Below Mentioned Are The Some Objectives of The Study
Below Mentioned Are The Some Objectives of The Study
Below Mentioned Are The Some Objectives of The Study
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1.5 : Review of literature –
• Arora R. S [2002] highlighted that LIC was likely to face tough
completion from private insurers having large established network
throughout India.
Page No 4
Chapter – 2
Conceptual Framework
2. National scenario of Life insurance Industry:-
The life insurance industry in India regulated by the Insurance Regulatory
and Development Authority of India (IRDAI). Twenty four life insurance
company are licensed to do insurance Business in India. Out of these
twenty four companies , LIFE INSURANCE CORPORATION OF INDIA[LICI] is
the only public sector insurance company and the rest private sector
insurance company.
India's life insurance industry has been growing at a steady pace. Over the
past few years , the Indian life insurance sector has grown at a compound
annualized growth rate of more than 11%.which is substantially faster than
the average growth rate. The life insurance industry is expected to increase
at a CAGR (Compounded Annual growth rate) of 5.3% between 2019and
2023. India's life insurance penetration (premium as% of GDP) is still low in
India. The insurance penetration was pegged at 4.2% in FY21, with life
insurance penetration at 3.2% and non-life insurance penetration at 1%.
Premiums for India’s life insurance industry is expected to reach RS.
24Lakhs crore (US$ 317.98 billion) by FY31. The market shares of private
insurance companies were 2.0% in 2003 but has grown to 33.7% in terms of
premium on the FY20. IRDAI provides a robust and reliable regulatory
platform for the insurance industry.
LIC of India continues to dominate the market:- Since opening up
the market and Constitution of IRDA 1999 , the number of private
companies has increased with time and has reached 24 in FY20 but
still LIC of India the only public sector company is dominating the
market with 61.6% market share in premium.
Page No 5
Chapter-3
Presentation of Data analysis and interpretation
3.1: Market share of Life insurance companies:-
From the past 20 years privatisation in the insurance sector took place and till now this sector
continuously increasing its market share in terms of both premium and no. of policies. Apart
from LIC which is still holding the top position in both the aspects.
So, we have taken some top performing public and private insurance companies which are
providing life insurance facilities to people and made comparative study by analysing the market
share of premium and No. Of policies made during the year.
Public sector-
1. LIC of India:- Life insurance corporation of India(LICI) is a statutory corporation
established in 1956. It came into existence on 1st September 1956 , with the objectives of
spreading life insurance more widely specially to the rural areas with a view to reach all
insurable persons in the country providing them a financial cover at a reasonable cost.
Over 245 insurance companies and provident socities were merged to create the state
owned Life insurance corporation of India.
Private sector-
1. HDFC LIFE:- It is a joint venture between Housing Development Finance
corporation Ltd(HDFC) and standard life aberdeen of United Kingdom. HDFC Life
was established in 2000 becoming the first private sector life insurance
company in India.
2. SBI LIFE:- It is an Indian life insurance company which was started as joint
venture between State Bank of India(SBI)which is largest state-bank of India and
French financial Institution BNP PARIBAS CARDIF.
3. ICICI PRUDENTIAL LIFE INSURANCE:- It is a life insurance company in India.
Established as a joint ventures between ICICI BANK and Prudential Corporation
Holding Ltd. ICICI Prudential life began its operations in fiscal year 2001 and has
consistently been amongst the top player in the Indian life insurance sector. The
first insurance company in India to be listed on NSE and BSE.
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This data will help to study about the market share of insurance companies in terms
of Market share of a) Insurance premium b) No. Of policies and to compare it
between the both public and private insurance companies.
Market Share of insurance companies 2020-21
Sl. No Companies Premium No. Of policies
1 LICI 52.78% 74.70%
2 HDFC LIFE 14.25% 3.40%
3 SBI LIFE 9.15% 5.30%
4 ICICI PRUDENTIAL 6.35% 3.12%
LIFE
5 OTHERS 17.48% 13.50