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CHAPTER 1
GENERAL INTRODUCTION
SERVICE SECTOR
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1.1)Services Sector in Global ScenarioT
heres growing recognition that services do matter to developing countries.The global services sector is undergoing a revolution that enables small firms in
these countries to compete in world markets. ITC, reacting to the explosive
growth of trade opportunities, has upgraded its programme to equip exporters
with all they need to tackle competitive international markets.
As globalization drives a sea change in trading activities, ITC is working to boost
service providers participation in international business. It is helping to highlight
to a wider range of sectors the variety of services they could export. Sectorassociations and chambers, supported by ITC, are getting the Its time to export
message out to services companies, particularly small and medium-sized
enterprises (SMEs) in non-OECD (Organisation for Economic Co-operation and
Development) countries.
The revolution in services sector exporting has come about despite a traditional
misunder-standing of its potential. Governments and business associations have
tracked trade in the multifaceted services sector inadequately (see related box on
missing exports). Further, the intangible nature of services where promises
rather than goods are being sold has meant that service providers, often small
businesses, are not aware of the fact that they are exporting.
Some years ago, a developing economy policy-maker or business-person looking
at export opportunities in services might have concentrated on transport and
tourism. They might also have expected to export labour services. However,
recent developments in technology and in the organization of international
business have broadened the scope of developing economy interests. Moreover,
this year, negotiations on services commitments in the GATS have recommenced.
This article outlines some issues for decision-makers to consider and a series of
related research projects to initiate, as they respond to shifts in the market place
and as they plan their approach to the services negotiations. The opportunities
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for developing economies in services markets were highlighted recently by the
Global Services Network (GSN). This group identified a number of areas in which
developing economies have gained a foothold in knowledge based and labor-intensive services. GSN concluded that entry into these markets was facilitated
by the opportunities created by new information technologies and subsequently
by ecommerce. GSN cited the experience of some economies in establishing data
processing sectors, or call centres, as well as software supply groups.
In these cited examples, services were provided in the cross border mode of
supply, that is, without the movement of either producer or consumer. GSN went
on to list other areas which are ripe for cross border trade.
These areas included:
Software programming;Data capture and repair;Management of electronic medical records;Translation services;Technical online supports services;Database management;Research & development;Inventory management;Website design and management;Medical transcription;Legal transcription;Back-office services for airlines, brokerage firms, and credit card processing.
UNCTAD, for some time, has worked on the scope for developing economies to
expand services exports through all modes of supply. The UNCTAD secretariat
(1998) paper examined how globalization, liberalization and new information
technologies are providing new opportunities for trade in services. Case studies
included computer services, back office services, environmental services, health
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care services and tourism services. Moreover, UNCTAD has undertaken a series of
expert group meetings in relation to these services.
Many issues are involved in expanding the ability of developing economies to take
advantage of the emerging opportunities in the services sector. Market access is
one issue. But also the openness of domestic services markets can help build the
capacity to participate in global markets. Liberalization increases the efficiency of
the operations of suppliers in intermediate services to all export sectors.
Liberalization also brings in capital and technology. New business opportunities
are not only influenced by policies affecting market access at home and offshore,
but also by other national policy initiatives.T
he effective participation ofdeveloping economies in the current services negotiations will be a contributing
factor to maintaining reform in the services sector. A number of papers, including
those by Hoekman and Messerlin (1999), Mashayekhi (2000), Mattoo (2000),
Hoekman (1999) and Sauve (2000), have discussed the priorities in the developing
economies agenda in these negotiations.
Apart from participation in multilateral negotiations and national policy
initiatives, there are other elements in a portfolio of strategies for services
development. These include the use of regional strategies and regional
cooperative arrangements. These are topical and there is considerable work in
progress in the application of regional arrangements. Important groundbreaking
work, for example, is in progress in APEC.
1.1.1)Pivotal role for servicesA growing recognition, however, of the pivotal role services play in all economies
and a shift in understanding how services should be packaged, marketed, sold and
reported, have sparked interest from exporters and trade development officials
worldwide that continues to gain momentum. The changes have been accelerated
by the digital revolution of the 1990s, which opened powerful new mechanisms
to ease trade in services. The sector also advanced thanks to the agreement of a
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definition of trade in services achieved under the Uruguay Round negotiations on
the General Agreement on Trade in Services. ITC, recognizing the growing
potential for developing country firms, moved quickly to integrate trade inservices in its global activities.
Traditionally, ITC provided publications and training to support export
development for the services sector. Now, with multi-donor support, the
organization has developed well-rounded technical assistance programmes to
better support the development of cross-industry capacity in services exports,
notably for SMEs in the developing world. ITC has developed a six-phase
programme to boost the export of services in target countries.T
he culmination ofthe programme sees a country joining ITCs Service Export Network. The
programme includes steps to:
y conduct a capacity study and develop a services association database;y establish local champions and conduct association surveys;y create web portals to connect the beneficiary countries;y deliver train-the-trainer workshops to SMEs, services associations,
chambers of commerce and governments;
y organize regional networking meeting for associations; andy advise governments on their role in promoting trade in services.
Feedback from countries implementing the programme around the world has
enabled ITC to identify and address specific issues. Targeting women service
exporters for assistance is one. Worldwide, 86% of women entrepreneurs are in
the services sector. However, very few women originally participated in ITC
services export workshops. In response, it made a conscious effort at the country
and regional level to invite businesswomen to meetings, mainly through their
associations. As a result of this initiative, some 30% to 40% of workshop
participants are now female. Additionally, ITC has developed a directory of
women entrepreneurs associations to encourage international networking of
businesswomen.
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Reflecting on ITCs new focus and activities to support services exports, Peter
Walters,D
irector of ITC
sD
ivision of Product and MarketD
evelopment,comments: Even in a limited time period, we have worked with our partners to
create an awareness that service exports do matter to developing countries. This
is particularly the case in some small island state economies, where service
exports including tourism are a real hope for the future, given the decline
of the agricultural sectors and the lack of manufacturing in many of these
economies.
The growing recognition of the importance of services has resulted in a new driveby governments, export promotion bodies and business groups to build national
and regional capacity to facilitate trouble-free services exports. The examples
below highlight the diversity of services exports on offer:
y A Malaysian civil engineering consultancy sells computer-aided designservices to companies establishing new plants on an Indonesian industrial
estate.
y A Chilean interior design company assists a Costa Rican resort to create apro-ecology feel for its luxury guest bungalows.
y An Australian engineering company designs waste-oil catchment systemsfor petrol stations in Thailand.
y An Indian data company provides credit card processing for an Italianconsumer finance company.
1.1.2)Capturing benefits of liberalizationIn the developing economies, service firms should begin to benefit from more
competitively priced services. For example, in the financial and
telecommunication sectors, WTO negotiations have already seen commitments to
further liberalization which will drive prices down as competition picks up. The
strengthened protection afforded to intellectual property rights under the WTO
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Agreement on Trade-Related Intellectual Property Rights (TRIPS) should benefit
both local and exporting service firms.
However, liberalization also brings with it increased competition for domestic
service firms. The very technology that allows developing country firms to deliver
services to distant export markets will also enable distant providers to deliver
services to local economies. As such, even domestic service firms will need to
begin formulating strategies within a global context.
The export of services from developing countries is here to stay. Recent research
has highlighted that already all developing countries export, on average, more
than 60 services to more than 30 different markets. However, most of the
countries studied remain unaware of this growing trade. Clearly, the key to
capitalizing on these new opportunities is to build awareness and to ensure
training for best practice approaches through collaboration with service
provider associations and governments. ITCs technical assistance programme,
formulated to promote this type of approach, will be a critical foundation for
services exporting success in many developing countries.
1.1.3)The powerful growth of the global services sectorIn 2001, international trade in services exceeded US$ 1.4 trillion. In the period
from the mid-1980s to the start of the new millennium, the services sector was
the fastest growing component of world trade. Services make up a major portion
of economies worldwide, including those of developing countries, ranging from
39% of gross domestic product (GDP) in a country like Nigeria to 89% in
economies such as Hong Kong, China. Service industries are becoming particularly
important in least developed countries and usually contribute to at least 45% of
GDP. The rapid expansion of service industries leads to impressive job creation
rates that assist in rolling back poverty. Services usually make up one-quarter of
inputs for efficient value-added primary industries. This makes strong service
growth particularly important for developing countries in which primary sectors,
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such as forestry and extractive industries, remain dominant.
Some analysts predict that by 2020, services will account for 50% of worldtrade, says ITCs Peter Walters. One of the main reasons for the exponential
growth in services we have witnessed and for that which is predicted is the
progress in telecommunications and information technology. These
developments have brought a proliferation of new opportunities for the sector
and have played a major part in changing the way services are viewed and sold.
Another key message from ITC is that You are never too small to export
services. You can be a one-person firm and still be a successful exporter, heexplains.
1.2)Service Sector In IndiaThe services sector has been at the forefront of the rapid growth of the Indian
economy, contributing nearly 63 per cent of the GDP in 2007-08. The sector has
come to play an increasingly dominant role in the economy accounting for 59.6
per cent of the overall average growth in GDP in the last eight years between
2000-01 and 2007-08.
As per the Central Statistical Organization, the services sector has continued to
grow in the second quarter of 2009-10.
y Trade, hotels, transport and communication grew 8.5 per cent in July-September 2009 from a year earlier.
y Financing, insurance, real estate and business services grew at 7.7 per centin July-September, 2009 from a year earlier.
y Community, social and personal services grew at 12.7 per cent in July-September, 2009 from a year earlier.
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Despite economic slowdown, 12 out of 31 service segments have registered high
to excellent growth rate ranging between 10per cent to over 20per cent during
the period of recession.
The strong contribution of these service segments have helped India to maintain
a healthy growth rate as service sectors contributes 63per cent in Gross Domestic
Product (GDP) of India.
Indian Telecom sector emerged as the biggest contributor by marking a significant
growth rate in broadband, mobile and Internet subscription services. The
broadband subscription grew up by 87per cent as against last years 23.6per cent;
the mobile subscription increased by 50per cent as against previous fiscals 58per
cent, while internet subscription registered a growth figure of 26 percent in
comparison to previous years 20 percent.
Among other major achievers, Indian Railways, IT software services, organized
retail trades, franchising, forex earnings through tourists, education, housing
finance, and media & entertainment sectors have also registered 10 to 20 percent
growth rate.
Indian Railways, the biggest revenue earners among these, have recorded 12.2
percent growth in passenger traffic (as against 14 percent last year) while revenue
through freight has increased to 15.7 percent as against 14 percent in the last
fiscal.
IT software services have also shown moderation in growth but managed to grow
with positive figures by marking a growth rate of 15 percent while it was 33
percent growth rate in the last fiscal.
Besides, Forex earnings from tourist grew by 16per cent, housing finance by 12
percent, organized retail trade by 15 percent and entertainment & media industry
by 10 percent. The cargo services through road, rail and port have registered a
single digit growth.
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Meanwhile, sectors like airlines, insurance, mutual fund, and fixed line subscriber
have witnessed sharp decline. A large number of fixed phone connections have
been disconnected this year due to massive growth rate in mobile phoneconsumers.
1.2.1) Indicators
Lead indicators suggest that the pace of expansion in the services sector activity is
likely to be sustained even in the next financial year.
y Foreign tourist arrivals (FTAs) during calendar year 2009 were 5.10 million.y Railways freight traffic increased to 833.03 million tonnes during fiscal
2008-09 from 794.21 million tonnes carried during 2007-08, an increase of
4.89 per cent.
y The number of telecom subscribers in the country increased to 562.21million in December 2009, an increase of 3.5 per cent from 543.20 million
in November 2009. With this the overall tele-density (telephones per 100
people) has touched 47.89.
y
Cargo handled at major ports during AprilDecember 2009 2010 has been
411.95 million tones as against 391.82 million tonnes in the corresponding
period in the previous fiscal.
The prospects for growth in the Indian services sector continues to be robust,
according to a survey by KPMG, conducted across the BRIC (Brazil, Russia, India
and China) countries in the spring of 2009. The survey revealed that 31.3 per cent
of Indian companies saw their activity levels improving. Around 37 per cent
forecast new order growth in one years time, compared with 16 per cent that
anticipated a fall. Even capital expenditure at Indian services firms is anticipated
to rise, with 43 per cent of companies saying they plan to increase spending on
fixed assets.
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According to a HSBC survey, business activity among Indian services companies
expanded at its fastest pace in 16 months in January 2010, rising for a second
straight month on a sharp increase in new work orders.
The HSBC Market Business Activity Index, based on a survey of 400 firms, rose to
58.96 in January 2010, its highest since September 2008. (A reading above 50
represents expansion while anything below points to a contraction)
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CHAPTER 2
INTRODUCTION OF INSURANCE SECTOR
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The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-degree
turn witnessed over a period of almost two centuries.
2.1) A Brief History of the Insurance Sector
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.
Some of the important milestones in the life insurance business in India are:
y 1912: The Indian Life Assurance Companies Act enacted as the first statuteto regulate the life insurance business.
y 1928: The Indian Insurance Companies Act enacted to enable thegovernment to collect statistical information about both life and non-life
insurance businesses.
y 1938: Earlier legislation consolidated and amended to by the Insurance Actwith the objective of protecting the interests of the insuring public.
y 1956: 245 Indian and foreign insurers and provident societies taken over bythe 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 Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:y 1907: The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
y 1957: General Insurance Council, a wing of the Insurance Association ofIndia, frames a code of conduct for ensuring fair conduct and sound
business practices.
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y 1968: The Insurance Act amended to regulate investments and setminimum solvency margins and the Tariff Advisory Committee set up.
y 1972: The General Insurance Business (Nationalization) Act, 1972nationalised the general insurance business in India with effect from 1st
January 1973.
y 107 insurers amalgamated and grouped into four companies viz. theNational Insurance 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.
2.2) Insurance Sector Reforms
In 1993, Malhotra Committee headed by former Finance Secretary and RBI
Governor R.N. Malhotra was formed to evaluate the Indian insurance industry
and recommend its future direction.
The Malhotra committee was set up with the objective of complementing the
reforms initiated in the financial sector. The reforms were aimed at "creating a
more efficient and competitive financial system suitable for the requirements ofthe economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall financial system
where it was necessary to address the need for similar reforms"
In 1994, the committee submitted the report and some of the key
recommendations included:
1) Structure
y Government stake in the insurance Companies to be brought down to50%.
y Government should take over the holdings of GIC and its subsidiaries sothat these subsidiaries can act as independent corporations.
y All the insurance companies should be given greater freedom tooperate.
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2) Competition
y Private Companies with a minimum paid up capital of Rs.1bn should beallowed to enter the industry.
y No Company should deal in both Life and General Insurance through asingle entity.
y Foreign companies may be allowed to enter the industry in collaborationwith the domestic companies.
y Postal Life Insurance should be allowed to operate in the rural market.y Only One State Level Life Insurance Company should be allowed to
operate in each state.
3) Regulatory Body
y The Insurance Act should be changed.y An Insurance Regulatory body should be set up.y Controller of Insurance (Currently a part from the Finance Ministry)
should be made independent.
4) Investments
yMandatory Investments ofLICLife Fund in government securities to bereduced from 75% to 50%.
y GIC and its subsidiaries are not to hold more than 5% in any company(There current holdings to be brought down to this level over a period of
time).
5) Customer Service
y LIC should pay interest on delays in payments beyond 30 days.y Insurance companies must be encouraged to set up unit linked pension
plans.
y Computerization of operations and updating of technology to be carriedout in the insurance industry The committee emphasized that in order
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to improve the customer services and increase the coverage of the
insurance industry should be opened up to competition.
But at the same time, the committee felt the need to exercise caution as any
failure on the part of new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the
minimum capital requirement of Rs.100 crores. The committee felt the need to
provide greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with economic
motives. For this purpose, it had proposed setting up an independent regulatory
body.
2.3) MAJOR POLICY CHANGES
Insurance sector has been opened up for competition from Indian private
insurance companies with the enactment of Insurance Regulatory and
Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act,
1999, Insurance Regulatory and Development Authority (IRDA) was established
on 19th April 2000 to protect the interests of holder of insurance policy and to
regulate, promote and ensure orderly growth of the insurance industry. IRDA Act
1999 paved the way for the entry of private players into the insurance market
which was hitherto the exclusive privilege of public sector insurance companies/
corporations. Under the new dispensation Indian insurance companies in private
sector were permitted to operate in India with the following conditions:
y Company is formed and registered under the Companies Act, 1956;y The aggregate holdings of equity shares by a foreign company, either by
itself or through its subsidiary companies or its nominees, do not exceed
26%, paid up equity capital of such Indian insurance company;
y The company's sole purpose is to carry on life insurance business or generalinsurance business or reinsurance business.
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y The minimum paid up equity capital for life or general insurance business isRs.100 crores.
y The minimum paid up equity capital for carrying on reinsurance businesshas been prescribed as Rs.200 crores.
The Authority has notified 27 Regulations on various issues which include
Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-
insurance, Obligation of Insurers to Rural and Social sector, Investment and
Accounting Procedure, Protection of policy holders' interest etc. Applications
were invited by the Authority with effect from 15th August, 2000 for issue of the
Certificate of Registration to both life and non-life insurers. The Authority has itsHead Quarter at Hyderabad.
2.4) Insurance Companies
IRDA has so far granted registration to 12 private life insurance companies and 9
general insurance companies. If the existing public sector insurance companies
are included, there are currently 13 insurance companies in the life side and 13
companies operating in general insurance business. General Insurance
Corporation has been approved as the "Indian reinsurer" for underwriting only
reinsurance business. Particulars of the life insurance companies and general
insurance companies including their web address are given below:
LIFE INSURERS Websites
Public Sector
Life Insurance Corporation of India www.licindia.comPrivate Sector
Allianz Bajaj Life Insurance Company
Limited
www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited www.birlasunlife.com
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HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com
ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com
ING Vysya Life Insurance Company Limited www.ingvysayalife.comMax New York Life Insurance Co. Limited www.maxnewyorklife.com
MetLife Insurance Company Limited www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
SBI Life Insurance Company Limited www.sbilife.co.in
TATA AIG Life Insurance Company Limited www.tata-aig.com
AMP Sanmar Assurance Company Limited www.ampsanmar.com
Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com
GENERAL INSURERS
Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
New India Assurance Company Limited www.niacl.com
Oriental Insurance Company Limited www.orientalinsurance.nic.in
United India Insurance Company Limited www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com
TATA AIG General Insurance Co. Limited www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com
Export Credit Guarantee Corporation www.ecgcindia.comHDFC Chubb General Insurance Co. Ltd.
REINSURER
General Insurance Corporation of India www.gicindia.com
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2.5) Protection of the Interest of Policy Holders
IRDA has the responsibility of protecting the interest of insurance policyholders.
Towards achieving this objective, the Authority has taken the following steps:
y IRDA has notified Protection of Policyholders Interest Regulations 2001 toprovide for: policy proposal documents in easily understandable language;
claims procedure in both life and non-life; setting up of grievance redressal
machinery; speedy settlement of claims; and policyholders' servicing. The
Regulation also provides for payment of interest by insurers for the delay in
settlement of claim.
y The insurers are required to maintain solvency margins so that they are in aposition to meet their obligations towards policyholders with regard to
payment of claims.
y It is obligatory on the part of the insurance companies to disclose clearlythe benefits, terms and conditions under the policy. The advertisements
issued by the insurers should not mislead the insuring public.
y All insurers are required to set up proper grievance redress machinery intheir head office and at their other offices.
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the insurance
contract.
Porters Five Force Analysis
1.Threat of New Entrants. The average entrepreneur can't come along andstart a large insurance company. The threat of new entrants lies within the
insurance industry itself. Some companies have carved out niche areas in
which they underwrite insurance. These insurance companies are fearful of
being squeezed out by the big players. Another threat for many insurance
companies is other financial services companies entering the market. What
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would it take for a bank or investment bank to start offering insurance
products? In some countries, only regulations that prevent banks and other
financial firms from entering the industry. If those barriers were everbroken down, like they were in the U.S. with the Gramm-Leach-Bliley Act of
1999, you can be sure that the floodgates will open.
2.Power of Suppliers. The suppliers of capital might not pose a big threat, butthe threat of suppliers luring away human capital does. If a talented
insurance underwriter is working for a smaller insurance company (or one
in a niche industry), there is the chance that person will be enticed away by
larger companies looking to move into a particular market.
3.Power of Buyers. The individual doesn't pose much of a threat to theinsurance industry. Large corporate clients have a lot more bargaining
power with insurance companies. Large corporate clients like airlines and
pharmaceutical companies pay millions of dollars a year in premiums.
Insurance companies try extremely hard to get high-margin corporate
clients.
4.Availability of Substitutes. This one is pretty straight forward, for there areplenty of substitutes in the insurance industry. Most large insurance
companies offer similar suites of services. Whether it is auto, home,
commercial, health or life insurance, chances are there are competitors
that can offer similar services. In some areas of insurance, however, theavailability of substitutes are few and far between. Companies focusing on
niche areas usually have a competitive advantage, but this advantage
depends entirely on the size of the niche and on whether there are any
barriers preventing other firms from entering.
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5.Competitive Rivalry. The insurance industry is becoming highlycompetitive. The difference between one insurance company and another
is usually not that great. As a result, insurance has become more like acommodity - an area in which the insurance company with the low cost
structure, greater efficiency and better customer service will beat out
competitors. Insurance companies also use higher investment returns and a
variety of insurance investment products to try to lure in customers. In the
long run, we're likely to see more consolidation in the insurance industry.
Larger companies prefer to take over or merge with other companies
rather than spend the money to market and advertise to people.
PEST Analysis
y Political Factoro Increased service tax on premiumo5% discount on corporate premiumoHike in FDI limitoPricing control in general insuranceoFavorable regulation for rural insurance
y Economic Factoro Increase in Gross Domestic Savings
y Social Factor
o Low insurance coverageoRise in elderly populationoChanging Indian perceptionoGrowth of Islamic Insurance
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o Increase in Life style diseases
y Technological FactoroAutomation of processo Increase in CRM solutionso Internet driven information eraoBusiness Process Monitoring
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Objectives of the Study
y To do detailed analysis of Insurance Industry in India (BothLife Insurance and General Insurance).
y To do a Comparative Study of the Selected companies
y To Study Role of Insurance Sector in Economy.
y To analyze the future of Insurance Industry in India.
y To study the policies, regulations, reforms and its impact onInsurance Industry in India.
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Companies Selected
For the purpose of the study we as a group have selected four companies each
from Life Insurance Sector and General (Non-Life) Insurance Sector. We have
selected these companies on the basis of their market share i.e. top three
companies in each sector on the basis of their market share.
The three companies selected in Life Insurance sector include one company from
public sector and three from private sector. These include:
1.Life Insurance Corporation of India2.ICICI Prudential Life Insurance Co. Ltd.3.Bajaj Allianz Life Insurance Co. Ltd.
The four companies selected in General Insurance sector also include one
company from public sector and three from private sector. These are:
1.The New India Assurance Co. Ltd.2.ICICI Lombard General Insurance Co. Ltd.3.Reliance General Insurance Co. Ltd.
Detailed Profiles of the selected companies are given starting from the next page.
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Life Insurance Corporation
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against
loss and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some sort
of sacrifice in order to achieve security. Though the concept of insurance is largely
a development of the recent past, particularly after the industrial era past few
centuries yet its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian Soil. All the insurance companies established during
that period were brought up with the purpose of looking after the needs of
European community and Indian natives were not being insured by these
companies. However, later with the efforts of eminent people like Babu Muttylal
Seal, the foreign life insurance companies started insuring Indian lives. But Indian
lives were being treated as sub-standard lives and heavy extra premiums were
being charged on them. Bombay Mutual Life Assurance Society heralded the birth
of first Indian life insurance company in the year 1870, and covered Indian lives at
normal rates. Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to carry the message of insurance and social
security through insurance to various sectors of society. Bharat Insurance
Company (1896) was also one of such companies inspired by nationalism.
The Swadeshi movement of 1905-1907 gave rise to more insurance companies.
The United India in Madras, National Indian and National Insurance in Calcutta
and the Co-operative Assurance at Lahore were established in 1906. In 1907,
Hindustan Co-operative Insurance Company took its birth in one of the rooms of
the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta.
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The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life)
were some of the companies established during the same period. Prior to 1912
India had no legislation to regulate insurance business. In the year 1912, theLife
Insurance Companies Act, and the Provident Fund Act were passed. The Life
Insurance Companies Act, 1912 made it necessary that the premium rate tables
and periodical valuations of companies should be certified by an actuary. But the
Act discriminated between foreign and Indian companies on many accounts,
putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, itrose to 176 companies with total business-in-force as Rs.298 crore in 1938. During
the mushrooming of insurance companies many financially unsound concerns
were also floated which failed miserably.
The Insurance Act 1938 was the first legislation governing not only life insurance
but also non-life insurance to provide strict state control over insurance business.
The demand for nationalization of life insurance industry was made repeatedly in
the past but it gathered momentum in 1944 when a bill to amend the Life
Insurance Act 1938 was introduced in the Legislative Assembly. However, it was
much later on the 19th of January, 1956, that life insurance in India was
nationalized. About 154 Indian insurance companies, 16 non-Indian companies
and 75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the management of the
companies was taken over by means of an Ordinance, and later, the ownership
too by means of a comprehensive bill.
The Parliament of India passed the Life Insurance Corporation Act on the 19th of
June 1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable
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persons in the country, providing them adequate financial cover at a reasonable
cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services
need was felt in the later years to expand the operations and place a branch
office at each district headquarter. re-organization ofLIC took place and large
numbers of new branch offices were opened. As a result of re-organisation
servicing functions were transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation.
It may be seen that from about 200.00 crores of New Business in 1957 the
corporation crossed 1000.00 crores only in the year 1969-70, and it took another
10 years for LIC to cross 2000.00 crore mark of new business. But with re-
organisation happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the Corporate office. LICs Wide Area Network covers
100 divisional offices and connects all the branches through a Metro Area
Network. LIC has tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities.
LICs ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata,
New Delhi, Pune and many other cities. With a vision of providing easy access to
its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite
offices are smaller, leaner and closer to the customer. The digitalized records of
the satellite offices will facilitate anywhere servicing and many other
conveniences in the future.
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LIC continues to be the dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on a new growth trajectory surpassing its own
past records.LIC
has issued over one crore policies during the current year. It hascrossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005,
posting a healthy growth rate of 16.67% over the corresponding period of the
previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same
motives which inspired our forefathers to bring insurance into existence in this
country inspire us atL
IC
to take this message of protection to light the lamps ofsecurity in as many homes as possible and to help the people in providing security
to their families.
Objectives of LIC:
y Spread Life Insurance widely and in particular to the rural areas and to thesocially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial
cover against death at a reasonable cost.
yMaximize mobilization of people's savings by making insurance-linkedsavings adequately attractive.
y Bear in mind, in the investment of funds, the primary obligation to itspolicyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping inview national priorities and obligations of attractive return.
y Conduct business with utmost economy and with the full realization thatthe moneys belong to the policyholders.
y Act as trustees of the insured public in their individual and collectivecapacities.
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yMeet the various life insurance needs of the community that would arise inthe changing social and economic environment.
y Involve all people working in the Corporation to the best of their capabilityin furthering the interests of the insured public by providing efficient
service with courtesy.
y Promote amongst all agents and employees of the Corporation a sense ofparticipation, pride and job satisfaction through discharge of their duties
with dedication towards achievement ofCorporate Objective
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."
Vision
"A trans-nationally competitive financial conglomerate of significance to societies
and Pride of India.
Insurance Plans:
As individuals it is inherent to differ. Each individuals insurance needs and
requirements are different from that of the others. LIC Insurance Plans are
policies that talk to you individually and give you the most suitable options that
can fit your requirement.
Children Plans
Jeevan Anurag Komal Jeevan
CDA Endowment Vesting at 21 Marriage Endowments
CDA Endowment Vesting at 18 Education Annuity Plan
Jeevan Kishore JeevanChaaya
Child Career Plan Child Future Plan
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Plans for Handicapped
Jeevan Aadhar Jeevan Vishwas
Pension Plans
Pension Plans are Individual Plans that gaze into your future and foresee financial
stability during your old age. These policies are most suited for senior citizens and
those planning a secure future, so that you never give up on the best things in life.
Jeevan Nidhi Jeevan Akshay VI
New Jeevan Dhara New Jeevan Suraksha-I
Unit Plans
Unit plans are investment plans for those who realise the worth of hard-earnedmoney. These plans help you see your savings yield rich benefits and help you
save tax even if you don't have consistent income
Wealth Plus Market Plus
Profit Plus Money Plus
Child Fortune Plans Jeevan Sathi
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Special Plan
LICs Special Plans are not plans but opportunities that knock on your door once in
a lifetime. These plans are a perfect blend of insurance, investment and a lifetimeof happiness.
Jeevan Nischay Golden Jubilee Plan
Jeevan Nischay New Bima Gold
Health Plus Special Plan
Health Protection Plus Bima Nivesh 2005
Micro Insurance Plan
Jeevan Madhua
Jeevan Mangal
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ICICI Prudential Life Insurance Ltd.
Introduction
ICICI Prudential Life Insurance Company Limited was incorporated on July 20,
2000. The authorized capital of the company is Rs.2300 Million and the paid up
capital is Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and
Prudential plc UK (26%).
The Company was granted Certificate of Registration for carrying out Life
Insurance business, by the Insurance Regulatory and Development Authority on
November 24, 2000. It commenced commercial operations on December 19,
2000, becoming one of the first few private sector players to enter the liberalized
arena.
The Company recognizes that the driving force for gaining sustainable competitive
advantage in this business is superior customer experience and investment
behind the brand. The Company aims to achieve this by striving to provide world
class service levels through constant innovation in products, distribution channels
and technology based delivery. The Company has already taken significant steps
to achieve this goal.
Sponsors:
a.) ICICI LTD:
ICICI Ltd was established in 1955 by the World Bank, the Government of India and
the Indian Industry, to promote industrial development of India by providing
project and corporate finance to Indian industry.
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Since inception, ICICI has grown from a development bank to a financial
conglomerate and has become one of the largest public financial institutions in
India. IC
IC
I has financed all major sectors of the economy, covering 6,848companies and 16,851 projects. In the fiscal year 2000-2001, ICICI had disbursed a
total of Rs 319.65 billion.
ICICI has now developed a whole range of activities to become a Universal Bank.
Some of ICICI's spectrum of activities includes:
* Commercial Banking - ICICI Bank, India's first internet bank.
* InformationTechnology - ICICI Infotech, transaction processing, softwaredevelopment
* Investment Banking - ICICI Securities, one of the key players in the Indian
Capital Markets
* Mutual Fund - Prudential ICICI AMC, leading private sector mutual fund
player in India
* VentureCapital - ICICI Venture, leading private equity investor with focus
on IT and HealthCare
* Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset
Products
* Distribution - ICICI Capital, Distribution and Servicing of Retail Liability
Products
ICICI is listed on the Indian Stock Exchanges and on the New York Stock Exchange
(NYSE). On September 22, 1999, it became the first Indian company to be listed
on the NYSE (symbol: IC and IC.D). This has been followed by the listing of ICICI
Bank on NYSE (symbol: IBN) on March 28, 2000.
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b.) Prudential plc:
Prudential plc was founded in 1848. Since then it has grown to become one of thelargest providers of a wide range of savings products for the individual including
life insurance, pensions, annuities, unit trusts and personal banking. It has a
presence in over 15 countries, and caters to the financial needs of over 10 million
customers. It manages assets of over US$ 259 billion (Rupees 11, 39,600 crores
approx.) as ofDecember 31, 1999. Prudential plc. has had its presence in Asia for
the past 75 years catering to over 1 million customers across 11 Asian countries.
Prudential is the largest life insurance company in the United Kingdom (Source :
S&P's UK Life Financial Digest, 1998). Asia has always been an important region
for Prudential and it has had a presence in Asia for over 75 years. In fact
Prudential's first overseas operation was in India, way back in 1923 to establish
Life and General Branch agencies.
In the US, Prudential owns Jackson National Life, one of the leading life insurance
companies. Prudential controls approximately 4% of all the listed shares on the
second largest stock exchange in the world, the London Stock Exchange, making it
one of the largest institutional investors in the UK. Prudential is focused on the
internet generation and is one of the first financial service organisations to use
the internet on a fully integrated basis.
In October 1998, Prudential launched a "branchless" bank based on the internet.
Unusually titled as " egg:|". The bank has in a short span of its existence become a
leading banking service provider in the UK. Infect in the first six months of its
existence it garnered over 5 billion (US$ 8 billion) in deposits from over 500,000
customers.
Development of superior products and services that offer value for money and
security while producing superior financial returns, enables Prudential to
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maximize the value of its shareholder's investment and to establish lasting
relationships with customers and policy holders.
ICICI and Prudential came together in 1993 to provide mutual fund products in
India and today are the largest private sector mutual fund company in India. The
two companies bring together two of the strongest financial service brands in Asia
known for their professionalism, excellent quality of service and long term
commitment to YOU.
Vision and Mission:
To be the dominant Life, Health and Pensions player built on trust by world-class
people and service.
This they hope to achieve by:
y Understanding the needs of customers and offering them superior productsand service
y Leveraging technology to service customers quickly, efficiently andconveniently
y Developing and implementing superior risk management and investmentstrategies to offer sustainable and stable returns to our policyholders
y Providing an enabling environment to foster growth and learning for ouremployees
y And above all, building transparency in all our dealingsThe success of the company will be founded in its unflinching commitment to 5
core values -- Integrity, Customer First, Boundary less, Ownership and Passion.
Each of the values describes what the company stands for, the qualities of our
people and the way we work.
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We do believe that we are on the threshold of an exciting new opportunity,
where we can play a significant role in redefining and reshaping the sector. Given
the quality of our parentage and the commitment of our team, there are no limitsto our growth.
INSURANCE PLANS
ICICI Prudential has a wide array ofinsurance plans that have been designed with
the philosophy that different individuals are bound to have differing insurance
needs.
The ideal insurance plan is one that addresses the exact insurance needs of the
individual that will depend on the age and life stage of the individual apart from a
host of other factors.
Life Insurance Plans:
Under Life insurance plans, ICICI Prudential offers plans under the following major
need categories:
y Education Insurance PlansOne of your most important responsibilities as a parent is to ensure that your child gets
the best possible education that can be provided.
ICICI Prudential offers a wide portfolio ofeducation insurance plans that are designed
to provide peace of mind to you, as a parent, that your child's education will be secure.
These plans ensure that money is made available at the crucial junctures in a child's
education - Class X, Class XII, graduation and post-graduation - to fund crucial
commitments for the child's future.
Importantly, education insurance plans ensure that in the unfortunate event of the
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death of a parent, the child's education continues unhampered.
Under the education insurance plans platform, ICICI Prudential brings the following
products to you.
Product Name Plan Type
ICICI Pru SmartKid Assure Unit Linked
ICICI Pru SmartKid Maxima Unit Linked
ICICI Pru SmartKid Regular Premium Traditional
yWealth Creation PlansWealth Creation Plans give the customer the dual benefit of protection along with the
potentially higher returns of market-linked instruments. The most important benefit
ofULIPs is the flexibility they give the customer in choosing the premium amount and
also choosing the underlying fund in which this money is to be invested. Wealth
creation plans also offer the customer more liquidity options as compared
to traditional plans. As such, ULIPs are ideal for customers who want the protection of
a life cover to be allied to the returns of market linked instrument giving them an
unmatched combination of benefits.
Under the wealth creation platform, ICICI Prudential brings the following products to
you.
Product Name Plan Type
ICICI Pru LifeStage Wealth Unit Linked
ICICI Pru ACE Unit Linked
ICICI Pru Premium Wealth UnitL
inkedICICI Pru Assure Wealth Unit Linked
ICICI Pru Life Time Maxima Unit Linked
ICICI Pru Pinnacle Unit Linked
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yProtection Plans
The sole objective of these plans, as their name indicates, is to serve the
protection needs of the customer and by doing so, safeguard ones family
from the financial implications of unfortunate circumstances than one
cannot foresee.
Under the Protection Plans platform, ICICI Prudential brings to you the
following products:
Product Name Plan Type
Pure Protect Traditional
LifeGuard Traditional
SavenProtect Traditional
CashBak Traditional
Home Assure Traditional
Pension & Retirement Solutions:
The primary objective of a pension plan is to help you provide for your financial
needs in your post retirement years. You will find a Pension Planning Calculator
on the site, meant to make your pension plan review as simple as possible. The
calculator is the first step in your Pension Plan scheme; there are other steps
towards getting the Indian pension policy you need.
These are ICICI Prudentials pension plan solutions:
y ICICI Pru LifeTime Pension Maximay ICICI Pru LifeStage Pension Advantagey ICICI Pru Elite Pension II y ICICI Pru Assure Pension
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y ICICI Pru Forever Lifey ICICI Pru Immediate Annuity
Health Product Suite:
Under Health Product Suite, ICICI Prudential offers plans under the following
major need categories:
Hospitalization Plans
yMediAssureyHospital Care
Critical Illness Pans
yCrisis Cover
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BAJAJ ALLIANZ LIFE INSURANCE
Bajaj AllianzL
ife InsuranceC
oL
td is a unique joint venture among the globalgiants Allianz Group (AG) and Bajaj Auto. Allianz AG's world ranking establishes it
among the top insurance companies in the world. Allianz AG is a leading insurance
conglomerate globally and one of the largest asset managers in the world,
managing assets worth worldwide with 115 years of financial experience in over
70 countries. Bajaj is the biggest two and three wheeler manufacturer in the
world. Bajaj Allianz Life Insurance Company boasts of a nationwide presence with
876 offices and over 4 million satisfied customers. The various insurance products
include
Individuals Plans
Unit Gain Insurances Term Care Plans
Lifetime Care Insurance Policy
Business Insurance Policies Savings And Security Policies For You And Your Family Rural Insurance Plan Healthcare Insurance Financial Insurance Pension Plus Retirement Plans Children's Policies Endowment Plans and many more.
Group Insurance Schemes
Insurance For Employee-Employer Groups
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Insurance For Non-Employer - Employee Groups Employees Deposit Linked Insurance New Group Superannuation Scheme New Group Gratuity Care Scheme
Special Insurance Policies for NRI's
Invest gain Endowment Plan Cash gain Money Back Plan Child gain Kids Special Plan Swarna Vishranthi
Bajaj Allianz India offers convenient premium payment and receipt options. The
payments can be direct through cheques, DD's or directly from your accounts or
through credit card. The premiums can also be paid online. The insurance policy
holders who also have an account with Standard Chartered Bank can avail the
direct debit mandate facility.
The Bajaj Allianz
Life Insurance website offers human life value estimator, child
education cost calculator, retirement solutions and required pension estimator
and premium calculator online. The Bajaj Allianz insurance agents will guide you
about the general life insurance policies best suited to your needs. The insurance
agent also briefs you about the insurance quote and the terms on the policy
quotes.
At Bajaj Allianz Life Insurance, customer delight is the guiding principle. The
business philosophy is to ensure excellent insurance and investment solutions byoffering customised products, supported by the best technology.
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Accelerated Growth
Fiscal Year No. of policies sold New Business in FY
2001-2002(6 months) 21,37 Rs. 7 cr.
2002-2003 1,15,965 Rs. 63.3 cr.
2003-2004 1,86,443 Rs. 180 cr.
2004-2005 2,88,189 Rs. 857 cr.
2005-2006 7,81,685 Rs. 2,717 cr.
2006-2007 20,79,217 Rs. 4,302 cr.
2007-2008 37,44,742 Rs. 6,674 cr.
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New India Assurance Company Ltd
In 1919 The New India Assurance Company Ltd. was first incorporated in Bombay,now known as Mumbai in India, initially as composite company for both life and
general insurance business. As of 1956 New India Assurance converted to an
Exclusive General Insurance Company and today we are a leading worldwide
general insurance brand catering to the communities of 27 countries with a large
network of offices staffed by committed and enthusiastic workforce that aims to
please.
New India Assurance Aruba opened her doors to the local community on July 1st,1963 by initiative of the founder, the late Mr. C.H. Raghunath.
Currently New India Assurance Aruba is directed by the founders youngest
daughter, Ms. Joy Raghunath whom together with the entire Team New India
strives to maintain and improve on the proven reliability and sustainability which
has been carefully nurtured for almost half a century.
Our 45 years experience of abundant operations in Aruba now enables us to offer
you the most reliable Smart Insurance Products available in on the island for yourprivate, and commercial vehicles and properties.
We offer a humane personal approach toward each customer and situation and
our Smart TeamTM always strives to offer you the quickest response to help relief
the understandable stress that may arise in difficult moments of presenting an
insurance claim. We have conquered and maintain the reputation of solid
reliability by paying all legitimate claims within reasonable time; at New India
Assurance Aruba we practice the art of being smart and invite you to do thesame.
Present position
Gross Premium (in India) of Rs. 5017.20 crores in the year 2006-2007, as against
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Rs. 4791.49crores in the year2005-2006. Assets Rs. 27444.57crores as on 31st
March 2007. Network of Offices-26 Regional Offices, 393 Divisional Offices, 614
Branches and 34D
irect Agent Branches. Rank No. 1 in the Indian market.Largest
Non-Life insurer in Afro-Asia excluding Japan.
First Indian non-life company to cross Rs. 5000 crores Gross Premium. Global Re-
insurance facilities. Over-seas presence in countries like Japan, U.K, Middle East,
Fiji and Australia
International Presence
Overseas operations commenced in 1920. Operations in 24 countries in the year
2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies and 2
Subsidiary companies in the year 2004-05. Overseas Premium of Rs. 892.35 crores
in the year 2004-05, which accounts for more than 80% of total overseas
premium in India.
Strengths
Largest number of Offices - In India and Abroad Trained and technically qualifiedstaff 1068 fully computerized offices across India. "A-" (Excellent) rating by
A.M.Best & Co (Europe) First domestic company to be rated by an International
Rating Agency Rating based upon following factors: Superior capital position
Strong operating performance Strong market position Only company to develop
significant International operations, long record of successful trading outside
India.
Pioneers
First company to set up an Aviation Insurance Department in 1946.
First company to handle the Hull Insurance requirements of the Indian Shipping
Fleet.
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First company to establish its own Training School.
First company to introduce the concept of 'Model Office Training'.
First company to create department in Engineering insurance.
Pioneer in Satellite insurance.
Mission
y To develop general insurance business in the best interest of the community.y To provide financial security to individuals, trade, commerce and all other
segments of the society by offering insurance products and services of high
quality at affordable cost
Values
y Highest priority to customer needs.y High standards of public conduct.y Transparency in operations.
Commitment to the Citizens
yWe will respond to all commercially viable general insurance requirementsof the citizens, including products for weaker sections of the society at
affordable price within three months from the date on which such a
requirement is received.
yWe will ensure issuance of 100% of documents within a period of sevendays.
yWe will ensure that prospectuses of the various insurance products areprovided to the customers and the extent of coverage is explained for his
choosing the appropriate product. A written proposal will be obtained from
the insured wherever necessary and accordingly the policy will be
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prepared.
yWe will settle all claims within a time schedule envisaged hereunder:A. Personal line insurance claims within 30 days on completion of allrequirements.
B. Property claims within 30 days on completion of all requirements.
C. Liability claims within 30 days on completion of process of law.
yWe will promote customer education in general insuranceproducts/services by holding workshops in various centers.
yWe will open a customer service cell in all ROs/DOs in addition to theexisting 'May I Help You' counters.
yWe will set up proper grievance redressal mechanism in every operatingoffice and will educate the clients about the same including the system of
grievance redressal thorough ombudsman.
y On request to the policy issuing office, we will make available to acustomer, the status of his claim and/or claim settlement details within
seven working days.
yWe will adhere to the IRDA guidelines in protecting the policyholders'interest.
Products
Personal
yPravasi Bhartiya Bima Yojana PolicyyMediclaim PolicyyPersonal Accident PolicyyOverseas Mediclaim PolicyyHouseholders PolicyyMotor PolicyyMoney InsuranceyRoad Safety InsuranceySuhana Safar Policy
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yTV/VCR/VCP InsuranceyMobile/Cellular Phone Insurance
Commercial
yBankers Indemnity PolicyyShopkeepers PolicyyMarine Cargo PolicyyPlate Glass InsuranceySpecial Contigency PolicyyNeon Sign InsuranceyMulti Peril policy for L.P.G. DealersyFidelity Guarantee Insurance PolicyyMarine Hull PolicyyAviation Insurance
Industrial
yFire PolicyyMachinery Breakdown PolicyyBurglary PolicyyElectronics Equipment PolicyyConsequential Loss PolicyyContractors All Risk PolicyyStorage cum Erection PolicyyDelay in Startup PolicyyContractor Plant and Machinery PolicyyMega Package Policies
Liability
yProducts Liability Policy
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yProfessional Indemnity PolicyyDirectors and Officers Liability PolicyyLift (Third Party) InsuranceyEmployers' Liability PolicyyCarrier's Liability InsuranceyLiability Insurance Act PolicyyGolfers Indemnity Insurance
Social
yJan Arogya Bima PolicyyRaj Rajeshwari Mahila Kalyan YojanayBhagyashree Child Welfare PolicyyJanata Personal Accident InsuranceyStudent Safety InsuranceyAshrya Bima YojanayRural Insurance
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ICICI Lombard General Insurance Co. Ltd.
ICICI Lombard General InsuranceC
ompanyL
imited is a 74:26 joint venturebetween ICICI Bank Limited , India's second largest bank with $79 billion in assets
and Fairfax Financial Holdings Limited, a Canada based $26 billion diversified
financial services company engaged in general insurance, reinsurance, insurance
claims management and investment management.
ICICI Lombard is the largest private sector general insurance company in India
with a Gross Written Premium (GWP) of Rs. 3345 million for the year ended
March 31, 2008.
ICICI Lombard General Insurance has been conferred the 'Customer and Brand
Loyalty award in the 'Insurance Sector - Non-Life' at the 2nd Loyalty awards, 2009.
It was awarded the General Insurance Company of the Year at the 11th Asia
Insurance Industry Awards. The company also won the 'NDTV Profit Business
Leadership Award 2007' and was adjudged as the most Customer Responsive
Company in the Insurance category at the Economic Times Avaya GlobalConnect
Customer Responsiveness Award 2006. It has the Gold Shield for "Excellence in
Financial Reporting" by the ICAI (Institute ofChartered Accountants of India) for
the year ended March 31, 2006.
The company has been assigned a domestic rating of iAAA by ICRA (an associate
of Moodys Investors Service) for highest claim paying ability and a fundamentally
strong position.
The company presently has 5697 employees in 395 branches. In the financial year
ended March 31, 2009, the company issued over 4 million policies across India
and serviced over 33 lakh claims. The company has a claim disposal ratio of 97%
(percentage of claims settled against claims reported) as on March 31, 2008.
All the insurance plans provided by ICICI Lombard come with very attractive offers
for the customers. Customers can buy their insurance policies online, thus saving
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valuable time which can be used for other works. The insurance plans are
processed very fast and involves minimal paperwork. The business products have
insurance policies for businesses of all types and sizes to meet every requirementthat the business operator might come across. ICICI Lombard provides insurance
protection to rural customers by customizing it according to their requirements.
Other than agricultural protection, the company also provides protection in
health, motor, weather and other sectors as well.
All the insurance plans provided by ICICI Lombard come with very attractive offers
for the customers. Customers can buy their insurance policies online, thus saving
valuable time which can be used for other works.T
he insurance plans areprocessed very fast and involves minimal paperwork. The business products have
insurance policies for businesses of all types and sizes to meet every requirement
that the business operator might come across. ICICI Lombard provides insurance
protection to rural customers by customizing it according to their requirements.
Other than agricultural protection, the company also provides protection in
health, motor, weather and other sectors as well.
ICICI Lombard received various recognitions over the years in various sectors,
both in India and abroad. Some of them are mentioned below:
y ICICI Lombard was adjudged the most Customer Responsive Company inthe category of insurance at the Economic Times Avaya GlobalConnect
Customer Responsiveness Award 2006
y ICICI Lombard was awarded the Best Housing Insurance in the Smart LivingAwards by 360 degrees, a Times of India Group subsidiary, in Nov 2006
y ICICI Lombard was awarded the Gold Shield for Excellence in FinancialReporting by Institute ofChartered Accountants of India for the year ended
March 31, 2006
y ICICI Lombard was rated among the top three General InsuranceCompanies to be awarded the General Insurance Company of the Year at
the 10th Asia Insurance Industry Awards
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y ICICLombard was listed amongst the top three in the Insurance Website ofthe Year category at the 9th Asia Insurance Industry Awards in Singapore
during September, 2005
Channels
Channel is the term used for the various approaches a company uses to tap its
customers. ICICI Lombard uses a multi channel approach to sales, service and
other allied activities.
The channels used by ICICI Lombard can be broadly stated as under:
Retail
The Retail channel consists of sales executives, sales officers, brokers and agents.
Online
ICICI Lombard has developed a web-based system to meet all the pre and post-
policy transaction . One can get quotes, buy, renew and track their policies online
through the website.
Bancassurance
Bancassurance is the distribution of insurance products through a banks network.
IC
IC
IL
ombard has a tie-up with various banks. With a team of product managers,sales managers and sales executives, the company has been using this channel to
sell, cross-sell and upsell its products.
Buying Insurance Online
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ICICI Lombard was among the first companies to make their insurance products
available online in India. ICICI Lombard has web-based systems to meet all pre
and post-policy transactional needs of its customers. One can compare plans, getquotes, buy, renew and keep a track of their insurance policies online.
Telecalling
ICICI Lombard was the first general insurance company in India to start telesales
operations due to its inherent profitability. However in recent times, public
outburst against pushy and intrusive telecalling in general has led to a reduction
in cold calling and the introduction of 'do-not-call' (opt-out) lists similar to the US'Do Not Call Registry'. ICICI Lombard too has the Do Not Call option and respects
the privacy of their customers.
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank Limited and the Canada based $ 26 billion Fairfax Financial
Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial
Holdings is a diversified financial corporate engaged in general insurance,
reinsurance, insurance claims management and investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is
one ofCanada's oldest property and casualty insurers. ICICI Lombard General
Insurance Company received regulatory approvals to commence general
insurance business in August 2001.
Important features of ICICI LOMBARD
India 's number one private general insurance company
First general insurance company in India to be ISO 9001:2000 certified
Assigned the iAAA rating by ICRA indicating highest claims paying ability
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Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128-bit encryption in case of online data
exchange
First company to provide digitally signed documents through an online
interface
Achieved financial breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
Adjudged as the most Customer Responsive Company in the Insurance categry
at the Economic Times Avaya GlobalConnect Customer Responsiveness Award
2006
Awarded the Best Housing Insurance in the Smart Living Awards by 360
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute ofChartered Accountants of India) for the year ended March 31, 2006
Among the top three General Insurance Companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Awards
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Adjudged amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Singapore during September, 2005
ICICI Lombard - Parent's Health Insurance
ICICI Lombard - Parent's Health Insurance takes care of your family at a time
when they need you the most.
ICICI Lombard - Parent's Health Insurance
You work hard abroad and give the best to your family back home. And, though
they are far away, they are always in your thoughts. Their health and well being
is your major concern. That's why ICICI Lombard General Insurance has brought
you Parents' Health Insurance - a comprehensive insurance policy for your
loved ones.
Parents' Health Insurance takes care of your family at a time when they need
you the most.
ICICI Lombard - Parent's Health Insurance - Policy Coverage
Hospitalization expenses includingoRoom chargesoDiagnostic test(s) expensesoDoctor's / surgeon's feeoCost of medicines
Medical expenses incurred in the event of sudden illness or accident.
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Covers 30 days prior and 60 days post hospitalization expenses. Expenses on technologically advanced treatment which do not require
hospitalization.
Coverage limit for specific ailments / conditions:
Certain specific ailment(s) / surgery(s)/ procedure(s) are covered up to pre-
defined limits under this policy (subject to the total sum insured).
All others ailment(s) / surgery(s)/ procedure(s) are covered up to the sum
insured under the policy.
Key Benefits
Pre-existing illnesses can be covered after the 4th year provided the policyis renewed with us for four consecutive years.
Reimbursement of return airfare (Rs. 20,000 for Plan 2 and Rs. 10,000 forPlan 1) of the NRI (applicant) in case he is required to visit his dependent
(insured) who has been hospitalised due to specified medical emergencies
-Stroke, Heart Attack (MI), Coronary Artery Bypass, Graft Surgery, Kidney
Failure, End-stage Renal Failure, End-stage Liver Disease and Brain Tumour
Surgery.
Nursing care benefit of Rs. 500 per day for a maximum of 3 days, in casethe insured requires nursing care post discharge.
Cashless claims facility at over 3,500 network hospitals across more than135 cities.
Every insured is provided a free health check-up post issuance of policy.For anyone above 55 years of age, cashless benefit will be activated as
soon as the health check-up process is completed.
Income tax benefits u/s 80 D for your income in India. Parents' Health Policy offers a 2-year cover for your dependents against a
single premium, with automatic renewal after the first year.
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The policy can be renewed up to the age of 75 years.
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Reliance General Insurance Company
Reliance General InsuranceC
ompanyL
imited is one of the leading private generalinsurance companies of India, in the present times. It was amongst the first
companies to apply for, and obtain, a license for insurance business, after the
liberalization of the insurance sector, in 2000. The company continued to grow
with the passing time, widening the scope of its insurance policies. Today, it offers
over 94 customized insurance products, catering to needs of the corporate, SME
and individual customers. Reliance General Insurance also boasts of being the first
insurance company in India to be awarded the ISO 9001:2000 certification across
all functions, processes, products and locations pan-India. Reliance GeneralInsurance (RGI) is one of the fastest growing private sector general insurance
companies in India and offers a range of products for the corporate and individual
customers.
This has made RGI the first general insurance company in the industry to achieve
this milestone. The distribution network of Reliance General Insurance Co. Ltd.
extends 200 branch offices spread across 172 cities in 22 states in India.
Vision
To be an insurer of World Standards and the most preferred choice for clientele at
the domestic and global level.
Mission
Our Mission is to keep the customer satisfaction as focal point of all our
operations, adopt the best international practices in underwriting, claims andcustomer service, be the most innovative in product development, establish
presence all over India, ensure sustained value addition to all stake holders and to
uphold Corporate Value & Corporate Governance.
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Growth and innovation
Reliance General InsuranceC
ompanyL
td has grown over time, to set up as manyas 200 offices, which have spread across 173 cities, in 22 states of India. Such a
wide distribution channel network, along with 24x7 customer service assistance
and a full fledged website, has added to its success. At the same time, the
company continues to launch innovative products, like India's first Over-The-
Counter health & home insurance policies, to woo potential customers and keep
the presents ones satisfied and pleased.
Customer Focus
The brand philosophy of Reliance General Insurance Company is "Protecting what
you value". The company aims at helping individuals, corporates as well as SMEs
protect their dreams and accomplishments; that too through a hassle-free buying
process. With the concept of online buying, Reliance has made it possible for the
potential customers to book the policies from within the confines of their
home/office. At the same time, the insurance company intends to make the
claims settlement as prompt, transparent and speedy as possible.
Services
Reliance General Insurance Company offers a wide range of innovative products
to the potential customers. Right from health and home insurance to car/motor
and travel insurance, you can get almost all types of individual policies with
Reliance, that too at the best premium rates. Apart fro
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