INS I - Session 1
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Transcript of INS I - Session 1
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8/2/2019 INS I - Session 1
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Insurance IDF - 303
Session 1
Introduction to Insurance
An Overview of Insurance Market in India
The Global Scenario
The Current Indian Scenario
Total Volume of Business
IRDA - The RegulatorPlayers in the Public and Private Sector, Their Market Shares,
Insurance Penetration and Density
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Global Scenario
The global financial system is still in a period of significant
uncertainty (Report published by IMF)
Spillover effect onto the banking sector, the resultant impact is in
terms of shrinking credit.
Challenges posed by a slower than expected level of recovery.
Global insurance premium for calendar year 2009 was USD 4066
billion, which is 1.1 per cent (inflation adjusted) lower than USD
4220 billion reported during 2008.(World Insurance Report by Swiss Re)
The share of life business: 57% in total premium collection.
While life insurance business collected USD 2331 billion as
premium, the same for non-life business was USD 1735 billion.
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The Indian Economy
Registered an impressive growth of 7.4 per cent in 2009-
10 following 6.7per cent in 2008-09.
Major source of worry - inflationary conditions (surged to
11 % towards the end of 2009-10, aggravated by the spurt
in prices of food items.
Financial markets during 2009-10 showed signs of
volatility with signs of rising activity. A favorable trend from the downturn observed in the wake
of the financial crisis.
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Indian Insurance Industry;The Current Scenario (1/2)
Number of participants in the industry has gone up from 6 in the
year 2000 to 48 insurers operating in the life, non-life and
reinsurance segments.
36 private insurers are operating in collaboration withestablished foreign insurers from across the globe.
FYP, a measure of new business secured, by the life insurers
during 2009-10 was Rs.1,09,894 crore as compared to
Rs.87,331 crore in 08-09 registering a growth of 25.84 % againstnegative growth rate of 6.81 % during previous year. Total premium of life insurers in 2009-10 was Rs.2,65,450 crore
as against Rs.2,21,785 crore in 2008-09 exhibiting a growth of
19.69 % (10.15 % in 2008-09).
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Indian Insurance Industry;The Current Scenario (2/2)
The non-life insurers (excluding specialised institutions
like ECGC and AIC and the standalone health insurers)
underwrote premium of Rs.35,816 crore in 09-10, as
against Rs.31,428 crore in 08-09 registering a growth of13.44 %.
The three health insurers had a premium of Rs.1,072
crore in 09-10, twice of their collective premium of
Rs.535 crore in 08-09.
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Growth IndicatorsLife Insurance Business
Parameter FY 99-00 FY 06-07 FY 07-08 FY 08-09 (Apr-Dec 2009)
Q3
Number of players 1 16 18 22 23
Capital Deployed
(Rs. Cr)
5 9,485 16,692 24,988 27,620
Branches 2,048 5,373 8,913 11,815 11,931
(12018 on
31.03.10)
Employees
(in Lacs)
1.23 1.87 2.54 2.85 2.70
Individual Agents
(in Lacs)
7.14 19.93 25.20 29.37 29.84
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Growth IndicatorsLife Insurance Business
Parameters FY 99-00 FY 06-07 FY 07-08 FY 08-09 (Apr-Dec09)
Q3
Increase from
FY 00 to FY 09
New Business
Premium (Rs.Cr)8,299 75,649 93,713 87,006 67,438 +10 times
Renewal premiums(Rs. Cr)
17,951 80,427 1,07,639 1,34,785 96,917 +7 times
Total Premium
(Rs. Cr)
26,250 1,56,076 2,01,351 2,21,791 1,64,355 +8 times
Mngmt. Expenses
Commission (Rs.Cr)
3,171 12,259 14,704 15,533 10,552 +5 times
Mngmt. Expenses
Operating
expenses (Rs.Cr)
3,756 13,585 20,299 25,724 16,671 +6 times
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Indian Insurance IndustryGlobal Position
Life Industry Non-life Industry
Indias rank globally 9th 26th
Share in globalmarket
2.45 % (2009)
1.98 % (2008)
0.46 % (2009)
Insurance Growth inIndia
10.1 per cent
(inflation adjusted)
1.6 per cent
(inflation adjusted)
Growth in GlobalMarket
Contracted by 2 percent
Contracted by 0.1 percent
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The Regulator
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The Regulator
Constituted by IRDA Act' 1999
Duties, powers and functions include -
issue/ renew certificate of registration to insurers
protection of the interests of the policy holders specifying requisite qualifications, code of conduct and practical
training for insurance intermediaries
specifying the code of conduct for surveyors and loss assessors
promoting efficiency in the conduct of insurance business
regulating investment of funds by insurance companies
adjudication of disputes between insurers and intermediaries or
insurance intermediaries
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.
Indian Insurance IndustryNo. of Players
Public Private
Life Insurance 1 22
Non-life Insurance 6
(including 2 specialisedinsurers; ECGC and
AIC)
18
(including 3 standalonehealth insurers; Star,
Apollo and Max Bupa)
Reinsurance 1 0
Total (as on 17.01.10) 8 40
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List of Life Insurers
1. HDFC Standard Life Insurance
2. Max New York Life Insurance
3. ICICI-Prudential Life Insurance
4. Om Kotak Life Insurance
5. Birla Sun Life Insurance
6. Tata-AIG Life Insurance7. SBI Life Insurance
8. ING Vysya Life Insurance
9. Allianz Bajaj Life Insurance
10. Metlife India Insurance
11. Reliance Life Insurance(EarlierAMP Sanmar Life InsuranceCompany from 3.1.02 to 29.9.05)
12. AVIVA
13. Sahara Life Insurance
14. Shriram Life Insurance
15. Bharti AXA Life Insurance
16. Future Generali India Life
Insurance17. IDBI Fortis Life Insurance
Company
18. Canara HSBC OBC LifeInsurance
19. Aegon Religare Life Insurance
20. DLF Pramerica Life Insurance21. Star Union Daiichi
22. India First
23. Life Insurance Corporation ofIndia
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.
Indian Life Insurance IndustryMarket Shares: 09-10 (Public vs. Private)
Premium Income in Rs. Cr. Market Share in %
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PVT
INSURERS
LIC
.
Indian Life Insurance IndustryMARKET SHARES (30.11.10)
Total FYPas on
30.11.10
(in Rs. Cr.)
MarketShare
(in %)
Private
Insurers
21477 27.9
LIC 55513 72.1
Total 76990 100.0
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.
Indian Life Insurance IndustryFYP of PVT LIFE INSURERS (30.11.10)
0
1000
2000
3000
4000
5000
Tata
SBILife
Reliance
MetLifeMax
ICICIPru
HD
FC
B
irla
Bharti
Bajaj
A
viva
Others
B i P f f N lif
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Business Performance of Non-life
Insurers(Source: IRDA Annual Report, 2009-10)
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Insurance Penetration
The potential and performance of the insurance sector is universally
assessed with reference to IP and ID
Insurance Penetration (the ratio of premium underwritten in agiven year to the GDP)
Insurance Penetration increased from 1.9% (life = 1.41 and
non-life = 0.49) in 2000 to 5.2% (life = 4.6 and non-life = 0.6) in
2010
Countries with the highest IP are Taiwan, UK, S Africa, Hong
Kong, France, Japan, Switzerland and US
1
2
3
4
5
6
Non-life
Life
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Insurance Density
Insurance Density is the ratio of premium underwritten in a given year
to the total population measured in USD for convenience of
comparison)
Life ID increased from 7.6 USD (2000) to 47.7 USD (2009)
Non-life ID increased from 2.3 USD (2000) to 6.7 USD (2009)
Countries with the highest ID are Switzerland, UK, France, Japan, US,
Hong Kong and Germany
INSURANCE DENSITY (in USD)
0
10
20
30
40
50
60
Year 2000 Year 2009
Non-life
Life
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Insurance Penetration & Density in IndiaDuring Post-IRDA Period
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Questions,if any