Role of Insurance Sector in Emergence of India as a Global Economic Superpower

Abstract

In life insurance business, India is ranked 9"' among 156 countries. The insurance market in most developed countries is nearing saturation, As an emerging economy India offers potential for greater insurance penetration by Indian insurance companies as well as by global players. Insurance penetration and its density in India are at a low level. The article reviews the growth of Indian insurance sector, analyses the status of the sector after privatization and examines the future role o f the sector The insurance products are classified as life and non-life. The insurance products are classified as life and non-life. The insurance market now offers products that suit people’s specific requirements at various demographic characteristics. The study attempted for a period of 10 years (2000-01 to 2009-10) is based on secondary sources o f insurance regulatory and developed authority (IRDA) and others. Insurance penetration and density, investment patterns and profitability of life and non-life insurers have been analyzed and directions for the future are presented.