scholarly journals Growth of Indian Life Insurance Density and Penetration

2017 ◽  
Vol 16 (1) ◽  
pp. 1-20
Author(s):  
R Sivarama Prasad ◽  
R S NSharma
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Private Life ◽  
Insurance Sector ◽  
Life Insurers ◽  
Life Insurance Industry ◽  
Insurance Density ◽  
The Government ◽  
Set Up ◽  
Indian Insurance

The Government of India nationalized insurance industry in 1956 on 19th Januaryleading to the amalgamation of154 Indian, 16 non-Indian Insurers and 75 provident societies, in total 245 Indian and foreign insurers, to form the Life Insurance Corporation of India. The Life Insurance Corporation of India, a public sector corporation, enjoyeda monopoly in the business for four decades until the entry of private life insurers with foreign joint ventures having 26% Foreign Direct Investment(FDI).As per one of the major recommendations of Sri R N Malhotra committee, on 19th April 2000, Insurance Regulatory and Development Authority was set up by the Government of India through the passing of an act of the Parliament. The IRDA aimed to promote insurance and protect the insured. Since its formation, the IRDA has been proving itself successful in promoting orderly growth and development in Indian Insurance sector. This study is an attempt to study life insurance density and penetration in Indian life Insurance industry toassess the growth in theexpansion of life insurance business in India. An analysisis made, and some conclusions are drawn with the help of growth percentages and trend calculations

Life Insurance sector in India: A decade of change

2016 ◽  
Vol 2 (3) ◽  
Author(s):  
Mitali Dutta
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
New Products ◽  
Scope For Growth ◽  
Insurance Sector ◽  
Life Insurance Industry ◽  
The Social ◽  
The Government ◽  
Buying Behaviour ◽  
Uninsured Population

Life insurance industry has gone through various phases of change in India since its humble beginning in 1938 with the enactment of Insurance Act. After liberalization and privatization, there were drastic changes in the industry since the 2000. The entry of private and global players saw a drastic change in approach. New products were launched and so also the service and operations were boasted to cater to the increasing need of the customers. Apart from improvement in product variants and services, the cut throat competition also brought in misspelling where customers plunged into the purchase of unit linked policies with the promise of quick and higher returns. There is huge scope for growth in this industry since there still exists a very large number of uninsured population in India. In a country like India where the social security is not covered by the government, creating awareness for getting insured is focus of the government. Various policies and programmes have been introduced by the government for this purpose. The paper aims at highlighting the various changes this industry have gone through during the last decade with respect to the perception and buying behaviour of customers and also the various initiatives of the government to increase penetration levels to five per cent by 2020.

scholarly journals LIFE INSURANCE INDUSTRY IN INDIA-AN OVERVIEW

2016 ◽  
Vol 4 (10(SE)) ◽  
pp. 30-36
Author(s):  
N.Senthil Kumar ◽  
K. Selvamani
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Effective Control ◽  
Insurance Company ◽  
Marine Insurance ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurance Industry ◽  
The Government

The first insurer of life was the marine insurance underwriters who started issuing life insurance policies on the life of master and crew of the ship, and the merchants. The first insurance policy was issued on 18th June 1583,on the life of WILLIAM GIBBONS for the period of 12 months. The oriental life insurance company is the first insurance companies in India which is started on 1818 by Europeans at Kolkata. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. In 1956 the life insurance companies was nationalized. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The U.K. With-Profits Life Insurance Industry: A Market Analysis

2009 ◽  
Vol 15 (3) ◽  
pp. 747-777
Author(s):  
C. D. O'Brien
Keyword(s):  
Life Insurance ◽  
Economies Of Scale ◽  
Lower Cost ◽  
Insurance Industry ◽  
Significant Degree ◽  
Potential Effect ◽  
Market Analysis ◽  
Life Insurers ◽  
Life Insurance Industry ◽  
The Impact

ABSTRACTThis paper reviews the market structure of the U.K. with-profits life insurance market and the potential effect on how life insurers operate. We consider the competitiveness of the market, quantifying the increase in the degree of concentration since 2000, and establishing that inherited estates may offer some protection from competition for incumbent firms. However, there is a significant degree of mobility in market positions of leading firms. Analysis of costs indicates some large differences between firms, with larger firms experiencing lower cost ratios, indicative of economies of scale. There are some marked differences in insurers' prices, the data showing that charges tend to be lower on unit-linked than on with-profits policies. The paper suggests that while there are potential concerns about how the market operates for consumers, the impact is limited by the dramatic reduction in new with-profits business.

IndiaFirst Life Insurance: Planning Next-Level Growth by Corporate Entrepreneurship

2021 ◽  
pp. 097226292110109
Author(s):  
Amarpreet Singh Ghura ◽  
Abhishek
Keyword(s):  
Human Resource ◽  
Life Insurance ◽  
Insurance Industry ◽  
Corporate Entrepreneurship ◽  
Business Leader ◽  
Insurance Sector ◽  
Human Resource Policies ◽  
Life Insurance Industry ◽  
Customer Delight ◽  
Annual Premium

IndiaFirst Life Insurance (IFLI) became the 23rd entrant in India’s life insurance industry by launching its operations in November 2009 (IndiaFirst Life Insurance, 2015). IFLI went on to break-even within 6 years of its inception by declaring maiden profits in FY 2015–2016 (IndiaFirst Life Insurance, 2015). The company stated its vision as—‘To become a Life Insurance and Pension business leader that provides significant value to all its stakeholders enabling a true customer delight’ (IndiaFirst Life Insurance, 2015). In order to implement its vision, IFLI worked its human resource policies and processes around the ‘Employees First’ approach (IndiaFirst Life Insurance, 2015). These processes had helped IFLI to become the fastest-growing company in the life insurance sector, and it was ranked 12th amongst the private insurers in terms of market ranking in individual annual premium equivalent for FY 2016–2017 ( Times of India, 2017). The company aimed to become a top 10 life insurance provider in the next few years in India in terms of retail premium business ( Times of India, 2017).

Determinants of Derivative Usage in the Life and General Insurance Industry: The Australian Evidence

2003 ◽  
Vol 06 (04) ◽  
pp. 405-431 ◽  
Author(s):  
Marc De Ceuster ◽  
Liam Flanagan ◽  
Allan Hodgson ◽  
Mohammad I. Tahir
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Cost Effective ◽  
Insurance Companies ◽  
Long Tail ◽  
Life Insurers ◽  
Market Risks ◽  
Life Insurance Industry ◽  
General Insurance ◽  
Standard Operating

Core business and financial market risks are not easily reduced by standard operating procedures in insurance companies. Derivatives theoretically provide a cost effective vehicle to hedge these risks. This paper provides an empirical analysis of the determinants of derivative usage as well as the extent of derivative usage in the Australian insurance industry in both life and general insurance companies for the period 1997–1999. Empirical results for the Australian life insurance industry in general confirm the findings of UK and US based research. However, the Australian general insurance industry does not appear to follow the conclusions of previous literature. Our results indicate that for life insurers, the determinants of derivative usage were size, leverage and reinsurance. For the general insurance industry the determinants were size and the extent of long tail lines of business written. As regards the determinants of the extent of derivative usage, these were size and asset-liability duration mismatches for life insurers. For the general insurance industry the determinants of the extent of derivative usage were size, the extent of long tail lines of business written, and the reporting year.

Antecedents and consequences of insurer-salesperson relationships

2014 ◽  
Vol 32 (4) ◽  
pp. 436-454 ◽  
Author(s):  
Tsu-Wei Yu ◽  
Feng-Cheng Tung
Keyword(s):  
Customer Loyalty ◽  
Life Insurance ◽  
Structural Equation ◽  
Insurance Industry ◽  
Content Type ◽  
Life Insurers ◽  
Life Insurance Industry ◽  
Antecedents And Consequences ◽  
Customer Trust ◽  
Depth Interviews

Purpose – The purpose of this paper is to explore the antecedents and consequences of insurer trust and salesperson trust, as well as the relationships between insurer, salesperson, and customer loyalty in order to build a conceptual model which investigates the relationships of insurer trust and salesperson trust, and finds ways to build trust and customer loyalty in the non-life insurance industry in Taiwan. Design/methodology/approach – The data for this study were collected from the customers of non-life insurers’ policyholder service centres and were analysed using in-depth interviews and questionnaires. Structural equation modelling (SEM) was to assess the proposed research model empirically. Findings – This study finds that firm size did not have a significant effect on insurer trust. Customer trust in the insurer was negatively but not significantly related to customer trust in the salesperson. Additionally, when relatives or friends are insurance salespersons; it is easy to build trust with them. Originality/value – This study provides non-life insurers with new avenues for promoting and marketing their insurance.

The role of salespeople in developing life insurance customer loyalty

2016 ◽  
Vol 44 (1) ◽  
pp. 22-37 ◽  
Author(s):  
Tsu-Wei Yu ◽  
Lu-Ming Tseng
Keyword(s):  
Relationship Quality ◽  
Customer Loyalty ◽  
Life Insurance ◽  
Structural Equation ◽  
Insurance Industry ◽  
Customer Relationship ◽  
Content Type ◽  
Life Insurers ◽  
Life Insurance Industry ◽  
Antecedents And Consequences

Purpose – The purpose of this paper is to closely investigate the antecedents affecting relationship quality and its consequences between life insurers and their customers. Design/methodology/approach – Data were collected from the customers of life insurers’ customer relationship management centres and were analysed using in-depth interviews and questionnaires. A structural equation modelling approach is employed to test the hypotheses. Findings – The findings are generally consistent with the literature. This study supports all hypotheses. Finally, the findings of this study confirm that relationship quality mediates the effects of salesperson characteristics and relational selling behaviour on customer loyalty. Originality/value – To the authors knowledge, there is little published research that examines antecedents and consequences of relationship quality in life insurance industry in Taiwan. Therefore, in addition to developing high-quality services, life insurers need to establish and maintain long-term relationships with customers in order to create corporate innovation value.

scholarly journals Determinants of Financial Performance of Insurance Companies: Empirical Evidence Using Kenyan Data

2021 ◽  
Vol 14 (12) ◽  
pp. 566
Author(s):  
Kamanda Morara ◽  
Athenia Bongani Sibindi
Keyword(s):  
Financial Performance ◽  
Fixed Effects ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Random Effects Models ◽  
Insurance Sector ◽  
Life Insurers ◽  
Insurance Firms ◽  
Financial Performance Measures ◽  
The Government

The drivers of financial success of the insurance industry are of interest to several players in any economy including the government; policymakers; policyholders; and investors. In Kenya; there have been relatively few studies on this topic; most of which look at narrow elements that determine insurance companies’ performance. This article sought to explore the components contributing to the financial performance of insurance firms. We employed a sample consisting of 37 general insurers and 16 life insurers for the period running from 2009 to 2018 and utilised panel data methods in order to establish the determinants of financial performance of Kenyan insurers. The pooled OLS; fixed effects and random effects models were estimated with the financial performance measures (proxied by either ROA or ROE) as the dependent variables. The results of the study documented that insurer financial performance and size were positively related. The study also found that insurer financial performance was negatively related to the age variable. The study also unraveled that higher leveraged insurance companies performed better than their lowly geared peers. This article provides broad analyses of the various drivers of financial performance of the insurance industry in Kenya. The findings of this study contribute to the academic literature on the financial performance of the insurance sector in Kenya and Africa as a whole. Furthermore; it gives pointers to the management of insurance companies on the aspects of their business that would need greater attention to drive and sustain superior financial performance.

scholarly journals Complaint Redressal Practices in Public and Private Insurance Companies

2019 ◽  
Vol 8 (12S2) ◽  
pp. 369-374
Keyword(s):  
Public Sector ◽  
Life Insurance ◽  
Insurance Industry ◽  
Private Insurance ◽  
Private Life ◽  
Insurance Companies ◽  
Public And Private ◽  
The Public ◽  
Life Insurance Industry ◽  
Regulations And Guidelines

The life insurance industry of India has 23 licenses -holders running their business in this sector. The Life Insurance Corporation of India (LICI), which is the only player in the public sector, the remaining area is covered by the 22 private sector companies. IRDAI has taken initiatives to provide effective grievance handling machinery to address the grievances of policyholders. Consumer dispute Redressal agency is efficient for handling complaints and easily accessible. This paper examines the regulations and guidelines framed by IRDAI for effective grievance handling and the study would provide some insights into the areas, specifically status of grievances in public and private life insurance companies (LIC, SBI, HDFC, Reliance Life and Bajaj Allianz) and the functioning of consumer dispute Redressal agencies of life insurance sectors.

Performance Benchmarking of the Indian Life Insurance Industry

2015 ◽  
pp. 616-625
Author(s):  
Ram Pratap Sinha ◽  
Nitish Datta
Keyword(s):  
Technical Efficiency ◽  
Life Insurance ◽  
Insurance Industry ◽  
Operating Performance ◽  
Insurance Companies ◽  
Unified Framework ◽  
Performance Benchmarking ◽  
Life Insurers ◽  
Life Insurance Industry ◽  
The Mean

In the last decade, the life insurance companies operating in India have made significant progress in terms of business consolidation. In view of the same, it is of interest to make an enquiry about the operating performance of these companies. This chapter compares 15 life insurance companies operating in India from the period 2005-06 to 2008-09 using the Hybrid Efficiency Model (Tone, 2004). The Hybrid Model provides a unified framework for the estimation of technical efficiency integrating the radial and non-radial characterisation of inputs and outputs. Out of the 15 in-sample life insurance companies, the number of technically efficient life insurers declined from 9 in 2005-06 to 4 in 2006-07 and further to 3 in 2007-08 and 2008-09. The mean technical efficiency scores of the in-sample life insurers declined sharply between 2005-06 and 2006-07 and improved somewhat thereafter.

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