Indian Insurance Industry: On A Newer Orbit

Abstract

Life insurance is not simply a business proposition. It is not just a question of mobilization of resources for development; it is a question of citizen’s sense of security. It provides a link between the present and the future. Today India is one of the fastest growing economies of the world. It is now Asia's third largest economy and has made inroads into the global top 10 in terms of Gross Domestic Product (GDP). GDP originating from the service sector recorded a growth rate of 17.26% in 2010 - 2011. The contours of insurance business have been changing across the globe and rippling effect of the same can be observed in the Indian market as well. Insurance Industry is a growth-oriented industry. The life insurance sector in India has seen an array of changes in the past one decade. The economic scenario which emerged after globalization, privatization and liberalization has thrown a new challenge before the insurers. Now it has to be more competitive in order to meet the needs and demands of its customers. With a huge population base and large untapped market, life insurance industry has a big opportunity in India for National as well as foreign investors. The profitability of the life insurance companies has also been changed due to change in operating activity like selling new policies, appointment of active agents, giving commission to the agents and evaluating maturity value. The growth of insurance business of private sector companies has been higher than government sector.