Performance Of Life Insurance Companies In India

This book traces the development and analyses the performance of life insurance industry in India, since inception of this sector, using different business indicators over the years. It discusses the evolution and changing features of the Indian insurance industry in 3 phases: phase I from 1818 to 1956, phase II from 1956 to 2000 (known as the nationalisation period) and phase III post 2000 (called the post reform period). The book also measures the relative efficiency and productivity of the life insurance industry in India for the post-reform period, by employing Data Envelopment Analysis (DEA). Despite the fact that the life insurance sector recorded a compound annual growth rate (CAGR) of 17% in terms of total premiums and 21% in terms of new business premium collections during the post reform period, the insurers continue to grapple with the issue of profitability. Against this background, the book presents results on the factors determining profitability of the life insurance companies using measures of efficiency and competition. By helping regulatory authorities determine the future course of action in the context of entry of foreign insurers and also in establishing a level playing field, the book has important policy implications.

Contents Include : Introduction; Life Insurance : Review Of Studies Made; Methodology For Analysis; Performance Evaluation Of Life Insurance Corporation Of India; Productivity Of Life Insurance Corporation Of India; Investment Portfolio Of Life Insurance Corporation Of India; Impact Of Privatisation On The Performance Of Life Insurance Corporation Of India; Conclusions.

Novi Dewan establishes a status quo of the Indian health and life insurance industry and discusses the best practices for various elements of the marketing mix. She complements secondary research with recent empirical data accentuating the emerging opportunities and challenges in the Indian Insurance Industry by using standardized interviews with opinion leaders and CEOs of several insurers.

The book examines the trends of premium collection and investment portfolio of LICI and selected private life insurers in India in order to compare their performances. Life insurance organizations in India are significant financial institutions in the Indian financial system and play a major role in mobilizing insurance premium from the household sectors and investing it in the financial markets for productive purposes. The book aims to assist life insurance companies in evaluating their performance in terms of their premium mobilization and investment in Government and other approved securities, infrastructure securities, securities approved by the Insurance Regulatory and Development Authority of India (IRDAI) and other than approved securities as per the provision of IRDA (Investment) (Fifth Amendment) Regulation, 2013. Against this backdrop, the theme of the book is particularly relevant because life insurance companies play a vital role in channelizing small savings into productive sector investment to promote economic development of the nation.

Insurance business in India had taken step first in open competitive market then to nationalization. For almost four decades LIC has been the sole player with virtual monopoly in the Life Insurance Sector, it was in 1990,s government of India ventured into policy of liberalization and privatization and once again the insurance sector is back to privatize and liberalized market. Hence today most of the private players are giving competition to the public sector company, As private players entered in the market the market is booming in insurance sector with various products for attracting the attention of customer consequently by the year 2000-2001 , 12 players entered the life insurance sector .which will effect the performance of life insurance corporation .Thus the LIC had never faced any competition and at the same time had monopoly in the market, now has to compete with the private players,. It is therefore important to study the performance of Life Insurance Corporation after the entry of the private players and after adapting liberalize policy by the government therefore it becomes imperative to evaluate the performance of life insurance Corporation of India. The entry of private players in the market after adapting privatization by the government had effected in the performance of the life insurance sector, which is the key sector in the financial system Hence there is primary need to evaluate the performance of LIC and to study the need of privatization in Life Insurance Sector at the same time to study impact of private entrants in Insurance Sector, especially with regard to performance of life Insurance Corporation of India The broader objective of this study is to evaluate the role of privatization on the performance of LIC. Following are the specific objectives of this study; 1. To evaluate the performance of LIC 2. To study the need of privatization in Life Insurance Sector 3. To study impact of private entrants in Insurance Sector, Specially with regard to performance of life Insurance Corporation of India The suggestion and criticism for the improvement in the research are welcome.

Contents Include : Insurance Sector In India An Overview; Economic Liberalization And Insurance Sector Reforms In India An Overview; Development Of Insurance Sector In India; Risk Management In Insurance; Insurance Sector After Liberalization : An Impact On Organizational Structure; Insurance Sector In Post-Liberalization: An Impact On Legal Framework; Impact Of Economic Liberalization On The Volume Of Insurance Business.