...com/ (ISSN 2349 – 6037) Performance of Insurance Industry in India: A Critical Analysis B. Nagaraja, PhD Associate Professor Department of Economics, Sri Venkateswara University College of Arts, Sri Venkateswara University, Tirupati (India) Accepted 30 January 2015, Available online 14 March 2015, Vol.4, No.1 (March 2015) Abstract There is ample empirical evidence to vindicate the relationship between the performance of insurance industry and economic development. In spite of it, there is a dearth of empirical research in developing countries and analytical studies are limited in number, particularly in developing countries like India, where the insurance penetration and density are very low compared with international levels. In India, the growth rate of number of new policies issued and the insurance premium are experiencing a negative trend for the last three years. Reasons and contributing factors for this state of affairs is highly essential. The present paper primarily deals with these aspects of insurance industry and a comparative analysis of both private and public sectors of life and non-life insurance industry. Four indicators-Premium incomes, Market Share, New Policies Issued and Claims Settlement Ratio-- have been used to analyze the performance of Insurance industry. Besides, an overview of share of Indian insurance industry in the global insurance industry and inter-state variations in insurance penetration and density in India have been presented...
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...Financial Institutions Center Derivatives and Corporate Risk Management: Participation and Volume Decisions in the Insurance Industry by J. David Cummins Richard D. Phillips Stephen D. Smith 98-19 THE WHARTON FINANCIAL INSTITUTIONS CENTER The Wharton Financial Institutions Center provides a multi-disciplinary research approach to the problems and opportunities facing the financial services industry in its search for competitive excellence. The Center's research focuses on the issues related to managing risk at the firm level as well as ways to improve productivity and performance. The Center fosters the development of a community of faculty, visiting scholars and Ph.D. candidates whose research interests complement and support the mission of the Center. The Center works closely with industry executives and practitioners to ensure that its research is informed by the operating realities and competitive demands facing industry participants as they pursue competitive excellence. Copies of the working papers summarized here are available from the Center. If you would like to learn more about the Center or become a member of our research community, please let us know of your interest. Anthony M. Santomero Director The Working Paper Series is made possible by a generous grant from the Alfred P. Sloan Foundation Derivatives and Corporate Risk Management: Participation and Volume Decisions in the Insurance Industry By J. David Cummins Wharton School, University...
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...ADAMJEE INSURANCE Analysis of Insurance Sector Research Report Table of Contents Introduction .................................................................................................................................................. 3 Insurance sector at a glance ......................................................................................................................... 4 Major Players in the Market ..................................................................................................................... 6 Global Insurance Industry Overview ............................................................................................................. 7 Non-life growth is still weak in the industrialized countries, but strong in Asia ...................................... 8 Non-life insurance premium growth ........................................................................................................ 8 SWOT Analysis of Pakistan Insurance Industry ............................................................................................ 9 Analysis of Leading Insurance Companies in Pakistan (of first quarter 2011) ............................................ 10 Drivers of Insurance Coverage .................................................................................................................... 11 Competition between insurance and banking ...................................................................................
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...The VRINO framework is an analytical tool in the internal analysis step, which considers the value of certain resources for reaching the strategic goals. The VRINO framework stands for the following: valuable, rarity, inmitable, non-substitutable, and organized (Rice, 2014). The VINRO analysis could be utilized to exhibit the key resources that assist Allstate Corporation in sustaining a competitive advantage. Allstate offers personal lines of insurance and financial services to consumers (Reding, Barber, 2000). Further, the personal lines of insurance includes the following: homeowners insurance, auto insurance, renters insurance, and life insurance. In addition, Allstate has Registered Financial Advisers that provide important advice...
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...Literature Review The purpose of this study is to get an in depth understanding of the insurance industry to understand what could be the impact of FDI on Indian insurance industry. To strengthen this study and get in-depth understanding of the variables that could impacted due to FDI a review of the past research has been done in this section. An empirical study by (Li, Donghui; Moshirian, Fariborz; Sim, Ah-Boon, 2003) done on the U.S. insurance sector concludes that FDI contributes significantly to the volume of trade. This prompted studies to identify what are the important and significant variables that attract FDI in insurance. There have been many papers published that study the factors that lead to participation of in international insurers in a country’s insurance sector. A study by (Li & Moshirian, 2004) of the US insurance services for the period 1984-1998 tries to identify factors that increases the desirability for FDI in insurance. The major factors that this study identifies are national income, relative cost of capital, relative wage rate, total trade in insurance services, exchange rate volatility, FDI in banking, source country’s insurance market size and the financial development of the host country. Other studies that intend to find determinants that attract foreign participation in insurance market include study by (Ma & Pope, 2003) .The study reveals that major foreign market characteristics that determine international insurers participation...
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...Islamic Economics and Finance Measurement of Financial Development: A Fresh Approach Noureen Adnan 1 Financial development can be defined as the policies, factors, and the institutions that lead to the efficient intermediation and effective financial markets. A strong financial system offers risk diversification and effective capital allocation. The greater the financial development, the higher would be the mobilization of savings and its allocation to high return projects. Financial development can be measured by a number of factors including the depth, size, access, and soundness of financial system. It can be measured by examining the performance and activities of the financial markets, banks, bond markets and financial institutions. It is observed that higher the degree of financial development in a country, the wider will be the availability of financial services. A developed financial system offers higher returns with less risk. In this paper it is attempted to collect main components of financial development including Banks, Stock markets, insurance companies and bond markets for 41 economies during the period of 1988 to 2009. The method of principal component is utilized to extract a single financial development index out of them. Principal component analysis is a modern tool of data analysis. The main aim to apply principal component to achieve a meaningful index out of complex and multidimensional elements of financial development and to re-express the data with minimum...
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...A. FINANCIAL INDUSTRIES Financial Services in India- Brief Overview: The Indian financial services sector is one of the most complex, yet one of the most robust service segments of the Indian economy. Spanning from insurance to capital markets, banking to foreign direct investments (FDI) and from mutual funds to private equity (PE) investments, the financial services sector covers all related segments under its umbrella. Having major effects in its abstract as well as physical form post liberalization, the financial services segment is undoubtedly the mainstay of Indian economy. Today it is at par with the international financial frameworks and promises to surpass them in terms of performance in the years to come. This is very much evident from the fact that Indian financial services industry was amongst the least affected during the crisis the world faced in 2010-11. Major developments pertaining to the sub-segments of Indian financial services industry are discussed hereafter. Insurance Sector: Indian life insurance sector collected new business premiums worth Rs 11,742.7 crore (US$ 1.96 billion) for April-May 2013, according to data from the Insurance Regulatory and Development Authority (IRDA). Life insurers collected Rs 1, 07, 010.7 crore (US$ 17.84 billion) worth of new premiums for the financial year ended March 31, 2013. Meanwhile, the general insurance industry grew by 19.6 per cent in April-May period of FY14, wherein the non-life insurers collected premium worth...
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...Taiwan insurance marketing Chiang Ku Fan and Shu Wen Cheng Graduate Institute of Finance and Insurance, Shih Chien University, Taipei, Taiwan, Republic of China Abstract Purpose – The purpose of this paper is to compare the efficiency of bancassurance, an indirect marketing channel formed through the creation of subsidiaries, with an insurer’s own team, a direct marketing channel, in the Taiwan insurance sector. Design/methodology/approach – This paper uses the Charnes, Cooper, and Rhodes (CCR) model to measure the decision-making units’ (DMU) operating efficiency. Findings – The three major findings are: the efficiency score of a direct marketing channel is significantly higher than that of a comparable indirect marketing channel. The efficiency relationship between the indirect marketing channel and the direct marketing channel is independent. A marketing efficiency evaluation, when divided into different marketing channels for evaluation, provides meaningful results for marketing decision-makers. Originality/value – By comparing the efficiency between two different insurance marketing channels, managers in life insurance companies can make a more informed choice. Keywords Direct marketing, Marketing, Insurance, Taiwan Paper type Research paper Comparison of direct and indirect channels 343 Introduction Bancassurance, a method of distributing insurance products, has become a global trend that is gradually breaking down traditional barriers in how businesses supply financial products...
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...Such as several methodologies for bank rating, financial institution rating, corporate rating, general insurance rating, life insurance rating, government owned enterprise rating and securitization rating. Other services: 1. Grading Services 2. Advisory & Consulting Services 3. Information Service National Credit Ratings Ltd National Credit Ratings Limited (NCR) is a credit rating agency in Bangladesh. It was incorporated as a public limited company under the Registrar of Joint Stock Companies in August 2010 and received its certificate for commencement of business in July 2010. It was granted a licence by the Securities & Exchange Commission (SEC) of Bangladesh for operating as a credit rating company in September 2010. The formal launching of the company was held on 18 October 2010. Managing director & CEO: MD. Momin Ullah Patwary, BP, is a former secretary to the Govt. of Bangladesh. Services: The services provide by the agency are followings: Entity Rating, Instrument Rating, Insurance Company rating, Asset Manager Rating, Sectoral Grading and Ranking. Methodology A true and fair opinion is our responsibility. NCR gives opinion as to the ability of an entity to meet its financial obligations. The rating process primarily concentrates on business and financial risks. The focus is to assess cash generation capability and its adequacy to meet debt obligations on a timely basis. The analysis attempts to determine the long-term fundamentals...
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...impacting peoples’ life and company’s profitability. For many businesses a small deviation from normal weather patterns can adversely affect their financial performance. Recent events around the world highlight the increasing volatility of the weather and how they can impair the economy. Although the majority of businesses are exposed to weather risks, many are still failing to adequately identify...
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...8160 Research Paper Economics Insurance Sector in India: Challenges and Opportunities Dr. NARESH RAMDAS MADHAVI ABSTRACT Associate Professor and Head Department of Economics Mahatma Phule A. S. C. College, Panvel, Dist. - Raigad Insurance sector in India is one of the growing sectors of the economy. India’s growing consumer class, rising insurance awareness, increasing domestic savings and investments are among the most critical factors that have positively driven the market penetration of the insurance product among its consumer segments. Both the life and non-life insurance in India, which were nationalized in the 1950s and 1960s respectively, which were liberalized in 1990s. Since the formation of IRDA and the opening of the insurance sector to private players in 2000, the Indian insurance sector has witnessed rapid growth. The opening up of the insurance sector has led to rapid growth of the sector. The total premium of the insurance industry has increased at a CAGR of 24.6 percent to reach INR 2,523.9 billion in 2009 KEYWORDS : Life Insurance, LIC, IRDA, Private Insurance Companies Introduction: The economic reforms initiated in the early 90s paved the way for the growth and opening up of the financial sector, which led to a sustained period of economic growth. The insurance industry was opened up for private players in 2000, and has seen tremendous growth over the past decade with the entry of global insurance majors. India is fast emerging as one of...
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...A PROJECT REPORT ON ANALYSIS OF BHARTI AXA RANGE OF SERVICES AT BHARTI AXA LIFE INSURANCE In the Partial Fulfillment of the Degree of Bachelor of Commerce Session 2012-2015 Under Punjab Technical University (PTU) Submitted By: PRIYA MANHAS B.COM (P) 5th SEMESTER UNIVERSITY ROLL NO.:1268348 ACKNOWLEDGEMENT While submitting the project on “Analysis of Bharti AXA Range of Services” I avail this opportunity to express our gratitude towards all those who guided and helped to finish this project successfully. I am grateful to Mr.Kamal Grover (Branch Head) and my project guide Mr. Kamal Sukhija from Bharti AXA Life Insurance for his inspiring guidance and kind encouragement. I express my deep sense of gratitude and heartily thanks to my executive those valuable guidance and encouragement, which has played a major role in completion of this project work. His esteem suggestion and encouragement from time to time has always helped in the completion of this project. I am thankful to my teaching staff for their valuable guidance in completion of this project. DECLARATION I am Priya Manhas student of B.com (P) GNA IMT Phagwara, Punjab hereby declare that this project report entitled “Analysis of Bharti AXA Range of Services” at Bharti AXA Life Insurance submitted is my original work. The finding of the reports are based on the information collected by me during the study and the result embodied in this study has not been submitted to any other university for the...
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...“A Study on Purchase Decision Making Of Life Insurance Products” [Submitted on: 22.12.2014] Submitted to: Prof. Anamika Prepared by: Jayajeet Das Group-2 Roll No.-14DM012 Sec-A PGDM (2014-16) Institute of Management and Information Science, Bhubaneswar Acknowledgements “First and foremost, I avail this opportunity to express my profound sense of sincere and deep gratitude to Prof. Anamika for her valuable and meticulous supervision during the preparation of this Project Report. Last but not the least I extend my support to all my group members and respondents whose kind cooperation & support helped me to bring out the study report in a successful manner. Abstract Insurance occupies an important place in the complex modern world since risk, which can be insured, has increased enormously in every walk of life. This has led to growth in the insurance business and evolution of various types of insurance covers. This research aims at determining consumers’ attitudes towards buying life insurance products and to understand their purchase and repurchase intention. This research was conducted in Bhubaneswar of Odisha taking a sample of 75 LIC and other private insurance customers. Respondents for this survey were selected using random sampling. The survey was done by all our group members. The analysed data has been presented in the form of table, bar graphs and pie-charts. This study also analyzed the repurchasing intention of policy holders. The survey...
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...International Investment in Insurance Services in the US By Christopher Chan (z3329864), Chun Kin Kwok (z3308661), Jay Jung (z3331738) Abstract This paper proposes several determinants of FDI in insurances services in the US and then examines its relationship and significance to FDI inflows in insurance services by an Ordinary Least Squares (OLS) regression. The regression found that a higher US wage rate discourages FDI in insurance services. However, it also shows that FDI in manufacturing and insurance services complement each other. Thus, the foreign acquisition of US manufacturing assets may have contributed to the almost fourfold increase of FDI inflows in insurance services between 1987 and 1998. 1) Introduction Since the 1980s, many foreign firms have seen the US as a relatively attractive destination for direct investment. Foreign direct investment (FDI)1 allows investors to exert a significant influence on the host country. It creates a global marketplace in which firms from one country are operating another firm in a totally different environment. The US has undergone a major process of restructuring and deregulation that has encouraged this type of investment. In 1998, US FDI inflows accounted for 30% of worldwide FDI inflows (US $193 billion) with the second largest host country (the UK) a distant US$130 billion behind. The dot com bubble in the 90s spurred the nearly doubling of FDI levels in the US in 1998 as overseas firms were eager to tap into the expanding...
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...Internship Report “The Insurance Act 2010 for Non-life Insurance; Problems & Prospects of Peoples Insurance Company Limited” Submitted To: Sharmin Shabnam Rahman Lecturer BRAC Business School, BRAC University Prepared & Submitted By: Name Shamima Aktar Student ID 08104057 Date of Submission: May 20 , 2012 “The Insurance Act 2010 for Non-life Insurance; Problems & Prospects of Peoples Insurance Company Limited” ii Letter of Transmittal May 20, 2012 Sharmin Shabnam Rahman Lecturer, BRAC Business School, BRAC University Subject: Submission of Internship Report (BUS-400). Dear Madam, With due respect, I would like to inform you that, I have completed my internship at Peoples Insurance Company Limited. Throughout the internship period, I have found the company getting ready to adopt with changes brought by the Insurance Act 2010. Hence, I chose ―The Insurance Act 2010 for non-life insurance; the Problems & Prospects of Peoples Insurance Company Limited‖ as the topic of my internship report. In order to prepare the report, I have collected required information through qualitative research and finally completed the report which is now ready to submit. It was really enjoyable to work on the report as it has provided me with an opportunity to know about realistic fact of the influence of Insurance Act 2010 on the overall operation of PICL. I have learned a lot about the non-life insurance industry after preparing this term paper and got...
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