صنعت بیمه عمر در هند
Abstract
Introduction
Aims and objectives
Literature review
Research methodology
Data analysis
Discussion of major findings
Conclusion
References
Abstract
This study examines the impact of liberalisation on the Indian insurance industry by examining it in terms of its efficiency characterised by functional performance. Data of 552 respondents from Indian life insurers was used for the empirical examination. Multivariate analysis of variance (MANOVA) was conducted to test the hypotheses that the linear combinations of impact of liberalisation on the Indian life insurance industry characterised by marketing mix, service quality and insurance awareness might differentiate between groups characterised by gender, place of residence, types of relationship with Life Insurance Corporation (LIC), types of employee positions in LIC, and types of relationship with private players. The results reveal a positive impact of liberalisation on the Indian life insurance industry.
Introduction
The Indian life insurance industry has transitioned from an open competitive sector to a protected regime and then back to being a liberalised insurance sector in its 360-degree journey over a period of more than a hundred years. Nationalisation of the life insurance sector took place on 1st September 1956, with issuance of ordinance by Government of India (GoI) to dissolve 245 units (154 Indian insurers, 16 nonIndian insurers and 75 provident societies) into a giant, government-owned, autonomous entity, namely, Life Insurance Corporation of India (LIC) (IRDA, 2007). The purpose of the nationalisation of the life insurance sector was to increase the penetration of life insurance in the country, particularly in the deep rural areas in order to provide adequate life insurance cover at a reasonable cost to all insurable individuals. However, with the passage of time, it has been observed that the protected regime in the insurance sector has resulted in low insurance penetration and density. A mass of insurable individuals has remained without insurance cover. In the year 1993, the GoI set up the Malhotra Committee to evaluate the Indian insurance sector in terms of examining its structure, assessing its strengths and weaknesses, and reviewing the existing regulatory provisions in order to suggest reforms. Recommendations of the Malhotra Committee laid the foundation for the entry of private players (Rao, 2008). With the passage of the Insurance Regulatory Development Authority (IRDA) bill in March 2000, the protected Indian insurance sector was opened up and the entry barriers were removed for private players. The IRDA allowed entry of global insurance players, only with their domestic partners and with a limit of 26% FDI cap. Thus, the era of competition began, and it has wrought a transition in the Indian insurance industry.