New Dimensions of Insurance Sector: A Study
Abstract
The world has become a global village. The Liberalisation, Privatization and Globalisation (LPG) wave has steeped across the global economies. The two pillars of India's economic policy before 1991 have been protection and public sector.The New Economic Policy 1991 was a departure from the regulated planned economic tradition to that of LPG movement. After nearly a decade of intense debate a consensus developed in India for ending the public sector monopoly in insurance and opens the industry to private sector participants subject to suitable prudential regulation.Insurance is an industry which has value creation at its core. It generates value for policyholders who lay their trust in an insurance product, for shareholders who back the business, for distributors who depend on it for their income and the insurance company itself which interlinks all the other stakeholders. It is this interlinking, which if done in a balanced manner while keeping the costs low, creates a long-term success story.