Asian Journal of Management

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A Study on Penetration in Indian Life Insurance Sector


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1 Laqshya College of Management, JNTUH, Khammam, India
     

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India's life insurance market has grown at more than 40% annually. But the ratio of insurance premium to GDP is around 4%. Penetration is very low, practically zero in the unbanked segment. For the industry, premium income is likely to go up sharply. A well developed and evolved insurance sector is a boon for economic development of a country. The insurance sector was a significant contributor to the capital market thereby lending support to the stability of capital markets. It provides long-term funds for infrastructure development and concurrently strengthens the risktaking ability of the country. There are certain factors that need to be considered by the Indian insurance industry to ensure a seamless growth in business like distribution channels, focus on financial inclusion. The present study is on the trends in the insurance sector in premium underwritten and insurance density and penetration.
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  • IRDA annual reports for various years and other sites on internet

  • Selva Kumar.M and Vimal Priyan.J, “A comparative study of public and private life insurance companies in India”, Indian Journal of Commerce, Vol.65, No.1, Jan-Mar 2002, pp 81-87.

  • Madhukar Palli, “A study on assessing life insurance potential in India”, Bimaquest, Vol.6, Issue 2, July 2006.


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  • A Study on Penetration in Indian Life Insurance Sector

Abstract Views: 953  |  PDF Views: 0

Authors

Kondamudi Hanumanatha Rao
Laqshya College of Management, JNTUH, Khammam, India
Kotha Anil Kumar
Laqshya College of Management, JNTUH, Khammam, India

Abstract


India's life insurance market has grown at more than 40% annually. But the ratio of insurance premium to GDP is around 4%. Penetration is very low, practically zero in the unbanked segment. For the industry, premium income is likely to go up sharply. A well developed and evolved insurance sector is a boon for economic development of a country. The insurance sector was a significant contributor to the capital market thereby lending support to the stability of capital markets. It provides long-term funds for infrastructure development and concurrently strengthens the risktaking ability of the country. There are certain factors that need to be considered by the Indian insurance industry to ensure a seamless growth in business like distribution channels, focus on financial inclusion. The present study is on the trends in the insurance sector in premium underwritten and insurance density and penetration.

References