Trends in insurance sector

TYBBI TRENDS IN INSURANCE SECTOR
1
INTRODUCTION
Insurance may be defined as: -
It is a contract between two parties where by one party undertakes to
compensate the party for the loss arising due to an uncertain events for
which the another party agrees to pay a certain amount regularly.´
In India, insurance has a deep-rooted history. Insurance in India has evolved
over time heavily drawing from other countries, England in particular. The
insurance sector in Indiahas come a full circle from being an open
competitive market to nationalization and back to aliberalized market again.
The business of life insurance in India in its existing form started inIndia in
the year 1818 with the establishment of the Oriental Life Insurance
Company inCalcutta.
The Insurance Act, 1938 was the first legislation governing all forms of
insurance to provide strict state control over insurance business.Today there
are 14 general insurancecompanies and 14 life insurance companies
operating in the country. But today also theinsurance companies are trying
to capture Indian markets as not many people are aware of it.
The insurance sector is a colossal one and is growing at a speedy rate of 15
20%.Together with banking services, insurance services add about 7% to
the country GDP. A well-developed and evolved insurance sector is a boon
for economic development as it provides long-term funds for infrastructure

2
development at the same time strengthening the risk taking abilityof the
country.
India is about 200 million middle class household shows a huge untapped
potential for players inthe insurance industry. Saturation of markets in many
developed economies has made the Indianmarket even more attractive for
global insurance majors. The insurance sector in India has come to a
position of very high potential and competitiveness in market.The main
objective of the researcher through this study is to understand the market
scenario bystudying different companies and their strategies, their
objectives and management
What is Insurance:
System whereby individual and companies concerned about potential
hazards pay premiumto an insurance company.Which reimburses (in whole
or part) them in the event of loss. Theinsurer profits by investing the
premiums it receives. Some common forms of insurancecover business risk,
automobiles, homes, boats workers compensation and health lifeinsurance
guarantees payment to the beneficiaries when the insurance person dies. In
a boardeconomic sense, insurance transfer risk from individual to a larger
group which is better ableto pay for losses.
The Importance of Insurance:
When you hear the word insurance, the words boring and mundane
probably enter your mind. It is realized that insurance is not a fun topic to
discuss or think about, yet it is important and servesto protect your financial
future. It is comforting to think that nothing will ever happen to you andthat
you are invincible. But odds are that you are likely to get into a car accident
or have some type of health problem at some point in your life, and when
that happens, you will want to have insurance. So when you question
whether you need insurance, the answer is a resounding yes, you definitely

3
need insurance.It may seem like insurance is a waste of resources- spending
money on something that may or may not happen. Since you cannot predict
the future, it is important to protect yourself and your possessions against
damage and harm. Insurance is all about protection- it protects you against
an unfortunate incident such as a car accident, a robbery, or an illness. The
moment an unexpected ill-fated event happens, you will be so glad you
have insurance. Medical bills from a minor accident can deplete your
savings and force you into bankruptcy. Insurance is not a rip off, but rather
an essential financial service.
DEFINITION
General definition:
In the words of John Magee, ―Insurance is a plan by which large number of
people associate themselves and transfer to the shoulders of all, risks that
attach to individuals.‖
Fundamental definition:
In the words of D.S. Hansel, ―Insurance may be defined as a social
device providing financial compensation for the effects of misfortune, the
payment being made from the accumulated contributions of all parties
participating in the scheme.‖
Contractual definition:

4
In the words of justice Tindal, ― Insurance is a contract in which a sum of
money is paid to the assured as consideration of insurer’s incurring the risk
of paying a large sum upon a given contingency.‖
INSURANCE SECTOR IN INDIA
Insurance sector in INDIA is booming up but not to level comparative with
the developed economies such as Japan, Singapore etc. Also with the
opening of the insurance sector to the private players have provided stiff
competition resulting into quality products. Also there is a need to
restructure the Indian Government owned ― Life insurance Corporation of
India ― so as to maximizerevenue and in turn profits. IRDA regulations and
norms for the allocation of fundsneed to have a comprehensive look. In the
phase of declining interest rates and rising inflation the funds need to be
applied in productive areas so as to generatehigh returns. Also in terms of
clients servicing areas such as premium payments,after sales service, policy
dispatch, redressal of grievances has to be amended. Inthe current scenario,
LIC has to provide flexible products suited to the customer’srequirements.
Also a proper and systematic risk management strategy needs to beadopted.
After the increase in terrorism and destructive events around the
globalworld such as September 11 attack on World Trade Centre, US –
Taliban war, US – Iraq war etc.. An alternative to reinsurance such as asset
backed securities isemerging out in the developed economies. Catastrophe
bonds are one of thealternatives for reinsurance. Finally some policies such
as pure term and pensionschemes needs to be addressed massively at both
the urban and the rural segments as to generate high premium income which
will help in the development andgrowth of the economy.

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HISTORICAL BACKGROUND
Oriental insurance co. Was the first British insurance company to start its
business in 1818.
Bombay mutual life assurance society was the first insurance company in
India (1870).
Life insurance business was nationalised in 1956.
General insurance was nationalised in 1971.

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The insurance sector is divided in two parts life and general or non-life.
Insurance
Life Non-life/General
Life insurance deals with only human lives and non-life deals
with other than human life. Insurance is divided into two
segments i.e. Life and non-life/general and each segment have
developed independently therefore it is being discussed
separately in the following paragraphs.
In 2000, Indian insurance sector has taken U turn i.e.
Privatization (private insurance companies to nationalization
(Government Companies) to Privatization/mixed economy
(Private/Government companies). Before we discuss how it
has happened we would like to enlighten you the past history
of insurance in India in brief.
LIFE INSURANCE
In 1870 two British life insurance companies entered in India
and attempted to do life insurance business on Indian lives.
After that many Indian & foreign companies started business
in India and by the year 1955 there were 255 insurance
companies operating in India and transacting the business to
the extent of Rs 200 crores. Due to the following reasons the
Government decided to nationalize the life insurance industry
w.e.f 1/7/1956.
1. No full guarantee to the Policyholders (who are insured).
2. The concept of trusteeship (confidence) was lacking.
3. Many insurance companies went into liquidation
(bankrupt).
4. There was malpractice in the business.
5. Non-Spreading of life insurance.
6. No insurance in rural areas.
7. No group insurance
8. No social security

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To overcome the abovementioned problems the life insurance
business was nationalized and formed Life Insurance
Corporation with following features:
1. The Central Govt. guaranteed the Policyholders through
the LIC.
2. Being a Corporation formed under Special Act Passed by
the Parliament therefore the public can trust.
3. The LIC cannot be liquidated without the order of the
Central Govt.
4. Under the LIC Act, all day-to-day functions of the
Corporation and the method of Investment in Govt.
Securities were defined. Therefore, the malpractices were
eliminated.
1.3 GENERAL INSURANCE
Prior to nationalization of the General Insurance Business in
1972 by enactment of the General Insurance Business
Nationalization Act 1972 (GIBNA 1972) there were 55 Indian
Companies and 52 non-Indian Companies carrying of the
business of General Insurance in India.
―The primary objective of nationalization of general Insurance
was to make it meaningful to the common man, to carry its
message to the remotest corner of the country and to give it
its rightful place in the economy of the country. When it was
in the private sector it was a mere handmaid to trade and
industry and served to cater to the interests of a limited
clientele. Worse still it functioned in a manner favoring the
interests of a few at the expense of, needless to say, the
majority. There were allegations of malpractices on a big scale.‖
―It was the objective of nationalization to remove these
malpractices and usher in an era of Insurance run on sound
business principles and functioning on healthy and egalitarian
lines. The emphasis should be on spreading the message of

8
Insurance as widely as possible and on ensuring that it gives
the right weightage to the weaker sections of the society. The
principle of competition must have its useful role to play, but
not at the expense of unhealthy rivalry.‖
―General Insurance is a service and proper and efficient service
is due to the policyholder as a matter of right. The Corporation
exists for the benefit of the policyholder.‖
―Business must cease to work under purely mercenary motives.
Whenever, one feels the need for protection against an
unpredictable contingency, a suitable Insurance cover should
be available. No excuse should be given that a particular cover
is not conventionally given or that other markets of the world
do not give it.‖ ―Healthy employer-employees relationship is
of vital importance to achieve the main objectives of
nationalization.‖
Recent trends in insurance sector

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CHANGING TRENDS IN LIFE INSURANCE POLICY:
Along with the other objectives of insurance like financial security, tax
benefits etc. one of the major objectives is saving and investment.
Traditional life insurance policies like endowment were becoming
unattractive and not meeting the aspirations of the policyholders as the
policyholder found that the sum assured guaranteed on maturity had really
depreciated in real value because of the depreciation in the value of money.
The investor was no longer content with the so called security of capital
provided under a policy of life insurance and started showing a preference
for higher rate of return on his investments as also for capital appreciation.
It was, therefore found necessary for the insurance companies to think of a
method whereby the expectation of the policyholders could be satisfied.
The objective of providing a hedge against the inflation through a contract
of insurance pushed insurer to link the insurance policy with market and
thus the industry observed the beginning of Unit linked insurance policy
(ULIP).
Current trends of the general insurance market
The recent development in the general insurance sector is the activities by the insurance regulator. The IRDA has been very
stringent and has been keeping a close-watch on the functioning of all the insurance companies. The latest regulation from
IRDA is on health insurance portability. In the future, general insurance industry will be very much in the limelight than any
other industry facing recession now.
Online selling of insurance policies to discerning customers, who access the Internet will gain momentum. Typically motor,
travel and health policies will be sold more online. Many insurers have already realised this and are creating separate verticals
to exploit this segment. The interplay of technology & telecom solutions will be a major factor determining the growth of the
industry in the future.
Till recently, micro-insurance on the lines of micro-finance, is thought to be a magic word and insurers
planned to bring retail products to suit this segment.
One major problem affecting the industry, like in all developing economies is the shortage of trained insurance professionals
and technicians at all levels. So companies that are able to recruit and grow talent that continue to provide innovative
insurance solutions for the underserved Indian market will be the ones that will rise and shine in the general insurance
industry. The market is large and set for rapid growth but the ones that take the required calculated risks, have the right

10
technical expertise, do not blindly go after market share and are customer-centric in their approach to the market will be the
ones to benefit from this growth and become one of the biggest and best run insurance companies in the world.
OBJECTIVE OF TRENDS
Government of India initiated certion changes through its new economic
policy in 1991. This policy attempted some of the following objectives of
trends
Reform in industrial policy and indusrial licencing.
Developing and partial convertibility of rupee.
Reform in trade policy.
Reduction of fiscal policy.
Simplification of bureaucratic control and procedures.
Simplification of foreign investment norms.
Reduction of inflationary pressures.
Reducing control of investment norms.

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Change in enactment like FERA ( FOREIGN EXCHANGE
REGULATORY AUTHORITY) and MRTP ( MONOPOLIES AND
RESTRICTIVE TRADE PRACTICE )
Opening up of insurance to the private sector will substially help in
enhancing saving mobilization offering anew range of insurance products,
covering a large population and increasing the average per capita insurance
premium.
POLICIES OF TRENDS
These policies are in 5 parts:
A)The general policies of developing nongovernmental sectors and
preventing the government section to become larger.
B )The general policies of cooperative sections.
C)The general policies of developing nongovernmental sectors via
assigning activities of the government sector and their donation.
D).The general policies of privatization.
E).The general policies and government practices to avoid monopoly.

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Policies And Measures To Develop Insurance Market
The Authority has taken a pro-active role in the establishment
of a vibrant Insurance market in the country by taking the
following steps:
i) The market regulation by prudential norms,
ii) The registration of players who have the necessary
financial strength to withstand the demands of a growing
and nascent market,
iii) The necessity to have ―fit and proper‖ person in-charge of
businesses,
4 The implementation of a solvency regime that ensures
continuous financial stability, and above all,
v) The presence of an adequate number of insurance
companies to provide competition and choice to customers
all these steps lead to the establishment of a regime
committed to an overall development of the market in
normal times.
vi) Prescribed rural and social sector norms in respect of
Insurance business being underwritten by the companies.
vii) The companies have also been asked to devise insurance
policy to specific sector in the economically weak
population.
Research and Development Activities Undertaken by
the Insurance companies
The insurers have been conducting market research either
in-house or through professional agencies
i) to introduce tailor-made products targeted at specific
segments of the population so that Insurance can become
more meaningful and affordable.
ii) Risk assessment studies are being carried out for
measuring accumulation of risk of a particular place at
any one point of time.
iii) Consumer awareness campaigns are being encouraged
to improve insurance literacy levels by conducting

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workshops, distributing literature etc.
Protection of Interests of Policyholders
To protect the interests of holders of Insurance policies and to
regulate, promote and ensure orderly growth of the Insurance
industry the Authority has taken the following steps:
i) a leading consumer activist has been inducted into the
Insurance Advisory Committee.
ii) In addition to this member, this committee has drawn
representation form the industry, Insurance agents,
women’s organizations and other interest groups.
iii) While the Government has taken steps to strengthen the
Boards of the State-run companies by inducting
representatives from consumer organization and
policyholder,
iv) the Authority, on it part, was careful to ensure that all
the new private companies registered have a director
representing consumer interests on their Boards.
v) In addition to this measure all insurers have been advised
to streamline their grievance redressal machinery and
set benchmarks for efficient and effective service.
vi) All insurance companies are adhering to the Insurance
Ombudsman scheme formulated by the Government and
complaints against insurance companies are being referred
to them by the aggrieved policyholders from time to time.
vii) The Authority is conscious of the fact that the fine print
should not take away what the bold print promises and
in this regard has come out with the Insurance
Advertisement and Disclosure Regulations which ensure
that the Insurance companies adhere to fair trade practices
and transparent disclosure norms while addressing the
policyholders or the prospects.
viii) All Insurance intermediaries, before obtaining a licence,
or at the time of renewal of licence, are required to
undergo compulsory training to ensure that they can
service the policyholders better by being well trained and
informed.

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ix) Guidelines have been issued to insurers to file their
existing and new products with the Authority. In case of
new products insurers are required to submit details of
�premium rating,
�policy conditions,
�proposal form,
�claim form,
�underwriting manual and
�the system in vogue to review the rates, terms and
conditions in future.
�In addition to this, they are required to furnish
certificates from advocates and actuaries that the
statements made are true and accurate and are not
in violation of any law and
�that the policy wordings are simple and easily
understandable to a policyholder.
A FEW ALTERNATIVE DISTRIBUTION CHANNELS
HAVE EVOLVED IN THE RECENT YEARS SUCH AS:
online and internet
The internet penetration in India has been on the
rise, whereby increased number of
people have access to internet both
through computers as well as through
mobile phones, including population in
tier-2 and tier-3 cities.
Direct marketing and telemarketing
With increasing telecom penetration in
India, the use of direct marketing via
database marketing is growing. Direct
access to the customer and savings in

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intermediary cost make it an attractive
option for the companies and is the key
in development of the channel
Customer Service
One of the innovations that some of the insurers have
introduced is opening up of ―call centers‖ which are functioning
on a 24x7 basis. These centers act not only as enquiry offices
for new business to be developed but also function as points
of reference and records for claims, which have arisen. It is
note worthy to find that some of the new insurers have found
it possible to settle claims within 24 to 48 hours.
STRATEGIES FOR BETTERMENT AFTER trends in insurance
sector
Maximising customer satisfaction.
Introducing new technologies.
Improving promotional mix.
Updating research and development.
Strategic approach to fund management.
Diversification.
Minimum government interference.

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OPPORTUNITIES
Mass Marketing:
India is a highly populated country and would continue to be so in the near
future.New players may tend to favour the "creamy" layer of the urban
population. But, indoing so, they may well miss a large chunk of the
insurable population. A strongcase in point is the current business
composition of the dominant market leader -the Life Insurance Corporation
of India. The lion's share of its new business comesfrom the rural and semi-
rural markets. In a country of 1 billion people, massmarketing is always a
profitable and cost-effective option for gaining market share.The rural
sector is a perfect case for mass marketing.
Job Opportunities:
Job opportunities are likely to increase manifold. The liberalization of
theinsurance sector promises several new job opportunities for those who
areequipped with degrees in finance. Finance professionals who had
witnessed aslump in the job market would be much relieved.There will be
demand for marketing specialists, finance experts and humanresource
professionals.
Reinsurance:
Huge capacity is likely to be created in the area of reinsurance. Apart from
purereinsurance activities, which involve providing insurance protection,
there will bea revolution in service-related fields like training, seminars,
workshops, know-howtransfer regarding risk assessment and rating, risk
inspections, risk managementand devising new policy covers, etc.

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Marketing Strategies:
Also, with more players in the market, there will be significant increase
inadvertising, brand building, and this will benefit whole lot of ancillary
industries.A substantial shift is likely to take place in the distribution of
insurance in India.Many of these changes will echo international trends.
Worldwide, insuranceproducts move along a continuum from pure service
products to pure commodityproducts. Initially, insurance is seen as a
complex product with a high advice andservice component. Buyers prefer a
face-to-face interaction and place a highpremium on brand names and
reliability.
Bancassurance:
In other markets, notably Europe, this has resulted in bank assurance:
banksentering the insurance business. The Netherlands led with financial
services firmsproviding an entire range of products including bank
accounts, motor, home andlife insurance, and pensions. Other European
markets have followed suit. InFrance, over half of all life insurance sales
are made through banks. In the UK,almost 95% of banks and building
societies are distributing insurance productstoday.In India too, banks hope
to maximize expensive existing networks by selling a range of products.
Information Technology
Worldwide interest in E-commerce and India's predominant position
inInformation Technology and software development are also likely to be
majorfactors in the marketing of insurance products in the immediate
future. The numberof Internet account is increasing and the trend has
already been set by some of theleading insurers and insurance brokers
worldwide.

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CHALLENGES
1)Technology:
In today's highly competitive financial services environment,
effectiveorganizations will employ technology in a strategic way so to
achieve acompetitive edge. Technology will play an increasing role in
aiding design andadministering of products, as well in efforts to build life-
long customerrelationships. At the same time, investment in technology will
only help as long asfirms find the right people: people with the right
attitude, values, and ethics,commitment to excellence, and focus on
customer service.
Competition:
Thus, apart from the normal issues facing any new company, many new
Indianprivate insurance players will need to cope with the challenges of
working with ajoint venture partner. They will be competing with large and
well-entrenchedgovernment-owned players. They have to overcome
regulatory hurdles, change theattitude of new recruits and satisfy some very
high customer expectations. Also,the players will have to consider the
Indian market as a long-term investment, andmaintain clear-cut objectives
and constant monitoring at all levels.

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List of Private Insurance Companies in India
Following is a list of leading private non life insurers in India and their
gross premium statistics for June 2012, and June 2011:
Company Figure for
June 2012 in
INR crores
Figure for
June 2011 in
INR crores
Royal Sundaram 64.78 77.46
Tata AIG 47.14 36.50
Reliance General
Insurance
80.45 79.03
IFFCO Tokio 36.55 58.23
ICICI Lombard 348.98 423.54
Bajaj Allianz 136.20 109.84
HDFC Ergo 143.86 123.40
Cholamandalam 87.21 51.71
Future Generali 32.29 37.30
Universal Sompo 17.57 12.22
Bharti AXA 66.30 39.33
SBI 1.99 1.45
L&T 3.94 0.10

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Star Health &
Allied Insurance
176.90 406.13
Apollo Munich 97.31 67.73
Max Bupa 36.39 14.13
ALLIANZ BAJAJ LIFE INSURANCE
COMPANY LTD
Bajaj Allianz Life Insurance
Co. Ltd. is a joint venture
between Allianz SE, one of the
world's largest insurance
companies, and Bajaj Finserv.
Allianz SE is a leading
insurance corporation globally
and one of the largest asset managers in the world, that manage assets worth
over a Trillion. With over 115 years of financial experience, Allianz SE is
present in over 70 countriesaround the world. Bajaj Allianz is into both life
insurance and general insurance. Today, Bajaj Allianz is one of India's
leading and fastest growing insurance companies. Currently, it has presence
in more than 550 locations with over 60,000 Insurance Consultants. In June
2008, Bajaj Allianz entered into partnership with Thomas Cook India to
provide travel finance. Bajaj Allianz Life Insurance ensures excellent
insurance and investment solutions by offering customized products,
supported by the best technology.
Contact Address
Bajaj Allianz Life Insurance Co. Ltd.
GE Plaza, Airport Road
Yerawada, Pune - 411006
Website: www.bajajallianzlife.co.in

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ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.
ICICI Prudential Life Insurance Company is a
joint venture between ICICI Bank, which is one of India's foremost
financial services companies, and Prudential plc, which is a leading
international financial services group headquartered in the United Kingdom.
ICICI Prudential began the operations in December 2000. Today, this
company has over 2100 branches, which include 1,116 micro-offices, over
290,000 advisors and 18 banc assurance partners. ICICI Prudential Life
Insurance Company is the first life insurer in India that received a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI
Prudential has been voted as India's Most Trusted Private Life Insurer for
three consecutive years. ICICI Prudential Life Insurance Company has
various insurance plans that have been designed for different individuals, as
every individual has different insurance needs.
Contact Address
ICICI Pru Life Towers
1089 Appasaheb Marathe Marg
Prabhadevi, Mumbai - 400025
Website: www.iciciprulife.com
CONCLUSION
Privatization is a widely applied economic policy. It has, incontestably,
produced substantial economic benefits by raising profitability and
efficiency in firms, by providing financial resources to strapped

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governments, and by signaling to creditors, investors and donors the
seriousness and credibility of a government’s shift in economic regime. In
developing countries, privatization has most successfully been applied in
commercial, industrial, manufacturing and service firms operating in
competitive markets. This form of privatization has generally proven its
worth: Consumers appreciate improvements in terms of quality and quantity
of good or services produced—even when prices increase, which is far from
the general case. In most countries, complaints about this sort of
privatization have been relatively muted and short-lived. Citizenries may
not like the job losses or the foreign ownership of breweries, banks, mines
and hotels, but the matter rarely reaches the level of street demonstrations.
The more important issue, economically and politically, is that of
infrastructure privatization.
SUGGESTIONS
After conducting the suitable survey we came to know so many relevant
suggestions given by people and our valuable experience at time of survey
which can be describe as follows:
Private Insurance Company should improve the Service.

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Insurance companies should make the procedure of the claim simple and
understandable.
Insurance company should make more promotion of insurance in rural
area.
Real time gross settlement can play a very important role.
The need of the customer should properly be understood so that customer
feelssatisfied. The relationship value should be maintained.
ESSENTIAL TO MEET THE CHALLENGES
Indian insurance industry needs the following to meet the global challenges:
1 Understanding the customer better will enable insurance companies to
design appropriate products determine price correctly and increase
profitability.
2 Selection of right type of distribution channels among with prudent &
efficient management.
3 An effective CRM system, which would create a sustainable and long
lasting relationship.

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4 Should increase the customer base in se mi urban and rural areas, which
offer huge potential.
LifeInsuranceinIndia,KeyTrendsandOpportunitiesto2015
India’s insurance sector is expected to grow even faster than the country’s overall
economic growth, opening up new business avenues across the industry. With a
large number of insurance providers already operating in the country, the Indian
insurance industry has shown early signs of entering a consolidation phase, and an
improved distribution infrastructure, the adoption of new channels and
differentiated product offerings will continue to change the competitive landscape
significantly.
India’s low life insurance penetration rate and the rising awareness of the need for
insurance will be key growth factors in the Indian insurance industry. Favorable
foreign investment policies and increased capital-raising options will also create an
environment for collaborations and joint ventures. India’s reinsurance market is
also expected to continue growing, driven mainly by growth in non-life and
accident and health insurance.
The report provides top-level market analysis, information and insights of the
Indian life insurance industry, including:
- The Indian life insurance industry’s growth prospects by product category and
customer segment
- The various distribution channels in the Indian life insurance industry
- The competitive landscape in the life insurance industry
- A description of the life reinsurance market in India
This report provides a comprehensive analysis of the life insurance market in
India:

25
- It provides historical values for India’s life insurance industry for the report’s
2006–2010 review period and forecast figures for the 2011–2015 forecast period
- It offers a detailed analysis of the key sub-segments in India’s life insurance
industry, along with market forecasts until 2015
- It covers an exhaustive list of parameters, including written premium, incurred
loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total
assets, total investment income and retentions
- It analyses the various distribution channels for life insurance products in India
- Using Porter’s industry-standard ―Five Forces‖ analysis, it details the competitive
landscape in India for the life insurance business
- It provides a detailed analysis of the reinsurance market in India and its growth
prospects
- It profiles the top life insurance companies in India, and outlines the key
regulations affecting them
Reasons to Buy:
- Make strategic business decisions using top-level historic and forecast market
data related to the Indian life insurance industry and each sector within it
- Understand the demand-side dynamics, key market trends and growth
opportunities within the Indian life insurance industry
- Assess the competitive dynamics in the life insurance industry, along with the
reinsurance segment
- Identify the growth opportunities and industry dynamics within seven key
product categories
- Gain insights into key regulations governing the Indian insurance industry and its
impact on companies and the industry's future
Key Highlights
- The significant growth in the Indian life insurance market in the review period
can be attributed to key growth drivers such as population growth, robust economic
growth, lucrative tax benefits, the rising disposable income of India’s middle-class
population, and increased awareness of the need for insurance, especially among

26
younger people
- India is the world’s twelfth-largest life insurance market, and the fourth-largest in
the Asia-Pacific region
- By 2015, it is expected to surpass South Korea to emerge as the third-largest life
insurance Asia-Pacific market after China and Japan
- In 2010, the individual life insurance segment accounted for 74.8% of the total
Indian life insurance industry, whereas the group life insurance market had a
considerably lower market share of 25.2%
- Indian customers are increasingly demanding insurance products that offer
assured income through annuities
- Distribution channels such as bancassurance have gained significant market share
in the review period

27

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