Shield India Insurance Brokers Pvt.
Ltd is a private insurance brokering house that matches clients to insurance companies. It is an insurance mediator that focuses on the Urban and Semi-Urban Indian market which includes concern organisations and persons. Its Head Office will be located in Pune, Maharashtra in India.
1. State: In a underdeveloped state like India with extremely trained professional campaigners, organisations can retain employees and cut down employee turnover by supplying assorted benefits like health care and pension programs. Most campaigners and trade brotherhoods expect employers to take attention of their employees by supplying these benefits.
There are many hazards which companies besides face in their twenty-four hours to twenty-four hours concern which can be minimized. Insurance is a portion of a regulated market or controlled market where the services are regulated by the authorities. There is an premise that the company has received the Direct Broker ‘s License from the Insurance Regulatory and Development Authority ( IRDA ) .2. Economy: The Cabinet has increased the foreign direct investing ( FDI ) and foreign institutional investing ( FII ) in the Insurance Sector from 26 % to 49 % . The Finance Minister, P Chidambaram says that the sector requires $ 5-6 billion of capital instantly. The economic system in the last few hebdomads has improved due to alterations in economic policies by the authorities.
Insurance is capable to stock market hazard and the stock market sentiment is going positive and the people are willing to put. The premise is that organisations are retrieving from the recession in 2008 and the slack in the stock market and are hence increasing the figure of employees in the company and supplying them with wellness benefits.
3. Paid Up Capital:
Harmonizing to the Regulation 10 of the Insurance Regulatory and Development Authority ( Insurance Brokers ) Regulations, 2002 a direct agent must hold a lower limit paid up capital of 50 hundred thousand rupees.Besides harmonizing to Regulation 22 “ Every insurance agent shall before the beginning of his concern, sedimentation and maintain deposited with any scheduled bank a sum equivalent to 20 % of the initial capital in fixed sedimentation, which shall non be released to him unless the anterior permission of the Authority is obtained. ”Harmonizing to the Sub-Regulation ( 1 ) of Regulation 18, Schedule II, of Insurance Regulatory and Development Authority ( Insurance Brokers ) ( Amendment ) Regulations, 2007 a Direct Agent at the clip of application of licence must pay a non-refundable application fee of 25 1000 rupees and in the subsequent old ages pay an one-year licence fee equal to the “ amount calculated at the rate of 0.
50 per cent of wage earned in the old fiscal twelvemonth topic to a lower limit of 25 1000 rupees and a upper limit of one hundred thousand rupees. ”Harmonizing to Regulation 2 ( B ) of Insurance Regulatory and Development Authority ( Insurance Brokers ) Regulations, 2002 a licence will merely be provided when “ the applier has the necessary substructure, such as, equal office infinite, equipment and trained manpower to efficaciously dispatch his activities. ”Keeping all these demands in head the premise is that the paid up capital should be one crore rupees.4. Labor: Harmonizing to Regulation 2 ( B ) of the Insurance Regulatory and Development Authority ( Insurance Brokers ) Regulations, 2002, the licence allowing authorization will take into history “ whether the applier has in his employment a lower limit of two individuals who have the necessary makings below and experience to carry on the concern of insurance agent. ” Insurance is a people to people concern. The nature of insurance requires agents to construct personal dealingss with clients to make trust.
Insurance is ne’er bought but ever sold. Hence to increase concern, more the figure of employees, more the concern. Insurance is an over-penetrated sector with High Network Individuals ( HNI ) , but is extremely underpenetrated in mid-income households. As these clients require a batch of follow up the premise is that the concern will necessitate 20 employees, out of which -Ten employees will be responsible for the field concern.Ten employees will be responsible for tele-calling and follow up activities.Insurance is hence a labour intensifier sector necessitating campaigners which have the ability to sell.5.
Affiliation: Another of import premise is that the company has received permission for empanelment from assorted -General Insurance Companies – National, New India, United India, Oriental, Tata AIG, HDFC ERGO, ICICI Lombard, Reliance etc.Health Insurance Companies – Apollo Munich, Max Bupa and Star Health.Life Insurance Companies – LIC, Max, Aviva, Bajaj Alliance, ICICI Prudential, Star Union Dai-ichi, Birla Sunlife, ICICI Prudential, IDBI Federal, ING Vysya, Kotak, MetLife, Reliance etc.
Overview of the Sector
Insurance is a signifier of hazard direction chiefly used to protect against the hazard of a contingent and unsure loss. It is a pattern by which an insurance company provides a warrant of compensation for specified loss, harm, unwellness, or decease in return for payment of a premium.An insurance agent sells, solicits, or negotiates insurance for compensation in the signifier of committee. An insurance agent differs from an insurance agent.
An insurance agent can supply his clients with limited services as he can acquire a licence for bureau from merely one life insurance organisation whereas an insurance agent can be empanelled with assorted life insurance companies thereby supplying his clients with a assortment of services.Shield is committed to supplying value to its clients by understanding their insurance demands and supplying advanced, cost effectual and customised solutions to guarantee entire client satisfaction. Its function encompasses assorted activities right from client profiling to claims disposal for clients.
Shield aims to play a prevailing function in the insurance broking industry in India with a focal point on giving more value to clients, advanced solutions, superior services, a professional squad, and corporate societal duty.
The consultative procedure of Shield will affect the undermentioned activities -Capture.JPGServicess Offered: Shield India Insurance Brokers Pvt. Ltd provides assorted insurance services for employees such as -Health Insurance: With medical disbursals being on the rise people worry about exigency wellness jobs which could bring mayhem on fundss. Shield offers a assortment of insurance programs from the market which includes single, household and senior citizen insurance programs.
Personal Accident Insurance: Harmonizing to Global Status Report on Road Safety by the WHO at least 13 people die every hr in route accidents in the state. A Personal Accident Insurance would non merely cover medical disbursals but besides provide compensation for the person ‘s disability or decease.Motor Insurance: One of the many fringe benefits offered by many concern organisations to its employees are chauffer goaded autos. These autos and other public-service corporation vehicles like new waves, trucks, coachs etc. necessitate to be insured against inadvertent harm, larceny and hurt.
Travel Insurance: Another fringe benefit provided as inducement by many concern organisations is going abroad. Travel insurance protects persons from unanticipated hazards like loss of luggage, loss of passport and any other personal liability.Fire Insurance: Fires can do harm to belongings and life. Fiscal losingss up to crores can be incurred due to fires. Thus Shield offers a assortment of insurance policies to retrieve losingss incurred due to the firing down of mills, offices etc.
Industrial Insurance: This type of insurance provides for work related hurts or illnesss. It besides covers an injured worker ‘s intervention and recovery disbursals. It besides provides for partial pay for injured workers who are temporarily unable to work. Industrial Insurance is particularly required for fabrication industries.Liability Insurance: This type of insurance protects a concern fromA the hazard that they mayA be sued and held lawfully apt for something suchA asA carelessness, hurt or malpractice. Liability insurance policies cover both legal costs and any legal payouts for which the insuredA would be responsibleA ifA found lawfully apt.Government Policies: The licence for Direct Broker ‘s License is provided by the Insurance Regulatory and Development Authority ( IRDA ) .Harmonizing to the Regulation 10 of the Insurance Regulatory and Development Authority ( Insurance Brokers ) Regulations, 2002 a direct agent must hold a lower limit paid up capital of 50 hundred thousand rupees.
Harmonizing to Regulation 2 ( F ) of the Insurance Regulatory and Development Authority ( Insurance Brokers ) Regulations, 2002, the licence allowing authorization will take into history whether the chief officer of the application a?’( I ) possesses the minimal making of:Bachelors/ Masters degree or its tantamount from any institution/ university recognized by any State Government or the Cardinal Government ; orMasters in Business Administration or its tantamount from any institution/ university recognized by any State Government or the Cardinal Government ; or( two ) the chief officer of the applier has received at least one hundred hours oftheoretical and practical preparation from an establishment recognized by the Authority fromclip to clip harmonizing to a course of study approved by the Authority.( three ) has passed an scrutiny, at the terminal of the period of preparation mentioned in theprovision above, conducted by the National Insurance Academy, Pune or any otheranalyzing organic structure recognized by the Authority.To put up a Private Limited Company, the organisation has to register under the Companies Acct, 1956 with the Registrar of Companies ( ROC ) and register its Memorandum of Association and its Articles of Association to have its Certificate of Incorporation.Growth: India ‘s insurance industry late underwent major structural alterations. Both the life and general insurance sectors, which were nationalized in the 1950s and 1960s, severally, saw an all-embracing liberalisation procedure in 2000.
Recently the Cabinet has increased the foreign direct investing ( FDI ) and foreign institutional investing ( FII ) in the Insurance Sector from 26 % to 49 % . The Finance Ministry has clarified that the 49 per cent bound on foreign investing in insurance will be a ‘composite ‘ 1. That is, a combination of foreign direct investing ( FDI ) and foreign institutional investing ( FII ) .The insurance sector grew at about 40 % – 50 % from 2004 to 2008 ; but due to the economic downswing universe over saw a slowing of 15 % per annum in the last 2 – 3 old ages. The life insurance sector is slated to turn at 12 % – 15 % in over the following five old ages.
Indian Insurance Sector is cumulatively valued at over US $ 66 billion. Released on April 11th 2011, a survey by the Federation of Indian Chamber of Commerce and Industry ( FICCI ) and the US-based Boston Consulting Group ( BCG ) titled ‘India Insurance, Turning 10, Traveling on 20aˆ? , reveals that consciousness and entire incursion of insurance services ( premiums as a per centum of GDP ) in India have increased from 2.3 per centum of the population in 2001 to 5.2 per centum in 2011.
Short and Long Run Schemes:
After adhering to all the ordinances set up by the Insurance Regulatory and Development Authority ( IRDA ) , Shield plans to use a Managing Director, Haresh Daryanani and set up a Human Resource Department.Subsequently at least 20 employees should be employed, out of which -a. Ten employees will be responsible for the field concern.
B. Ten employees will be responsible for tele-calling and follow up activities.To perforate the market he Haresh Daryanani ( MD ) has contacts with little and average industries.
There is besides a list of companies that can be contacted on the web site of Maharashtra Chambers of Commerce.Hopefully Shield would make the break-even point in three old ages.Net incomes Projection( a ) 2013-2014: nothing( B ) 2014-2015: Twenty-five Lakh Rupees( degree Celsius ) 2015-2016: Fifty Lakh Rupees( vitamin D ) 2016-2017: One croreThe company would so get down spread outing to semi-urban countries Nagpur and Nasik and urban countries like Mumbai after five old ages.
Data and Analysis
Market Share of Life Insurance Companies harmonizing to IRDAhypertext transfer protocol: //freepress.in/wp-content/uploads/2010/10/life_insurers_market_share.jpgThe Latest Market Share of all the Life Insurance companies runing in India at the terminal of March – 2011 / FY 2011 is as shown in the Pie-chart above.
The undermentioned Data suggests that LIC of India is still the market leader followed by ICICI Prudential, HDFC Standard Life, SBI, Reliance, Bajaj, Birla Sun Life, Max New York etc.
Pie Chart 2
Market Share of General Insurance CompaniesAlthough the participants in the private and public sector mostly offer similar merchandises in the non-life insurance section, private sector participants outscore their public sector opposite numbers in their quality of service.
Pie Chart 3
Product Mix of General Insurance CompaniesMerchandises are chiefly divided as Commercial V Personal/retail merchandises. Growth for the largest private sector participants has been fueled by the retail section. Auto continues to be the largest concern section.
Growth Chart of Health Insurancehypertext transfer protocol: //www.
healthinsuranceindia.org/right_img/Growth % 20graph % 20of % 20Health % 20Insurance.jpgAs Peoples are witting of wellness attention and therefore necessitate for Health Insurance is increasing twelvemonth by twelvemonth. Healthcare costs are increasing at 20 % per twelvemonth. Peoples have started giving more importance to wellness insurance with a life insurance. We feel big figure of people are now on the brink of going buyer/ client of wellness insurance.
Insurance Premiums as a Percentage of Gross Domestic Product ( GDP )Capture 2.JPGThe state ‘s strong economic growing in recent old ages has helped increase incursion degrees well. Premium income, as a per centum of GDP, increased from 3.3 % in FY03 to 7.6 % in FY09.
However, the incursion of insurance in India still continues to be low, as compared to other developed and developing economic systems.
Per Capita Insurance PremiumCapture.JPGThe Indian life insurance sector has witnessed exponential growing, driven by invention in merchandise offerings. Presently, it is the fifth-largest life insurance market in Asia. The rapid enlargement in the life sector coincided with a period of lifting family nest eggs and a turning in-between category. Advanced merchandise design ( e.
g. launch of ULIPs ) and aggressive distribution schemes ( e.g. development of bancassurance ) by private sector participants have significantly contributed to strong premium growing. The undermentioned diagram shows the increasing premium per capita during the same period.
Rivals: There are really few rivals in the Private Insurance Brokering Market in Pune. Harmonizing to the Insurance Regulatory and Development Authority ( IRDA ) they are1. Nipun Ins. Brokers Pvt.
Ltd.2. Landmark Insurance Brokers Pvt Ltd ( Earlier known as Surekh Insurance Brokers Pvt Ltd )3. United Risk Ins. Broking Co. Pvt. Ltd.
4. Vantage Insurance Brokers & A ; Risk Advisors Pvt. Ltd ( Earlier known as Vantage Ins. AgentsPvt. Ltd. )5. Rest Assured Ins.
Broking Pvt. Ltd.ATwenty per centum of all the Life Insurance policies provided by life insurance companies are sold by Private Brokering Firms.
Shield by the terminal of its 2nd twelvemonth programs to capture at least 20 per centum of the market portion in Pune.
With an one-year growing rate of 15-20 % and the largest figure of life insurance policies in force, the potency of the Indian insurance industry is immense. Entire value of the Indian insurance market ( 2004-05 ) is estimated at Rs.
450 billion ( US $ 10 billion ) . Harmonizing to authorities beginnings, the insurance and banking services ‘ part to the state ‘s gross domestic merchandise ( GDP ) is 7 % out of which the gross premium aggregation forms a important portion. The financess available with the state-owned Life Insurance Corporation ( LIC ) for investings are 8 % of GDP.The Indian insurance industry will go on to outpace the state ‘s economic growing and is projected to make US $ 350 to 400 billion in premium income by 2020. These figures will set India amongst the top three life insurance and top 15 non-life markets in the universe within the following nine old ages, harmonizing to a new study.At present, the insurance sector in India comprises of 23 different life and 24 non-life companies, and is cumulatively valued at over US $ 66 billion. The development chance for life and non-life insurance coverage is being driven by the continued growing of India ‘s population and economic system.Released on April 11th 2011, a survey by the Federation of Indian Chamber of Commerce and Industry ( FICCI ) and the US-based Boston Consulting Group ( BCG ) titled ‘India Insurance, Turning 10, Traveling on 20aˆ? , reveals that In add-on, there has been a significant addition in coverage.
The study detailed that the figure of life insurance policies now in force had increased about 12 times over the past decennary and the figure of people having wellness insurance had besides risen about 25 crease.“ This monolithic growing will hold a important impact on India ‘s ranking in the planetary insurance industry and is based on strong basicss, ” remarked FICCI Director General Rajiv Kumar.Turning consumer category, lifting insurance consciousness, and increased investings and substructure disbursement have built a strong platform for premium enlargement in India.The gap up of the insurance sector for private participation/global participants during the 1990s has generated stiff competition among the participants, with each participant offering better quality merchandises. This offers consumers the pick to purchase a merchandise that best fits his or her demands. However, clients are non good cognizant of how to take a suited merchandise to fit their demands. This is where Shield comes in and makes it easier for clients to take a merchandise which matches their demands. There has been a recent upswing rush in the market due to the revamp in policies which increases investor assurance.
This will therefore increase the rate of growing of insurance.Recently the Cabinet has increased the foreign direct investing ( FDI ) and foreign institutional investing ( FII ) in the Insurance Sector from 26 % to 49 % . The Finance Ministry has clarified that the 49 per cent bound on foreign investing in insurance will be a ‘composite ‘ 1. That is, a combination of foreign direct investing ( FDI ) and foreign institutional investing ( FII ) .This alteration in policy will increase the investing by foreign investors in Indian Companies.
Shield will turn and spread out as we are by and large aiming concern organisations that will supply us with group insurance schemes. As employee turnover has been high, employees and the organisation have to be insured once more and once more. By maintain good personal dealingss with the company we plan to supply first-class services so that our clients make non travel to other agents.Shield will besides seek and aim high income households supplying them with a personalized hazard portfolio ( wellness, fiscal ) and a assortment of merchandises to accommodate their demands.
Insurance, particularly wellness insurance, is non truly affected by negative economic factors as wellness insurance is particularly needed during fiscal crisis. Shield will capitalise on this merchandise and supply personalized services particularly during claim processing to cut down the load on the household. As the slogan says Minimize Risk, Maximize Caring ; Shield will supply first-class services non merely for net income but besides to safeguard people from future uncertainnesss.