Project Report For International Business Environment
INDUSTRY ANALYSIS OF LIFE INSURANCE SECTOR IN INDIA
Indian Institute of Management,
Lucknow
Contents
List of Figures 3
Executive Summary 5
1. Introduction to the Life Insurance Industry in India 6
1.1 Evolution of Life Insurance Industry in India 6
1.2 Insurance Regulatory and Development Authority 7
1.3 Growth Factors for Life Insurance in India 8
2. Objective of the Study 9
3. Life Insurance Industry in India 10
4. Analysis of Performance of Life Insurance Sector 11
4.1 Penetration and Density of Life Insurance 11
4.2 Increasing Participation of Private Sector in Life Insurance Segment 12
4.3 Market Share in Life Insurance Segment 13
4.4 Growing Demand Due To Increased Household Savings 14
4.5 Growing Affluence of Middle Class 15
4.6 Favourable Policy Measures 15
5. Competitive Forces and attractiveness of the Life Insurance market (Porter’s Five Forces Analysis) 16
5.1 Rivalry among Competitors 16
5.2 Threat from Substitutes 16
5.3 Threat from New Entrants 17
5.4 Bargaining Power of Buyers 17
5.5 Bargaining Power of Suppliers 17
6. Findings 18
7. Conclusions 18
8. References 19
List of Figures
Fig 1.1: Evolution of Life Insurance Industry in India
Fig 1.2: Life Insurance Sector in India
Fig 1.3: Life insurance premium growth rates in India, emerging markets and the world
Fig 1.4: Growth in Life Insurance Premiums
Fig 4.1 Life Insurance Penetration (%)
Fig 4.2 Life Insurance Density (USD)
Fig 4.3: Share of public and private sector in life insurance segment (%) in 2004
Fig 4.4: Share of public and private sector in life insurance segment (%) in 2012
Fig 4.5 Market share of major companies in terms of total life insurance p...
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...consumer attitude and awareness, increase of private and foreign investments, increase in projected household savings; these all are instrumental in the growth of the industry. With CAGR of 20.1%, the industry presents a bright future. There are multiple opportunities in low-income urban and pension markets which can be tapped to unearth huge revenues. Insurance density and penetration is still at very low levels in India. With changing scenarios, this can also be expected to improve in future with the growth of the industry. Pension plan market can also be a major market for life insurers in India. The factors like increasing life expectancy (up to 74 years), enhanced savings and increased employment in the private sector will fuel demand for pension plans.
8. References
www.ibef.org
www.licindia.com
www.irda.gov.in
articles.economictimes.indiatimes.com
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
Indexmundi (2013) ‘Historical Data Graphs per Year’ Indexmundi Available from http://www.indexmundi.com/g/g.aspx?c=ei&v=21 [accessed on the 29-3-2014]
A number of key concerns about the financial health and management of SCI present themselves in the data outlined above. Though the main concerns tie to a unique requirement of the funeral service industry, mainly the purchase and holding of long term assets such as land and buildings. This may explain the poor numbers relating to the lack of liquidity (Current/Quick Ratios), as well as the low return on invested capital.
Clements, B. J. (2014). Equitable and sustainable pensions: challenges and experience. Washington, D.C.: International Monetary Fund.
Investment opportunities with pension plan members to offer them additional services (cross-over), as well as to reinvest their pension plan earnings after they retire (roll-over). Competitors are fleeing the under one (1) million dollar segment, which represents 8.9 million households. New opportunities for online transactions, which are low cost and easy to use.... ... middle of paper ... ...
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OECD. “Better Life Index: France.” Organization for Economic Co-operation and Development. N.d. Web. 7 Oct. 2013.
Social Security gained national commitment in 1950 when the Old Age Assistance program was phased out. Benefits were increased by 77 percent and the payroll tax rate was increased to 6.5 percent on a phased ? in basis. This increment was partly a response to an expansion in private pensions that were being won by unions in collective bargaining agreements. The pensions, usually, served as a supplement to social security benefits. Employers supported Social Security increases because they were considered more economical than private pensions. In order to increase Social Securit...
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
The Asia/Pacific market is a key opportunity for ING insurance. There is huge economic growth the Chinese and Indian markets therefore encouraging much investment in both countries. These investments came as two joint ventures in China as well as one in India and a high stake in a top Indian bank, Vysya Bank. ING dominates the markets in Australia/New Zealand, Taiwan, Malaysia, Hong Kong, Japan and Korea as well as investing in smaller markets such as Singapore and the Philippines. ING currently ranks within the top five financial providers in the Asia/Pacific region serving more than six million clients.
Patel, Kavita. “Helping Consumers Understand and Use Health Insurance in 2014” Institute of Medicine. Institute of Medicine. 29 May. 2013. Web. 31 Jan. 2014. .
http://www.cnn.com/ALLPOLITICS/1998/04/10/polls/social.security/ U.S. News Magazine, Turning 40, March 20, 2000. Vol. 128, number 11 www.usnews.com, 2000 Benefits that last a Lifetime, 1997 Retirement solutions pamplet.
Pension provides an income when people have stopped working. Also, it provides important forms of insurance against long life, prices, relative benefit drops and savings shocks. As well as it is an important benefactor to the financial security of a majority of Australian men and women of retirement age, with about 70 per cent of people of pension age receiving the Age Pension (Australia and Treasury, 2015). The government can provide this type of insurance for less than it costs individuals to insure themselves by sharing long life risk, and hedging the
J. David Cummins, A. S. (1999). Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management: Efficiency, Technology, and Risk Management. Springer.
With the new structure of social security it provides pension to retired or disabled American, the social security is financed by the Federal Ins...