Insurance Sector Dynamics and Economic Growth of India

The study aims to assess the growth of the insurance sector and its contribution to the economic growth of India since the insurance sector reforms. The secondary data were collected from Annual Reports of IRDA, Economic Survey of India, and World Bank's development indicators 2018 from 1985 to 2017. The paired t-test to compare the growth of life and the non-life insurance sector in the pre and post insurance reform period. To assess the contribution of the insurance sector, the regression model of estimation was used. The results showed that both life and non-life insurance sector had a significant mean difference in the post-reform period than in the pre-reform period, it implied that adoption of liberalization policy as part of economic reform make a significant positive impact on the growth of life insurance sector. The regression results showed that both the life and non-life insurance sector contributed to the economic growth of India. The study may be useful to find out the contribution of the insurance sector to the economic growth of India and the impact of reforms on the growth of the insurance sector.