Impact of Global Financial Crisis in the Life Insurance Sector in India

Abstract

The impact of the recent global financial crisis on the life insurance business felt after the American International Group (AIG) and Fortis required bailouts due to their financial ill health. India cannot be insulated from this impact as these insurers are having joint ventures in India. This has changed the perception of investors towards the private life players in India. This paper highlights the impact of this financial crisis on the life insurance sector in India and tries to learn the post crisis consumers’ investment behaviour towards life insurance.

In this occasion, this paper investigates the proposal by the High Level Committee on Financial Matters (HLCCFM) on minimum common standards for financial intermediaries and finds financial education is the most important factor and suggests few recommendations for the overall development of the life insurance sector in India.

Keywords: Insurance, life Insurance, Financial Education, Financial Crisis