A Project Report On
BIRLA SUN LIFE INSURANCE
ONKAR MOHOLE (67) PARAS NATH VERMA (71) SHAMKANT SONAWANE (92) SOHAM JOSHI (97) SUHAS JAMBHALE (102) YASHWANT THAKUR (118) RAHUL PATIL (121)
Birla Sun Life Insurance
Topic 1. 2. 3. 4. About Insurance Sector Insurance sector in India About Birla Sun Life Products 4.1 Asset Allocation 4.2 Shares of Funds Scheme 5. Financial Performance 5.1 Income trends 5.2 Consolidated Net Revenue Mix 5.3 NET Profit after Tax Trends 5.4 New Business Growth 5.5 Total Policies Growth 6. Growth trends of Birla Sun Life Insurance 6.1 Growth in number of branches 6.2 Growth in Number of Agents 7. Strategy Followed 8. Competition 8.1 Market Share of all private cos. 9. SWOT Analysis 10. Awards
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Birla Sun Life Insurance Chapter 1
About Insurance Sector
“Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.” Terms in Insurance Sector: Sum assured: Refers to the amount for which the insurance cover is taken. Death benefit: The amount received from the insurance company on the death of the insured is known as death benefit. Riders: They are additional benefits that are added on to an insurance policy to make it more compatible to the needs of the policyholder. Riders are generally applicable only for life insurance and not for general insurance. Surrender Benefit: The sum of money an insurance company will pay to the policyholder in the event his or her policy is voluntarily terminated before its maturity or the insured event occurs. Maturity Benefit: The amount received on the maturity of the policy is known as maturity benefit.
Birla Sun Life Insurance
10 8 6 4 2 0 4.1 12.8 9.9 7.6 6.3 13.2 8 2.2 4
Insurance Penetration as % of GDP
Fig 1.1 Insurance Sector Scenario World Wide
The average expenditure of GDP on Insurance stands out the highest in Taiwan with about 13.2 % while India still counts on 4%.
70 60 50 40
20 10 0 Australia 20 6 China 1 India 8 UK
Health(Private prepaid plans as % of private expenditure on health)
Fig 1.2 Health private prepaid plans. USA is the leading country with 66% share in private prepaid plans as % of private expenditure on health. India is way lagging in this field with just 1 % share. This is a big opportunity in India for private players.
Birla Sun Life Insurance Chapter 2
Life Insurance in India
India is the world's fifth largest life insurance market and growing at a rapid pace of 32-34% * annually as per Life Insurance Council studies. Currently, in India only two million people (0.2 % of the total population of 1 billion) are covered under Mediclaim, whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme. With more and more private companies in the sector, the situation may change soon.
Number of Players in the Industry (Nos)
25 20 15 10 16 5 0 1 FY2000 FY2007 FY2008 FY2009
Fig 2.1 Number of players in the Industry Indian Insurance market was dominated by the public life insurance companies with LIC having the biggest share. The number of private players in the Indian market was just one in the year 2000 which grew substantially to 22 in year 2009. Relaxation in Government Norms, Setting up a clean and transparent regulatory authority in the form of IRDA by the central...