Lpg Model
African Journal of Business Management Vol. 4(8), pp. 1457-1463, 18 July, 2010 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 ©2010 Academic Journals
Full Length Research Paper
The impact of liberalization, privatization, and globalization (LPG) on life insurance corporation of India (LIC)
R. Rajendran* and B. Natarajan
Department of Business Administration, Annamalai University, New Delhi, India.
Accepted 19 April, 2010
The Indian life insurance industry has its own origin and history. Since its inception, it has passed through many obstacles, hindrances to attain its present status. The income earning capacity of an individual citizen of a nation and the eagerness and awareness of the general public are the two key determinants of the growth of any insurance industry. As a result, wider mass-employment opportunities and sound educational system should be made available. In addition, the general public must be kept abreast of more knowledge and importance of life insurance, as these steps help to boost the growth of insurance industries. In this Indian context, insurance habit among the general public during the independence decade was quite rare and in the following decades, it increased slowly. There was a remarkable improvement in the Indian insurance industry soon after the acceptance and adaptation of liberalization, privatization, and globalization (LPG) in the year 1991. After 1991, the Indian life insurance industry has geared up in all respects, as well as it being forced to face a lot of healthy competition from many national as well as international private insurance players. The fall in the savings rate and increased competition in the primary market and particularly the aggressive mobilization by the mutual fund posed serious challenges to LIC. Key words: Life insurance, liberalization, globalization. INTRODUCTION The nationalization of insurance business in the country resulted in the establishment of life
Full Length Research Paper
The impact of liberalization, privatization, and globalization (LPG) on life insurance corporation of India (LIC)
R. Rajendran* and B. Natarajan
Department of Business Administration, Annamalai University, New Delhi, India.
Accepted 19 April, 2010
The Indian life insurance industry has its own origin and history. Since its inception, it has passed through many obstacles, hindrances to attain its present status. The income earning capacity of an individual citizen of a nation and the eagerness and awareness of the general public are the two key determinants of the growth of any insurance industry. As a result, wider mass-employment opportunities and sound educational system should be made available. In addition, the general public must be kept abreast of more knowledge and importance of life insurance, as these steps help to boost the growth of insurance industries. In this Indian context, insurance habit among the general public during the independence decade was quite rare and in the following decades, it increased slowly. There was a remarkable improvement in the Indian insurance industry soon after the acceptance and adaptation of liberalization, privatization, and globalization (LPG) in the year 1991. After 1991, the Indian life insurance industry has geared up in all respects, as well as it being forced to face a lot of healthy competition from many national as well as international private insurance players. The fall in the savings rate and increased competition in the primary market and particularly the aggressive mobilization by the mutual fund posed serious challenges to LIC. Key words: Life insurance, liberalization, globalization. INTRODUCTION The nationalization of insurance business in the country resulted in the establishment of life
References: Annual Reports of LIC (from 1999 – 2007). Insurance Principles and Practice by M.N. Mishra – S Chand Publishers – 2008 Edition. Rao CS (2007). “The Regulatory Challenges Ahead” J. Insurance Chronicle 7: 10 Jain AK (2004). J. Insurance Inst. India 30: 53. Peter D (1999). “Innovate or Die”, J. Economist. 1(2): 41-55. Rao TSR (2000). “The Indian Insurance Industry the Road Ahead” J. Insurance Chronicle 3(I): 31. Sabera K (2007). Changes in insurance sector (A Study on Public Awareness). “J. Insurance Chronicle 7(1): 37. Sukla AK (2006). The impact of LPG on life insurance. J. Insurance Inst. India 32: 10.