Introduction to Insurance

In: Business and Management

Submitted By rehana90
Words 291
Pages 2
Evolution & Development

Evolution of Insurance
 Marine Insurance  Fire Insurance  Life Insurance  Miscellaneous Insurance

Common Features of Development
1. Insurance developed basically in response to a demand created by the insuring community. 2. Industrial revolution of the 19th century.

Common Features of Development
3. In early days there were absence of reliable statistical data and theoretical soundness 4. Diversifications considering multi-various demands

Common Features of Development
5. The idea as to maintenance of reserve for withstanding catastrophe losses gradually developed. 6. The necessity of reinsurance gradually developed with the increase in insurer’s commitment on a particular risk.

Development of Insurance in Bangladesh
 Jatiya Bima Corporation  Teesta Bima Corporation  Karnaphuli Bima Corporation  Rupsha Jiban Bima Corporation  Surma Jiban Bima Corporation

Formation of Two Corporations
 Shadharan Bima Corporation  Jiban Bima Corporation

Bangladesh Insurance Academy (BIA) Objectives & Functions

Objectives of BIA
1. To promote, organize and impart professional education in insurance leading to Degrees/Diplomas/Certificates

Objectives of BIA
2. To organize, conduct and promote research on problems of insurance industry

Objectives of BIA
3. To organize and conduct inservice training for the officers and employees of JBC and SBC and also employees of the organizations dealing in insurance

Objectives of BIA
4. To facilitate, promote, encourage and foster publication of research work and literature on matters of insurance interest

Objectives of BIA
5. To establish and maintain close contact with experts and similar institutions at home and abroad,

Objectives of BIA
6. To provide coaching facilities for the standard examinations like ACII, CLU etc.

Objectives of…...

Similar Documents


...EXAMINATION IN INVESTMENT-LINKED LIFE INSURANCE PREFACE This course contains the study materials for the Certificate Examination in InvestmentLinked Life Insurance. The book may look ominously thick but please bear in mind that the market out there, both, the product producers and clients market has undergone tremendous changes in the last 15 years. The sudden deluge of information found here as compared to the earlier version is to provide a slightly higher level of understanding amongst agents, so that they can be better prepared when facing a client. The objective of this course is to provide basic fundamental knowledge of how investment-linked life insurance works and how to market it to the public. This course also introduces the agent to the world of Investment-Li n k e d L i f e Insurance sales and it is also hoped that the agents will not stop with this course but empower themselves with higher qualifications in the coming future. The Chapters in this course are designed in such a way, that a new person will get a clear picture of what Investment-Linked Life Insurance is all about and also sets a template for them to follow to a higher level in the future. It is hoped that the agents will utilise this course effectively and carry out their sales activities with stronger conviction and heightened confidence. CERTIFICATE EXAMINATION IN INVESTMENT-LINKED LIFE INSURANCE CEILLI CERTIFICATE EXAMINATION IN INVESTMENT-LINKED LIFE INSURANCE 1st Edition 1998......

Words: 44960 - Pages: 180

Insurance Introduction

...Introduction to ULIPs Insurance products have been typically used for risk management. As money gets tied up for a long period, the prospect of using insurance for investments came into existence. ULIPs serve the purpose. ULIPs (Unit Linked insurance plans) are life insurance policies with the added feature of investments. They behave like Mutual funds, to some extent, though they are basically insurance products.Thus are also traded like mutual funds. Their value is represented in terms of NAV (net asset value). Since these units are tied to an underlying, their value depends on the value of the underlying at any point of time. Just like in mutual fund, a pool of the funds collected through the premiums is created, the charges are reduced from it. The policy has the terms for the required returns and risks. The underlying is decided upon keeping this in mind. These funds are compared and traded in the capital markets. Thus, their performance is a function of the performance of the capital markets. Like in case of equity funds, an investor can diversify his portfolio by investing across a wide range of funds. The risk is, after all, borne by the investor. ULIPs provide the investors the flexibility in choosing their investment style. They can pay a lump sum or making premium payments, be it annual, half yearly or quarterly. They can also the premium amounts during the tenure of the policy. This way, if during the tenure an investor has excess funds he can enhance the......

Words: 294 - Pages: 2


...[93] INDIAN LIFE INSURANCE INDUSTRY – THE CHANGING TRENDS Dr. Arnika Srivastava, Assistant Professor Faculty of Commerce, Sunbeam College for Women, Varanasi, India Dr. Sarika Tripathi, Assistant Professor Faculty of Commerce Sunbeam College for Women, Varanasi, India Dr. Amit Kumar, Assistant Professor Faculty of Commerce Sunbeam College for Women, Varanasi, India ABSTRACT Insurance industry contributes to the financial sector of an economy and also provides an important social security net in developing countries. The growth of the insurance sector in India has been phenomenal. The insurance industry has undergone a massive change over the last few years and the metamorphosis has been noteworthy. There are numerous private and government insurance companies in India that have become synonymous with the term insurance over the years. Offering a diversified product portfolio and excellent services the many insurance companies in India have managed to make their way into almost every Indian household. Keywords: Life Insurance, Substandard, Competitiveness, GDP, Indigenous, Aggressive Marketing, ULIP, Penetration, Pushed Insurer, Gross Premium. -Journal of Arts, Science & Commerce ■ E-ISSN2229-4686■ISSN2231-4172 International Refereed Research Journal ■ ■ Vol.– III, Issue 2(3), April 2012 [94] INTRODUCTION: According to Mr J. Hari Narayan, Chairman of insurance watchdog IRDA, Indian insurance industry in set......

Words: 2795 - Pages: 12


...For Immediate Release India Insurance Industry Essay Writing Competition Winner Announced Ms Megha Asnani, Business Analyst with Accenture Service Private Limited was declared winner of the 2nd India Insurance Industry Essay Writing Competition organised by Asia Insurance Review in conjunction with the India Rendezvous. Ms Asnani’s essay on the topic: ‘An Indian Solvency II?’ stood out for its originality and in-depth analysis of the subject. Ms. Asnani will receive a cash prize of S$5,000 and she will also make a presentation of the winning essay at the 5th India Rendezvous in Mumbai on 20th January 2012. The “Energise Insurance in India” essay competition drew entries from some of the best insurance writers in India and was judged by a distinguished panel of top industry professionals and chaired by Mr Yogesh Lohiya, Chairman and Managing Director of GIC Re. Others in the judging panel included: Mr Jan Mumenthaler, Head-Insurance Services Group, Business Risk Department, IFC; Ms Joan Fitzpatrick, CEO, ANZIIF; Mr Michael J Morrissey, President & CEO, IIS; Mr Dezider Stefunko, Chief, Insurance Unit, UNCTAD; Mr Jawaharlal Upamaka, Editor, IRDA Journal; Mr A K Roy, General Manager, GIC Re; Mr K Raghunath, Vice President, Reinsurance, Bharti AXA General Insurance Co; and Mr G V Rao, Chairman & CEO, GVR Risk Management Associates. More details at For enquiries, please contact: Asia Insurance Review Ms Ann Tay, DID +65 6224 5583 or email:......

Words: 5100 - Pages: 21


...INTRODUCTION: This report has been prepared as a requirement of the insurance and risk management course. The report was based upon the overall insurance company’s problems and prospects in Bangladesh. . It can be defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. It is a contract whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against. It can play an important role in a country’s economy. It is an old form of financial practice of sharing risk, which was introduced in this area in mid-18 the Century. DEFINITION OF INSURANCE: In legal terms, insurance is a contract of uberrima fideism, i.e. a contract of utmost god faith. Here both the parties namely insurer (insurance company) and insured (policy holder) must be honest and disclose all material facts about the insurable interest. Here the insurance company undertakes to indemnify the insured against any loss in lieu of a small charge known as premium. Such as insurance policies except life insurance allows a policy-holder to transfer all risk to the insurance company in exchange of paying a certain amount of premium. INSURANCE IN BANGLADESH In Bangladesh, the Insurance business, after and early stage of dislocation, adventure and experimentation...

Words: 2893 - Pages: 12


...Executive summary The life insurance industry in India is achieving a growth rate of about 4% annually. It is considered to be one of the fastest growing sectors. The changing socioeconomic demographics and consumer behavior along with increased frequency of natural calamities and disasters have been the main reasons for the growth of this Industry. Its assets as on 31.03.08 were valued at $185 billion with a total of 250 million policies sold and an employee turnover of 113000 and about 1.2 million agents. There are currently 22 life insurance companies with LIC being the only public company having a market share of almost 50%. ICICI comes in second with 10% followed by HDFC at 6%, SBI at 5%, Bajaj at 4%, Reliance at 4%, Birla at 4%, Max 3%, Tata 3%, Kotak 2%, Met 1% and the rest taking up 10% of the market share. As of 2006 FDI norms the foreign participation of Indian insurance companies is restricted to 26%. All the life insurance companies of India have to comply with the strict regulation laid out by the ‘IRDA’ which is the insurance regulatory board in India set up in 2000. The majority of the population in India is yet to be tapped leaving a huge growth potential for this industry. The insurance industry in India is both service based as well as product based. Risk management and product development are the main highlights of R&D in this industry. The life insurance industry is re shapping the retail distribution channel. The life insurers engage with......

Words: 10894 - Pages: 44

A Brief Introduction to Insurance

...A Brief Introduction to Insurance On the face of it, the concept of an insurance business is pretty straightforward. An insurance firm pools together premiums that customers pay to offset the risk of loss. This risk of loss can apply to many different areas, which explains why health, life, property and casualty (P&C) and specialty line (more unusual insurance where risks are more difficult to evaluate) insurers exist. The difficult part of being an insurer is properly estimating what future insurance claims will be and setting premiums at a level that will cover these claims, as well as leave an ample profit for shareholders. Beyond the above core insurance operations, insurers run and manage investment portfolios. The funds for these portfolios come from reinvesting profits (such as earned premiums, where the premium is kept because no claim occurred during the policy's duration) and from premiums before they get paid out as claims. This second category is a concept known as float and is important to understand. Warren Buffett frequently explains what float is in Berkshire Hathaway’s annual shareholder letters. Back in 2000 he wrote: "To begin with, float is money we hold but don't own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money. This pleasant activity typically carries with it a downside: The premiums that an......

Words: 919 - Pages: 4


...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......

Words: 1780 - Pages: 8


...INTRODUCTION OF INSURANCE TO NIGERIA The concept of insurance in its modern form was introduced into Nigeria by the British in the closing years of the 19th century with the establishment of trading posts in what is now known as Nigeria towards the end of the 19th century by European trading companies, mostly British. These companies started effecting their insurance with established insurers in the London insurance market. As time went on, some British insurers appointed Nigerian agents to represent their interest in the country. These agents later metamorphosed into full branch offices of their parent companies in Britain. The first branch office in Nigeria was the Royal Exchange Assurance in 1921, later followed by other British companies. Indigenous Nigerian insurers and re-insurers later followed such as NICON established in 1969 and Nigeria Reinsurance Corporation established in 1977. There are well over 200 direct insurance companies and over five professional reinsurance companies operating in Nigeria today.Most of the country’s major or large marine risks are placed in the London market and at Lloyd’s. The influence of these foreign markets and their marine insurance practices are quite substantial in Nigeria such that the Institute of London Underwriters’ (ILU) clauses are extensively used in both hull and cargo insurance business in Nigeria. The Institute clauses are drafted by the ILU and are generally revised from time to time in response to the......

Words: 612 - Pages: 3


...CHAPTER 1 INTRODUCTION 1.0 Introduction This chapter serves the general outlook of the research. It will provide the health insurance planning overview, general information regarding the organization, the existing group health insurance plan which provided by the employer (LHDNM), background of study, the problem statement, research objective, research question, hypothesis, and scope of study, limitation of study, significance of study and definition of terms. Firstly, the title of the research is “The Study on the Factors Influencing The Purchasing Behavior of Personal Health Insurance among The Inland Revenue Board of Malaysia‟s (LHDNM) Staff”. There are general overviews of the personal health insurance planning and the background of the organization. After that the researcher will discuss about the background of study, problem statement, research objective and research questions. Besides, the researcher will state hypothesis of the relationship between three independent variables. Then the researcher will attach the scope of study and limitation of study. The next part is the significant of the study and definition of term. 1 1.1 About health insurance planning Health insurance, like other forms of insurance, is a form of collectivism by means of which people collectively pool their risk, in this case the risk of incurring medical expenses. The collective is usually publicly owned or else is organized on a......

Words: 9777 - Pages: 40


...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......

Words: 16835 - Pages: 68


... Essay on insurance industry in India With the introduction of globalisation and privatisation, insurance industry in India is grooving more than 15% per annum. It is second highest after IT industry. The GDP in expected to grow by 10.00 per cent agriculture by 4 per cent and industry by 12.00. The insurance industry is developing in number, quality and class fiction. The population and per capita income has been instrument for the growth of the industry. The quality life of people demands distills free lining. Insurance has increased several quality products to meet their requirement the different classes of prospects have started demanding deferent types of products. The company which is expert in diversification of its products and CRM can develop leap and found. The insurance intermediation has become a full time qualified profession. Professionally qualified agents of insurance can earn more than a doctor, engineer, CA and other professional expects. Now, people are approaching insurance agents for their financial advises rather than business. Insurance in started to be bought by the people rather than previous thinking of bold. People are seeking now best publication for their lives, health, property, business and economic activities. IT and IRDA have asked agents to serve people better. The policyholders are getting more satisfaction today as compared to past year-experiences. Telecommunication has helped people to develop themselves through insurance. The......

Words: 1270 - Pages: 6


... Insurance- Introduction Insurance= Protection against Risk • Insurance is a co-operative device of distributing losses, falling on an individual or family over a large number of persons, each bearing a nominal expenditure & feeling secured against heavy loss. • Insurance business has emerged as one of the prominent financial services during recent times, particularly in developing countries where it could not grow before globalization. But it is very difficult to trace exactly when insurance originated. Privatization in insuranceThe Narasimha Rao government (1991-96) which unleashed liberal changesin Indias rigid economic structure could not handle this political hot potato.Ironically, it is the coalition government in power today which has declaredits intention of opening up insurance to the private sector. Ironical becausethis government is at the mercy of support from the left groups which havebeen the most vociferous opponents of any such move.All segments of the financial sector had been opened to private playerswithbetter product, services & social objective International players are eyeing the vast potential of the Indian market and are already making plans to come in. Types of Insurance Privatization has brought in lot of surprises for insurance sector. In India, insurance sector is at the booming stage as only 40% of the population is insured. Private organizations are striving hard and hard to develop the sector. €Government is also supporting the......

Words: 800 - Pages: 4


...Road, Beeston, Nottingham, NG9 1LQ Introduction Flood insurance is becoming increasingly popular here in the UK, as flooding is becoming more common in specific areas, given the climate change recently. There are many reasons for floods, such as river bursting its banks, an example being the houses near the Thames river being prone to flooding due to the likelihood that it could burst it banks after a period of heavy rainfall. Problems like this can occur up near Trent Road, Beeston as it is near the River Trent, so I am writing this report for Anna Yang so she can think about what factors to take in account when thinking about buying a house. Should Anna be worried about the risk of flooding on Trent Road, Beeston? According to the Environment Agency, (Environment Agency, 2014) Trent Road in Beeston is located in a Flood Zone 3 area, which means the yearly probability of the river flooding is 1 in 100, or greater than 1%. If Anna were to stay in the house for ten years, it would have a probability of flooding ranging from 9.6% to 28.5%. (Diacon, S. 2014) The probability is expressed as a range due to the fact that it would always be uncertain to some degree as the climate change in the UK changes so regularly, and also flood risk simulation model that the Environmental Agency use has some uncertainty too, as it too is dependent on the climate, and how often it rains, so they can warn people to take action or not. In comparison, insurance companies would also have......

Words: 1323 - Pages: 6

Insurance (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......

Words: 4756 - Pages: 20