An Analysis of the Evolution of Insurance in India
57 Pages Posted: 26 Apr 2005
With over a billion people, India is fast becoming a global economic power. With a relatively youthful population, India will become an attractive insurance market over the next decades. This paper examines the Indian insurance industry. It starts by examining the details of the regulatory regime that existed before independence. This is important because the culmination of the Insurance Act of 1938 became the backbone of the current legislation in place. It highlights the importance of the rural sector - where the majority of the Indians still live. It shows how the recent privatization is playing out in the market. Based on recent economic estimates, the paper provides projections of segments of the market for 2025.
Keywords: India, insurance sector, deregulation, efficiency, projection
JEL Classification: G22, G23, G28
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