insurance ppt

BRIEF OVERVIEW OF LIFE INSURANCE INDUSTRYBy Akhila Hebbar

MBA++ 1st Year

What is Insurance ?

Definition: It is a financial protection against potential future losses.

Insurance is a hedging instrument against future contingent losses.

Protection of contingent losses is done in exchange for a payment.

This payment is called as Premium in the insurance industry.

Types of insurance

A. Life InsuranceB. Non-life insurance:1. Marine2. Fire3. MiscellaneousLife insurers transact life insurance

business whereas general insurers transact the rest.

History

Establishment of Oriental Life Insurance company in 1818

The Indian Life Insurance Companies Act, 1912

Malhotra Committee set up in 1993 initiated reforms in the Indian insurance sector:

A. Offering operational autonomy to the insurance sector

B. Formation of IRDA in 2000

Overview of the life insurance segment

Market share of life insurance companies

Types of life insurance

1. Term Plan2. Whole Life3. Endowment4. Money back5. Annuities and pension

ULIP’S

A hybrid product that combines insurance and equity investment.

A Unit is the component of the Fund in a Unit Linked Insurance Policy.

The returns in a ULIP depend upon the performance of the fund in the capital market.

Charges in ULIP

1. Premium allocation charge2. Mortality charge3. Policy administration charge4. Fund management charge5. Surrender charge

Underwriting

Definition: Underwriting is a process that large financial service provides use to asses the eligibility of the client to receive their products.

Importance of underwriting Underwriting guidelines Classification of applicants:A. StandardB. Sub-standard

Reinsurance

What is Reinsurance?

Reasons for reinsurance

The major reinsurers are Munich Re, Swiss Re, Berkshire Hathway.

Regulation of insurance industry

Regulation of the industry governed by IRDA

Section 14 of the IRDA Act, 1999 lays down the duties, powers and functions of IRDA

Ombudsman

Definition: A man who investigates complaints and mediates fair settlements, especially between aggrieved parties such as consumers or students and an institution or organization.

The insurance ombudsman was created by Government of India notification on 11th November, 1998

Functions of Ombudsman.

References

www.irda.com www.policybazar.com

Thank You !!