The history of insurance sector in India recorded so many ups and downs over the period. It started its journey with open competition to a monopoly market condition in the form of being nationalized and then getting back to the form of a liberalized market once again. The history reveals that it has witnessed complete dynamism over a period of two centuries.
The journey of this sector started with life insurance business in 1818 when the Oriental Life Insurance Company was established in Kolkata and that was the important milestones in the Indian Life insurance business. The turning point in this sector was 1912 when The Indian Life Assurance Companies Act came into force for regulating the life insurance business. The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses in the year 1928. To safeguard the interest of prospect, the earlier legislation consolidated the Insurance Act in the year 1938. The turning point was the year 1956, when 245 Indian and foreign insurers and provident societies were taken over by the Central Government and they got nationalized. LIC was formed by an Act of Parliament, viz., LIC Act, 1956. It started off with a capital of Rs. 5 crores and that too from the Government of India. All private life insurance companies at that time were taken over by LIC.
The journey of general insurance business in India started in the year 1850, when the British formed Triton Insurance Company Ltd. in Kolkata. The turning points in the Indian General insurance business includes:
Emerging Trends – The last decade has seen many positive developments in the Indian insurance sector. The policymakers, which comprise the IRDA, RBI, Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in this sector. The sector now compares favourably with banking sectors with regard to growth, profitability and insurance penetration. A few insurance companies have established an outstanding record of accomplishment of innovation, growth and value creation. The Indian insurance companies are changing towards modern insurance system. Modernization in insurance tends to changing services, products and methods of operation. Technology has brought about strategic transformation in the working of insurance companies. With the passage of time, insurance companies are also adding services to their customers. The Indian insurance industry is passing through a phase of customerdriven market. The customers have more choices in choosing their insurance products and companies as well. With stiff competition and advancement of technology, the services provided by insurance companies has become more easy and convenient. All these developments facilitate customers’ delight as well as operational efficiency of insurance companies and reducing operational expenses of insurance services. Competition is compelling insurance companies to be agile and innovate every day. This brings huge transformational changes over the last decade. Liberalization has attracted the entry of the largest insurance companies in the world, who have taken a strategic view on India being one of the top priority emerging markets. Prevailing regulatory environment had path-breaking impact on the development of the industry.
Challenges – The Indian insurance industry which opened up in the year 2001 based on the recommendations saw life insurance in India grow at a scorching phase with LIC consolidating its lead and private players entering life insurance segment. Currently, the growth phase has turned into a consolidation phase not only due to the changes in the external fiscal and economic environment but also due to sweeping regulatory changes. Any major change brings with it the fear of unknown and uncertainly especially if it is not accompanied with growth. Satisfying customers by providing services is a challenging issue in any financial services. Among all financial services, insurance service occupies a prominent position and consumer protection in the insurance sector cannot be underweighted more particularly after recent financial crisis in 2008. Adoption of technology has changed the face of the insurance sector, which is manifest in the various transformational developments of the recent past. The most significant task of the Indian insurance sector is to ensure that insurance products and services are available to every individual in the country efficiently to achieve total financial inclusion. Consumer protection is other aspect of the problems to be addressed.
Contents –
1. Islamic Finance in Emerging Markets – Dr. Kishore Kumar Das & Aftab Ara
2. Health Insurance Practices in India: Issues and Challenges – Dayan Das & Rajee Jabbal
3. HRD Climate in Insurance Sector: A Study with Special Reference to Life Insurance Corporation of India – Dr. Kishore Kumar Das & Swetapadma Dash
4. The Non-life Insurance Sector in India: Trends and Opportunities – Dr. Nisha Jain
5. Employee Motivation in Insurance Sector Industries in India: A Tool for Organizational Excellence – Kapil Kumar Chand
6. Recent Trends in Training and Development Systems in Insurance Industries in India: A NewWay of Journey for Corporate Sustainability – Lambodar Pradhan
7. Foreign Direct Investment in Insurance Sector: Issues and Way Forward – Rajat Solanki & Nidhi Chauhan
8. Marketing Strategy of Life Insurance Products: A Case Study on LIC of India – Mrs. Saswati Mohanty & Ms Pravati Bhoi
9. Rural Insurance in India: Looking it Forward – Dr. Artta Bandhu Jena & Dr. Sudhansu Sekhar Mishra
10. Employee Performance in Insurance Sectors in India: A Cross Road for Business Excellence – Sitaram Pani
11. An Empirical Study on Service Quality of Private Life Insurance Sector at Bhubaneswar (Odisha) – Ms. Amrita Rout & Ms. Prangya Paramita
12. Bancassurance – A NewWay of Selling Insurance Policies in India – Rajesh Kumar Dhal
13. Evaluating Cyber Infrastructure for Cyber Insurance in the Corporate World: An Analytical Focus – Aruna Kumar Nishanka
14. An Empirical Assessment of Customers’ Perception towards Service Quality of General Insurance Companies using SERVQUAL Measures – Sabyasachi Dey & Swayambhu Kalyan Mishra
15. Role of Management Trainer for Employee Development in Insurance Industries in India: A Bridge for Organizational Survivability – Parshuram Manda
16. The Role of Life Insurance in Financial Inclusion with Special Focus to Rural People of India – Samir Kumar Panigrahi & Dr. P.P. Roy
17. A Study of Buying Behaviour of Consumers towards Life Insurance Policies – Sunil Kumar Das Bendi
18. Life Insurance Industry in India: The Changing Trends – Dr. Ansuman Sahoo & Dr. Ch. Sudipta Kishore Nanda
19. Investment Management – A Value Creator for Insurers – BishnuPrasad Kar
20. A Study of Customer Satisfactions and Service Quality Dimensions of Insurance Companies in Balasore District – Deba Bijaya Mishra & Dhirendra Kumar Jena
21. A Comparative Study on Strategic Cost Management in the Life Insurance industry – Sugyani Rath & Ajit Baral
22. Innovative Training and Development in Insurance Industry in India: A New Mantra for Organizational Sustainability – Dr. K. Palani
23. Recent Trends in Insurance Sectors in India: A New Way of Journey in 21st Century – Dr. Sukanta Kumar Dwibedi