Executive Summary
India is one of the world’s fastest growing economies, with real GDP rising to 9.4 per cent in 2006-07 as against 9.0 per cent in 2005-06. India’s share in world GDP thus has increased to 6.3 per cent in 2006 measured in terms of purchasing power parity. Growth in per capita income also accelerated to 8.4 per cent in 2006-07 from 7.4 per cent in 2005-06. Economic fundamentals strongly suggest that there is a tremendous potential for the insurance sector to attain a high growth level. The insurance penetration in a country depends on its level of economic activity, risk awareness among the people and the deepening of the financial system. With a large population and an untapped market, insurance industry has a huge growth potential in India. The improved performance in the domestic economy has an impact on the insurance industry, in particular. Higher per capita income, domestic savings and availability of more instruments for parking surplus funds facilitates growth in the activities of financial services, particularly insurance. At the time of opening up of the sector in 1999, insurance was viewed primarily as a tax saving device. However, policyholders’ perspective began gradually changing towards an insurance cover irrespective of the tax incentives.
Most of the private insurance companies are joint ventures with recognized foreign players across the globe. Consumer awareness has improved. Competition has brought more products and improved the customer service. It has had a positive impact
A Study on Financial Performance of Indian non - life Insurance Industry
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on the economy in terms of income generation and employment opportunities in this sector. The purpose of this study is to assess the financial performance of the Indian ...