Private institutions too which offer life insurance In India
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India is the second most populous country in the world. With a population of around 1100 million, it leaves a lot of potential for life insurance companies to grow and prosper. The life insurance companies have brought in huge capital for investment and expansion. They have generated good employment opportunities, both direct and in-direct. In 1991, Insurance Regulatory and Development Authority (IRDA) was formed to regulate the business of the insurance sector. Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
Some regular payment has to be made which is known as “premium”. The premium is based mainly on the amount to which a person is assured. The higher the amount, the higher is the premium. However, speaking of life insurance is incomplete without Life Insurance Corporation (LIC) of India. Out of total 270 million individual policies serviced by various companies, LIC serviced a whopping 250 million. Their main objective is to spread life insurance across all dimensions of the country, concentrating on the economically backward and rural classes.
It is company with a vision: A trans-nationally competitive financial conglomerate of significance to societies and Pride of India. There are other private institutions too which offer life insurance such as Kotak, ICICI-Pru, Tata-AIG, Birla Sun, ING Vysya among others. The life insurance industry, though, faces a lot of challenges. Finding professionals and experts are a daunting task since manpower demand has increased manifold. Designing products depending upon varied tastes and preferences for different strata of the population too adds to the problems. Besides, no benchmark is available for costing. The country still faces structural problems, both in terms of economic and political, that can’t be overlooked.
These were a few country-specific challenges. However, climate change, terrorism, regulatory intervention, inflation and legal risk are the challenges faced at the global level. Apart from all these challenges, the industry continues to grow by leaps and bounds. The industry size in terms of premium touched Rs 2 lakh crore last year clocking a robust 27% between 2004-05 and 2008-09. With India’s inherent advantages over China, life insurance market has a larger potential. |
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Author Resource:-
Anuj Kumar writes content about Loan, Jobs, Classifieds, Life Insurance, Loan Against Property, Vehicles Classifieds. For more information visit at: http://www.taaza.com/.
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By :
anuj kumar
Submitted
2010-01-12 04:09:24 |
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