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Fdi Insurance
A RESEARCH PAPER ON FDI in Life Insurance

By
Susmit Kulkarni
Vineet Limaye
Amar Naphade
Ishan Kathale

ABSTRACT

The Insurance sector reforms have open in the door for private players, private insurance companies in the beginning of life insurance business with public sector company (LIC). Foreign Direct Investment (FDI) has allowed in private life insurance companies in India, under an act of Insurance Regulatory and Development Authority (IRDA) with a limit of foreign equity of 49% as per the bill introduced in Rajya Sabha in December 2008 (The Times Of India: October 4, 2012).The life insurance sector is playing a pivotal role in both Indian and Global markets. Those factors we have taken for the analysis of private life insurance company’s performance are premium growth, market share of the companies, portfolio Investment, equity share capital etc. It is used for a measure of positive or negative impact of FDI investment in Indian private life insurance companies. It has investigated for a sample of five selected private life insurance companies and one public company for the purpose to comparison with selected companies it is using a panel data for analysis in between the period of 2002-10. Different key variables are used to analysis yearly premium income, infrastructure development, employee facilities, business expansion etc. It was examined to identify cause for any significant impact on the life insurance sector. The study has made use of secondary data from different authenticated source to draw a meaningful conclusion.

Keywords: FDI, Life Insurance Sector, Private Company, Public Company & Market Share.

FDI IS GOING TO INSURE OUR LIFE
(FDI in Life Insurance)

INTRODUCTION

FDI trends in India started with the reforms of 1991 and immediately bought the world’s attention towards it. There was a sudden burst in the FDI inflows into the


References: H. Sadhak (2009) “Life Insurance In India: Opportunities, Challenges and Strategic Perspective”, Sage Publications Pvt. Ltd, New Delhi pp 34-50 dated 22.4.2009. Kamlesh Gakhar (2006) Foreign Direct Investment in India, New century Publication, New Delhi pp 1-10, 96-114 dated 12.9.2006. Usha Bhati (2006), Foreign Direct Investment: Contemporary Issues, Paperback Edition, Delhi: Deep and Deep Publications pp 1-10, 41-54. Cherunilam F. (2007), International Business – Text and Cases, Fourth Edition, Prentice Hall. IndianMoney (2009), Article on Life Insurance published on 28.7.2009. Poetry Northwest (1959), Chapter 18: Private Companies, Page 209. Indian Companies Act (1956), Section 3. Kenneth J. Cook (2007), A book: The AMA Complete Guide to Strategic Planning for Small Business. Ansari A.A and Meena R.S (2010) Growth and Development of LIC, Volume II, January-June, Issue -1. International Referred Research Journal, August, 2011, Volume III, Issue-31. News Paper & Magazine: Business India economic and political weekly Nov 29, 2010, pp 95. The Hindu Business line: Hopes on hike in FDI Dec, 2008. The Times of India: October 4, 2012 Broachers:
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