Vol. 2, Issue 1, Feb 2013, 13-20
A COMPARATIVE STUDY OF PUBLIC AND PRIVATE NON- LIFE INSURANCE
COMPANIES IN INDIA
D. SHREEDEVI1 & D. MANIMEGALAI2
Associate Professor, Apollo Institute of Hospital Administration, Hyderabad, India
Assistant Professor, Apollo Institute of Hospital Administration, Hyderabad, India
With the privatization of insurance, monopolistic competition of public sector insurance companies came to an end, giving wider opportunities to the customers to select their insurers as per their requirements. In today‟s hyper competitive environment, insurers are operating under shrinking premiums, growing customer expectations and tightening regulations which are narrowing their margins. Falling investment returns, tougher competition, rising operational costs, managing risks, supporting multiple distribution channels, complying with regulatory changes and shifting customer preferences are sticky areas any insurance company has to tread on, at any time. With the entry of private players, the competition is becoming intense. In this paper, an attempt is made to analyze the performance of public and private nonlife insurance companies in India.
KEYWORDS: Insurance Penetration, Insurance Density, Non- Life Insurance
The insurance industry today functions in a highly competitive environment, with increasing private participation and an expanding product portfolio. In this changing landscape, insurers have to invent ways to offer more value than ever before. The various components of non- life Insurance or general insurance are fire, marine, motor, engineering, health and aviation. Chart 1 shows the Insurance industry in India. There are 24 non-life insurance companies operating in India, of which four are under public sector, three standalone health insurers and the two specialized institutions.
References: Rao, V.S.K, “Retail Products – The Future of Non-Life Insurance”. The Journal of Insurance Institute of India, Vol.No.1 Issue No.1 Oct-Dec, 2012 Times, Vol. XXX No. 6, June, 2010 6. Rana, J.K., “The Ticketsize of General Insurance Market in India”. The Insurance Times, Vol. XXXII No. 08, August, 2012. Shiv Narayana M, “Forgotten Monies of the Non-Life Insurers”. The Insurance Times, Vol. No.12, December, 2010.