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ANALYSIS OF FINANCIAL
STATEMENTS(INSURANCE )
Suraj Prajapati 074
Sandeep Vishwakarma 118
Anand Yadav 119
Manmohan Yadav 120
Suraj Yadav 121
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ORIGIN OF INSURANCE SECTOR
Insurance was established in the late 17th century in
Europe.
In the United States of America, insurance sectororiginated in mid 18th century.
1818 saw the advent of life insurance business in
India with the establishment of the Oriental LifeInsurance Company in Calcutta.
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ORIGIN OF INSURANCE SECTOR
The general insurance sector was established in the 17th
century.
It came to India as a legacy of British occupation
Triton Insurance Company Ltd., in the year 1850 in Calcutta
by the Britishers.
In 1907, the Indian Mercantile Insurance Ltd. The first Indian
Company to deal in General Insurance.
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OVERVIEW OF INSURANCE
SECTOR
Decline in insurance density in 2011
Increase in life insurance sector in 2012
Moving to tier-2 and tier-3 cities
General insurance sector anticipated to grow at 18% in2012-2013
Indian life insurance sector slated to touch Rs.20 trillion
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OVERVIEW (CONTD)
General insurance sector is also slated to touch Rs.18
trillion from past Rs.8 trillion in 2008
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SECTOR SEGMENTATION
Insurance
LifeInsuranc
e
GeneralInsurance
Reinsurance
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PLAYER AND MARKET SHARE
OF LIFE INSURANCE (RS IN CRORE)
Company Premium(Nov-2012) Premium(Nov-2013)
Player
Bajaj Alliance 228.44 1580.70
Reliance Life 110.30 780.09
SBI Life 421.35 2741.65
HDFC Standard 282.26 2170.73
ICICI Prudential 321.12 2686.22
Birla Sunlife 122.22 991.17
Max Life 133.47 1057.09Private Total 2308.39 16052.65
LIC 4501.71 44571.55
Grand Total 6810.11 60624.20
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MARKET SHARE FOR LIFE INSURANCE
ON PREMIUM BASIS:-
Premium
Bajaj Alliance
Reliance Life
SBI LifeHDFC Standard
ICICI Prudential
Birla Sunlife
Max Life
LIC
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PLAYER AND MARKET SHARE OF
NON LIFE INSURANCE(RS IN CRORE)
Company Premium(Nov-2012) Premium(Nov-2013)
Player
Royal Sundaram 130.41 1012.91
Tata-AIG 150.68 1353.92
IFFCO- Tokio 180.78 1664.50
ICICI- Lombard 546.81 3967.67
Bajaj Alliance 294.75 2505.62
New India 680.33 6507.05
National 686.53 5720.92Oriental 477.98 4266.06
Private Total 2338.28 18829.02
Public Total 2819.93 25622.30
Grand Total 5158.21 44451.32
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PLAYER AND MARKET SHARE OF
NON LIFE INSURANCE (CONTD.)
Premium RoyalSundaramTata-AIG
IFFCO- Tokio
ICICI-LombardBajaj Alliance
New India
National
Oriental
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GROWTH AND SIGNIFICANCE
General Insurance Companies increased by 24.7%
Life insurance Companies increased by 24%
Insurance Service contribute 7% to GDP
Insurance sector growing at a speed of 15-20% every year
Currently, 22 out of 24 life insurance players and 18 outof 27 non-life insurers have foreign partners.
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GOVERNMENT INITIATIVES
The Government of India has re-affirmed its efforts topush economic growth by increasing the FDI limit from26 per cent to 49 per cent in insurance.
The six companies that have received IRDA approvalfor setting up insurance repositories are NSDL, CDSL,Karvy, CAMS and STCI
IRDA has also been making efforts to boost
insurance companies to invest in infrastructurefunds.
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INDIAN INSURANCE INDUSTRY -
CHALLENGES
New Comer poses threat - With more companies
coming up everyday with the growing demand of the
industry the markets very competitive.
Supplier Power: The people providing the capital
don't act as big terror as opportunity always lies in the
big hands
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INDIAN INSURANCE INDUSTRY
CHALLENGES (CONTD.)
Buyer Power: Individual never stands a chance in
front of big corporate sectors as they dominate the
insurance industries with high potential of negotiation
power
Presence of substitutes: The insurance industry is
full of replacement option and the large insurance
companies offers the same service as of others be it in
any sector of home, commercial, auto, health or life.
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SWOT ANALYSIS
Strength Huge untapped population of India.
Product development & Innovation by insurance companies.
Large middle class households and trust on banks.
Cheaper mode of distribution channel.WeaknessLow consumer awareness
Inflexibility of products.
Heavy premiums. Considered as an Investment not protection tool
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SWOT ANALYSIS (CONTD.)
Opportunity More than 70% population is uninsured.
People faith on banks which help in selling of insurance products.
Rising demand for new insurance products like ULIPS, Pension andHealth plans.
Introduction of new technology and speedy customer services.
Help in expansion of banking sector with additional revenue frominsurance business(Bancassurance).
ThreatsDifficult to sell insurance products.
Not suitable for complex products.
Increased work pressure on bank employees.
Availability of multiple Investment options
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CONCLUSION
A World Bank study named 'Government-Sponsored
Health Insurance in India ' has stated that India would
have more than 630 million people covered under
health insurance by 2015.
Foreign players would bring in the much needed
technical aspects of insurance business
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CONCLUSION (CONT.)
"All factors are in place for the Indian life insurance
industry to blossom into one of the fastest-growing
financial services markets in the world," the report says
Rising incomes driven by economic growth are
boosting demand, and increasingly sophisticated
consumers with different needs are driving some
differential plays."
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THANK YOU