about insurance sector in India and analysis of two insurance company

1. COLLEGE OF ARTS , SCIENCE & COMMERCE
2020 - 21
SYBAF
FINANCIAL MARKET OPERATION PROJECT
Topic : INSURANCE SECTOR
ROLL NO. NAMES
36 - A SOHAIL H. KHAN
37 - A KHYATI BHOSALE
42 - A SHRAVANI LAD
65 - A ANUDHYAAN PATNAIK
82 - B SEELAM BHARGAVISAI VENKATA REDDY
88 - B SHAMBHAVI PUROHIT
97 - B RUTUJA SHINGARE
113 -B VENNA LAVANYA SRINIVASULU REDDY
114 - B PREMA WADHWANI
Made By :
GROUP NO.1

2. WHAT IS
INSURANCE ?
• Insurance is a mechanism that individuals
use to limit their exposure to risk.
• Insurance is a contract, represented by a
policy, in which an individual or entity
receives financial protection or
reimbursement against losses from an
insurance company.
Exposure Loss Claim

3. PARTIES INVOLVED IN THE
CONTRACT OF INSURANCE
Contract of
Insurance
Insurer Insured

4. TYPES OF
INSURANCE
POLICIES
Life
Insurance
General
Insurance

8. WHAT IS
IRDAI ? The Insurance Regulatory
and Development Authority
of India is an autonomous,
statutory body tasked with
regulating and promoting the
insurance and re-insurance
industries in India.

9. WATCHDOG
SEBI RBI IRDAI

10. WHOSE IDEA?
• Malhotra Committee
• Headed by Mr. R.N.
Malhotra (Retired
Governor, RBI)
WHEN?
• IRDA came into existence
on 19th April, 2000
WHY?
• Entrance of Private Sector
Companies and Foreign
promoters
 An independent
regulatory authority for
Insurance Sector in India

11. PUBLIC AND PRIVATE
INSURANCE COMPANY

12. PUBLIC INSUARANCE
COMPANY
DIFFERENTIATING
POINTS
PRIVATE
INSURANCE
COMPANY
TOTAL
• Life insuarance companies: 1
• Non life insurance companies: 6
NO. OF COMPANIES TOTAL
• life insurance companies: 23
• Non life insurance companies:
27
• No such specific criteria involved
• Money for each item is directly deducted from
the policy
BILLING • customized billing for each item
included in the policy.
• Limited options and references are provided
• In many cases, alternative treatment is not
available
ALTERNATIVES • Depending on the amount of the
policy,it provides more options
while choosing the best medical
care
• Can be taken at anytime of the year
• No fixed parameters to be fulfilled.
ENROLLMENT • Fixed age to register for the
policy and the associated
benefit.
• May take a long time for your turn
• Has customers in millions
TIME • While filing a claim ,one can get
their work done within less time

13. Market share of life Insurance segment

14. Market share of Non life Insurance segment
20192004

15. Raising demand and significance of
Insurance during covid 19

16. Pre covid Post covid
INCREASED VALUE OF HEALTH AND
LIFE INSURANCE
Millennials increasing demand towards health insurance
Survey – August 2020

17. Increased Bookings of Health and Life Insurance
During Covid 19 (MARCH TO MAY)
1.12%
0.90%
4.41%
4.23%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
HEALTH LIFE
2019
2020

18. 5%
3%
50%
40%
0%
10%
20%
30%
40%
50%
60%
Insurance Plans with Rs.20 Lacs – Rs.1 Crore Insurance Plans with Rs.1 Crore
Increase in demand of health plans
with higher sum insured
Pre covid
(Dec to Feb)
Post covid
(March to Sept)

19. • Due to increased hospitalization
rates , the policies gained a lot
of public interest
• Time service and extended
validity
• Easy to avail services when
person tests positive

20. • Over one crore people have availed treatment
worth around Rs 13,412 crore for free in
hospitals across the country under
the Ayushman Bharat health insurance scheme
• Persistent efforts to expand testing and
treatment of COVID-19 for free to all 53 crore
beneficiaries of the Ayushman Bharat PM-JAY
• The way forward: Under the Ayushman Bharat
program, nearly 1.5 lakh primary health
centers will be transformed as health and
wellness centers by 2022.
GOVERNMENT
INITIATIVE

21. IMPACT OF COVID 19 ON
INSURANCE SECTOR

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Health insurance:
• Claim and liquidity
ratio
• Product
development
• Reserves
requirement
Life insurance:
• Term insurance
• Long-term savings
insurance
General insurance:
• Low claim
• Claim surveying

23. KEY CHALLENGES
Digitalization
Innovative
products
Cyber security
Stakeholder
Communication
Pricing and
competition

24. ICICI PRUDENTIAL LIFE
INSURANCE COMPANY LIMITED
Badalte India Ka Naya Protection

25. INTRODUCTION
• Private Life Insurance Company in India
• Began its operations in fiscal year 2001
• Established as a joint venture between ICIC
Bank and Prudential Corporation Holdings Ltd.
• Total Assets Under Management (AUM) as on
30th June 2020 were ₹ 1700.06 billion.
• Financial strength rating of AAA by Fitch
Rating.

27. INTRODUCTION
• Government-owned insurance Company
• Established on 1st September 1956
• Largest insurance provider in India
• Total assets of ₹31,96,214.81 crore
• Holds various subsidiaries
• Have international operations as well

28. ICICI
PERFORMANCE
ANALYSIS
Badalte India Ka Naya Protection

29. 121,989
137,935
173,801
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Oct to Dec (2019-20) Jan to Mar (2019-20) Apr to June (2020-21)
No. of Policies Sold

30. 813,100
1,047,512
555,107
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Oct to Dec (2019-20) Jan to Mar (2019-20) Apr to June (2020-21)
Net Income from premium (Rs in Lakhs)

32. LIC PERFORMANCE
ANALYSIS

33. 3,639,360
5,217,503
4,325,979
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Oct to Dec (2019-20) Jan to Mar (2019-20) Apr to June (2020-21)
No.of Policies Sold

34. 7,730
10,176
8,657
0
2,000
4,000
6,000
8,000
10,000
12,000
Oct to Dec (2019-20) Jan to Mar (2019-20) Apr to June (2020-21)
Net Income from premium (Rs in Lakhs)

36. New emerging policies during covid of ICICI
Prudential life insurance company and LIC

37. ICICI PRUDENTIAL LIFE INSURANCE
Does ICICI Pru iProtect Smart cover
death due to COVID-19?
• A common concern of many people in this
situation is if their life insurance policy covers
death due to COVID-19.
• Death caused due to health issues is covered
by life insurance policies, including term plans.
• This stands true for death due to COVID-19 as
well. ICICI Pru iProtect Smart covers death due
to COVID-19.
• If a person who has purchased this policy
passes away due to COVID-19, his/her
nominee will be paid the sum assured.

38. LIC’s decisions over covid 19
• The term insurance plans of the LIC.
India covers the covid 19 impact.
• The Death claims arising due to Corona
virus COVID 19 are treated on par with
other causes of death.
• Death claim is processed as per the
terms and conditions of the Policy.
• Hence subject to Policy conditions
COVID 19 death claims are admissible.

40. BEFORE AFTER
Gross premium collection In FY 12-13: Rs 2.56
Trillion
In FY 19-20: Rs.7.31
Trillion
Overall insurance
penetration (premiums as
per cent of GDP)
3.69 percent in 2017 3.7 percent in 2020
Market share of private
sector companies in the
non-life insurance market
15 per cent in FY04 56 per cent till April 2020
Growth of Market Share of Insurance sector

41. bibliography
• IRDAI website
• Economics times
• Live mint
• Hindustan times
• ICICI Prudential life website
• LIC website
• IIFL
• Times of India
• The free press journal