Introduction-

The insurance industry of India has 57 insurance companies 24 are in the life insurance business,
while 33 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole
public sector company. There are six public sector insurers in the non-life insurance segment. In
addition to these, there is a sole national re-insurer, namely General Insurance Corporation of India
(GIC Re). Other stakeholders in the Indian Insurance market include agents (individual and
corporate), brokers, surveyors and third-party administrators servicing health insurance claims.

GROSS PREMIUMS WRITTEN IN INDIA(US$ BILLION)

120

100

80

60

40

20

0
FY16 FY17 FY18 FY19 FY20

Reviews
Financial soundness of life insurance companies-
The insurance companies of india in majorly dominated by the The
insurance sector in India was dominated by the state-owned Life Insurance
Corporation (LIC) and the General Insurance Corporation (GIC) along with its four
subsidiaries. But in 1999, the Insurance Regulatory and Development Authority
(IRDA) bill opened it up to private and foreign players whose share in the
insurance market has been rising. The IRDA is the regulatory authority of the
insurance sector, entrusted with protecting the interests of the insurance policy
holders and regulating, promoting and ensuring orderly growth of the insurance
industry in India. As financial intermediaries, life insurers tap savings of the public
in the form of premium. In order to sustain public confidence, they have to
maintain their financial credibility intact. In other words, a strong financial
background enables insurance companies to augment their business. The
International Monetary Fund (IMF) suggested a number of indicators to diagnose
the health of the insurance sector. This paper makes an attempt to analyze the
financial soundness of Indian Life Insurance Companies in terms of capital
adequacy, asset quality, reinsurance, management soundness, earnings and
profitability, liquidity and solvency ratios.
Financial Stability of Indian Non Life Insurance Companies(by Bashir Ahmad Joo Associate Professor,
The Business School) -World over after liberalization insurance sector has undergone significant
transformation. This is also true with Indian insurance market, where insurance penetration and
density is very low compared to other countries. Therefore, many foreign insurance companies were
lured to make entry in Indian insurance in order to insulate positive spread from large untapped
insurance market, mainly by entering into joint venture with local partners. Thus Indian insurance
market after liberalization was assaulted by the pressure of globalization, competition from
multinational insurance companies and lavish underwriting chase which are seen as threats as well
as opportunities for insurance companies. However, entry of new players has resulted into heavy
underwriting losses for Indian public and private insurers. But heavy underwriting losses had reverse
impact on their solvency margins. In present paper, the Insurance Solvency International Ltd. (ISI)
predictors have been employed in this paper to study the solvency position of Indian non life
insurers. Further, study highlights the extent of relationship between various factors and solvency of
non life insurers in India by using multiple regression analysis. The result of the study has shown that
claim ratio and firm size have greater impact on solvency position of insurance companies.

Indian Life Insurance Industry in Post Liberalization (by T. Hymavathi Kumari Lecturer, Department.
of Accounting, DebreMarkos University, Ethiopia)- This research paper is aimed at understanding the
life insurance sector in India and flagging issues relating to competition in this sector. India’s rapid
rate of economic growth over the past decade has been one of the more significant developments in
the global economy. This growth has its roots in the introduction of economic liberalization in the
early 1990s, which has allowed India to exploit its economic potential and raise the population’s
standard of living. Opening up of the financial sector is one of the financial reforms which the
government was to implement as an integral part structural reforms and stabilization process of the
economy. Insurance has a very important role in this process. Government allowed the entrance of
private players into the industry. As a result, many private insurers also came into existence. At this
juncture, an attempt has been made to study the performance of life insurance industry in India in
post liberalization era. The present study analyses the performance of financial performance of
insurance industry both public sector and private sector, its market share, growth have been studied
in post liberalization era.

Unethical Practices and Control of IRDA in Indian Insurance Market by ( Ram Prakash Prof. Lalit
Gupta Professor & Head, Department of Accounting, FCMS, JNVU, Jodhpur)-

Ethics is the key to success as it renders stability to any organization in business. It is notable that
ethical firms play important role even in the industry. This article attempts to provide some facts
regarding the presence of business ethics in Life insurance industry. In insurance industry guidelines
of IRDA frame boundaries for working of life insurance companies. LPG Model in this context leads
to innovative ideas due to competition. Globalization of insurance enhances the avenue of ethics in
market for customers' welfare. Author depends on some research papers and other literature
surveyed to identify the business ethics and its presence in the insurance, further, to learn about the
nature and extent of control of the IRDA over business practice. The paper aims at providing
suggestions and remedies to curbs the unethical practice es in Indian life insurance market.
Solvency Margin in Indian Insurance Companies by Bhuvnesh M.C Gupta2 Asst. Prof., Deptt of ABST,
University of Rajasthan, Jaipur, India- Abstract - Every company has assets and liabilities. In any crisis
company used their assets to pay off their liabilities. When company has equal assets and liabilities
then company easily pay their liabilities from their assets. But when the liability increases
unexpectedly In that case company will be declared insolvent. This will be a bed situation. That’s the
reason, Solvency margin comes into picture. In this context, the present paper analyze the solvency
ratio of five life insurance companies of India for the period of three years from 2009-2010 to 2011-
12. The paper also attempts to investigate whether the Performance of different companies is
similar to each other or is there any significant difference in that. It further assigns ranks to different
companies on the basis of their solvency ratio.

RECENT TRENDS IN INSURANCE-

 Various strategic partnerships have been observed in insurance to offer mixture of services-
ICICI Lombard partnered with Plum which is India’s fastest growing employee health
insurance start-up, in Dec 2020.
 IFSCA gained membership of IAIS on Dec 02,2020.
 IRDAI is one of the leading members of IAIS.
 To offer complete range of general insurance products, HDFC ERGO general insurance tied
up with NSDL Payments Bank ltd.
 ANANDA- a software application was launched by LIC of India to make life insurance process
paperless in Nov 2020. ANANDA stands for ‘Atmanirbhar Agents New Business Digital App’.
 PMJJBY wa an initiative taken by collaboration of IPPB with PNB MetLife.

IMPACT OF UNION BUDGET 2021 ON INSURANCE SECTOR –

the positive announcement is liberation of foreign direct investment (FDI) upto 74

percent in insurance companies with foreign ownership and control with safeguards.
Under the new structure, majority of directors on board and key management persons
are required to be resident Indians with at least 50 percent directors being independent
directors and specified percentage of profits being retained as a general reserve.
Increase in FDI limits from 49 percent to 74 percent should help insurance companies
to raise additional funds to ensure their solvency is maintained in line with their growing
business needs. Increased FDI limit will also augment foreign inflows and help attract
more foreign insurance companies to set-up their shops in India.
The Finance Minister in her Budget speech announced that two public sector banks
and one general insurance company will be privatised and initial public offering (IPO) of
Life Insurance Corporation (LIC) will be implemented in the financial year 2021-22 as
part of the consolidation in the banking and insurance sector.
Overall, the Budget proposals of the Government is mixed for insurance sector.