Business Performance of Private Life Insurance Players in India

The insurance industry in India has witnessed many radial transformations during the last about Two Hundred years of its inception. Both the life insurance as well as the general insurance companies was nationalized by the government in the years 1956 and 1972 respectively. Financial reforms started in 1991 after adopting LPG policy by Indian government. In 1999, IRDA has been set up to regulate insurance sector. In 2000, Indian insurance market has been opened up for insurance players from all over the world with localized partnership. 26% FDI in insurance sector was allowed in 2000 and increased to 49% in 2015. 1 public life insurance (LIC) and 23 private companies are registered life insurers in India. The private players have 6156 offices in India and captured some 27% market share of total premium already by the year 201415. The entry of those foreign players in the Indian insurance industry has denatured the nature of competition and also enlarged customer consciousness. In this research paper, an attempt is made to measures the business performance of private life insurance players in India.


I. INTRODUCTION
The Indian Shelter Industry is as old as it is in any else of the world. In 1818 the firstborn of the shelter companies was started in Kolkatta, India. Ever since the insurance industry was nationalized in 1956 and In 1 st September 1956 the Life Insurance Corporation (LIC), a public insurance company, the monopoly grew in size and stature with every passing decennium. There was an important growth and employment in this sector after Indian Economic Modify 1991 which is defined by strategic elements LPG i.e. Liberalization, privatization and globalization.
The Insurance Regulatory and Development Authority (IRDA) were constituted as an autonomous body to regulate and develop the business of insurance and re-insurance in the country in terms of the Insurance Regulatory & Development Authority Act, 1999. In August, 2000 IRDA invites application from foreign players with local partnership. 23 private and 1 public life insurance (LIC) companies are registered life insurers in India as on 30 th September, 2014.
The measure of shelter penetration and compactness reflects the stage of processing and development of this sector. Insurance perception is measured as the % of total premium to GDP. Shelter density is measured as the ratio of premium to population (per capita premium) In India, during the early decennary of insurance sector alleviation, according the sector has reported concordant growth in life insurance onset from 2.15 % in 2001 to 4.40% in 2010. Yet, since then, the destroy of perception has been declining & reached 3.10% in 2013. This indicates that during the past 3 years the growth in shelter reward is berth than the development in subject GDP. A similar inclination was observed in the story of insurance spacing which reached the maximum of USD 55.7 in the year 2010 from the direct of USD 9.1 in 2001. During the year under review 2012-13, the insurance denseness was USD 41.0.

II. NEED FOR THE STUDY
Liberalization means a free economy where one can work without direct control of the government. The insurance market which was totally monopolized by public life insurance company LIC (Life Insurance Corporation of India) before LPG, now competition by Private Life Insurance players affects the business of LIC. Under the process of LPG, In India the insurance industry is now open and the new foreign players with localized partnership have already started capturing the life insurance marketplace acquire. The internationally reputed foreign life insurance companies have given wide range of products, good service and aware the people for life insurance results the rapid growth in business. One estimate is that the in life insurance sector, private players have captured some 27% market share of total premium already by the year 2014-15. FDI in insurance sector was allowed 26% in 2000 and was increased to 49% in 2015. Only 4 private life insurance companies were registered in 2000 which is increased to 23 in 2015. So, in more than one decade private players have increased their market rapidly with 6156 offices in India. This is the reason; researcher is interested in finding the business performance of private life insurance companies in India. Kundu discussed the changes in various issues of Insurance Business after the accounting of new players. Despite of having huge universe, India still has a low protection perception. Today, fill are increasingly sensing not meet at products but at integrated business solutions that can offer a good returns along with complete protection. Technology will also play a crucial role in aiding plan and administrating of products as surface in efforts to build a good customer relationship.

III. LITERATURE REVIEW
Objectives of the study

Period of the study
The present study covers ten years from 2004-05 to 2014-15. This is the phase during which is around 27% of the Indian Insurance industry market assets captured by private shelter companies.

Null hypothesis
There is no much difference in trends of development of private life shelter companies and life insurance industry of India.

IV. DATA COLLECTION AND ANALYSIS
The learning is mainly based on inessential information which has been poised from the period reports of IRDA, IRDA journal and other literature available. A number of other online source which are related to insurance business such as bimaonline.com, irdaindia.com, licindia.com, etc have also been visited for the purpose to collect the information. Add premium income is one of the important and key indicators of the execution performance of the shelter business.  The fundamental indicator of development and performance of the insurance companies is -New Business in terms of no of Policies. Table -4 shows the New Business: no of Policies sold by Private insurance companies and Insurance industry. It also presents the growth rate of New Business: no of Policies.

D. Market Share
Market acquire is also an key indicator of development and execution of the any insurance companies. Activity percentage is the percentage of assets captured by any insurance organization. A company with high market share reflects strong market value and position.