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Insurance

Business
Rajesh Kanna
May’18.
Contents
1. Industry Dynamics
2. Advantage India
3. Structure- Offline & Online- Emerging players
4. Why selling Insurance ?– Revenue and Value addition
5. Challenges in Current model( TATA AIG)
6. Why corporate Agency?
7. Way forward
8. Business Projection
9. Support&Stakeholders.
Insurance Industry- Summary
•The overall insurance industry is expected to reach US$ 280 billion by 2020
•The domestic life insurance industry registered 17.65 per cent y-o-y growth for new business premium
in
Rapidly growing •Gross direct premiums for general and health insurance segment reached Rs 1.28 trillion (US$ 19.88 billion) in
FY 17
insurance •Gross direct premiums for non-life insurance industry increased by 17.7 per cent y-o-y in FY18 2
segments

•The market share of private sector companies in the non-life insurance market rose from 13.12 per cent in
FY03 to 48.01 per cent in FY18 3 ( Big Advantage).
Increasing private
sector contribution

•Pradhan Mantri Fasal Bima Yojana (PMFBY) covered 50.9 million farmers in India in 2016-17.
•Enrolments under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) reached 130.41 million in 2017-18.
Crop, health and •Strong growth in the automotive industry over the next decade to be a key driver of motor insurance.
motor
insurance to drive
growth
Advantage India
Strong Demand Attractive Opportunities

Growing interest in insurance among


Life insurance in low-income urban
People.
areas
innovative products and
Health insurance, pension segment
distribution channels aiding growth
Strong growth potential for micro
Growing use of internet has started
insurance, especially from rural areas
increasing demand

Increasing Investment Policy Support

Insurance sector companies in India Advantage India


Tax incentives on insurance products
have raised around Rs 434.3 billion
Passing of Insurance Bill gives IRDA
(US$ 6.7 billion) through public issues
flexibility to frame regulations
in 2017.
Clarity on rules for insurance IPOs
Increase in FDI limit to 49 per cent
would infuse liquidity in the industry
from 26 per cent, approved in 2016,
Repeated attempts to make the sector
will further fuel investments

Selling Insurance is very attractive in the Current Economy& Social conditions.


Insurance Sales - Offline & Online- Focus on Emerging players

Bank Branches( 70% in Emerging Players-Online-


FY 13 dropped to 30% in Insurance Brokers/Corporate Paytm/Web Aggregators-
Agency/Mkt lead Generators policy Bazaar) &Offline-
FY 17) Novopay

Leading Insurance Companies spend more money in Building Emerging Channel even
though Business contribution is at <20% to overall Business- Invest in Future.
Why Insurance as Product line for us?
• First in the Industry
Differentiator • Reason for selecting
in Market NP over others ?
Place
• New on-boarding
Story

One more • Margin for Non life


product line @21%
with
excellent • Margin on Life @
Margins 40%

• New Category
Create new
Retailers-Travel
segment Agents , Insurance
Retailers-Non and Telecom (large
Remittance & base)
AEPS outlets
• Help us in driving 5
lakh Retailer Tgt
Why Corporate Agency?

1.Margin will be highest for this Channel. In general Life Ins pays upto
40% and non life up to 25%.
2.Can get Brand pull by driving co branded activity in our website as
well as @Retailer touchpoints.
3. More options- Integrate up to 3GI&LI . Selling entire range of
products allowed. With this Retailer can compare between 3 quotes
while selling( todays drawback).
4. Negotiation -Schemes and promos will help us in driving Volume.
45 Days Process – Create login /Submit Docs/Appoint PO/AO/Take Test/Get CA Licence

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