1. LIFE INSURANCE -INDUSTRY
Submitted By:
Avinash Masih
Priyanka Dahiya
Submitted To: Ravikant Pandey
Mr. Ashish Barthwal Varsha Patidar

2. HISTORY PERSPECTIVE
 Entry of Life Insurance in India in 1818- ORIENTAL Life Insurance was
the first Life Insurance Company to starts its operation in Calcutta.
 1823-1900 several foreign companies were established.
 Six National Companies appeared in 20th Century.
 Insurance Act, 1938 is the first comprehensive legislation for detailed
and effective control over the activities of insurers.
 On the 19th January 1956 the management of insurers and provident
societies totalling 245, was taken over by the Central Government and
then nationalised on 1.9.1956
 LIC was formed in September 1956 by an Act of Parliament viz. LIC Act,
1956 with capital contribution of Rs. 5 crore from the Government of
India.
IMS DAVV - MBA (FT) 2011-2013 Page 2

3. BIRTH OF INSURANCE REGULATORY DEVELOPMENT
AUTHORITY (IRDA)
In 1993 the Government of Republic of India appointed RN
Malhotra Committee to lay down a road map for privatisation of the
life insurance sector.
While the committee submitted its report in 1994, it took another six
years before the enabling legislation was passed in the year 2000,
legislation amending the Insurance Act of 1938 and legislating the
Insurance Regulatory and Development Authority Act of 2000. The
same year that the newly appointed insurance regulator - Insurance
Regulatory and Development Authority IRDA --started issuing
licenses to private life insurers.
IMS DAVV - MBA (FT) 2011-2013 Page 3

4. LIST OF LIFE INSURER
Life Insurer in Public Sector Life Insurer In Private Sector
 SBI Life Insurance Co. Ltd.
 Life Insurance Corporation Of India
 Metlife India Life Insurance Co. Ltd.
(LIC)  ICICI Prudential Life Insurance Co. Ltd.
 Bajaj Allianz Life Insurance Co. Ltd.
 Max New York Life Insurance Co. Ltd.
 Sahara Life Insurance Co. Ltd.
 Tata AIG Life Insurance Co. Ltd.
 HDFC Life Insurance Co. Ltd.
 Birla Sun life Insurance Co. Ltd.
 Kotak Life Insurance Co. Ltd.
 Aviva Life Insurance Co. Ltd.
 Reliance Life Insurance Co. Ltd.
 ING Vysya Life Insurance Co. Ltd.
 Shriram Life Insurance Co. Ltd.
 Bharti AXA Life Insurance Co. Ltd.
 Future Generally Life Insurance Co. Ltd.
 IDBI Fortis Life Insurance Co. Ltd.
 AEGON Religare Life Insurance Co. Ltd.
 DLF Pramerica Life Insurance Co. Ltd.
 CANARA HSBC Oriental Bank Of Commerce
 India First Life Insurance Co. Ltd.
 Star Union Dia-ichi Life Insurance Co. Ltd.
IMS DAVV - MBA (FT) 2011-2013 Page 4

5. LIFE INSURANCE MARKET MANAGEMENT
IRDA
Life Insurance Co. Gen. Insurance Co. Reinsurer
Intermediaries Development Off. Direct Agents
Corporate Agents Individual Agents
Bancassurance
Direct Marketing
Insurance Brokers
Tele Marketing CUSTOMER
Net Marketing
IMS DAVV - MBA (FT) 2011-2013 Page 5

6. LIFE INSURANCE OFFICE
MANAGEMENT
Reinsurer
Insurance Company H.Q.
Regional Offices / Divisional Offices
Branch Offices
Unit Managers
Development Officers Intermediaries
Agents Brokers
Corporate Agents Individuals
IMS DAVV - MBA (FT) 2011-2013 Page 6

7. CORE DEPARTMENTS
MARKETING
• Finalising plans of development of new busines.
• Guide and coordinate the preparation of performance budgets.
• Opening new offices, recruitment of marketing officials, training,
preparation of training materials.
• Research work.
• Organising product launch, training field force.
• Sales competitions, marketing conventions, conferences.
• Norms of performance, compensation package.
• Methods of selection, training and motivation of agents and other
intermediaries.
• Publicity and corporate communication
IMS DAVV - MBA (FT) 2011-2013 Page 7

8. MARKETINGCONTD.
ACTURIAL
- Scientific basis for the operations of insurance
- Product Designing, development and pricing
- Formulating the policy conditions, updating them as also the premium rates
- New plans of insurance – working closely with Marketing Department
- Valuing the assets and liabilities – deciding the basis of valuation, obtaining
data, working out the net surplus
- Arranging reinsurance of very large sum assured cases and for very specially
sub standard cases, reinsurance treaty - exchange of data with reinsurer
UNDERWRITING
- Methods and standards for underwriting of lives – calls for a great deal of
research and analysis of international practices
- Underwriting of large sum assured proposals; underwriting of sub-standard
lives Premium determination and benefit specification, study of mortality,
interest and expenses – analysis of the experience – collection of data
IMS DAVV - MBA (FT) 2011-2013 Page 8

9. INVESTMENT DEPARTMENT
 Accumulation of large funds
 Long term nature of insurance contracts
 Safety / maximisation of yield
 Investment policy to be within the framework of statutory
requirements
 Conducting research into different areas relevant to
investments, study of market trends, analysis of performance
of various companies, industries and management groups and
projection of profitability in future
 Maintaining records relating to investments and keeping
ledgers for different investments – required for follow-up of
dividends, interest payments, rights and bonus issues and
redemption etc.
IMS DAVV - MBA (FT) 2011-2013 Page 9

10. FINANCE AND ACCOUNTS
 Accounting procedures, procedures and forms are
standardised
 Scrutiny, co-ordination and consolidation of periodical
accounting returns
 Annual statutory accounting returns; report giving an account
of its activities incorporating annual financial statements like
Balance Sheets and Revenue Account duly audited
 Drawing up of the annual budget – allocation to different
offices
 Budgetary control
 Taxation matters – tax returns, paying advance taxes etc.
 Saving as an intermediary between operating offices and
investment department – close watch on surplus funds
IMS DAVV - MBA (FT) 2011-2013 Page 10

11. VIGILANCE DEPARTMENT
Complaints from the
public
Cases from Audit SOLUTION
Departments Report
Liaison with CVC of
the Government of
India
IMS DAVV - MBA (FT) 2011-2013 Page 11

12. THANK YOU
E-Mail: avinashmasih.ims@gmail.com
Prepared By:
AVINASH MASIH
PRIYANKA DAHIYA
VARSHA PATIDAR
RAVIKANT PANDEY
IMS DAVV - MBA (FT) 2011-2013 Page 12