Performance of Indian Insurance Sector - A Critical Analysis

Abstract

Insurance is a financial instrument aiming at coverage of risk of life, health and property depending on the nature of contract. In India, insurance sector is considered as the sunrise sector. Infrastructural project, personal disposable income, demographic dividend makes the market more attractive. The bank assurance is the major component in this sector. Health and automobile sectors are major drivers in the segment of general insurance. Financial penetration, product innovation, flexible premium, product based on community, solution for health management, retirement scheme and portfolio management services are considered to be some of the key success variables of the sector. Though insurance is basically an instrument to hedge the risk but in India, life insurance products are considered as saving tools apart from covering the life risk.