Industry Analysis of the Life Insurance Sector in India

3331 Words7 Pages

Project Report For International Business Environment

INDUSTRY ANALYSIS OF LIFE INSURANCE SECTOR IN INDIA

Indian Institute of Management,

Lucknow

Contents

List of Figures 3

Executive Summary 5

1. Introduction to the Life Insurance Industry in India 6

1.1 Evolution of Life Insurance Industry in India 6

1.2 Insurance Regulatory and Development Authority 7

1.3 Growth Factors for Life Insurance in India 8

2. Objective of the Study 9

3. Life Insurance Industry in India 10

4. Analysis of Performance of Life Insurance Sector 11

4.1 Penetration and Density of Life Insurance 11

4.2 Increasing Participation of Private Sector in Life Insurance Segment 12

4.3 Market Share in Life Insurance Segment 13

4.4 Growing Demand Due To Increased Household Savings 14

4.5 Growing Affluence of Middle Class 15

4.6 Favourable Policy Measures 15

5. Competitive Forces and attractiveness of the Life Insurance market (Porter’s Five Forces Analysis) 16

5.1 Rivalry among Competitors 16

5.2 Threat from Substitutes 16

5.3 Threat from New Entrants 17

5.4 Bargaining Power of Buyers 17

5.5 Bargaining Power of Suppliers 17

6. Findings 18

7. Conclusions 18

8. References 19

List of Figures

Fig 1.1: Evolution of Life Insurance Industry in India

Fig 1.2: Life Insurance Sector in India

Fig 1.3: Life insurance premium growth rates in India, emerging markets and the world

Fig 1.4: Growth in Life Insurance Premiums

Fig 4.1 Life Insurance Penetration (%)

Fig 4.2 Life Insurance Density (USD)

Fig 4.3: Share of public and private sector in life insurance segment (%) in 2004

Fig 4.4: Share of public and private sector in life insurance segment (%) in 2012

Fig 4.5 Market share of major companies in terms of total life insurance p...

... middle of paper ...

...consumer attitude and awareness, increase of private and foreign investments, increase in projected household savings; these all are instrumental in the growth of the industry. With CAGR of 20.1%, the industry presents a bright future. There are multiple opportunities in low-income urban and pension markets which can be tapped to unearth huge revenues. Insurance density and penetration is still at very low levels in India. With changing scenarios, this can also be expected to improve in future with the growth of the industry. Pension plan market can also be a major market for life insurers in India. The factors like increasing life expectancy (up to 74 years), enhanced savings and increased employment in the private sector will fuel demand for pension plans.

8. References

www.ibef.org

www.licindia.com

www.irda.gov.in

articles.economictimes.indiatimes.com

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