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INDIAN INSURANCE INDUSTRY &

CAREER PROSPECTS

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LIFE INSURANCE BUSINESS INDIA1912: The Indian Life Assurance Companies Act enacted.1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.1938: Insurance Act amended earlier legislation for protecting the interests of the insuring public.1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised to form LIC by an Act of Parliament, viz. LIC Act,1956, with a capital contribution of Rs.5 crore from the Government of India.

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GENERAL INSURANCE BUSINESS IN INDIA

• 1850: Triton Insurance Company Ltd., the first company established in Calcutta by the British.

• 1907: The Indian Mercantile Insurance Ltd., the first Indian company set up to transact all classes of general insurance business.

• 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

• 1972: 107 general insurance companies nationalised through the General Insurance Business (Nationalisation) Act, 1972 with effect from 1st January 1973.

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INSURANCEINSURANCE SECTOR SECTOR REFORMSREFORMS

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• 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 of the economy keeping in mind the structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…”

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The Insurance Regulatory and Development Authority,IRDA

• Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999.

• The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the public & private sector insurance companies.

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WORLD INSURANCE MARKET OVERVIEW

LIFE

NON LIFE

US$ 4061BlnTOTAL

US$ 1668 BlnNON – LIFE

US$ 2393 BlnLIFE

Source:- Swiss Re – Sigma

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COUNTRIES MARKET SHARECOUNTRIES MARKET SHARE

• US, JAPAN, UK, GERMANY, FRANCE

• 5 LEADING INSURANCE MARKETS

65%

35% Industrialised

Non Industrialised

64%

36% Industrialised

Non Industrialised

LIFE

NON LIFE

Source:- Swiss Re – Sigma

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COUNTRIES INSURANCE BUSINESS SHARE IN WORLD MARKET

1.53%

2.28%

1.34%

2.88%

10.46%

6.62%

5.49%

11.42%2.47%

30.28%

U.S.A.

Canada

U.K.

Germany

France

Japan

S.Korea

India

Australia

China

Source:- Swiss Re – Sigma

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WORLD NON-LIFE INSURANCE PREMIUM MARKET SHARE

3.29%

7.22%

6.83%

4.91%

2.03% 5.65% 0.43%

39.05%

USA

Canada

Germany

U.K.

France

China

Japan

India

Source:- Swiss Re – Sigma

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INDIAN INSURANCE COMPANIESINDIAN INSURANCE COMPANIES LIFE INSURERS:1. LIFE INSURANCE CORPORATION2. HDFC STANDARD LIFE INSURANCE CO.3. MAX NEW YORK LIFE INSURANCE CO.4. ICICI PRUDENTIAL LIFE INSURANCE CO.5. KOTAK MAHINDRA OLD MUTUAL LIFE 6. BIRLA SUN LIFE INSURANCE CO.7. TATA AIG LIFE INSURANCE CO.8. SBI LIFE INSURANCE CO.9. ING VYSYA LIFE INSURANCE CO.10. BAJAJ ALLIANZ LIFE INSURANCE CO.11. METLIFE INDIA INSURANCE CO.12. RELIANCE LIFE INSRUANCE CO.

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13. AVIVA LIFE INSURANCE CO.14. SAHARA INDIA INSURANCE CO.15. SHRIRAM LIFE INSURANCE CO.16. BHARTI AXA LIFE INSURANCE COMPANY LTD.17. FUTURE GENERALI INDIA LIFE INSURANCE COMPANY LIMITED 18. IDBI FORTIS LIFE INSURANCE COMPANY LTD.,19. CANARA HSBC ORIENTAL BANK OF COMMERCE LIFE INSURANCE COMP. LTD. 20. AEGON RELIGARE LIFE INSURANCE COMPANY LIMITED. 21. DLF PRAMERICA LIFE INSURANCE COMPANY LIMITED 22. STAR UNION DAI - ICHI LIFE INSURANCE CO. LTD. 23. INDIAFIRST LIFE INSURANCE COMPANY LTD. 24. EDELWEISS TOKIO LIFE INSURANCE CO. LTD.

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GENERAL INSURERS:1. NEW INDIA ASSURANCE CO.2. NATIONAL INSURANCE CO.3. ORIENTAL INSURANCE CO.4. UNITED INDIA INSURANCE CO.5. ROYAL SUNDARAM ALLIANCE INS. CO.6. RELIANCE GENERAL INSURANCE CO.7. IFFCO TOKIO GENERAL INSURANCE CO.8. TATA AIG GENERAL INSURANCE CO.9. BAJAJ ALLIANZ GENERAL INS. CO.10. ICICI LOMBARD GENERAL INS. CO.11. CHOLAMANDALAM GENERAL INS.CO.12. EXPORT CREDIT GUARANTEE CORP.13. HDFC ERGO GENERAL INSURANCE CO.

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14. AGRICULTURAL INSURANCE COMPANY15. STAR HEALTH AND ALLIED INS.CO. LTD.16. APOLLO DKV INSURANCE CO. LTD.17. FUTURE GENERALI INDIA INS.CO.LTD. 18. UNIVERSAL SOMPO GENERAL INS.CO. LTD.19. SHRIRAM GENERAL INSURANCE CO. LTD.20. BHARTI AXA GENERAL INS.CO.LTD.21. RAHEJA QBE GENERAL INS.CO.LTD.22. SBI GENERAL INSURANCE CO. LTD.23. MAX BUPA HEALTH INSURANCE CO.LTD.24. L & T GENERAL INSURANCE CO. LTD.25. RELIGARE HEALTH INSURANCE CO. LTD.26. MAGMA HDI GENERAL INSURANCE CO. LTD.27. LIBERTY VIDEACON GENERAL INS. CO. LTD.

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The insurance sector in India has come a full circle from being an open competitive market to nationalisation and back to a liberalised market again.

Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

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THANK YOUTHANK YOU