Indian Insurance Companies

In: Business and Management

Submitted By INDRAJIT786
Words 2780
Pages 12
Abstract

The liberalization of the Indian insurance sector has been the subject of much heated debate for some years. The policy makers on one hand wanted competition, development and growth of insurance sector, which is extremely essential for channeling the investments in to the infrastructure sector. At the other end the policy makers had also the fear that the insurance premium, which are substantial, would seep out of the country; and thus in the nation's interest, they want to have a cautious approach of opening for foreign participation in this sector.

After a long discussion, confrences and fraction among some political parties, IRDA brought consensus among factions of different political parties. Though some changes and some restrictive clauses as regards to the foreign participation were included the IRDA has opened the doors for the private entry into insurance.

The number of potential buyers of insurance is certainly attractive but much of this population might not be accessible as it will take a long time for us to trust on private Sector insurance companies and this would be the only major weapon in the hands of public sector insurance companies to move ahead .Now it would be interesting to watch that how long domestic companies can reap the fruits of being Indian and survive and expand in the immense competition from foreign and private players.

Whether the insurer is old or new, private or public, expanding the market will present multitude of challenges and opportunities.

The paper will analyze the likely impact of opening up India's insurance sector and will also suggest growth & survival strategy for Indian Insurance companies.

Main Paper

Indian insurance is on the threshold of deep and fundamental changes. The life insurance industry was nationalized in 1956 and the general insurance industry in 1972. Before that India had a…...

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