INTRODUCTION OF INSURANCE SECTOR

The insurance sector has gone through a number of phases

and changes. Since 1999, when the government opened up the
insurance sector by allowing private companies to solicit
insurance and also allowing foreign direct investment of up to
26%, the insurance sector has been a booming market.
However, the largest life-insurance company in India is still
owned by the government.

The insurance industry in India has changed rapidly in the

challenging economic environment throughout the world. In
the current scenario, Indian insurance companies have
become competitive in nature and are providing appropriate
distribution channels to get the maximum benefit and serve
customers in manifold ways.
Indian Insurance industry has big opportunity to expand, given
the large population and untapped potential. The insurance
market in India has witnessed dynamic changes including entry
of a number of global insurers. Most of the private insurance
companies are joint ventures with recognized foreign
institutions across the globe. Saturation of markets in many
developed economies has made the Indian market even more
attractive for global insurance majors.

The Insurance Regulatory and Development Authority (IRDA)

regulate and develop the insurance sector in India through
calibrated policy initiatives
 CHARACTERISTICS OF SECTOR

1. Intangibility
2. Perishability
3. Inseparability
4. Simultaneously
5. Variability