Insurance Company Case Study and Analysis

Insurance Company Case Study and AnalysisThis carriage Insurance Company Ltd. is virtuoso of the famous indemnification companies in India offering respective(a) effective life redress policies. This sustenance Insurance Company Limited is often k this instantn as Tata AIG spirit. This Life is a joint venture of the Tata follow and American internationalist Group, Inc. (AIG). Offers many standard custom made life indemnification policies. It is sensation of the oldest and leading(a) business group of India. Tata group has a long association with Indias insurance sector being the largest insurance company in India prior to the nationalization.American International Group INC is leading US board International insurance financial service organization this Life Insurance Company Limited or this insurance company brings to you a wide choice of life insurance policies for individuals, small and large business industries and for ventures. Apart from these, the company also pro vides additional life insurance coverage to assure the clients an insurance form _or_ system of government designed for them.The Tata Group holds 74 % stake in the insurance venture with AIG holding the rest 26%. Tata AIG Life provides insurance solutions to individuals and corporate sectors. This Life Insurance Company received license for operating in India on February 12, 2001 and started its operations on April 1, 2001.CEO of TATA -AIG is Mr. Ian J. Watts Joydeep K. Roy, the alternative channels.The various life insurance policies and services offered by the Tata AIG Life include-For individualsLife Health FirstMahaLife GoldLife Invest Assure PlusLife Invest Assure IILife Health ProtectorLife Invest Assure CareLife Invest Assure GoldLife Health InvestorLife Invest Assure ExtraLife PlusLife Shubha LifeLife Easy RetireLife Assure surety Growth PlanLife Assure Money SaverLife RaksaLife Assure Golden PlanFor ChildrenLife Assure 21 years Money SanchayLife Assure Career BuilderLi fe Star kidLife Invest Assure PlusLife Assure meliorate at 18Retirement PlansLife NirvanaLife Easy RetireLife Invest Assure GoldCorporate life insurance products offered by this Life Insurance Company Ltd-The Tata AIG Life Insurance Company Limited also offers various corporate life insurance products that include Group PensionEmployee BenefitWorkplace SolutionCredit LifeTHE CASEAmerican Insurance group in USA leave have a bearing on its business in India, particularly its insurance business which it is running in collaboration with Tata.However sources in the industry say that policy holders are not required to worry as the financial condition of insurance subsidiaries of AIG in India is quite stable, and they are able to meet all the liabilities emerging out of claims from their policy holders.Insurance Regulatory Development Authority (IRDA) has also expressed its concern over the recent developments in the United States financial markets. AIG, which is one of the leading insu rance group of US, has asked financial assistance from the Federal Reserves. AIG is operating in both the life and non-life insurance sectors.In a statement IRDA verbalise that reports of life insurance and general insurance companies promoted by Tata and AIG as on March 29, 2008 indicated that both companies have satisfactory solvency position which suggests that they have enough assets which is unresolved of meeting their liabilities. IRDA further clarified that life and general insurance companies promoted by Tatas and AIG are companies registered under the Indian Companies Act and are restricted by the nutriment of the Insurance Act .From the reliable sources we found that policy holders should wait for clarification before taking any decision. AIG in USA has a solvency issue moreover in India there is no liquidity issue due to the intervension of IRDA. So there may not be a problem in the Indian insurance market.Though in many countries, policy holders are in a hurry to can cel their policies, but in India there is no conduct to take such steps. Thus Industry experts said that there is no need to worry and policy holders should keep their insurance policies intact.This companys general insurance is among the turn over 5 general insurance companies of the world and has bring in a net premium of RS.812 in 2008-09. This company is also one of the leading primary sectors and has earned a yearly premium of Rs.970 corer.Solution of the caseOne of the officials Tata said that if AIG is not able to survive in the USA is forced to file for insolvency, Tata will misdirect out the 26% share of AIG in both the companies and the customers participation will remain safe. Then find some other foreign company and sell that 26% to them. So IRDA took the decision that they will seek a new promoter incase Tatas buys out the share or not the policiers interest will remain unaffected.But later on the matter settled down and AIG somewhat regained its lost position and thus Tata decided not to buy off their shares and till date they are continuing their insurance company together.ConclusionIn India the insurance market was suffering before but now it has regained its lost status. But still now Life Insurance Corporation of India acquires 64% share of the entire insurance holders followed by ICICI prudential which has only 9% approx. of the market. Tata AIG has almost a negligible Insurance market share which is less than 2%. So they need to work a lot in graze to establish their hold in Indian market.