Monday, September 28, 2009

INSURANCE NEEDS FOCUSED APPROACH

Today we find many insurance companies flocking in the street with various types of policies. The number of policies have become so much that a Super Market Mall should be Built to sell the policies in order to sell under one Floor. So that when one investor plans for insurance he can literally go for shopping.
Today in the Insurance industry comprises of many insurance companies a total of 22 and will be in the increasing spree.
Following is the list of all life insurance company granted permission by IRDA.
1 Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Co. Ltd

3. HDFC Standard Life Insurance Co. Ltd

4. ICICI Prudential Life Insurance Co. Ltd.

5. ING Vysya Life Insurance Company Ltd.

6. Life Insurance Corporation of India

7. Max New York Life Insurance Co. Ltd

8. Met Life India Insurance Company Ltd.

9. Kotak Mahindra Old Mutual Life Insurance Limited

10. SBI Life Insurance Co. Ltd

11. Tata AIG Life Insurance Company Limited

12. Reliance Life Insurance Company Limited.

13. Aviva Life Insurance Co. India Pvt. Ltd.

14. Sahara India Life Insurance Co, Ltd.

15. Shriram Life Insurance Co, Ltd.

16. Bharti AXA Life Insurance Company Ltd.

17. Future Generali Life Insurance Company Ltd.

18. IDBI Fortis Life Insurance Company Ltd.

19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

20. AEGON Religare Life Insurance Company Limited.

21. DLF Pramerica Life Insurance Co. Ltd.

22. Star Union Dai-ichi Life Insurance Comp. Ltd.

Industry watchers feel the consolidation could be triggered by global M&A, involving partners of Indian players, or by resistance by Indian promoters to put in more capital, either because of a fall in valuations, or because of their own capital constraints.
In the life industry, even eight years after opening up, only one company has made profit. Most non-life companies continue to make an underwriting loss, which means that their claims payout is in excess of premium collection.
Today there are too many players on the local market and during the next few years there will be several mergers and acquisitions. We should try to understand that when we talk about India’s insured % we find many figures coming up with majority focusing on uninsured population. But in real terms the insurance companies focus on urban sector more as compared to the rural and sub-rural .In an example I would like to accentuate that at the back of one urban customer 5 companies are running to get their policies sold. This reflects 2 things.1)Too many players on the same ground and requires consolidation and 2)Not making a planned and focused approach.

Today there are so many policies in the market that every new or old company is busy in bringing new products biased on the basis of COMPETETION. They products are majority similar and less demanding as per the investors choice or requirement. In other words there is a huge drop in the quality of the products that have flooded and will be flooding the market.
The industry is heading in the same direction as banking, where a few large companies are surrounded by smaller niche players. In the banking space couple of years we found many small banks getting merged with big banks.
In the next couple of years life insurance we will see the entrance of new players .So this will result to higher number of players. So a consolidation is on the cards if not in the short term but in the long term. We have to go for consolidation other wise the investor will find too much difficult to choose his own life insurer.

If we see that every sector which has got a consolidation has emerged stronger not only in terms of size but also of market share. Moreover it will be able to develop greater quality of products due to M&A,with focused approach as per demand of the investor. The COMPETETION factor of developing product will come to an end to a certain extent and quality in all respect will the prime symbol of each.

0 comments:

  © Blogger template 'Minimalist H' by Ourblogtemplates.com 2008

Back to TOP