Professional Documents
Culture Documents
Agenda
Snapshot of Indian Life Insurance Industry Inclusive Growth of Life Insurance Sector
.contd
Apr-Sep 2010
(provisional)
Number of players Capital Deployed (Rs. Cr) Branches Employees (in Lacs) Individual Agents (in Lacs)
4
Source: IRDA, Life Insurance Council (Apr-Sep 10 data is provisional)
FY 09-10
New Business Policies (In Cr) In force Policies (In Cr) New Business Premium (Rs.Cr) Renewal premiums (Rs. Cr) Total Premium (Rs. Cr)
1.69
5.08
5.09
5.32
2.00
10.14
25.76
29.60
30.40
31.22
8,299
93,713
87,331
1,09,894
62,450
17,951
1,07,639
1,34,454
1,55,556
62,805
26,250
2,01,351
2,21,785
2,65,450
1,25,254
As per IRDA guidelines Life Insurance Companies have to mandatorily sell 18%policies in rural areas.
5
Source: IRDA, Life Insurance Council (Apr-Sep 10 data is provisional)
..contd
FY 09-10
India s share of world premium (Life) Penetration as % of GDP New Business Policies (In Cr)
0.50%
1.83%
1.98%
2.45%
1.77%
4.0%
4.0%
4.60
1.69
5.08
5.09
5.32
10.14
25.76
29.6
31.89
The industry services largest number of life insurance policies in the world
Source: IRDA
..contd
Apr-Sep 2010
(provisional)
Total Death Benefit paid(Rs.Cr) Total Maturity claim paid(Rs. Cr) Total Benefits paid (Rs.Cr)
4,794
5,288
6,125
8,385
4,937
34,356
34,543
37,806
NA
NA
56,887
61,686
58,527
95,883
64,742
Agenda
2.8 Crore rural policies were sold by companies in last two years. (1.55 Crore policies in 2007-08 and 1.26 Crore policies in 2008-09) 3.36 Crore life's covered in social sector in last two years. (1.43 Crore in 2007-08 and 1.93 Crore in 2008-09) 72% of the total 12,018 branches of insurance companies are in semi-urban or rural areas (33% in rural areas). No such obligations for Mutual Funds which operate mostly in 16 cities.
Source: IRDA, Life Insurance Council 9
Agenda
10
Parameter Central Government Securities State Government and other approved securities Investment in Infrastructure Sector
FY 00-01
47,512 5012
FY 07-08
2,96,687 85,198
FY 08-09
3,16,010 1,07,190
FY 09-10
3,61,520 1,36,998
24,887
91,283
1,15,369
1,39,710
In FY 2009-10 life insurers invested 7,44,505 lakh crores in Central government, state government and other approved securities.
11
..contd
Rs. Crs
FY 2009-10
Total
12,89,946
14,35,206
12
Source: Life Insurance Council (data is provisional)
Agenda
13
Agenda
15
16
..
.Contd
Under regulation 6(1)Policy holders are given a 15 day free-look period from the date of receipt of policy document, where in the policy holder can review the terms and condition of the policy and opt to return the policy and claim refund. Section 45 of the Insurance Act 1938 - Policy not to be called in question on ground of mis-statement after two years . U/s 17d of Insurance Act 1938, there is a capping on expenses of management. Overall capping of expenses for ULIP is:More than 10 years - 225 bps Less than 10 years - 300 bps
17
..
.Contd
Cap on surrender charges / discontinuance. Lock in period increased to 5 years Even spread of charges during the lock in period Guarantee of return at maturity for ULIP Pension / Annuity Plans (4.5%) Minimum life insurance cover should be 110% of Single Premium for age at entry of 45 years and above and 125 % for age at entry below 45 years. Disclosure of Commission to the prospect.
18
.Contd
Public Disclosures Companies are required to disclose detailed financial & statistical information on quarterly /half yearly and yearly basis on their website. Companies are required to publish audited half yearly and annual financial statement in newspapers. Corporate Governance Companies are required to follow Corporate Governance guidelines which are followed by all listed companies in India.
19
.Contd
Register a Complaint with the Toll free number / helpline of the Company
Note:There are 12 ombudsman Centre's in India. The companies cannot challenge the decision of the ombudsman
20
Individual New Business Premium (In Cr) Individual New Business Policies
3,913 20,38,410
6,347 26,67,078
4,073 25,13,726
4,635 24,35,371
Branches
371
646
839
831
Number of Agents
1,10,127
1,40,099
1,59,408
1,59,884
Source: IRDA
21
Thank You
22
2004-05
Premium
2005-06 % 77 7 15 0.5
Premium
2006-07 % 74 4 22
Premium
2007-08 % 67 3 30
Premium
2008-09 % 60 3 37
Premium
2009-10 % 71 5 23
Premium
% 66 5 29 0.31
0.02
0.04
0.1
0.39
Source: IRDA
23
Rs.Crs
2005-06 10,243
2006-07 24,631
2007-08 37,822
2008-09 24,745
2009-10 37,362
Policies
Category
2005-06
2006-07
2007-08
2008-09
2009-10
Pension Policies
20,42,661
67,59,813
99,23,334
51,56,146
64,66,139
Source: IRDA
24