Beat the competition with facts. Why figures matter?

Here are some eye openers based on true statistics which are selfexplanatory. Why policies lapse? Mis-selling is one of the main reasons which leads to lapsation of policies. Telemarketing teams employed by private insurers are under immense pressure to achieve their targets. In order to achieve their targets telemarketing teams often hide certain facts which are required to be explained to the policy holder. Another reason is lack of proper explanation and education. Also at times insurance policies are sold without properly analyzing and understanding the customers requirement. All these factors cause lapsation of policies.

Graphic source: http://www.livemint.com/2010/01/18233716/Life-policies-worthRs1-trilli.html

Profit and loss statements of insurance companies The profit and loss statements of insurance companies operating in India can give you a better picture. According to the IRDA annual report, out of 22 life insurers, only four have reported profits in 2008-09. This includes LIC, Kotak Mahindra, Met Life and Shriram. LIC reported a higher profit of Rs 957.35 crore compared with the previous years profit of Rs 844.63 crore. Kotak Mahindra, for the first time, has reported a net profit of Rs 14.34 crore in 2008-09. During the previous year, the company had incurred a loss of Rs 71.87 crore. Met Life has reported a net profit of Rs 14.52 crore and Shriram reported a net profit of Rs 8.11 crore.

Profit & Loss of All Life Insurers operating in India from 2000- 2009 (Rs. In Lakhs)
Source: IRDA
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Name of Company

2000-2001
Profit 31,655 Loss ( 8,032 ) Profit 22 Nil Loss ( 135 ) Loss ( 1,605 )

2001-2002 Profit 82,179 Loss ( 3,610 )

2002-2003 Profit 49,697 Loss ( 6,096 )

2003-2004
Profit 55,181 Loss ( 7,774 )

2004-2005 Profit 70837 Loss ( 6061 )

2005-2006
Profit 63158 Loss ( 6113 )

2006-2007 Profit 77362 Loss ( 13974 )

2007-2008 Profit 84,463 Loss ( 44,528 )

2008-2009 Profit 95,735 Loss ( 70,214 ) Loss ( 7,797 ) Loss ( 1,945 ) Loss ( 50,296 ) Loss ( 39,302 ) Loss ( 1,08,491 ) Loss ( 7,068 ) Loss ( 2,631 ) Profit 1,434 Loss ( 56,524 ) Profit 1,452 Loss ( 49,505 ) Loss ( 1,815 ) Profit 811 Loss ( 41,748 ) Loss ( 25,594 ) Loss ( 11,023 ) Profit 408 Loss ( 20,207 ) Loss ( 4,446 ) Loss ( 1,858 )

LIC of India Birla Sunlife ICICI Prudential ING Vysya HDFC Standard Max New York Reliance Allianz Bajaj SBI Life OM Kotak TATA AIG MET Life AVIVA SAHARA SHRIRAM BHARATI AXA
FUTURE GENERALI

Loss ( 10,509 ) Loss ( 14,718 ) Loss ( 22,391 ) Loss ( 21162 ) Loss ( 18788 ) Loss ( 64891 ) Loss ( 1,39,506 ) Loss ( 3,094 ) Loss ( 3,786 ) Loss ( 6,299 ) Loss ( 9376 ) Loss ( 12400 ) Loss ( 17757 ) Loss ( 19,053 ) Loss ( 2,510 ) Loss ( 4,820 ) Loss ( 2,344 ) Loss ( 8973 ) Loss ( 12876 ) Loss ( 12556 ) Loss ( 24,351 ) Profit 1,138 NA Loss ( 1,565 ) Loss ( 29 ) Profit 257 Loss ( 2,524 ) Loss ( 284 ) NA NA NA NA NA NA NA NA NA NA Profit 482 NA Loss ( 2,653 ) Loss ( 749 ) Profit 277 Loss ( 4,289 ) Profit 804 Loss ( 3,422 ) NA NA NA NA NA NA NA NA NA
Loss ( 23,276 ) Loss ( 7,889 ) Loss ( 2,681 ) Loss ( 1,641 ) Loss ( 9,242 ) Loss ( 5,809 ) Loss ( 1,213 ) Loss ( 6,420 )

Loss ( 9966 ) Loss ( 5401 ) Loss ( 3675 ) Loss ( 1150 ) Loss ( 1645 ) Loss ( 4959 ) Loss ( 4881 ) Loss ( 9097 ) Loss ( 747 ) NA NA NA NA NA NA NA NA

Loss ( 6006 ) Loss ( 9840 ) Loss ( 9854 ) Loss ( 203 ) Loss ( 4442 ) Loss ( 5391 ) Loss ( 9774 )

Loss ( 6047 ) Loss ( 31511 ) Loss ( 7170 ) Profit 383 Loss ( 11047 ) Loss ( 7236 ) Loss ( 1197 )

Loss ( 15,693 ) Loss ( 76,807 ) Loss ( 21,389 ) Profit 3,438 Loss ( 7,187 ) Loss ( 3,393 ) Profit 2,125 Loss ( 20,249 ) Profit 334 Profit 558 Loss ( 24,201 ) Loss ( 3,005 ) Loss ( 2,553 ) N.A N.A N.A N.A

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

Loss ( 14387 ) Loss ( 13175 ) Loss ( 798 )

NA NA NA NA NA NA NA NA NA

Loss ( 51 ) Profit 950 Loss ( 8043 ) NA NA NA NA NA NA

NA NA NA NA NA NA NA NA

IDBI FORTIS
AEGON RELIGARE CANARA HSBC OBC

DLF Prameria
Star Union Dia Ichi

Death claim statistics Why it matters? Some private insurers claim to offer lowest premium for term policies but statistics of death claims settled by them are shocking. What is the point in having a life insurance policy if the possibility of your insurance claim getting settled in case of an unfortunate incident is uncertain? Leave alone low premiums.