The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefit from it. The benefit may be an income or something else. It is a benefit because it meets some of his needs. Every asset is expected to last for a certain period of time during which it will perform. After that, the benefit may not be available.
The owner is aware of this and he can so manage his affairs that by the end of that period or life-time, a substitute is made available. Thus, he makes sure that the value or income is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it non-functional. In that case, the owner and those deriving benefits from there would be deprived of the benefit and the planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse situations.
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium. Insurer, in economics, is the company that sells the insurance. Insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
INSURANCE ACT, 1938:The Insurance Act, 1938, was the first comprehensive legislation governing not only life but also non- life branches of insurance to provide strict state control over insurance business. In sub- sections to dealt with provident companies, mutual offices and co-operative societies as well. The salient features of the Act were as follows: * Constitution of a Department of Insurance under a superintendent vested with wide powers of supervision and control over all kinds of insurance companies. * Regulation for the compulsory registration of insurance companies and for filing of returns of investment and financial conditions.
* Provisions for deposit, to prevent insurers of inadequate financial resources of speculative concerns for commencing business. * Provisions that 55% of the net life fund of an Indian or non- Indian insurer should invested in Indian Government and approved securities with at least 25% in Indian Government Rupee securities. All other companies, i. e. , foreign companies must invest 100% of their Indian liabilities in Indian Government and approved securities, with at least 33. 3% Indian Government securities. * Prohibition of rebating, restriction of commission, licensing of agents etc.
Maximum rates of commission were fixed at 40% of the first premiums and 5% of the renewal premium in respect of life assurance business. The agent must be licensed, to improve the status of the profession. * Periodical valuation of Indian Insurance business of foreign companies and the business of Indian companies. * Provision for policy holders’ directors, making it possible for the re preventatives of policyholders to be on the Board of directors. Standardization of policy conditions required all companies to file standard forms and tables of premium approved by an Actuary.
Under this requirement, the initial deposit for life insurance business was raised from Rs. 25000 in Government securities to Rs. 50000 in cash approved securities, which was subsequently to be raised by installments to Rs. 2 lakh within a specified time limit. TYPES OF INSURANCE Insurance can be classified into three categories: * LIFE INSURANCE: Life insurance is different from other insurance in the sense that, here, the subject matter of insurance is life of human being. The insurer will pay the fixed amount of insurance at the time of death or at the expiry of certain period.
At present, life insurance enjoys maximum scope because life is the most important property of the society or an individual. Each and every person requires the insurance. This insurance provides protection to the family at the premature death or gives adequate amount at the old age when earning capacities are reduced. Under personal insurance a payment is made at the accident age when earning capacities are reduced. The insurance is not only a protection but is a sort of investment because a certain sum is returnable to the insured at the death or at the expiry of a period.
* GENERAL INSURANCE: General insurance includes property insurance, liability insurance and other forms of insurance. Fire and Marine insurance are strictly called property insurance. Motor, theft, fidelity and machine insurance include the extent of liability insurance to a certain extent. The strictest form of liability insurance is fidelity insurance, whereby the insurer compensates the loss to the insured where he is under the liability of payment to the third party. * SOCIAL INSURANCE: Social insurance is to provide protection to the society who are unable to pay the premium for adequate insurance.
Pension plans, disability benefits, unemployment benefits, sickness insurance and industrial insurance are the various forms of social insurance. With the increase of the socialistic ideas, the social insurance is an obligatory duty of the nation. The government of a country must provide social insurance to its masses. HOW INSURANCE WORKS? The mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and make good to the person who lost.
All people who send goods by ship are exposed to the same risks, which are related to water damage, ship sinking, piracy, etc. Those owning factories are not exposed to these risks, but they are exposed to different kinds of risks like, fire, hailstorms, earthquake, lightning, burglary, etc. Like this, different kinds of risks can be identified and separate groups made, including those exposed to such risks. By this method, the heavy loss that any one of them may suffer (all of them may not suffer such losses at the same time) is divided into bearable small losses by all.
In other words, the risk is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all. There are certain principles, which make it possible for insurance to remain a fair arrangement. The first is that it is difficult for any one individual to bear the consequences of the risks that he is exposed to. It will become bearable when the community shares the burden. The second is that the perils should occur in an accidental manner. Nobody should be in a position to make the risk happen.
In other words, none in the group should set fire to his assets and ask others to share the costs of damage. This would be taking unfair advantage of an arrangement put into place to protect people from risks they are exposed to. The occurrence has to be random, accidental, and not the deliberate creation of the insured person. The manner in which the loss is to be shared can be determined before-hand. It may be proportional to the risk that each person is exposed to. This would be indicative of the benefit he would receive if the peril befell him.
The share could be collected from the members after the loss has occurred or the likely shares may be collected in advance, at the time of admission to the group. Insurance companies collect in advance and create a fund from which the losses are paid. The collection to be made from each person in advance is determined on assumptions. While it may not be possible to tell beforehand, which person will suffer, it may be possible to tell, on the basis of past experiences, how many persons, on an average, may suffer losses. The following example explains the above concept of insurance: EXAMPLE.
In a village, there are 400 houses, each valued at Rs. 20000. Each year, on the average, 4houses get burnt, resulting into a total loss of Rs. 80000. If all the 400 owners come together and contribute Rs. 200 each, the common fund would be Rs. 80000. This is enough to pay Rs. 20000 to each of the 4 owners whose houses got burnt. Thus, the risk of 4 owners is spread over 400 house-owners of the village. LIFE INSURANCE BUSINESS: The growth of Life Insurance in concrete terms could be said to being during the first two decades of twentieth century when most of the major companies were founded.
They grew in terms of rise in the number of companies, in terms of number of policies and sum assured as well as total life fund. Indian Insurance Year Book, published for the first time in 1914, gives the figure of the total business-in -force as 22. 44 crore which grew to Rs. 298 crore in 1938. In 1914, there were only 44companies transacting insurance business in India, and during the next 25 years their number rose to 176.
The total progress on all the primary heads, viz. life fund (Rs. 50. 50 crore), premium income (Rs. 10. 50 crore) and new business (Rs. 43.30 crore) indicate that Indian Insurance Business had been making a definite headway during these years.
The inter-war -years thus saw rapid growth life insurance in India. The promotion of new life insurance companies continued to be almost a craze and insurance companies mushroomed. In this period, 176 insurance companies were formed and many of them failed. Thus unhealthy growth was harmful to the interest of the policy holders and insurance business in India.
Feeling concerned about it, the All India Life Assurance Offices’ Association urged upon the Government in 1932 to undertake the insurance legislation to: (a) Compulsorily register all Life Insurance companies. (b) Secure a deposit of Rs. 2 lakh from all Life Insurance companies. (c)
Compel foreign companies doing business in India to keep sufficient funds in India securities to meet their liabilities under all policies issued in India. Important milestones in the life insurance business in India: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized.
LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd. , the first general insurance company established in the year 1850 in Calcutta by the British. PROGRESS OF LIFE INSURANCE IN INDIA Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players and FDI up to 26% and recently Cabinet approved a proposal to increase it to 49%.
Life Insurance in India was nationalized by incorporating Life Insurance Corporation (LIC) in 1956. All private lifeinsurance companies at that time were taken over by LIC. In 1993, the Government of India appointed RN Malhotra Committee to lay down a road map for privatization 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 the newly appointed insurance regulator – Insurance Regulatory and Development Authority IRDA—started issuing licenses to private life insurers.
FUTURE PROSPECTS OF LIFE INSURANCE IN INDIA India may rank low in terms of overall financial development globally, but it is the world’s top-ranked country in terms of life insurance density, the World Economic Forum (WEF) has said in its latest report. Life insurance density is measured in terms of ratio of direct domestic premiums for life insurance to per capita GDP of a country.
As per WEF’s Financial Development Report 2012, India has been ranked 40th in terms of overall financial development of a country, but it is placed better than many larger economies like the US, UK, Japan and China for life insurance density. India is followed by China, Japan, US and UK in the top-five countries for life insurance density, WEF said. Life Insurance is one of the sectors which have an adequate growth potential. It is the only financial asset which provides return in addition to the life risk coverage.
In the modern era term assurance has got less importance since it provides only risk coverage and no return. The investors in life insurance are looking for both good return and life risk coverage. Hence the new policies framed by the companies will have both the elements. After privatisation of life insurance sector in 2000, drastic changes occurred in the sector. Linked policies were framed in place of the conventional policies. The investors are looking for the gains from the securities market also. These investors can invest in mutual funds but it does not cover life risk.
The potential for growth and spread of life insurance in India is high due to large population and no pension system among the larger work groups which leads to no old age income. The insurance sector provides for the long term contractual savings for the investors. In life insurance business, India ranked 9th among the 156 countries. During 2010-11, the estimated life insurance premium in India grew by 4. 2 per cent (inflation adjusted). However, during the same period, the global life insurance premium expanded by 3. 2 per cent. The share of Indian life insurance sector in global market was 2.
69 per cent during 2010, as against 2. 45 per cent in 2009. First year premium underwritten by India’s life insurance industry rose by 6. 43% year-on-year during the quarter ended June 2012. This rise marked the second consecutive quarterly increase since March 2012 and reversed the decline that had lasted five consecutive quarters since December 2010. For the quarter ending June 2012, the state-owned Life Insurance Corporation (LIC) saw year-on-year growth of 8. 31% in first year premium underwritten, and the company accounted for approximately 74.
29% of total premium underwritten, an increase from 73. 00% during the previous year. LIC is India’s largest insurance group and its market share has grown to more than 60% since the quarter ended March 2009. With relatively low insurance coverage density and insurance penetration, India has been a largely untapped market with, hence, abundant scope for expanding its insurance businesses. After the liberalisation of the industry in late 1999, which allowed private players to participate in India’s insurance businesses, insurance coverage density grew by a compound annualised growth rate of 19.
63% between 2001 and 2011, amounting to a premium of INR 2,458. 73 per capita. India’s insurance penetration, measured as total premium over gross domestic product, rose from 1. 61% during the financial year (FY) ended in March 2001 to a record high of 4. 11% during FY 2010. Private insurance providers such as SBI Life, ICICI Prudential, and HDFC Life Insurance have all made headway into the insurance market, with first year premiums amounted to INR 8. 88 billion, INR 7. 21 billion, and INR 6. 74 billion, respectively, during the quarter ended June 2012.
Although private insurance providers saw first year premium growth at a mere 1. 34% on average, MetLife India Insurance, for one, saw its first year premiums grow in excess of 80% since the quarter ended December 2011. Despite the liberalisation of India’s insurance market, much still need to be done towards the ultimate goal of improving the nation’s insurance penetration and coverage. In the short run, market observers might remain cautious as the modest rise in first year premiums during the quarter ended June 2012 was accompanied by a 4.
52% y-o-y decline in the number of policies sold. However, with improving product awareness and increasing demand for long-term financial investment solutions from rising household income, long-term growth opportunities in the insurance industry overshadows threats implied by present prevailing macroeconomic situation. With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion).
According to government sources, the insurance and banking services’ contribution to the country’s gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. Till date, only 20% of the total insurable population of India is covered under various life insurance schemes, the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the of immense growth potential of the insurance sector.
The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Though, the existing rule says that a foreign partner can hold 26% equity in an insurance company, a proposal to increase this limit to 49% is pending with the government.
Since opening up of the insurance sector in 1999, foreign investments of Rs. 8. 7 billion have poured into the Indian market and 21 private companies have been granted license Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253. 43 billion during the fiscal year 2004-2005, braving stiff competition from private insurers. The report, “Indian Insurance Industry: New Avenues for Growth 2012”, finds that the market share of the state behemoth, LIC, has clocked 21. 87% growth in business at Rs. 197. 86 billion by selling 2. 4 billion new policies in 2004-05. But this was still not enough to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.
57 billion in 2004-05 from Rs. 24. 29 billion in2003-04. Though the total volume of LIC’s business increased in the last fiscal year (2004-2005) compared to the previous one, its market share came down from 87. 04 to 78. 07%. The 14 private insurers increased their market share from about 13% to about 22% in a year’s time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75 percent, while the private players have grabbed over 24 percent.
RESEARCH METHODOLOGY RESEARCH OBJECTIVES: 1. To compare the performance of LIC and private insurance companies in India. 2. To compare grievance management of LIC and private insurance companies.
RESEARCH DESIGN: (A) Type of research design : Analytical Research (B) Data collection : Secondary Sources (C) Statistical tools : Bar Graphs RESEARCH PROCESS: In this research, my research objective was to compare the performance of LIC and Private insurance companies. For this purpose I decided the five factors under which I have compared LIC and Private insurance companies.
These are: * Total premium * Size of balance sheet * Number of policies issued * Total number of branches * Grievances handling CHAPTER-2 PROFILE OF THE COMPANY * LIC: Life Insurance Corporation * Private Life Insurance Companies * Market Share LIC: LIFE INSURANCE CORPORATION Life Insurance Corporation of India (LIC) was formed in September, 1956, by an Act of Parliament, viz. , Life Insurance Corporation Act, 1956, with capital contribution from the Government of India. The then Finance Minister, Shri C. D.
Deshmukh, while piloting the bill, outlined the objectives of LIC thus to conduct the business with the utmost economy, and a spirit of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to invest the funds for obtaining maximum yield for the policy holders consistent with safety of the capital; to render prompt and efficient service to policy holders, thereby making insurance widely popular. Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisions and 7 zonal offices spread over the country.
The Life Insurance Corporation of India also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-India ,Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance Corporation (International) E. C. Bahrain. The Corporation has registered a joint venture company in 26th December, 2000 in Katmandu, Nepal by the name of Life Insurance Corporation (Nepal) Limited in collaboration with Vishal Group Limited, a local industrial Group.
An off-shore company L. I. C. (Mauritius) Off-shore Limited has also been set up in 2001 to tap the African insurance market. PRIVATE LIFE INSURANCE COMPANIES * Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak Mahindra Bank Ltd. , its affiliates and Old Mutual plc. A company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products, helping them in taking important financial decisions at every stage in life and stay financially independent.
The company is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. Kotak Life Insurance employs around 5,565 people in its various businesses and has 197 branches across 141 cities.
* ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank – one of India’s foremost financial services companies-and Prudential plc – a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47. 80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
It began its operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of 2074 branches (inclusive of 1,116 micro-offices), over 225,000 advisors; and 7 banc assurance partners. * Birla Sun Life Insurance Company Limited (BSLI), established in 2000, is a joint venture between the Aditya Birla Group, a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc, leading international financial services organization from Canada.
The local knowledge of the Aditya Birla Group combined with the domain expertise of Sun Life Financial Inc. , offers a formidable protection for its customers’ future. With an experience of over 9 years, BSLI has contributed significantly to the growth and development of the life insurance industry in India and currently ranks amongst the top 5 private life insurance companies in the country.
* Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of India’s leading multi-business corporations and New York Life International, the international arm of New York Life, a Fortune 100 company.
The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. Incorporated in 2000, Max New York Life started commercial operation in 2001. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder’s funds. The Company’s paid up capital as on 30th April, 2009 is Rs 1782 crore.
* Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world. At Bajaj Allianz Life Insurance, customer delight is the guiding principle. Our business philosophy is to ensure excellent insurance and investment solutions by offering customised products, supported by the best technology.
* Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Group’s pre-eminent leadership position in India and AIG’s global presence as one of the world’s leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 per cent. Tata AIG Life provides insurance solutions to individuals and corporates.
Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001 * HDFC Standard Life Insurance Company LimitedIs one of India’s leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India’s leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72. 43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.
00% of equity in the joint venture, while the rest is held by others. * MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc. , The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices.
MetLife has more than 50,000 Financial Advisors, who help customers achieve peace of mind across the length and breadth of the country. * ING Vysya Life Insurance Company Limited, established in India in September 2001, eis a joint venture between Vysya Bank, which is one of the largest private sector banks in India, and ING Insurance Co. , which is the world’s second largest life insurance company. This private life insurance company has around 140 branches all over India, with head office in Bangalore. ING Vysya Life Insurance Co. has around 3000 employees with over 21,000 sales insurance agents and brokers.
ING Vysya Life presently has around 4. 5 lakh customers, and is making a total income of Rs. 400 crore. * Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. , a part of Reliance – Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services companies, which ranks among the top 3 private sector financial services and banking companies. Reliance Life Insurance is not only one of India’s fastest growing life insurance companies, but also counts among the top 4 private sector insurers.
In just 2 years, the Company has crossed the mark of 1. 7 Million policies. * SBI Life Insurance offers a slew of products designed for various segments of society. These include money back products, pension products, protection cum savings products, and unit linked products. All these products cater to various requirements of its end users. * Bharti AXA Life Insurance Co. Ltd. is a joint venture between Bharti – one of India’s leading business groups with interests in telecom, agri business and retail, and AXA – global leader in financial protection and wealth management.
Bharti has recently entered into the retail business under a company called Bharti Retail Pvt. Ltd. AXA’s operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. It also has operations in Australia, New Zealand, Hong Kong, Singapore, Indonesia, Philippines, Thailand, China, India and Malaysia. * IDBI Fortis Life Insurance Co. Ltd is a joint venture of IDBI Bank, Federal Bank (India) and Fortis Insurance International. The Certificate of Registration has been issued by the Insurance regulator IRDA to this Insurance Company on 19th December 2007.
According to the agreement, IDBI will have a 48-per cent stake in the venture, while Fortis and Federal Bank would have 26-per cent stake each. While IDBI and Federal Bank are major Indian banks, Fortis has the expertise of bank assurance across global markets. It is one of the best names in the insurance business in Europe and has successful joint ventures in various Asian countries. IDBI Fortis Life Insurance has become 18th life insurer in India. * AEGON Religare Ltd is a joint venture of AEGON, Religare and Bennett, Coleman & Company.
AEGON in one of the world’s leading life insurance and pension groups. Religare is a prominent player in the field of integrated financial services in India. On the other hand, Bennett- Coleman & Company is India’s largest media house. The insurance company began its operation in July 2008. Within a short span of time, it has spread across India, by opening over 30 branches in the country. * Future Generali India Life Insurance Co. Ltd. is one of the rapidly growing Insurance companies in India. The Company is a joint venture between the India-based Future Group and the Italy-based Generali Group.
Future Generali group is present in both the Life and Non-Life businesses in India as Future Generali India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd. MARKET SHARE OF LIFE INSURANCE COMPANIES LIFE INSURERS| MARKET SHARE (%)| 1| LIC| 63. 47| 2| ICICI-Prudential| 5. 88| 3| HDFC-Standard| 5. 66| 4| SBI-Life| 4. 4| 5| Max-New York| 3. 14| 6| Bajal Allianz| 2. 73| 7| Birla-Sunlife| 2. 46| 8| Reliance| 2. 3| 9| Tata-Aig| 1. 27| 10| ING-Vyaga| 1. 27| 11| Metlife| 1. 05| 12| Aviva| 1. 02| 13| Canara HSBC OBC| 0. 99| 14| Kotak Mahindra| 0.
99| 15| Star Union Daiichi| 0. 58| 16| Future Generali| 0. 53| 17| IDBI-Fortis Life| 0. 42| 18| India-First| 0. 41| 19| Bharti-Axa Life| 0. 41| 20| Aegon-Religare| 0. 39| 21| Shriram-Life| 0. 33| 22| DLF-Pramerica| 0. 2| 23| Sahare Life| 0. 09| PRIVATE TOTAL| 36. 53| PUBLIC TOTAL| 63. 47| TOTAL| 100| The above table shows that the private players in the life insurance business have increased their market share to 36. 53 per cent. Among them ICICI prudential is ranked first in capturing the market followed by HDFC Standard and SBI Life.
Moreover, private insurers have planned to increase their market share in the next five years. LIC have to enrich its approach to withhold its share.
CHAPTER-3 ANALYSIS AND INTERPRETATION 1) TOTAL PREMIUM (Rs. In crores) | 2007-08| 2008-09| 2009-10| 2010-11| 2011-12| | PRIVATE COMPANIES| 51561| 64497| 79369| 88165| 84182| | LIC| 149789| 157288| 186077| 203473| 202889| | TOTAL| 201350| 221785| 265446| 291638| 287071.