English_Master March 22, 2016 No Comments
LIFE INSURANCE — LESS RIGID NORMS MAY HELP The insurance industry today is passing through an ex­citing phase. The lure of the growth potential has already seen players drawing up aggressive plans for market and the mind share of prospective customers. The regulator – Insurance Regulatory and Development Authority (IRDA) – played a notable role in the development of the industry. Six years of liberalization may not be a long period but it certainly has some important lessons for all concerned. An attempt is made here to highlight the growth and the potential in the life insur­ance sector, the role played by the regulator and certain is­sues that need to be addressed. The life insurance industry in India, which had been nationalized in the 1950s, was liberalized in 1999 based on the recommendations of the Malhotra Committee report (1993). After passing of the IRDA Act 1999, the first private sector life insurance company started its business in 2001. Today there are 15 players in life and 11 in non-life in the private sector. The Indian demographic composition and the life in­surance penetration so far have enhanced the attractiveness of the sector. Demographics Sixty-three per cent of the Indian population is in the age group of 15-64. As per U.N....
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