Growth and Expansion of Life Insurance Industry in India: A Comparative Study of Public and Private Sector

The purpose of reforms in Indian economy especially in Indian Life insurance sector was to make the economy more market oriented. Due to these reforms the insurance sector was opened to private players. As a result new private life insurers started their business in Indian life insurance sector and a big chunk of life insurance businessgone in the hands of private players and the monopoly of public sector player (LIC) was finished. In the light of widening of the life insurance market there is a need to conduct fresh research on growth and expansion of lifeinsurance industry in India. The present study reveals that the private sector shows more growth as compared to public sector in terms of total premium during the period of the study. However, both public and private sector shows negative growth in number of policies issued. Moreover, the life insurance industry expanded itself mainly in areas other than metro and urban areas. It is suggested in the study that IRDA should start mass campaign to educate people regarding the need of life insurance which will help the life insurance companies to cover untapped market.