Industry Analysis Of The Life Insurance Sector In India

3412 words - 14 pages

Project Report For International Business Environment

Indian Institute of Management,
February 2014

Submitted to Prof. K. G. SAHADEVAN
GROUP B1, Section – B

Arjun Thukral (FPM14002)
Aksharee Goyel (PGP29074)
Pranay Tamang (PGP29095)

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 premium collected (FY12)

Fig 4.6: Households Saving Projections

Fig 4.7 Indian residents shifting from low-income to high-income groups


We hereby declare that this submission, entitled “INDUSTRY ANALYSIS OF LIFE INSURANCE SECTOR IN INDIA” is our own work and that, to the best of our knowledge and belief, it contains no material previously published or written by another person or source. It does not contain any material which has been accepted for the award of any other degree or diploma of the university or other institute of higher learning, except where due acknowledgment has been made in the text.

Name: Arjun Thukral
Roll No.: FPM14002
Date: February 16, 2014

Name: Aksharee Goyel
Roll No.: PGP29074
Date: February 16, 2014

Name: Pranay Tamang
Roll No.: PGP29095
Date: February 16, 2014

Executive Summary

Ranked 10th among 156 countries, India is among the top insurance markets of the world. Life insurance sector is one of the fastest growing segments with CAGR of 20.1% (from USD11.5 billion in FY03 to USD59.9 billion in FY12).The share of private...

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