T. Narayana Gowd, C. Bhanu Kiran, Ch. Ramaprasada Rao
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T. Narayana Gowd1, Dr. C. Bhanu Kiran2, Dr. Ch. Ramaprasada Rao3
1Research Scholar (Part-time), Sree Krishnadevaraya Institute of Management, S.K. University, Anantapur.
1Associate Professor, Sri Kalahastiswara Institute of Information and Management Sciences (Affiliated to S.V.University, Tirupati), Kapugunneri (Village &Post), Srikalahasti (Mandal)- 517641, Andhra Pradesh, India.
2Associate Professor & Placement Officer, Anantha Lakshmi Institute of Technology & Sciences
(Affiliated to JNTU, Anantapur), Anantapur, Andhra Pradesh, India.
3Professor, Sree Krishnadevaraya Institute of Management (SKIM), S.K. University, Anantapur-515055,
Andhra Pradesh, India.
Volume - 3,
Issue - 4,
Year - 2012
Indian Insurance industry today is the 6th largest industry in the world as per the data published by Swiss Re during 2010-11.However, during the same period, the global life insurance premium expanded by 3.2 percent. The share of Indian life insurance sector in global market was 2.69 percent during 2010 as against 2.45 percent in 2009 .The total business of LIC is in an increasing trend. Indian insurance penetration had gone up from 2.15 percent in 2001 to 4.40 in 2010. The Indian insurance industry density was in the growth trend as it increased from 11.5 % in 2001 to 64.4 % in 2010 and also its penetration was increased from 2.71 % in 2001 to 5.10 % in 2010. Indian life insurance industry had been experienced many ups and downs since its inception in order to obtain the present status. However, the income earning capacity, eagerness and awareness of the general public are the key determinants of the any insurance industry. In India, the insurance was not penetrated much among the general public before 1999 .Indian life Insurance industry was an outstanding improvement in the Indian Insurance industry due to healthy competition after introduction of LPG.
In this research paper attempt has been made to study the current status, growth, volume of competition and SWOT analysis of the Life Insurance Industry, to analyze the overall performance of Life Insurance Industry of India between pre and post reform era and to measure the effectiveness of investment strategy of LIC of India during the period 1998 to 2010-11.The collected data were analyzed by using Coefficient of Variation, student t test and Anova. The study reveals that there is tremendous growth in the performance of Life Insurance Industry and LIC due to the policy of LPG. More over Insurance Industry improved a lot due to the emergence of private sector and allowing foreign players. There is huge change in the investment strategy of LIC .Private sector performance in terms of total premium earned , number of polices issued and market share is in increasing trend where as LIC market share is in declining trend except in total premium earned and total polices issued.LIC ‘s investment towards stock mark instruments is in increasing trend. The investment of LIC increased from 77.5 % in 1998 to 95.81 % in2010-11 due to effective regulation of SEBI and increasing transparency and performance of Indian corporate securities.
Cite this article:
T. Narayana Gowd, C. Bhanu Kiran, Ch. Ramaprasada Rao. Performance Analysis of Life Insurance Industry in India. Asian J. Management 3(4): Oct.-Dec., 2012 page 179-187.