Life Insurance Industries in India

A Report Submitted to
Adamas University, School of Business & Economics, Department of Commerce
in partial fulfilment of the requirements for award of the degree of
Bachelor of Commerce (Honours)

By

SOUPARNO SAHA
Regd. No. UG/07/BCOM/2018/005

Under the mentorship of

Prof. UDAYAN DAS

HEAD OF DEPARTMENT
(DESIGNATION)
Adamas University

ADAMAS UNIVERSITY
SCHOOL OF BUSINESS & ECONOMICS
DEPARTMENT OF COMMERCE
BARASAT
DECEMBER, 2020
 CERTIFICATE

Certified that the project work with the title Life Insurance Industries (India),
undertaken by SOUPARNO SAHA, was conducted under my guidance and supervision.
S/he has designed the research, collected the data, analysed the results, interpreted the
findings and observations and prepared the report.

(__________________________)
UDAYAN DAS
HEAD OF DEPARTMENT
Adamas University
School of Business & Economics
Department of Commerce
Faculty Mentor
Barasat, Date 16-12-2020
 DECLARATION

I hereby declare that the project report with the title Life Insurance Industries in India
, being submitted to Adamas University in partial fulfilment of the requirements for
award of the degree of Bachelor of Commerce (Honours), is an original piece of research
work carried out by me. It has not been published/awarded elsewhere, nor has it been
submitted in full or part for any other degree or diploma.

(__________________________)
SOUPARNO SAHA
UG/07/BCOM/2018/005
Adamas University
School of Business & Economics
Department of Commerce
Barasat, Date 16-12-2020
 ACKNOWLEDGEMENT

I wish to express my sincere thanks to our respected Dean-Academics, Dr. NAVEEN DAS and
deep sense of gratitude to PROF. UDAYAN DAS HOD, ADAMAS UNIVERSITY, and Barasat
for their kind support and encouragement in completion of the project Report. I would like to
thank Prof. UDAYAN DAS, Department of COMMERCE, Adamas University, Barasat and who
gave me golden opportunity to do this wonderful Project, which helped me to learn various
concepts on life insurance industries and its future aspects.

Finally, I express my sincere thanks to my Parents, Friends and all the Staff of school of business
and economics department of commerce for their valuable suggestions in completing this Project
Report.

(__________________________)
SOUPARNO SAHA
UG/07/BCOM/2018/005
Adamas University
School of Business & Economics
Department of Commerce
Barasat, Date 16-12-2020
 CONTENTS
CHAPTER PARTICULARS PAGE NO
CERTIFICATE FROM CORPORATE GUIDE
CERTIFICATE FROM FACULTY GUIDE
DECLARATION
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY

1 INTRODUCTION & REVIEW OF LITERATURE 1-7

2 RESEARCH METHODOLOGY 7-10

3 RESULT / ANALYSIS OF THE WORK 11-14

4 CONCLUSION & RECOMMENDATION 15-16

BIBLIOGRAPHY 17
ANNEXURE
Over the course of this project, we seek to recognize the feasibility of the project.
The life insurance market varies according to various criteria. We're trying to grasp the
Parameters that can have an effect on the profitability of the life insurance market. Indian
insurance industry is still the most attractive destination for international players. With a
penetration as low as close to 3.69 percent and a density of USD73. Opening up the market for
private players, it can be traced back to the 1999 IRDAI Act, which Permitted. As of today, the
Life Insurance Industry has 24 players, including the The government owned the life insurance
company. Despite the action of LIC for the next 44 years. That is, from 1956 to 2000 our
penetration remains one of the lowest across the globe. That is the globe. With the introduction
of private insurance providers, we should have seen a great deal. Knowledge of life insurance
products and even product innovation Which has been missing for a very long time. We
currently have 24 life insurance Companies and LIC included.

As of 31 December 2018, we have a total capital of ~27,000 crores deployed. More than 11,190
branches and more than ~21 lakh agents. Going slow to expansion, Insurance firms are seeking
to take the risk calculated. Starting Operations which do not include the determinants of
profitability are bound to be Fragmental and incomplete. With these aspects in mind, the research
was undertaken and thorough study was carried out. Measure the effect of paid-up capital on
profitability
CHAPTER 1
INTRODUCTION AND REVIEW OF LITERATURE
Life insurance is a protection for family members if the main source of income dies and the
common means of obtaining the necessities of life are severely upset. This does not include the
burden of financial expenses for funeral, taxes, unplanned or emergency expenses, and extra
college expenses for children or for the spouse to return to school to become the main
breadwinner of the household. The future is not at all unpredictable, but it is. A way to protect
one's family and make one's future safe for one's children. Health insurance policy Companies
help ensure that the future of the family is not only stable but also prosperous. Insurance is an
instrument by which families of a limited number are paid. Funds that are the sum of the
premium received by a large number of individuals. Insurance Companies are paying for
financial damages resulting from the occurrence of such incidents. Insured, for example in the
event of a personal accident death, in the case of fire policy, insured incidents are fireplaces and
alternative allied threats like protests and strikes, blasts, etc. Defense of insurance against
uncertainty. It helps to provide financial support reward for damages sustained as a result of the
incident of unexpected incidents, insured in the insurance scheme. Most of the economic risk
emerges from the difference in the anticipated risk. Result. Insurer uses a range of methods to
identify, track and handle risks. Some of them include stochastic modeling, value at risk (VaR),
tail risk (Tail VaR). Calculation of economic capital, stress tests and more and recognition of
negative capital effects of this. Risk assessment is the method of assessing where the risk lies.
This is the danger can be linked to land, damages, nature, life, fire, liability, natural calamities.
HISTORY OF LIC
Insurance in some ways dates back to prehistory. Initially people traded goods in their own
villages or meeting places. But with the passing of time, they turned to neighboring villages to
sell. There were two types of economies in human societies: natural or non-monetary economies
(using barter and exchange without a centralized or uniform collection of financial instruments)
and monetary economies (with markets, currency, financial instruments and so on). Insurance in
non-monetary economies includes mutual assistance arrangements. Such economies can
theoretically help organizations such as cooperatives, guilds and proto-states-institutions that
operate to provide mutual protection and to promote mutual survival in adverse circumstances.
'Pay-off' for such 'insurance' does not entail financial transactions. If the house of one family is
lost, the neighbors are committed to helping to restore it. Public granaries represented another
early form of insurance to prepare for famines.

The first life insurance schemes were implemented in the early 18th century. The first life
insurance undertaking to be provided was the Amicable Society for Perpetual Assurance,
established in London in 1706 by William Talbot and Sir Thomas Allen. The first life insurance
policy was that each member received a fixed annual payment per share from one to three shares,
with the age of twelve to fifty-five members being considered. At the end of the year a part of the
"amicable contribution" was split between the wives and children of the deceased members, in
proportion to the number of shares kept by the heirs. The Amicable Society started with 2,000
members. The first life table was written by Edmund Halley in 1693, but it was only in the 1750s
that the mathematical and statistical methods required to establish modern life insurance were in
place. James Dodson, a mathematician and actuary, tried to create a new company that provided
premiums aimed at correcting the risks of long-term life insurance plans, after being denied entry
to the Amicable Life Assurance Society due to his advanced age. His disciple, Edward Rowe
Mores, was finally able to create the Society for Equitable Life and Survival Guarantees in 1762.
It was the world's first mutual insurer and pioneered age-adjusted premiums based on mortality
rates that set "the framework for scientific insurance practice a nd development" and the basis of
modern life assurance upon which all life assurance schemes were subsequently based".
Standard valuations were also used to balance conflicting interests. The Society sought to treat
its members equally and the directors tried to ensure that the policyholders earned a reasonable
return on their respective investments. Premiums were limited by age, and anyone could be
admitted regardless of their state of health and other circumstances.

IRDA- The Insurance Regulatory and Development Authority of India is an independent

legislative body responsible for controlling and promoting the insurance and re-insurance
industries in India.
IRDA Act.
The IRDA Act was passed by the Parliament in December 1999 and was approved by the
President in January 2000. The main purpose of the Authority is to protect the interests of
insurance policy holders and govern, encourage and ensure the orderly growth of the insurance
industry and for matters relevant thereto or incidental thereto.' Under this Act, the Insurance
Controller Act 1398 has been replaced by a newly constituted authority called the Insurance
Regulatory and Development Authority (RDA).
Important Role of IRDA in the Insurance Sector in India:
India's insurance industry dates back to the early 1800s and has evolved over the years with
greater accountability and emphasis on protecting the policyholder's interests. When framing
rules and regulations, the IRDA plays an integral role in stressing the importance of
policyholders and their interests. Here are the important roles of the IRDA:
• To protect the interests of the policy holder.
• For the good of the common man, to help speed up the development of the insurance
industry in an orderly manner.
• To provide long-term funds to speed up the economy of the country.
• Promoting, setting, implementing and controlling high standards of honesty, fair dealing,
financial soundness and insurance company competence.
• To ensure that legitimate disputes are resolved more easily and effectively.
• The IRDA has set up a grievance redress forum to ensure the policyholder is covered in
order to deter malpractice and fraud.
• Encouraging accountability, fairness and systemic insurance conduct in the financial
markets.
• To develop a stable management system to ensure that insurers meet high standards of
financial stability.
• To take effective steps where there is no maintenance of such high standards.
• To ensure the industry's optimal level of self-regulation.
DIFFERENT TYPES OF LIFE INSURANCE POLICIES:
Term Plan: A pure life cover is a term insurance policy and its form is very easy to comprehend.
For a certain period of years, you pay a fee to an insurance provider and in return, if you were to
suffer an untimely death, the insurer agrees to pay your family the amount promised. With no
maturity value, it does not come (apart from Term Plan with Return of Premium or TROP).
Benefits: -
 • Compared to other life insurance options, it offers better protection with lower premiums.
• A maturity gain comes with TROP, which is the cumulative total of all premiums
received. No amount of interest is paid on that.
Whole Life Insurance Policy: As the name implies, you are covered for life by a whole life
insurance policy. Where the premium amount is paid on a regular basis, the insurer agrees to pay
the insured sum to the policyholder's nominee after the death of the policyholder. It also includes
a saving component, apart from the amount guaranteed.
Benefits: -
• It doesn't have a fixed term, unlike other insurance plans. Upon the death of the
policyholder, the amount guaranteed is paid to the dependent.
• It also has a saving aspect, apart from the amount assured upon your death. You can re-
invest it to raise the cash amount or remit a portion of the cash value over your lifetime. a
credit against the saving part may also be used.
Endowment policies: Once again, endowment programs are a blend of savings and security. If
the premiums are collected on schedule for a certain number of years, in the event of the
untimely death of the policyholder, insurers agree to pay the guaranteed amount to the nominee.
In the meantime, if the policyholder survives the policy term, as the maturity benefit, he/she gets
a lump sum payout.
Benefits: -
• There is a saving factor in addition to the amount guaranteed. This can be used to make
goal-based investments, and you can use a loan against it in the case of financial
emergencies.
Moneyback policy: Moneyback policies are a mix of insurance and savings as well. But the
main benefit of this scheme is that during the policy tenure, a portion of the amount guaranteed is
charged to you at a regular interval. The remaining amount is paid at maturity, along with the
bonus. For some other life insurance policy, the advantage is not available. However if the
policyholder dies during the tenure of the policy, then the entire amount guaranteed is paid to the
candidate, considering the survival benefits already earned by the policyholder.
Benefits: -
 • The greatest benefit of moneyback policies is the liquidity it offers, i.e. at the daily period
you receive a percentage of the amount guaranteed.
Unit Linked Insurance Policies (ULIPs): A mix of insurance and investment is a unit linked
insurance plan, better known as a ULIP. The debt and equity investments are made by a fund
manager appointed by the insurance company. Policyholders, however, can choose when and to
what degree they want to invest in debt or equity. A lump sum amount is paid to the policyholder
at maturity even if there are no assured returns. However, if he/she dies during the tenure of the
policy, the insurer owes him/her a fixed amount.
Benefits: -
• While there is no guaranteed return, ULIP offers a higher return with a savings portion
than conventional policies.

LITERATE REVIEW:
Dr. B.S.R. Rao [1976], in his book titled 'Functioning of LIC. An Appraisal', opines "there
appears to be considerable force behind the argument for splitting up the Corporation. The
setting up of five autonomous corporations cannot be considered as going back on
nationalization because the nature of competition prevailing in the pre-nationalization period is
very much different from the type of healthy competitive spirit that would develop if several
independent corporations are set up.” Establishment of autonomous corporations would promote
healthy competition among them with regard to procurement of new business, competitive
premium rates, attractive bonus payments and effective after sales service.
Era Sezhiyan Committee (1980) recommended splitting of LIC into five independent non-
competing corporations. The committee was convinced that "the present unitary structure had
been a major factor inhibiting the progress"
Meera C. and Eswari M. (November 2011), in modern aggressive environment services are
ameliorate accumulating more denotation. Nowadays, greater absorption is paid to all the bank
customer touch points, address to optimize the reciprocal and user-friendly services. The aim of
the study by is to crumb the customers bliss towards cross selling of insurance products and other
services accomplished by private sector banks.
Friar F. and Khanbashi M. et al (December 2011), this study is one of the most conscious
actions taken in alluring and gratifying needs of customers is chattering a charismatic
information mechanism and feedback process between organization and customers. The aim of
this study by, is finding of the variation between anticipation of the employees and customers
towards service quality in insurance industry of Iran. The study revealed that there is cogent
difference between the anticipation of staff and customers towards the tangibles dimension while
the anticipation of both the groups towards the other dimensions is homogenous.
Gautam V and Kumar M (March 2012), the present research is an effort, to allegories the
attitudes of Indian consumers towards the insurance services. The study has been made by
accumulating the antiphon of consumers through structured questionnaire on five-point Likert
scale. The decree of the present study may act as an important aspect for the insurance
companies in Indian market to flounce marketing strategies established on socio demographic
and economic factors.
V Ravi and Gulati K et al (2012), the financial ameliorate posture a lot of confrontation
before the Indian insurance sector, one of the considerable demos faced by insurance companies’
accord with the customer complacency and adherence. The study revealed the considerable
observations in customers’ expectations and perceptions from insurance services thus knowing
dissatisfaction among insurance company customers.
Babu P. R. (February 2013) in his study by, on the private sector life insurance companies
have been making briskly clump in terms of increasing their augmentation and market share
since year 2000. The Indian life insurance system is having cogent base on mixed economic
system where in the public sector engaged a monopolistic position in life insurance business.
Private players play an extensive aspect in life insurance business more energetic and customer
friendly.
Lee C. and Chang C. (2012) in an article explore the effects on the development of life
insurance sector of a broader range of financial liberalization policies. Using a panel data for 50
countries including India over 1996-2005, the study concludes that financial reforms alone do
not exert a significant impact on life insurance development.

EFFECTS OF LIBERALISATION ON LIFE INSURANCE SECTOR OF INDIA

Stichele M. V. (2003) mentioned that a gradual and considered approach to the deregulation of
financial services is needed to make financial liberalization beneficial to a country. The presence
of foreign insurance companies carries with it some risks of financial instability.
Vijayakumar A. (2004) in his article argued that opening up of the insurance sector in India,
fostered competition, innovation and product variation. He adds further in this context that one
has to consider aspects such as demand for pension plan, the role of information technology, the
role of regulator, and the role of post office network In sale of insurance.
Krishnamurthy S. (2005) is of the opinion that with liberalisation and the entry of private
players' Indian life insurance sector is showing significant changes. It has shown extremely
satisfactory results in terms of premium income and new policies sold, but a huge potential still
remains untapped. The opening up has seen improved efforts on educating the customer
regarding insurance needs.
Bedi H. S. and Sigh P. (2011) in 'An Empirical Analysis of Life Insurance Industry in India'
provide an empirical analysis of life insurance industry in India for the period 2001 to 2008. The
study concludes that liberalisation, privatisation and globalisation have had positive influence on
LIC and its performance. It states that there is no significant change in the pattern of investments
strategy of LIC over the period 1980 to 2009.

ISSUES THAT EMERGE FROM THE REVIEW OF LITERATURE

The above literature review points to the fact that a systematic review Analysis of the effect of
liberalization as a whole on the life insurance industry all is missing. In order to assess the effect,
overall analysis is needed on the life insurance market and to assess further policies of
liberalization. The literature review pointed to certain problems, as described, over above. Of
these the investigator concentrated on the problems of the the effect of liberalization on the life
insurance industry, the consumer market, orientation, understanding of life insurance and the
effects of health insurance LIC of India.

CHAPTER 2
RESEARCH METHODOLOGY
MARKET
The present research is an empirical study of the effect of liberalization on the
Life insurance marketing in India. The research includes both secondary and primary tests.
Collection and review of data. Secondary data sources have been used to explain. The current
business situation. The primary objective of the analysis was to quantify Impact of liberalization
on the life insurance market from the point of view of the customer, Executive and intermediary.
For this reason, an exclusive customer survey. The executive and agent have been carried out
separately. As a consequence of the analysis. Operational system for controlling the efficiency of
life insurance marketing Services have been built in a modified scenario/environment. The
primary focus of this research was to clarify the decision to buy insurance from an insurance
provider. Market behavioral outlook. Four experiments were performed to explain life Insurance
purchasing conduct among Indians.
These four findings are based on the following studies.
(i)understanding the effects of a variety of socio-economic and demographic factors on life
insurance provisions.
(ii) recognizing the decision on the life insurance purchase process using the theory of expected
behavior.
(iii) the influence of the various purchasing motivations on the choice of purchase. Various types
of life insurance policies and
(iv) the impact of purchasing motives on life; insurance coverage has lapsed.
The National Council of Applied Economic Economics gathered the data used in this study.
Study (NCAER) via the Indian Survey of Human Development (IHDS). As per the situation
Definition of the data available on the IHDS website, the data is multi-topic a survey of 1503
villages and 971 urban communities across India. The first round of surveys it was carried out in
2004-05 and involved 41,554 households. In the second round of the survey in 2011–12, most of
these households were re-interviewed. Nevertheless, with the addition of some the second wave
of new households comprised 42,152 households. The survey collected data on a broad range of
socio-economic subjects, including family issues. Structure, poverty, jobs, revenue, expenditure
on consumption, pattern of ownership, and data on fertility and so on. Using stratified random
sampling, the rural sample was drawn and the stratified sample of towns and cities within states
was a stratified sample chosen by probability proportional to population (PPP). Since we are
interested in dynamic rather than static variables influencing the market for insurance, the
In particular, the availability of short panel data is helpful for our purposes. Since finding
missing persons we provide data from 34,885 households that were surveyed in both periods of
time. In order to get to understand the improvements in household features that may be
associated with acquisition or acquisition we also created several derived variables from the
discontinuance of life insurance coverage from the raw data showing changes in financial
position, changes in bank ties, loans, as well as changes in the composition of the family, such as
a newly married, or the birth of children.

OBJECTIVES & SCOPE OF STUDY

The following goals have been carried out to be accurate in the study:
1. To assess the substantial discrepancy between expectations and perceptions of different
aspects of the quality of service in LIC, and
2. To give recommendations to current policy holders on the basis of a report to enhance quality
services
3. To consider the understanding of LIC's customer interaction activities.
4. To consider the variables affecting the satisfaction of policyholders in LIC products
5. To study the response of policyholders to LIC marketing activities.
6. Identifying the reasons for switching from LIC to other companies
7. Identifying the level of satisfaction between rural and urban clients
Managerial usefulness of study
LIC was one of India's leading organizations that incorporated the leverage of information
technology in their services and business. In LIC, data relating to nearly 10 crore policies is
stored on computers. Over the years, we have gone in for appropriate and suitable technology.
1. The factors affecting the policy segment do not vary between rural and urban markets.
2. The extent of understanding of LIC's Consumer Representative Activities by the annual
income of the policyholder does not vary significantly.
3. The level of satisfaction between rural and urban customers is not important.

POLICYHOLDERS
The study universe consists of the policyholders of LIC in the Thanjavur Division. The simple
policyholders were selected from the sample frame, chosen by three branch managers and five
agents. The sample was then grouped as urban and rural clusters at the beginning of each cluster,
a sample of 1507 policyholders and policyholders were approached. All the requisite data was
collected from the 300 policyholders.
The researcher used Descriptive Research Design to analyze the quality of service, the level of
knowledge, the level of satisfaction and its main dimensions in the life insurance sector. The
questionnaire has been split into two parts. In the first section, information was collected on
different socio-economic and demographic criteria, such as income, age, occupation, educational
qualifications, etc. In the second section, respondents were asked to determine the parameters.

Awareness level, level of satisfaction and quality of service, applicable to the insurance product
of LIC on a 5-point scale (strongly agree "to "strongly disagree").
In particular, these aspects of service quality have been established through a thorough
exploratory identification procedure. This involves two focus group discussions with 300 (rural
and urban) life insurance policyholders and eight in-depth interviews (tree with branch managers
and five with LIC agents). Content review of focus group discussions and in-depth interviews is
conducted.

Limitations of study
As the study of primary & secondary research we find out some limitations, such limitations are:
1. The key drawback to the research was the time available to perform it which affected the
collection and interpretation of the results.
2. A sufficient number of respondents from all LIC services could not be included.
3. The analysis is verified only to the satisfaction of LIC's policyholders and other relevant
concerns are outside the current preview.
4. Due to time limitations, the researcher covered only a small period of study, i.e. 2005-2006 to
2009-2010.
5. Sample size is limited to just 300 participants. The size of the sample does not reflect the
market as a whole.
6. It is difficult to know if all respondents provided correct information, some respondents
appeared to provide inaccurate information.
CHAPTER 3
Result/Analysis of the work: -
Point of view from policy holders:
A total of 580800 policyholders were found to be there are seven major life insurance firms in
the city of Coimbatore. Out of which, a study of 0.30 percent of one public sector and six private
sector policyholders, they picked insurance firms. The proportion of subjects included in the
survey was distributed as:
LIC (887), Bajaj Allianz (138), HDFC Standard (87), ICICI Prudential (163), Birla Sun Life
(96), SBI life (128) and Reliance Life (243). In total, 1,742 subjects were sampled surveyed for
the efficient conduct of the report, including nearly 42 schedules for interviews. Since the
respondents and respondents did not know the responses, they were considered troublesome,
biases of response. These 42 schedules were also deducted from the actual sample size and the
sample size. Themes of the sample were limited to 1700.

Findings:
I) Demographic and Socio-Economic Profile
• The empirical data analysis found that 64.90 per cent of the sample subjects surveyed
were male and the remaining 35.10 per cent of the sample subjects were female and
32.80 per cent of the respondents were professionally trained. Furthermore, it was found
that 64.90 per cent of the respondents were married.
• It has been found that 56.80 per cent of respondents were working in the private sector
and that 58.40 per cent of respondents had lower incomes.' It's 1 crore. Furthermore, it
was found that 61.80 per cent of the survey subjects had a wealth value of less than.5
lakh. It has also been inferred that 49.40 per cent of respondents in their families have 4
to 6 members.

II) Awareness Level

• It has been apparent from the research study that 50.80 per cent of respondents have been
aware of the life insurance policy for the past 5 years or less in terms of longevity. In
addition, 27.94 per cent of respondents are aware of the money back scheme.
 • It has been noted that, out of 1,700 respondents surveyed, the majority i.e., 50.59% of
respondents are aware of the Life Insurance Corporation of India.
III) Renewal and Claims
• It has been calculated from the empiric analysis that the majority of respondents, i.e.,
81.60 per cent, periodically renew their policies by paying for them.
• The sum of the premium. Furthermore, it has been noted that 51.92 per cent of the total
was found. Respondents have not renewed their policy on a regular basis due to their
financial condition.
• It has been reported that 33.21% of the policyholders surveyed have renewed their policy
on a regular basis because they regard insurance as a must.
• As a result of the study process, 82.47% of the population was observed. Respondents
have not yet submitted any applications for their plans, and 47.32% of respondents made
only one claim on behalf of their insurance policies.
IV) Problems
• It was determined from the empiric analysis that the bulk, i.e., the average, was the
average. 2.72 of the respondents claimed that at the time of the hearing, the workers were
indifferent to claim settlements.
• With the conduct of the Chi-Square exam, it was concluded that there were problems
serving policyholders, when using programs, varies from one insurance policy with other
business.
• It has been concluded from the research report that 71.90 per cent of the population is
inferred. Respondents said that they did not feel any change in the service offered by the
companies.
Point of view from market
Statistics:
Complete Gross Premium, written for FY2018-19, was approximately $100 billion. Thus the
valuation of total write premiums (Life insurance + Non-Life insurance) in India in FY2018-19
was around Rs.7 Lakh Crore. If we compare this with the Mutual Fund Industry, the overall
inflow to the mutual fund industry is usually about Rs.1-1.5 Lakh Crore (that to in a good year).
And we can clearly see the growth prospects of the insurance industry in the coming years.
Out of the overall premium for Rs.7 Lakh Crore in FY2018-19,
75%: premium for life insurance providers (Rs.5.25 Lakh Crore)

Percent share of the public and private sector in the life insurance sector
1. If we take into account the life insurance market, public sector organizations contribute
almost 66.2 per cent of the total written premium. LIC (Life Insurance Company of India)
is a significant contributor to the segment of public life insurance. That is, out of a total
premium of Rs.100 for life insurance in the world, LIC is contributing Rs.66.2 in gross
premium for FY2019.
2. In addition, Life Insurance's new-business premium contribution is Rs.52. The shares of
HDFC Regular Life, SBI Life Insurance and ICICI Prudential Life Insurance are also
rising considerably. In FY2019, all private sector players contributed 33.8% of the Life
Insurance Market.
Insurance Penetration in India
• This is a very major opportunity for the insurance sector in the Indian economy, as we are
down 2% from the world average insurance penetration.
• With the rise in India's per capita income, insurance penetration is projected to grow by
50% by 2023. It suggests the long-term visibility of earnings for the insurance industry in
 the coming future. As a result, the insurance companies listed would benefit from
premium valuations hand-in-hand.
i. The life insurance industry posted a PAT of Rs 84.4 billion compared to Rs 85.1 billion
in FY18. Of the 24 life insurers in service, 22 have announced earnings.
ii. In FY19 (until January 2019), the premium for new life insurance company rose by 3.9%
year-on-year to Rs 1.6 trillion. Gross direct premiums for non-life insurers amounted to
Rs 1.4 trillion, with a year-on-year growth rate of 12.7%.
iii. There has been a lot of investment in this field over the last few years. Indian e-
commerce giant Flipkart has joined Bajaj Allianz General Insurance in offering
personalized insurance plans for cell phones sold on Flipkart.

Premiums Market Share in First Year Life Insurance (FY2019)

• In the market share contribution referred to above, LIC is not yet a public firm. But the
next three private insurance players – HDFC Regular Life, SBI Life Insurance, ICICI
Prudential Life Insurance – are all listed firms.
• A thorough overview of the best Multibaggers available on our stock subscription page.
Here, we covered the study of almost all listed insurance companies, be they general
insurance or life insurance.
CHAPTER 4
CONCLUSION & RECOMMENDATIONS
The entry of private insurance firms into the Indian insurance market has caused a series of
changes in the industry. Even with good competition in the marketplace, the study shows that the
public sector giant LIC dominates the Indian insurance industry. In today's dynamic
environment, customer loyalty has become an important part of retaining customers, not just
increasing, but also serving. Increased rivalry, a wide variety of product offerings and various
distribution channels make businesses value happy and highly profitable customers.
Furthermore, the study shows that most of the respondents are aware of the Life Insurance
Corporation of India and have gained more knowledge of the money back scheme. Most of the
respondents bought life policies for their voluntary interest, because they have a feeling of
insecurity, and it is also found that their own life policies make the respondents feel safe.
Customer service is the vital success factor for an organization and the provision of top service
Such customer service separates excellent customer service from indifferent customer service. In
today's fast-paced world that surrounds industries, corporations are faced with the pressure to
find foolproof ways to handle their businesses. The insurance industry in India is no exception
and is witnessing progressive changes. The insurance industry is currently witnessing intense
competition and the major players, including LICs, are under pressure. Instead, it may be argued
that life insurance firms keeping the client was cheaper.
Then find new clients.
Insurance firms that do not have the functions of eCommerce have stated that they will be able to
require infrastructure when the need occurs. According to them the void could be filled
immediately, as they state that technology is not too costly to afford. They also claim that they
do not face the problem of shortage for trained eCommerce workers. Some insurance providers
claim that consumers are not ready to purchase insurance plans online. They also suggested that
low internet penetration is also one reason they see as a hindrance to eCommerce deployment.
When the entities are considered, most insurance firms assume that the reluctance to change is
yet another challenge they face, eCommerce Deployment. The insurance regulators are not very
well aware of the idea of eCommerce in the insurance industry. But they are not against the
adoption of eCommerce in the industry. According to them, there is no separate rule on the
online insurance transaction.
The future looks bright for the life insurance industry with a range of improvements to the
regulatory system that will lead to more changes in the way the industry performs its business
and engages with its customers. The total insurance market is expected to hit USD 280 billion by
2020. The country's life insurance industry is projected to grow by 14–15 per cent annually over
the next three to five years.
Forward-looking, insurers are well positioned to optimize the industry's long-term growth
potential in the sense of a stable regulatory climate, favorable demographics and growing
consumer digital adoption.

RECOMMENDATIONS:
• As several other industries, there is a need for corporate and ecosystem collaboration with
start-ups to find solutions that can help revolutionize this industry. Ivy Camp and HDFC
ERGO have just launched Insure NXT and the insurance accelerator to find and curate
startups that could revolutionize this industry.
• Essentially, the insurance industry would provide full self-employment for our country's
youth! LIC Agency is a fantastic opportunity for unemployed young people, it can create
self-employment to a large degree! When the population grows, the insurance cover does
not grow to that degree!
BIBLIOGRAPHY
• Research papers on LIC
• Anoop K. Kaushal and S.K. Mohanty, Insurance Law Manual, Universal Law Publishing
Co. Pvt. Ltd., 2002.
• Balasubramanian T.S. and S.P. Gupta, Insurance Business Environment, IC-12, Insurance
Institute of India, Mumbai, 2000.
• Briyo et al., Insurance from Underwriting to Derivatives, John Wiley & Sons Ltd., 2001.
Christopher Lovelock, Services Marketing—People, Technology, Strategy, Prentice-Hall,
2001.
• Claims Management, Volume I & II, ICFAI Press, 2002.
• Life Insurance in India: Opportunities, Challenges and Strategic Perspective (Response
Books) H. Sadhak
• Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management:
11 (Innovations in Financial Markets and Institutions) by J. David Cummins and Anthony
M. Santomero.
• The Life Insurance Industry in India: Current State and Efficiency Paperback by Tapas
Kumar Parida.