Transcript
Study of Consumer Behaviour of Insurance Industry in India
Submitted to: Dr. Gaurav Joshi Submitted by: Group 4 12/2015 Shubham Sharma 38/2015 Abhishe !oha"i 54/2015 Deepa"shu Gupta #4/2015 $aibhav Seh%a& Seh%a & 88/2015 'itasha 'a"da"
LAL BAHADUR SHASTRI INSTITUTE O !ANA"E!ENT NE# DELHI Se$tem%er &' ()*+
A&& ri%hts reserved. 'o part o( this report may be reprodu)ed* stored i" retrieva& system* or tra"smitted* i" a"y (orm or by mea"s* +ithout the prior permissio" (rom Group ,* Se)tio" -* GD Ge"era&* !a& -ahadur Shastri "stitute o( a"a%eme"t* 'e+ De&hi.
LETTER O TRANS!ITTAL 'ovember 25* 2015 o: o: Dr. Dr. Gaurav Joshi rom: Group 4
his is to prese"t prese"t a report o" the topi) Study o( o"sumer -ehavior o( "sura")e "dustry i" "dia )o"du)ted as a pro6e)t resea resear) r)h h +or +or (or the )ours )ourse e o"sum o"sumer er -ehavi -ehavior or by us* Group 'o. 4* (or your i"d perusa& a"d "e)essary a)tio".
ha"i"% 7ou* 7ou* Group 4
A&& ri%hts reserved. 'o part o( this report may be reprodu)ed* stored i" retrieva& system* or tra"smitted* i" a"y (orm or by mea"s* +ithout the prior permissio" (rom Group ,* Se)tio" -* GD Ge"era&* !a& -ahadur Shastri "stitute o( a"a%eme"t* 'e+ De&hi.
LETTER O TRANS!ITTAL 'ovember 25* 2015 o: o: Dr. Dr. Gaurav Joshi rom: Group 4
his is to prese"t prese"t a report o" the topi) Study o( o"sumer -ehavior o( "sura")e "dustry i" "dia )o"du)ted as a pro6e)t resea resear) r)h h +or +or (or the )ours )ourse e o"sum o"sumer er -ehavi -ehavior or by us* Group 'o. 4* (or your i"d perusa& a"d "e)essary a)tio".
ha"i"% 7ou* 7ou* Group 4
,REACE ur %roup u"der+e"t a very u"i9ue a"d i"teresti"% 6our"ey +hi&e +hi&e mai"% mai"% this this repor report. t. her here e +ere +ere &ots &ots o( de&e%a de&e%atio tio"s "s to ea)h other due to trimester e"d pressures. pressures. ith &ots o( de&ays* +e ;"a&&y %athered to%ether a"d )ame up +ith our )o"tributio"s a"d here +e have our best )ombi"ed ebs)o host +hi)h +as a bit tri)y. e )omp&eted the pro6e)t +or by resear)hi"% more (rom a "umber o( boos as +e&& +e&&.. Goi" Goi"% % thr throu%h ou%h some some i"te i"terresti esti"% "% resea esearr)h pape papers rs** "e+s "e+spa pape perr )&ip )&ippi pi"% "%s s a"d a"d i"te i"terv rvie ie+s +s** +e u"de u"ders rsto tood od the the i"sura")e i"dustry as a +ho&e. e +or +ored to%eth to%ether er as a %roup %roup** e"6oy e"6oyi"% i"% eve"i" eve"i"% % )o=port redit Guara"tee orporatio" o( "dia (or redit "sura")e a"d A%ri)u&ture "sura")e ompa"y !td (or )rop i"sura")e.
'CD' Duri"% Apri& 2015 to ar)h 201, period* the &i(e i"sura")e i"dustry re)orded a "e+ premium i")ome o( Cs 1.38 tri&&io" SH 20.54 bi&&io"B* i"di)ati"% a %ro+th rate o( 22.5 per )e"t. he %e"era& i"sura")e i"dustry re)orded a 12 per )e"t %ro+th i" Gross Dire)t remium u"der+ritte" i" Apri& 201, at Cs 105.25 bi&&io" SH 1.55 bi&&io"B. "diaIs &i(e i"sura")e se)tor is the bi%%est i" the +or&d +ith about 3,0 mi&&io" po&i)ies +hi)h are e=pe)ted to i")rease at a ompou"d A""ua& Gro+th Cate AGCB o( 12?15 per )e"t over the "e=t ;ve years. he i"sura")e i"dustry p&a"s to hie pe"etratio" &eve&s to ;ve per )e"t by 2020. he )ou"tryIs i"sura")e maret is e=pe)ted to 9uadrup&e i" siFe over the "e=t 10 years (rom its )urre"t siFe o( SH ,0 bi&&io". Duri"% this period* the &i(e i"sura")e maret is s&ated to )ross SH 1,0 bi&&io". he %e"era& i"sura")e busi"ess i" "dia is )urre"t&y at Cs #8*000 )rore SH 11.44 bi&&io"B premium per a""um i"dustry a"d is %ro+i"% at a hea&thy rate o( 1# per )e"t. he "dia" i"sura")e maret is a hu%e busi"ess opportu"ity +aiti"% to be har"essed. "dia )urre"t&y a))ou"ts (or &ess tha" 1.5 per )e"t o( the +or&dIs tota& i"sura")e premiums a"d about 2 per )e"t o( the +or&dIs &i(e i"sura")e premiums despite bei"% the se)o"d most popu&ous "atio". he )ou"try is the ;(tee"th &ar%est i"sura")e maret i" the +or&d i" terms o( premium vo&ume* a"d has the pote"tia& to %ro+ e=po"e"tia&&y i" the )omi"% years. "dia ra"ed 11th amo"% 88 )ou"tries i" the &i(e i"sura")e busi"ess* +ith a share o( 2.0 per )e"t duri"% 714. he )ou"try ra"ed 21st i" %&oba& "o"?&i(e i"sura")e maret* +ith a share o( 0.,, per )e"t i" 713. he &i(e i"sura")e premium maret
e=pa"ded at a AGC o( 14 per )e"t* (rom SD14.5 bi&&io" i" 704 to SD,1.#8 bi&&io" i" 715. he "o"?&i(e i"sura")e premium maret rose at a AGC o( 1,.3 per )e"t* (rom SD3.4 bi&&io" i" 704 to SD10.1# bi&&io" i" 71, p to 'ovember 2015B* re%isteri"% a %ro+th o( @.5 per )e"t. he maret share o( private se)tor )ompa"ies i" the "o"? &i(e i"sura")e premium maret rose (rom @., per )e"t i" 703 to 41 per )e"t i" 71,." 2015* )rop i"sura")e maret i" "dia is the &ar%est i" the +or&d a"d )overs arou"d 32 mi&&io" (armersK +hi)h a))ou"ted (or "ear&y 1@ per )e"t o( the tota& (armers i" the )ou"try. Stro"% %ro+th i" the automotive i"dustry over the "e=t de)ade to be a ey driver o( motor i"sura")e.
AD$A'AG> ' 'DA STRON" DE!AND/ •
• •
Gro+i"% i"terest i" i"sura")e amo"% peop&eK i""ovative produ)ts a"d distributio" )ha""e&s aidi"% %ro+th ")reasi"% dema"d (or i"sura")e o$!' > 'DA' 'SCA'> S>C
GC 'SCA'> 'DSC7 ' 'DA
Gro+th o( "o"?&i(e i"sura")e premium e=perie")ed a s&o+do+" i" 715 but premiums are e=pe)ted to %ro+ i" emer%i"% e)o"omies by 10.# per )e"t i" 201, a"d 201#. G&oba& premium i")reased by 3.3 per )e"t i" 2015. he i"sura")e i"dustry is e=pe)ted to rise a"d rea)h SD280 bi&&io" i" 2020. " 2015* the i"dustry )omprised o( 24 private p&ayers +hi&e !i(e "sura")e orporatio" )o"stituted #1 per )e"t o( the i"sura")e maret i" the )ou"try.
•
•
"sura")e de"sity i" "dia i")reased (rom 3.5# i" 705 to 11.23 i" 715 at a AGC o( 12.1 per )e"t. "sura")e pe"etratio" rea)hed 3.3 per )e"t i" 715
! ''>S D'A> !> 'SCA'> S>G>'
" 2015* the &i(e i"sura")e se)tor has 2@ private p&ayers )ompared to o"&y (our i" 702 ! is sti&& the maret &eader* +ith ,@ per )e"t share i" 715* (o&&o+ed by rude"tia&* +ith ,.0 per )e"t share ! issued 20.1 mi&&io" "e+ po&i)ies i" 715
!ar2et Share !
thers
D
S-
a= !i(e
-ir&a Su" !i(e
Ce&ia")e
5M 2M 2M 1M 5M
2M 8M ,M
,@M
-a6a6 A&&ia"F
'A-!> C>'DS ' > 'SCA'> S>C
•
>mer%e")e o( "e+ distributio" )ha""e&s
•
>mer%e")e o( "e+ distributio" )ha""e&s
'e+ distributio" )ha""e&s &ie ba")assura")e* o"&i"e distributio" a"d '-s have ea)h a"d redu)ed )ost. irms have tied up +ith &o)a& 'Gs to tar%et &u)rative rura& marets.
•
•
•
>mer%e")e o( "e+ distributio" )ha""e&s
>mer%e")e o( "e+ distributio" )ha""e&s
• •
•
" the &i(e i"sura")e se%me"t* private se)tor share i" tota& premiums i")reased to 2#.1 per)e"t i" 71, (rom 2.0 per )e"t i" 703 " the "o"?&i(e i"sura")e se%me"t* share o( the private se)tor i")reased to 42.# per )e"t i" 71, (rom 14.5 per )e"t i" 704
he &i(e i"sura")e se)tor has +it"essed the &au")h o( i""ovative produ)ts su)h as "it !i"ed "sura")e &a"s !sB ther traditio"a& produ)ts have a&so bee" )ustomiFed to meet spe)i;) "eeds o( "dia" )o"sumers
!ar%e i"surers )o"ti"ue to e=pa"d* (o)usi"% o" )ost ratio"a&iFatio" a"d a&i%"i"% busi"ess mode&s to rea&iFe reported >mbedded $a&ue >$B* a"d %e"erate va&ue (rom (uture busi"ess rather tha" (o)us o" prese"t pro;ts.
C>CS $> C>S A'A!7SS
SCA>G>S AD>D
D>A'D GC C 'SCA'> CDS S> A>!>CA>
"diaIs robust e)o"omy is e=pe)ted to sustai" the %ro+th i" i"sura")e premiums +ritte".
i%her perso"a& disposab&e i")omes +ou&d resu&t i" hi%her househo&d savi"%s that +i&& be )ha""e&ed i"to dimer%i"% midd&e i")ome %roups
•'e+ substitute produ)t emer%i"% •")reasi"% e=pe"ses a"d &o+er pro;t mar%i"s
re%u&atio"s o" •Gover"me"t issues &ie hea&th )are )a" 9ui)&y )ha"%e its dire)tio" • he domi"a")e o( e"tre")hed p&ayers mae i"dustry sta%"ate
>S>! A'A!7SS • • • • • • •
,o3itica3 factors a4ectin5 insurance industry "sura")e busi"ess i" rura&/ so)ia& se)tor apita& re9uireme"t Ce"e+a& o( re%istratio" Ce9uireme"t as to )apita& "vestme"t o( (u"ds outside "dia o+er to i"vesti%atio" or i"spe)tio" a= po&i)y a"d i"sura")e se)tor
Economic factors a4ectin5 insurance industry
Ade9ua)y o( )apita&
")reased e)o"omi) a)tivity
"terest rates
"Latio" rate
aret re&ated (a)tors su)h as re)essio" et).
Socio6Cu3tura3 factors a4ectin5 insurance industry
opu&atio"
!i(e sty&e
>du)atio"a& &eve&
!eve& o( ear"i"%
So)ieta& be"e;ts
Techno3o5ica3 factors a4ectin5 insurance industry
ai"tai"i"% the database
>?busi"ess i"sura")e i" "dia
Le5a3 ,o3icies a4ectin5 Insurance Industry •
here is a provisio" that a"y i"ter"atio"a& i"sura")e )ompa"y has to tie up +ith a" "dia" )ompa"y i( they +a"t to do busi"ess i" "dia
•
!i(e i"sura")e )ompa"ies are a&&o+ed to %o pub&i).
•
Approva& (or i")reme"t i" D )ap
•
assed bi&& to a&&o+ D i" "sura")e
Environmenta3 actors 'atura& disasters Cai"(a&& depe"de")y ther "o"?re)urri"% a)tivities e.%. ar A))ide"ts et). • • •
b6e)tives 1.de"ti;)atio" o( the (a)tors that ai%e" va&ues represe"ts the per)e"ta%e o( tota& varia")e e=p&ai"ed by ea)h (a)tor. " this )ase* ;rst ;ve (a)tors )umu&ative&y e=p&ai" @2.,#4M o( the tota& varia")e.
t redu)es the "umber (a)tors o" +hi)h the variab&es have hi%h &oadi"%s. t does "ot a)tua&&y )ha"%e a"ythi"% but maes the i"terpretatio" easier.
t sho+s &oadi"% o( si=tee" variab&es o" the 5 (a)tors e=tra)ted. he hi%her the abso&ute va&ue o( the &oadi"%* more the (a)tor )o"tributes to variab&e. A&& the &oadi"%s that are %reater tha" 0.5 are )o"sidered +hi&e suppresses a&& other &oadi"%s &esser tha" 0.5.
ustomer $a&ue Satis(a)ti Added o" Servi)es
roper o"ve"ie Guida")e ")e N "(ormati o"
ast a"d eO)ie"t )ou"ter servi)es
e&& pho"e i"sura")e ba"i"% (a)i&ities
o"ve"ie"t )ompa"y oO)e &o)atio"
ompa"y ope"i"% / perati"% hours
se o( moder" e9uipme"t
Speed a"d eO)ie")y o( tra"sa)tio"s
'e+ s)heme i"(ormatio"
ari"% spa)e
o""e)tivity to ba"s
ide ra"%e o( produ)ts a"d servi)es
>ase o( ope"i"% the a))ou"t
ro(essio"a&i sm a"d )redibi&ity o( sta<
Avai&abi&ity o( remium )o&&e)tio" )e"tre "terest rates
"(rastru)tur e o( the i"sura")e )ompa"y Se)ured i"ter"et ba"i"%
Grieva" )e Cedress a& roper %uida")e a"d immediate )omp&ai" ha"d&i"% !o+er servi)e )har%e
omputeriFat io" a"d o"&i"e tra"sa)tio"s
otivatio"a& a)tors
!otivationa3 actors
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