MEASURES TO IMPROVE LIFE INSURANCE PROFITABILITY IN INDIA
Abstract
With ~32 crore policies in-force and over ~11000 branches across locations, Life Insurance Industry in India is the 10th largest across the globe in terms of premium contribution. India's share in Global Life Insurance Market was 2.73% during 2019. The life insurance industry is also one of the largest employers with both direct and indirect employment. Life Insurance penetration in India is at 2.82% and density at 58 USD, which is way below the global statistics. This gives immense opportunity for global players to venture into the Indian insurance market. With a proposal for an FDI hike to 74%, we are expecting many big players to enter the Indian market. However, the attractiveness of the industry not depends solely on the market opportunity but also on the bottom line, which is profitability. Indian Insurance Industry is one of the highly regulated markets across the globe and perceived to be the lowest profit-making insurance market. Hence, the need for the study to improve the profitability of life insurance companies in India through structural and policy measures.
JEL Classification Codes: G22, I13, O16, A10, E22, G10.
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