Private Players and Life Insurance Industry

The insurance industry in India has witnessed a sea change during the last five years. The deregulation of insurance industry and setting up of the insurance regulator IRDA has led to the entry of private and foreign players in this sector. This has put an end to the age long monopoly enjoyed by LIC since 1956. Insurance industry is one of the fastest growing industries in the country. Private players with their innovative products, smart marketing, wider distribution networks and better customer service have been successful in attracting a large number of customers. Market share of private players has jumped to 28.56% in the year 2005-06 from a mere 1.35% in 2001-02. Market trend shows a faster growth for the industry with more people buying life insurance. The order of the day is either perform or perish. So, in order to satisfy and retain the customers LIC has to strive hard and get ready to compete with private players.