Life Insurance Industry in India – List of All Life Insurers (SBI,Aviva,HDFC,LIC) and Best Life Insurance Company in India

Life Insurance Industry in India

In India, Insurance is a national matter, in which life and general insurance is yet a booming sector with huge possibilities for different global companies, as life insurance premiums account to 2.5% of India’s GDP. The Indian Insurance sector has gone through several phases and changes, especially after 1999, when the Govt. of India opened up the insurance sector for private companies to solicit insurance, allowing FDI up to 26%. Since then, the Insurance sector in India is considered as a flourishing market amongst global insurance companies. However, the largest life insurance company in India is still owned by the government.

The Insurance Industry has grown  (premium as percentage of GDP)  from 2.3 per cent in 2001 to 5.2 per cent in 2011.The report estimates the total insurance premium at approximately Rs $350-400 billion in 2020 with Life Insurance making 90% of the premiums.The profitability of the industry is negative as they have spent their energies in expanding their base in a rapidly growing market without concentrating on the margins leading to a cumulative loss by private insurers of around $3.5 billion.However the huge size of the insurance market which has been estimate at an astounding $350 billion in premium by 2020 is attracting companies in droves.Almost all major global insurance companies have a presence in India through JV (as government regulations only allow 26% holding).Major Indian Banks and Finance Companies too have a presence in the sector through JV with foreign partners who bring the expertise.

What is Life Insurance

Insurance is a contract between two parties, the insurer or the insurance company, and the insured, the person seeking the cover. Within this contract, the insurer agrees to pay the insured for financial losses arising out of any unforeseen events or risk in return for a regular payment of premium. Thus, these insurance plans are also called as a Risk Cover Plans, which means to financially compensate for losses that occur uncertainly through accident, illness, theft, natural disaster. One cannot fight against these man-made and natural calamities, but can be prepared for them and their aftermath by taking insurance policies. Insurance is about risk cover and protection. By buying life insurance, one can buy peace of mind. Insurance also serves as an excellent tax saving mechanism. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets.Insurance Regulatory & Development Authority (IRDA) is regulatory and development authority under Government of India in order to protect the interests of the policyholders and to regulate, promote and ensure orderly growth of the insurance industry.

Life Insurance Companies in India

1. Life Insurance Corporation of India – Life Insurance Corporation of India (LIC) is a Government of India enterprise, and is the largest life insurance company . LIC had been established in 1956, after the Life Insurance Corporation Act had been passed by the Parliament of India in the same year. It also provides savings features along with various insurance policies. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance.LIC with its massive corpus is  also the largest investor in the Indian market.LIC continues to be the best insurance company in India just because of its track record and the high trust it is held in.Private life insurance companies in India like the Car Insurance Companies are held in low trust and it is true considering the harassment and the low claims percentage that these companies give out.Even if LIC can’t manage to give the polish of the private insurers,its scores on delivery which the only thing that matters.
2. TATA AIG – Tata AIG Life Insurance Company Limited is a joint venture between the  Tata Group and American International Group, Inc. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG General Insurance Company, which started its operations in India in 2001, provides insurance solutions to individuals and corporates. It also offers a complete range of general insurance products including insurance for automobile, home, personal accident, travel as well as several specialized financial lines.
3. Bajaj Allianz – Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Bajaj Allianz has made a profit before tax of Rs. 180 crores and has become the only private insurer to cross the Rs.100 crore mark in profit before tax in the last four years. Today, Bajaj Allianz is one of India’s leading and fastest growing insurance companies.
4. Reliance Life Insurance Ltd. -It is a part of Reliance Capital Ltd (ADAG Group) which one of India’s leading private sector financial services companies. In just 2 years, the Company has crossed the mark of 1.7 Million policies. It is one of India’s leading private insurance companies with over 94 customized insurance products catering to the corporate, SME and individual customers. Reliance Life Insurance is not only one of India’s fastest growing life insurance companies, but also counts among the top 4 private sector insurers.
5. Birla Sunlife Insurance .– Birla Sun Life Insurance Co. Ltd. is a joint venture between Aditya Birla Group and Sun Life Financial Inc. This insurance company has pioneered the unique Unit Linked Life Insurance Solutions in India. Within 4 years of its launch, BSLI became one of the leading players in the industry of Private Life Insurance.
6. HDFC Standard Life Insurance It is a joint venture between HDFC Limited and a Group Company of the Standard Life Plc, UK. The Company is one of leading private insurance companies, offering a range of individual and group insurance solutions, in India. Being a joint venture of top financial services groups, HDFC Standard Life has adequate financial expertise to manage long-term investments safely and resourcefully. The Company’s business premium income stood at Rs. 1,839.70 Crores in 2008; it has covered over 812,811 lives so far.
7. ICICI Prudential Life Insurance – It is a joint venture between ICICI Bank and Prudential plc, which is a leading international financial services. ICICI Prudential began the operations in December 2000. It has been voted as India’s Most Trusted Private Life Insurer for three consecutive years. ICICI Prudential Life Insurance Company has various insurance plans that have been designed for different individuals, as every individual has different insurance needs.
8. ING Vysya Life Insurance – It is a joint venture between Vysya Bank, which is one of the largest private sector banks in India, and ING Insurance Co., which is the world’s second largest life insurance company. It presently has around 4.5 lakh customers.
9. Max New York Life Insurance -It  is a joint venture between Max India Limited, which is a multi-business corporate, and New York Life International, which is a Fortune 100 company . Max New York Life offers a variety of flexible products covering both life and health insurance including 8 riders that can be customized to over 800 combinations
10. Met Life India Insurance Co. Pvt. Ltd. – It  is a joint venture between MetLife Group and its Indian partners, are J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.  MetLife is 88 of the top one-hundred FORTUNE 500 companies. MetLife entered Indian insurance sector in 2001.
11. Kotak Mahindra Old Mutual Life Insurance Ltd. – iJoint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance Ltd. is a company which offers Life Insurance products. It is one of India’s most rapidly growing insurance companies.
12. SBI Life insurance Co. Ltd. –
13. Aviva Life Insurance– It is a private insurance company, formed by a joint venture between the Aviva insurance group of UK and the Dabur group of India. Aviva holds 26 percent stake and the Dabur group holds the balance 74 percent share in the joint venture. Aviva is also known as the fifth largest insurance group in the world. At the time of nationalization, Aviva was the largest foreign insurer in India in terms of the compensation paid by the Government of India.
14. Shriram Life Insurance – IT is a joint venture of the Shriram Group of India and SANLAM of South Africa. The group offers several policies catering to various needs of the policy holders. Along with life insurance, distinct policies cover subjects like child education, retirement funds, marriage of children, expectation of high returns etc.
15. Sahara India Life Insurance Company Ltd. – Was granted license by IRDA in 2004. It is the first wholly Indian-owned company in the Indian life insurance market without any collaboration with the organizations abroad. The paid up capital of the insurance company at the time of its commencement was Rs 157 Crore. TThe company offers both individual and group insurance products.
16. Bharti AXA Life Insurance – It is a joint venture between Bharti and AXA – global leader in financial protection and wealth management. Bharti AXA Life Insurance has a 74% stake from Bharti and 26% stake of AXA in the joint venture. The Company launched its operations in India in 2006.With the continuous expansion, Bharti AXA Life Insurance is making itself proactive to cater to insurance and wealth management needs of people.
17. Future Generali India Life Insurance.  – It is one of the rapidly growing Insurance companies in India. The Company is a joint venture between the India-based Future Group and the Italy-based Generali Group. Future Generali group is present in both the Life and Non-Life businesses in India.
18. IDBI Fortis Life Insurance –  It is a joint venture of IDBI Bank, Federal Bank (India) and Fortis Insurance International.  IDBI has a 48% stake in the venture, while Fortis and Federal Bank 26% stake each. While IDBI and Federal Bank are major Indian banks, Fortis has the expertise of bancasurance across global markets. IDBI Fortis Life Insurance has become 18th life insurer in India.
19. Canara HSBC Oriental Bank of Commerce Life Insurance – Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited and Oriental Bank of Commerce (OBC), together established an insurance company. Canara Bank holds 51% equity while the holdings of HSBC and OBC are 26% and 23%, respectively.
20. AEGON Religare Life Insurance Company . – It is a joint venture of AEGON, Religare and Bennett, Coleman & Company.One of the pioneers in offering low cost term plans online.
21. DLF Pramerica Life Insurance Company -It  has been formed by the collaboration between DLF Limited and Prudential International Insurance Holdings, Ltd. (a fully owned subsidiary of Prudential Financial, Inc.). The insurance company aspires to become a significant player in the growing Indian life insurance market.
22. Star Union Dai-ichi Life Insurance – It is a joint endeavor of Bank of India and Union Bank of India (two major Public Sector Banks in India) and Dai-ichi Mutual Life Insurance Company. It has an initial capital of Rs. 250 crores, of which Bank of India has a 51% stake, Union Bank of India has 23% and Dai-ichi Life holds 26% stake. The company is expected to be a strong contender in the insurance sector, taking into consideration its insurance, IT, finance and investment resources. The enterprise offers various products to serve all sections of the society.