www.unitedworld.edu.in

1. -Animesh
-Neha
-Kaushik
-Aquib
-Joydeep
-Amit
-Debangshu
-Parijat

2. Name of few Insurance companies in
India  General Insurance company of India
 Life Insurance corporation on India
 National Insurance company of India
 Future Generally life insurance
 Aviva Life insurance
 Kotak Mahindra life insurance
 TATA –AIG life insurance
 Birla sun life Insurance
 Max New York life insurance
 Bajaj Allianz life insurance comp. ltd.

3. Different Aggregative demand &
aggregative supply curve affecting
Insurance sector in India  Insurance penetration
 Insurance density
 Gross domestic per capita savings
 Urban population
 young independency ratio
 old independency ratio
 adult literary rate
 life expectancy at birth
 real interest rate
 consumer price index

4. Major Driving Factors:
-Growing demand from semi-urban population Entry of private players
following the deregulation
- Rising demand for retirement provision in the ageing population
- The opening of the pension sector and the establishment of the new
pension regulator
- Rising per capita incomes among the strong middle class, and spreading
affluence
- Growing consumer class and increase in spending & saving capacity
- Public private partnerships infrastructure development
- Dearth of innovative & buyer-friendly insurance products
- Success of Auto insurance sector show less

5. Reasons for failure of insurance sector
in India
 In India most of the people were illiterates so they don’t know what are
advantage of having insurance policy.
 In India 45% of people live below poverty line so they could not even
think about the insurance.
 In earlier it was rumor that insurance is a death policy and it can only be
claimed after the death so no one showed interest in insurance.
 If we compare India faces less disaster than Japan so there was less
interest to ensure their life and properties.
 India is a developing country so there is less density if we compare with
Japan, UK, or USA.
 Claim settlement is also one of the backdrop.

6. Global Insurance on Indian Market during
crisis period. • Worldwide insurance premium amounted to US Dollar 4061 billion in
2007 as against US Dollar 3723 billion in 2006.
• In emerging markets, the growth in life insurance was 13.1 per cent during
2007 as against 21.1 per cent in 2006.
• The profitability of life business continued to improve in many countries as
costs were cut.

7. Growing employment in the insurance industry
Year Direct employees Individual agents
2006 1,52,449 14,22,609
2007 1,87,403 19,85,457
2008 2,54,332 24,98,513
2009 2,85,244 29,06,281
2010 3,01,257 29,78,283
2011 3,35,566 26,39,392
Source: Life Insurance Council of India and various annual reports of
IRDA

8. Growth of Insurance in India.
Table 3: Share of life insurance premiums in GDS (household sector) (in %)
Year Life insurance premiums in GDS (household sector) (in %)
2005 11.0
2006 12.3
2007 15.9
2008 17.9
2009 17.6
Source: IRDA, National Income Statistics, July 2010, CMIE

9. Measuring impacts of Macroeconomics
development.
 Growth in GDP and its impact on insurance penetration and insurance
density.
 Increase in household financial savings and its
impact on life insurance.
 Inflation, interest rate and life insurance
Growth.
 Investment of LIC of India and life insurance
Premium.
 Population growth and life insurance growth.

10. Insurance and GDP
Table 4: GDP with insurance penetration and insurance
density
Year GDP (at market prices – Rs. in crores) Insurance Penetration (%)
Insurance Density (USD)
2001-02 2278952 2.15 9.1
2002-03 2454561 2.59 11.7
2003-04 2754620 2.26 12.9
2004-05 3239224 2.53 15.7
2005-06 3706473 2.53 18.3
2006-07 4283979 4.10 33.2
2007-08 4947857 4.00 40.4
2008-09 5574448 4.00 41.8
2009-10 6231172 4.60 47.7

11. Investment Made by different insurance
organization
Year Public Private Joint Co-operative Total (Rs. in Crores)
1999 96410.5 15048.4 549.3 2094.5 114102.7
2000 117059 19268.4 575.5 2129.3 139032.2
2001 141256.2 22779.5 799.7 2168.4 167003.8
2002 180574.1 23707.8 792.8 2128.6 207203.3
2003 219596.7 684.5 2082.3 251770.3
2004 271778.5 51923.6 959.6 2079.5 326741.2
2005 322021.8 68484.5 1270.2 1408.2 393184.7
2006 378807.2 105148.1 1915.5 1356.5 487227.3
2007 433810.3 84294 75.2 3555.1 521734.6
Source: Reserve Bank of India. (ON224)
2008 503388.4 128467.8 73.7 3817.6 635747.5
2009 572050.3 187140.8 71.7 3628.9 762891.7
2010 678374.5 236134.7 70.9 3336.5 917916.6

12. Population Changes and Insurance
Table 9:Population growth and insurance premium in India
Year Population (in crores) Premium (Rs. in Crores)
2001 -02 104.00 50094.45
2002-03 105.60 55747.55
2003-04 107.20 66287.92
2004-05 108.90 82854.79
2005-06 110.60 105875.76
2006-07 112.20 156075.76
2007-08 115.40 201351.41
2008-09 117.00 221785.48
2009-10 119.00 265450.37
Kartheeswari S & Rajeswari K| Nov.-Dec. 2012 | Vol.1 | Issue 6|133-140

13. References
1. Indian Insurance Sector: Stepping in to the next decade of growth, p.12.
2. EPW Research Foundation. (2011), ULIPs and mutual funds: The
unidentical twins, Economic and Political Weekly, XIV I(25):120.
3. Sadhak. H (2006) Life Insurance and the Macro Economy Indian
Experience, Economic and Political Weekly, 41(11):1108.
4. Chennappa D, Vishnukanth Rao V (2009), Global Insurance with special
reference to Indian market, Osmania J. Int. Business Studies, 4(12):40-41
5. Indian Insurance Sector: Stepping in to the next decade of growth, p.16.
6. Metal A, Gupta SL (2008) Principles of Insurance and Risk Management,
Sultan Chand & Sons, New Delhi, p. 45
7. Gupta PK (2010) Insurance and Risk Management, Himalaya Publishing
House, Mumbai pp: 65-67
8. Mahesh R, Ashok Kumar M (2011) Life Insurance and Macro Economy:
Indian

14. QUESTIONS
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Thank You

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