Growth of Insurance Industry Post Liberalisation

In the words of the erstwhile Finance Minister, Morarji Desai: Whereas Life Insurance Corporation will always bear in mind that its primary obligation is to its policy holders whose money it holds in trust, and will never lose sight of the fact that, as a single investor in India, it has to keep before it the investors of the community as a whole. It will, therefore, invest in ventures which further the social advancement of the country. Its funds will, as far as practicable, be invested for the entire good of the country. The following factors are essential for an ideal insurance policy:

The Insurance industry is very heavily state regulated. According to the Government Accountability Office (GAO) study, the state run regulatory system is Federal verses State Regulation protecting the markets, insurance industry and policy holders and was evidenced during the financial crisis of 2008-09. The insurance business is highly profitable. “Well-run companies can make a lot of money, which breeds competition” from both “inside and outside competitors” (Property, 2013). Insurance companies were well “insulated” from the “severe” financial crisis of 2007-2008 that affected the banks and security firms, because the State regulations have the Insurance Industry “walled off” from Federal Regulations (Property, 2013). During the “Great Depression of the 1930s” “Insurance policy holders were protected by the states’ prudent supervision and regulation” (Property, 2013).

The statistics on the test data, indicate Allstate agency owners can increase revenue through the offering of financial and life insurance products. With proper procedures implemented, each agency owner’s staff can identify consumers as the need develops. First, the registered financial advisor is recommending that a staff requirement exist for new Allstate agency owner’s consumers. Further, the registered financial advisor recommends staff require financial meeting for new consumers after policy

The word “risk” means the possibility of suffering a harmful event. Risk taking can bring either positive or negative result because anytime we take risks in life, there is a possibility of loss which can cause tension. There are a lot of people who take big risks and appear not to be affected by them. But, many of us feel very uneasy when faced with risk-taking; we may become worried about the risk. Although some people are content in life by just playing it safe and not courting any

While companies form captives with the initial motive of underwriting its parent’s risks, they are likely to need the cooperation of the market. Sometime market co-operation is very difficult to get, especially in a very difficult insurance market environment where the possibility of creating a parent company is either not available or it is possible only at exorbitant cost.

Introduction:- The new economic policy and liberalization growth followed by the Government of India since 1991 paved the way for privatization of insurance sector in the country. Health insurance, which remained vastly underdeveloped and a less important segment of the product groups of the nationalized insurance companies in India, is now controlled for a fundamental change in its approach and management. The Insurance Regulatory and Growth Authority (IRDA) Bill, recently passed in the Indian Parliament, is important beginning of alteration having significant implications for the health sector .

A registered Non -banking company with the Central Bank of India, joining the insurance business as an agent or on risk taking basis is required to attain approval from the RBI first. This is to ensure that all the NBFC taking part in the insurance business in any basis does not get contaminated by the risks.

The National Association of Insurance Commissioners (NAIC) is an organization that support major regulatory governance of insurance regulators from the 50 states in U.S. Territories. It is one of the oldest association that composed of state officials in America since the year 1871. NAIC has been protecting the rights and interests of consumers and to help writing the financial statements of the insurance industry. So I believe that the information

This report provides an analysis and illustration on the important changes that life insurance companies will face in capital management practices with the implement of the new capital regime, publicly known as Life Insurance Capital Adequacy Test (LICAT). The LICAT framework transformed to a risk-based regime from the current model-based Minimum Continuing Capital and Surplus Requirements (MCCSR).

Starting from the year 2004 onward, the Bank realise that the amount keep increasing with the loan growth of 20% to 30% per annum. In early 2006 the Bank started to make it as a choice for the customer, weather to take insurance or not.

The global insurance industry seems to have escaped the worst of the financial crisis in comparison to other financial institutions. Day to day business has been relatively unaffected but the area that gave the most cause for concern has arisen from exposures to risky financial instruments. “The Reactions Magazine’s Global Insurance Conference 2009” was held in Swissotel, Zurich, Switzerland. At this conference the financial services industry tried to re set itself following the worst crisis for years. (www.euromoneyseminars.com). Insurance is an established industry. Like other companies insurance is facing increased competition from global players. It has been difficult for insurers to accomplish profitable growth, so

Protection Regulatory and Development Authority (I.R.D.A.) come into capacity on nineteenth April, 1999 as a self-sufficient body in the life coverage area in India. The principle goal of IRDA is to manage and register the life coverage organizations working in India. In January 2000, it embraced three-pronged business techniques for business, which included diminishment in premiums, higher returns and presentation of new items. It likewise tied up with ICICI Bank, HDFC Bank, UTI Bank and Bank of Punjab to straightforwardly dispatch clients ' strategy premiums and charge their recordsafter the exchange.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 Crore, it rose to 176 companies with total business-in-force as Rs.298 Crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were

The Indian General Insurance Industry has reported strong growth in the past decade, mainly benefitting from the low degree of insurance penetration in the country. Over the past five years, the Gross Premium Written by Indian general insurance industry reported a compounded annual growth rate (CAGR) of 18.1% in the financial year 2013. With high co-relation between the growth rates in General Insurance Premiums and the National GDP growth rates, we expect the industry growth rates to moderate in line with the slowdown in Indian GDP growth. Accordingly ICRA estimates the General Insurance Industry to grow at around 15% in FY14.

Insurance in Kenya is known to have been in existence for over sixty years now with the first insurance companies believed to have been owned by British insurers during the colonial times. The industry is governed by the Insurance Act and regulated by the Insurance Regulatory Authority. The Insurance Regulatory Authority (IRA) was created by the Insurance (Amendment) Act of 2006 and came into operation on 1st May 2007.