Page 234 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 13: Insurance Industry: India

Notes
12 02.05.2001 Bajaj Allianz General Insurance Company Limited
13 02.08.2001 ING Vysya Life Insurance Company Private Limited
14 03.08.2001 ICICI Lombard General Insurance Company Limited.
15 03.08.2001 Bajaj Allianz Life Insurance Company Limited
16 06.08.2001 Metlife India Insurance Company Pvt. Ltd.
17 03.01.2002 AMP Sanmar Life Insurance Company Limited.
18 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
19 15.07.2002 Cholamandalam General Insurance Company Ltd.
20 27.08.2002 Export Credit Guarantee Corporation Ltd.
21 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.
22 06.02.2004 Sahara India Insurance Company Ltd.
23 17.11.2005 Shriram Life Insurance Company Ltd.

Self Assessment

Fill in the blanks:
9. New players may tend to favour the “……………………………” layer of the urban
population.
10. The rural sector is a perfect case for ……………………………………
11. The liberalisation of the insurance sector promises several new job opportunities for
those who are equipped with degrees in ……………………………
12. Huge capacity is likely to be created in the area of ……………………………………….

13.4 The Way Ahead

You must remember that with the entry of competition, the rules of the game are set to change.
The market is already beginning to witness a wide array of products from players whose
number is set to grow. In such a scenario, the differentiators among the different players are
products, pricing, and service. Consumers are increasingly more aware and are actively managing
their financial affairs. Today, while boundaries between various financial products are blurring,
people are increasingly looking not just at products, but at integrated financial solutions that
can offer stability of returns along with total profits. To satisfy these myriad needs of customers,
insurance products will need to be customised. Insurance today has emerged as an attractive and
stable investment alternative that offers total protection – Life, Health and Wealth Protection.
Consumers today also seek products that offering flexible options, preferring products with
benefits unbundled and customisable to suit their diverse needs.
The trend in developed economies where people live longer and retire earlier is now emerging
in India too. With the breakdown of traditional forms of social security like the joint family
system, consumers are now concerned with the need to provide for a comfortable retirement.
This trend has been further driven by the long-term decline in interest rates, which makes it all
the more necessary to start saving early to ensure long term wealth creation. Today’s consumers
are increasingly interested in products to help build wealth and provide for retirement income.
This all adds up to a major change in the demand for insurance products. While sales of traditional
life insurance products like individual, whole life and term will remain popular, sales of new
products like single premium, investment linked, retirement products, variable life and annuity
products are also set to rise.

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