Submitted by
: RITIKA, MBA-4th( B),roll no-1273624
Q.22
ASSIGNED
SOLUTION:
Introduction: Many of us buy
life insurance because we want to make sure that our loved ones remain
financially secure after we die. Income replacement is the No. 1 reason people
buy life insurance.
Further my views are related to decline in
premium collection and reasons.
DISCUSSION:
The busy tax
saving season failed to bring cheer to the life insurance market as policy
issuance continued to head south, pushing down sales or premium collection by
14 per cent in the current financial year.
The worst sufferers
were the private life insurers, as the number of policies issued by them is
down nearly 28 per cent in the current financial year. Premium collected by
writing new policies between April and February nose-dived 19.25 per cent to Rs
24,835.65 crore from Rs 30,756.02 crore a year ago. The number of policies
issued by the largest life insurer, Life Insurance Corporation (LIC) of India, too, declined
4.63 per cent in the same period.
As a result, the first year
premium collection was down nearly 11 per cent to Rs 64,820.5 crore as against
Rs 73,121.61 crore in the corresponding period last year. According to data
collected by the Insurance Regulatory and Development Authority (IRDA), the life insurance industry collected Rs 89,655.83
crore during this 11-month period by writing new policies.
REASONS:
·
Lack
of products continued
to be one of the key reasons for this fall in collection.
·
The volatile equity market also took its toll.
·
The competition in the market
·
Some
changes in the IRDA
policies
·
FRAUDS
MADE BY INSURANCE AGENTS
CONCLUSION:
If insurance companies
want to grow and would like to increase their share in the market, they should
take into consideration the above reasons and ultimately should work on them. As
the contract of insurance is based on trust, agents should disclose the
relevant information to the customers.
Fair Attempt!!!!
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