Indian life insurance sector in present scenario-A review based study

Pages: 46-51
Anju Verma and Renu Bala (Haryana School of Business, Guru Jambheshwer University of Science & Technology, Hisar, Haryana)

This paper is based on the review of various research papers. The main focus of this paper is to observe “The Indian Life Insurance Sector in Present Scenario”. The paper is being divided into four parts. First part explains the role of the insurance sector in socio-economic development of an economy, role of the Insurance sector in the savings particularly in the long-term savings or investment. Second part of the paper explains the privatization and liberalization of the insurance sector and the history of the Indian life insurance. Third part explains the review of literature and methodology which is exploratory in nature. The data is secondary and collected from the various sources such as journals, annual reports, and websites from the year 1986 to year 2009. The fourth part of the paper which is the final part also, concludes the main findings of the study which are such as, after the privatization and liberalization of the insurance sector IRDA has huge responsibility very first to avoid all the pre nationalization speculation activities and concentration of insurance firms only to urban segment and secondly to avoid malpractices in the funds investment activities. As the insurance sector is very important part of the financial market and financial market stability play a vital role in the stability of the whole economy. On the other side the biggest challenge is to provide all the players (domestic or foreign) the “level of playing field”. To control other problems such as the “price-war” among the firms and simultaneously many developed countries insurance firms has reached almost at the saturation level now they can try to capture the maximum market share in India.