Insurance Market
Significant channel for household savings into
capital formation
GDP penetration of 4.1%
Statutory requirements
to provide reach to
rural areas
Life Insurance
Total Assets Under Management of Life
Insurance Cos. as on March 31, 2008- Rs.
8,50,000 crores
2nd largest financial
service in India after
banking
Total number of lives
insured and on books as
on March 31, 2008- 22
Crs
Age at entry
18 – 70 years last birthday
18- 60 years
Deferment period
2 - 35 years
Min. term = 5 years
Max. term = 30 years
Vesting age
50 -79 years last birthday
50- 70 years
Minimum single premium
Rs. 10,000
Min. SA = Rs. 50,000/-
Mode of premium payment
Single ,yearly, half yearly, quarterly, monthly , SSS
----
Minimum amount of annual
RS 2500
----
Yearly, half-yearly, quarterly & monthly
Yearly, half-yearly, quarterly &
premium
Mode of annuity payment
monthly
Tax benefits
Tax benefits u/s 80CCC(I) for
Same as in case of Jeevan Suraksha –I.
investment up to Rs. 10,000/(deducted from taxable income).
Choice of retirement date
Flexibility option not available.
The annuitant has the
flexibility to postpone the
vesting from originally chosen
vesting date up to a maximum of 70
years of age.
Open Market Option
Flexibility option not available.
This option gives annuitant
the flexibility to buy a pension
from any other Company of his choice.
FINDINGS
1. Hybrid distribution channel
2. Difficulty in designing Marketing Mix
3. Regulatory trend
4. Claim Management
5. Customer Servicing
6. FDI and growth
RECOMMENDATION
Corporate must go to the basics of service marketing
such as “under promise and over delivery”
Customization of offerings, mainly in product and
distribution
“Pockets of service” is to be done for quicker service and
other operation
Advanced knowledge in the insurance is to be imparted
to the employees in Insurance industry
“Digitalization and Relationship” is to be kept in policy
marketing
CONCLUSION
ase
h
p
g
n
i
v
l
se
o
a
v
h
e
p
n
g
a
n
i
n
v
owwi in an evofl actions inin
n
s
i
t
e
k
r
a rket is no ect a lot o f actions
heemm
1. T
xppect a lot o
annee
1. Thhere oane cc
x
w here one .a
n
w ing days .
igg
e
r
o
f
r
o
f
s
i
m ing days ediment s for fore nn
coo
p ediment ity cap o
c mcurrent imm
quuity cap onrole of
hee current i lipke 26% ee
2. T
q gulatory ole of
2. Tahrticipationn– – like 26%
eddreregulatory ernt
p articipatio er, ill definn
m e nt
p ign partn er, ill defi ery developp
reeign partn e Regulatoory develo tm
foo
) inin
c e Regulat the indussrtyry
f rA (Insurann
)
c tchdog of the indu
IRDDA (Insurae w
a tchdog of
IR hority- th e w
t hority- th ssaetc
Auu
e ss etc
A tsion businn
i
n
peension bus e
p
The will need to make sure right now that
all their infrastructure is in place so that
they can reap the benefit of an "unlimited
potential."
In this paper, the trend is more of general.
It is important to study segment wise,
may be rural & urban, unit linked and nonunit linked etc.
