Insurance Industry In India: An Overview
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Abstract
Insurance serves as a safety mechanism provided by insurers to policyholders, facilitating the sharing and management of risks to minimize potential losses. Its significance lies in its contribution to both national economic stability and international trade. Insurers gather substantial capital, which is subsequently invested in the economy, fostering growth. This highlights a positive relationship between economic development and expenditures in the insurance sector. Insurance business models are predicated on the inherent uncertainty present in all aspects of life, with organizations calculating risk ratios to determine appropriate premiums based on projected costs and desired profits.
The current study provides a detailed overview of the insurance sector in India. It starts by defining insurance, followed by a historical perspective on its evolution within the country. Different types of insurance services available in India are discussed, along with an analysis of private life insurance companies. Key growth drivers of the insurance industry are explored, and the study also incorporates Porter's Five Forces analysis before concluding.