The Impact Of Fdi On Insurance Sector

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Aamir Hasan stated in his research paper “IMPACT ANALYSIS OF FDI ON INSURANCE SECTOR IN INDIA” (June 2015): The fundamental regulatory changes in the insurance sector would be significant for the future growth and would have huge impact on various sectors of economy. Active foreign participation is crucial for the sector as it would bring the best know how and implementing the best practices. India is one of the fastest growing insurance market and it is expected that Indian insurance industry can grow up to 125 % in the next decade. However there is also a risk that unless given the management control the foreign insurers would be reluctant to invest in India.
According to B. Nagaraja in his paper “PERFORMANCE OF INSURANCE INDUSTRY IN INDIA: A CRITICAL ANALYSIS” (Jan 2015) he has stated that there exists regional disparities between south and north Indian states with regard to insurance penetration and density and they have been drastically declining in recent years. The claims settlement ratio, one of key indicator for measuring the operational efficiency of insurance industry shows that LIC has fared well in terms of high settlement ratio of individual and group death claims, compared to the private insurers. Achieving cost-competitiveness, improving the stakeholders’ confidence, meeting new demand one individual at a time and improving the operational ability of the insurance industry are to be paid attention to experience the healthy growth of insurance industry as has
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