Reforms In Insurance Sector In India

A Brief History 1818 – Establishment of Oriental Life Insurance Company, Calcutta 1906 – Establishment of National Insurance Company 1912 – Indian Insurance Companies Act 1956 – Formation of LIC and passing of L.I.C. Act 1956 1972 – General Insurance Business Act, 1972 1999 – Insurance Regulatory & Development Authority Act

Types Of Insurance Life Insurance - Good method to protect the family financially, in case of death, by providing funds for the loss of income. General Insurance - All those insurance policies which do not covers the life of the person. Such as – i) Motor Vehicle Insurance ii) Fire Insurance iii) Property Insurance iv) Health Insurance

Current Scenario Of Insurance Sector Current Growth Rate - (In 2013) i) Life Insurance – 20 % (CAGR) – $60 billion market ii) General Insurance – 18% (CAGR) - $13 billion market Life Insurance – i) Private Sector – 30% Market Share ii) Public sector – 70% Market Share General Insurance - i) Private Sector – 43% Market Share ii) Public Sector – 57% Market Share

Opportunity In Indian Market Expected Market – $280 billion (By 2020) World’s 10th largest growing market for insurance Untapped Population of India – 70% FDI allowed in Insurance Sector – 49% Most Lucrative Insurance Segments – Motor Vehicle Insurance, Health Insurance, Aviation Insurance

Key Factors of Growth of Insurance Industry Increasing awareness level of customers Customer centric products (Customized Products) Enhanced service standards Good communication techniques Lucrative offers Adopting customer feedback for improvement

Conclusion Insurance can be summed up as “ Praying for the best… Being prepared for the worst…”

Some Indian Insurance Giants