changes in insurance sector ( a study on public awareness)
TRANSCRIPT
CHANGES IN INSURANCE SECTOR(A Study on Public Awareness)
DISSERTATION SUBMITTED TO ACHARYA NAGARJUNA UNIVERSITY
FOR THE DEGREE OF MASTER OF PHILOSOPHY IN COMMERCE
2008
SYNOPSIS
ByB.V.R.D.PHANI KUMAR, M.Com.,
RESEARCH SCHOLAR (FULL-TIME)DEPARTMENT OF COMMERCE
ACHARYA NAGARJUNA UNIVERSITY,NAGARJUNA NAGAR
RESEARCH DIRECTORDr. C. ANIL KUMAR, M.Com., DFM., Ph.D.,
PRINCIPAL,T.J.P.S.COLLEGE, (P.G.COURSES)
GUNTUR, A.P.
A sound financial sector is the backbone of a healthy economy. The
insurance industry as a financial service is considered as one of the important
segments in an economy for its growth and development, particularly in the
developing economies like India. The winds of liberalisation and privatisation,
which have brought in dramatic and phenomenal changes in the economic and
financial sectors, across the developing world-particularly in the last decade and
half are perceivable in the impact of globalization in this part of the world too.
Economic development of any country is mainly based on financial market. It
transfers the resources from savers to the users. Since insurance is a part of the
financial sector, positive and far-reaching changes towards betterment have
come into being in both life and non-life insurance markets. Perceived benefits,
rather than actual benefits, are the backbone of marketing of goods and services,
and marketing of life insurance is no exception. So insurance sector found a new
dimension to increase its business. Insurance products packaged savings
features with risk management feature. Insurance sell promise to pay on future
date for a predefined contingency. Insurance is an arrangement to deal with the
unpleasant contingencies. The essence of insurance is “sharing of losses and
substitution of certainty for uncertainty”. In an increasingly competitive economy,
the need for insuring against risk is well recognized. Insurance sell promise to
pay on future date for a predefined contingency.
The insurance business has been changing across the globe and the
ripple effects of the same can be observed in the domestic markets as well. The
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rising per capita income increased demand for insurance to cover risks of old age
and death. Insurance sector is a major contributor to the financial savings of the
household sector in the country, which are further channelised into various
investment avenues. Growth in life insurance during the post liberalized period
caused because of a considerable shift in percentage of savings from financial
assets (like deposits in banks, non-banking companies, co-operatives, mutual
funds, small savings etc.,) to insurance funds. Another factor that raised demand
for life insurance is the gradual dissolution of traditional social structures caused
by industrialization. Liberalisation of insurance industry witnessed an accelerated
growth in life insurance business. The size of the life insurance market increased
on the strength of the growth in the economy and concomitant increase in per
capita income. This resulted in a favorable growth both for LIC and to the new
insurers. In this growing competition, the customer is truly the king. Products are
being designed, redesigned and customised to suit the changing preferences of
customers, taking into account different factors like age, gender, family status,
employment and income levels. All these efforts would give fruitful results only
when there is high public awareness.
SURVEY OF LITERATURE:
Several studies have been taken up to evaluate the strategies for the
insurance business and Indian insuree’s perception towards private life insurers.
For this purpose a brief literature is presented here. Some of them are:
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Harold D. Skipper, Jr. concentrated on liberalization issues, from several
perspectives, relevant to the Indian insurance market and government, in
connection with its continued liberalisation.
Dr. Thitivadee Boonyasiai, examined the effects on life insurer efficiency of
insurance market opening and deregulation efforts undertaken by Korea,
Philippines, Taiwan and Thailand.
Mala Srivastava, Yogeshwari Phatak, studied about risk perception of
Indian insurees towards private life insurers and mainly concentrated on the
concept of deregulation of the Indian insurance market and potential of the Indian
insurance industry after the entry of private insurers.
Dharmendra Kumar, studied about the historical context of the emergence
and development of insurance in India and analysed the ideas behind
nationalisation of the insurance industry and the context of the opening up of the
insurance sector.
T.Vanniarajan, evaluated about the service quality in L.I.C. with reference
to Madhurai and mainly concentrated on L.I.C’s service productivity on two
dimensions namely quality and quantity.
Mark S. Dorfman, made a comment on the theory and practice of
innovation in the private insurance industry and provided some microscopic
details about the innovative practices of life insurance industry.
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Michacl L. Murray, studied about the innovations in private insurance
industry and he emphasizes the re-trading aspects of regulatory activities and
also mentions consumer distrust as another factor which inhibits innovation in
insurance.
Ashish Sadh and Soniya Billore, studied about the need for branding and
advertising in life insurance industry in a competitive environment and analysed
the need to strive to build a brand in order to attract both the end customer and
intermediaries.
Sanjeev K. Sharma, K.K.Uppal, Upasna Joshi, examined the strategies for
the insurance business and their marketing interventions and highlighted the
reasons for the opening up of insurance sector and suggesting strategies for
retaining market leadership for the public sector insurance companies.
J.D. Agarwal, evaluated the globalization, liberalization and privatization of
Indian Economy and its impact on Punjab’s economy and analysed about
insurance sector reforms along with other sector reforms in Punjab.
Mahito Okura, evaluated about the concept of “Each insurance product is
identical, but the insurance companies that sell this identical product are not
necessarily identical”.
A few articles also appeared in the Financial dailies (The Economics
Times, Business Line, Financial Express) and the periodicals (Insurance
Chronicle, Insurance watch, Outlook Money, etc.) about the evaluation of
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insurance industry by comparing the changes in Public and Private insurance
companies for a short period.
RESEARCH PROBLEM:
A brief survey of literature presented above explains about the innovations
in insurance industry and effects on life insurance market. By observing the
above literature, it is necessary to test the public awareness about the changes in
insurance industry. Therefore, it is proposed to evaluate the public awareness
about the entry of private insurance companies and attempts to understand the
difference in perception of insurees regarding the products and services offered
by both public and private insurance companies.
OBJECTIVES AND METHODOLOGY:
For the research problem cited above the objectives of the study and
methodology are as follows:
OBJECTIVES: The present study has the following objectives:
To analyse the trends in the insurance sector during the period prior
to the entry of the private sector.
To analyse the trends in the insurance sector during the period after
the entry of the private sector.
To compare and contrast various insurance policies /schemes/
products offered by public and private insurance companies.
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To identify the causes behind people going for different insurance
plans.
To analyse the public awareness about the entry of private sector
and their products.
To measure the level of satisfaction among the policy holders of
public and private insurance companies.
METHODOLOGY:
a) Sample of the Study:
The sample for this study consisted of 200 respondents
selected from Guntur, Vijayawada and Eluru which are located in
different districts. The selected respondents in the age group of
20-60years belonged to varied employment, gender and income
groups and were covered by life insurance policy from either L.I.C or
any other Private insurance company. Convenient sampling
technique was applied in selecting respondents as sample.
b) Data Source: The study is based on Primary and Secondary data.
i) Primary data : A self designed questionnaire consists of first
and second part, which deals with the respondent’s
perception w.r.t. L.I.C and Private insurance companies
respectively, was used for the purpose of Primary data
collection.
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ii) Secondary Data : Secondary data have been collected from
the annual reports of R.B.I, I.R.D.A, LIC, Various committee
reports like Era Sezhiyan report, Malhotra Committee report
and various seminar and paper presentations available in
International Institute of Insurance & Finance (IIIF). In
addition to the above different articles and opinions of
insurance managers have been collected from various
magazines and journals.
C) Data Analysis:
The data collected from various sources have been analysed by
using the techniques of simple percentages, averages etc., and Chi-
Square test has been employed to test the significance of the opinions
of the investors.
D) Limitations of the Study:
All the limitations, those are applicable to convenience sampling are
applicable to this study.
SIGNIFICANCE OF THE STUDY:
Before liberalization, L.I.C acted as a monopolist, but now it is facing
competition from various new entrants. The present Indian Insurance Sector is
witnessing exciting challenges forcing companies to continuously innovative. The
entire things become useless, when the public are unaware about the innovative
services offered by the various public and private insurance companies. Hence,
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it is essential to analyse the public awareness about the private insurance
companies and their strategies.
FINDINGS:
1. There is a continuous increasing tendency in Gross
Domestic Savings (i.e. increased from 21.2% in 1980-81 to 32.4% in 2005-
06), household savings (i.e. increased from 16.1% in 1980-81 to 22.3% in
2005-06) and financial savings (i.e. increased from 6.3% in 1980-81 to 11.6%
in 2005-06) as a percentage to GDP, but the savings in insurance is confined
to below 1% during the pre liberalisation period i.e. up to 1998-99 and after
the sector was liberalised, it is increased from 0.9% in 1999-2000 to 2.8% in
2006-07. This shows although there is an increasing tendency in Gross
Domestic Savings, Household Savings and Financial Savings during pre and
post liberalisation period, but the proportion of savings in insurance funds is
very low during the pre liberalisation period, and it was increased fastly due to
the market liberalisation.
2. During the pre-liberalisation period i.e. from 1980-81 to
1998-99, life insurance funds constitutes 6% to 10% of gross household
savings in financial assets and less than 1% of GDP. But after the
liberalisation of insurance sector i.e. from 1999-2000 to 2006-07, there is a
sharp increase in percentage of life funds, which constitutes 10% to 12% of
gross household savings in financial assets and the percentage of GDP
doubled (i.e. increased from 0.9% in 1999-2000 to 2.8% in 2006-07), which is
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caused because of liberalisation of insurance sector. So it is evident that,
there is an increase in life insurance funds as a percentage of savings in
financial assets as well as GDP after the liberalisation of the insurance sector.
3. The penetration of insurance in India is very low when
compared with the developed countries like United States, Japan, Australia,
South Korea etc., Life insurance penetration in India was less than 1% till
1990-91 and it was increased to 4.10% in 2006-07. The impetus for growth
has come from both public and private sector. The percentage of insurance
penetration in India, comparing with world penetration is in increasing manner
during the period 2002-2006, but in case of developed countries like United
States, South Korea and Australia’s insurance penetration is in decreased
manner during the same period. Therefore it is to be noted that, although
there is a low insurance penetration in India, but there is a gradual and
significant increase in insurance penetration. Therefore there is a
considerable and significant growth in Indian insurance market comparing with
international scenario.
4. The insurance density in India is hardly ranges from US$
6.1 in 1999 to US$ 33.2 in 2006 and the Indian insurance density is very low
when compared to other developed and developing countries. The growth in
insurance density as per India concern during the libralised period, every year
there is a growth of 18% to 20% over the preceding year. But where as in the
case of developed countries like United States, Japan, South Korea, Australia,
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there is a continuous decrease i.e. 2% to -13% during the period 1999 to
2006. Therefore, it is evident that, although insurance density in India is low
when compared to other countries, but there is a constant and drastic growth
in Indian insurance density and this growth is very high in world insurance
density.
5. During the pre-liberalisation period, LIC was only the player
in the life insurance market and LIC business is growing at 7% to 10% of
every year. When the industry is opened for private participation, public
sector business is declining and in the same period private insurance
companies business is in increasing from 26% to 88% of every year.
Therefore, it is evident that, gradually the business of public sector is occupied
by private sector by improving their business year by year and giving a
significant competition to LIC by private insurance companies.
6. During the pre-liberalisation period i.e. from 1993-94 to
1998-99, there is a fluctuating tendency in savings in non-banking companies,
Co-operative banks, societies and life insurance funds as a percentage of
total financial savings and there is a decreasing tendency in savings in bank
deposits, small savings and mutual funds, but in the same period there is an
increasing tendency (i.e. from 8% in 1993-94 to 10.5% in 1998-99) in savings
in life insurance funds (i.e. only 2% growth). During the post liberalised
period, (i.e. from 1999 to 2007) there is a decreasing tendency in all avenues
of savings except small savings, bank deposits and life insurance funds. In
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this period, insurance industry attracted a considerable portion of financial
savings and increase from 10.50% in 1998-99 to 14.60% in 2006-07 during
the seven liberalised years (i.e. around 5% growth). Therefore it can be
identified that, during the post liberalised period, there is a considerable shift
in percentage of savings in financial assets to insurance funds and raised
from 10.50% to 15.10% and realised the growth of 30% approximately.
7. During the pre-liberalised period i.e. in 1998 – 99, the
growth of life premium in India, which indicates the percentage of transfer of
funds from other financial assets to life assurance policies, is only 5.7% but
after the libralisation of the industry, the percentage to life premium increased
from 7.3% in 1999-2000 to 47.38% in 2006-07 (i.e. 70.55% growth during the
seven liberalised years). Therefore, it is significant to note that, there is an
increasing tendency towards savings in life insurance funds after the
liberalisation of the market and also there is a considerable potential for
transfer of funds from other financial assets to life insurance funds.
8. There is a significant increase in total First Year Premium
(FYP) collected by both public and private insurance companies over a period
of 5 years (taking 2001-02 as the base as the performance of the private
sector in 2000-01 was negligible), the FYP income collected by all life
insurance companies including LIC, has increased from Rs.19,857.28 crores
in 2001-02 to 75,617.26 crores (growth of 281% in 5 years) in 2006-07.
Therefore, although the growth in FYP during the year 2006-07 is caused by
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LIC but the significant growth in FYP of 4 subsequent years of liberalised
period i.e. during 2002-03 to 2005-06 is caused by private insurance
companies which indicate the growth of business due to the private
participation.
9. In 2000-01, when the industry was opened up for the private
players, the total life insurance premium was just 34,898.47 crore, out of
which 99.98% premium underwritten only by LIC and only 0.02% premium
underwritten by private insurance companies. The percentage of growth rate
of life premium underwritten over the previous year, in case of public sector
(i.e. LIC), the growth is confined between 16% to 43%, but where as in case
of private insurance companies, the growth is not less than 87% of every year
when comparing with the preceding year during the last five years. Therefore,
it can be identified that, the private insurance companies are increasing their
total premium underwritten and which shows a significant impact on public
sector (i.e. LIC) during the seven years liberalised period.
10. During the pre-libralisation period (i.e. prior to 1999-2000),
LIC enjoyed the monopolistic share in the insurance market and maintained
its dominant share of 99.98%share. After the liberalisation of industry the
share of private insurance companies increased gradually from 0.54% in
2001-02 to 18.08% in 2006-07 (recorded a growth of 35% to 73% of increase
over the years) in four years span of period. Correspondingly the share of
public sector (i.e. LIC) declined from 99.98% in 2000-01 to 81.92% in 2006-07
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(decreased at a rate of 2% to 5%of every year) during the same period of
time. Therefore, it is clear that, private insurance companies are competing
with public sector (i.e. LIC) and gradually occupying a significant share in the
market.
11. There is an increase in complaints in public and private
sector, which indicates the awareness among the policy holders regarding
their rights facilitated through publicity campaigns and attention towards their
insurance requirements. The rate of disposal of complaints by life insurance
companies is grown from 39% in 2002-03 to 89% in 2006-07 incase of LIC,
in case of private insurance companies the rate is increased from 79% in
2002-03 to 89% in 2006-07. This indicates, an improved customer attention,
better disposal of their complaints and a healthy & balanced competition in the
liberalised environment.
The opinion survey of the insurance investors revealed the following
conclusions:
12.Savings is one of the important aspect in human life. The opinion about the
essentiality of savings is found to be significant in case of factors like age
group, family status, employment, income group and gender group do not
have any significant influence on respondent’s opinion about the essentiality
of savings. There is a mixed version regarding the essentiality of savings in
people belongs to joint family group, housewife, business/self employment
and above 5,00,000 income group respondents. People belongs to 31-60
years age group, male, female, micro, professional, retired, government, non-
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government, 50,000 – 5,00,000 income group respondents felt that savings is
essential. People belong to 20-30 years age group and below 50,000 income
group felt that, savings is not essential.
13.Although most of the respondents felt that savings are essential, but the mode
of savings is different from one to another. The mode of savings may be
postal deposits, bank deposits, stock markets, mutual funds, chit funds,
insurance funds. Out of the several investment options, investor’s mode of
savings is found to be significant in all factors like age group, gender, family
status, employment, income group. People belonging to male, micro,
government, non-government, retired, housewife, business/self employment
group, below 50,000 income group respondents choose bank deposits,
people belonging to 31-40 years age group, 50,000 – 2,00,000 income group
income group choose stock market investments, people belonging to 51-60
years age group, professional group selected mutual funds, people belonging
to 20-30 years age group, business/self employment group selected chit
funds, people belonging to 41-50 years age group, female, joint family group,
professional, 2,00,001-5,00,000 income group and above 5,00,000 income
group selected insurance , people belonging to below 50,000 income group
selected postal deposits as their mode of savings.
14.Many individuals spend their considerable portion of their amounts on medical
ground. All the respondents felt that, medical expenses are very expensive in
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these days. Factors like age, gender, family status, employment & income
levels do not have any influence on respondent’s opinion.
15.Many insurance companies introduced different Pension plans, which take
care of post retirement life. All the respondents felt that, pension plan takes
care of their post retirement life. All the factors like age, gender, family status,
employment and income level do not have any significant influence on
respondent’s opinion.
16.The opinion of the investors about the need of pension plan, which satisfy the
post retirement requirements, is found to be not significant. Factors like age,
gender, family status, employment and income levels do not have any
significant influence on investor’s opinion about the need of pension plan after
retirement. All the respondents felt that, there is a need of pension plan to
satisfy their post retirement life requirements.
17.There are several sources like monthly income schemes, personal savings,
bank deposits, fixed deposits etc., available to compensate their reduced
income after their retirement. The preference of investors towards various
available sources is found to be significant in all factors like age group,
gender, family status, employment, income group. People belonging to 51-60
years age group, joint family, housewife, professional group, below 50,000
income group respondents selected monthly income schemes as their
suitable source, people belonging to 20-50 years age group, male, micro,
joint, government, non-government, retired, business/self employment group,
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50,000 – 5,00,000 income group respondents selected personal savings as
their suitable source, people belonging to above 5,00,000 income group
selected bank deposits as their suitable source, people belonging to female
group selected fixed deposits as their suitable source which ensures regular
income after retirement.
18.To day there is a need to maintain sufficient funds to fulfill the children’s
educational requirements according to their ambitions. The opinion of the
investors about to have an educational fund for their children is found to be
not significant. Factors like age, gender, family status, employment and
income level do not have any significance influence on investor’s opinion. All
the respondents felt that, there is a need to maintain sufficient funds to fulfill
the educational requirements of their children according to their ambitions.
19.In the changing environment, the amount spent on marriage function becomes
a prestigious point. Factors like age, gender, family status, employment and
income levels have a significant influence on investors opinion about to have
a marriage fund for their children marriage. People belonging to 20-40 years
age group, female, micro, non-government, professional, retired housewife,
below 2,00,000 income group respondents felt that, it is important to have a
marriage fund for their children. People belonging to 41-60 years age group,
male, joint family group, government, business/self employment group, above
2,00,000 income group respondents felt that, it is not necessary to maintain
marriage fund for their children’s marriage.
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20.Insurance is one of the important aspects of human life. The opinion of the
respondents regarding the essentiality of insurance is found to be significant.
The opinion is found to be significant in case of respondents belonging to age
group, family status and employment. Factors like income level and gender
group do not have any significant influence on respondent’s opinion. People
belonging to 20-40 years age group, male, female, micro, government, non-
government, professional, retired, housewife and people belonging to all
income groups felt that, insurance is essential. People belonging to 41-60
years age group, joint family and business/self employment people felt that,
insurance is not essential.
21.The respondent’s reason behind not essentiality of insurance may be because
of not attractive returns, due to the liquidity problems, lengthy procedures or
may not be required right now. The reason behind the not essentiality of
insurance is found to be significant in case of age group, employment, income
level. People belonging to 41-60, government, business/self employment,
50,000- 5,00,000 income group respondents felt that insurance is not
essential because of its not attractive returns. People belonging to 20-30
years age group, non-government, housewife, below 50,000 and above
5,00,000 income group respondents felt that, they are not required insurance
right now. People belonging to 31-40 years age group felt that, due to the
lengthy procedure they felt that insurance is not essential. Factors like gender
and family group do not have any significant influence on respondent’s
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opinion and they felt that, due to the not attractive returns they felt that
insurance is not essential.
22.Investors invest in insurance funds for different reasons. The investment may
be for family economic security, for tax benefits, because of savings habit, old
age financial security, best suited for specific needs, returns with risk cover or
because of their agent’s influence. The reason behind investment in
insurance funds is found to be significant in all factors like age, gender, family
status, employment and income levels. People belonging to male, house wife
invest for their family economic security, people belonging to 41-60 years,
micro family group, professional, 2,00,001 – 5,00,000 and above 5,00,000
income group invest for tax purpose, people belonging to 31-40 years,
business/self employment, 50,000 – 2,00,000 income group invest because of
their savings habit, people belonging to non-government employment invest
for their old age financial security, people belonging to retired group invested
because of their agent’s influence, people belonging to female, joint family
group, below 50,000 income group invested because of best suited for
specific needs and people belonging to 20-30 years, government employment
invest because of its returns with risk cover.
23.Insurance investors have been inspired by three main sources viz., self
decision, agent’s influence, friends influence in selecting policy from LIC. It is
found to be significant in case of investors belonging to age group, gender,
employment and income levels. People belonging to male, government,
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professional, retired, 50,000 -2,00,000 income group respondents inspired by
themselves. People belonging to 41-60 years, female group, housewife,
business/self employment, below 50,000, 2,00,001 – 5,00,000, above
5,00,000 income group influenced by their agents. People belonging to 20-40
years, non-government employment inspired by their friends. Investor’s family
status do not have any significant influence on investors and people belonging
to both micro and joint family group invested due to their agent’s influence.
24.Health insurance is introduced to reduce the burden of medical expenses at
the time of emergency. The investors opinion about the medical insurance
would reduce the burden of medical expenses in emergency is found to be
significant in factors like age group, gender, family status, employment and
income levels. People belonging to 20-40 years, male, micro family group,
professional, non-government employment, above 2,00,000 income group felt
that, medical insurance would help in reducing the burden of medical
expenses in emergency. People belonging to 41-60 years, female, joint family
group, housewife, retired, business/self employment group, below 50,000
income group respondents felt that, medical insurance would not helps in
reducing the burden of medical expenses in emergency. People belonging to
50,000 – 2,00,000 income group have a mixed version regarding the medical
insurance would help in reducing the burden of medical expenses.
25.The investor’s opinion about the medical insurance would not help in reducing
the burden of medical expenses may be because of various reasons like, not
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useful for all medical problems, lack of customised products or not applicable
to all hospitals. The reason behind the respondent’s opinion is found to be
significant in all factors like age group, gender, family status, employment and
income levels. People belonging to 20-30 & 51-60 years, female, micro,
professional, house wife, above 5,00,000 income group respondents felt that,
it is not useful for all medical problems. People belonging to 31-40 years,
male, joint, government, non-government, 50,000 – 2,00,000 income group
respondents felt that, it is not helpful because of lack of customised products.
People belonging to 41-50 years age group, business/self employment,
retired, below 50,000, 2,00,001 – 5,00,000 income group respondents felt
that, it is not applicable to all hospitals.
26.Investors select different options like medical insurance, funds from relatives
and friends, loans from financers, their past savings etc., to face the medical
emergency. The option utilised by the people in medical emergency is found
to be significant in factors like age, gender, family status, employment and
income levels. People belonging to 31-40 years, professional, above
2,00,000 income group opted medical insurance, people belonging to 20-30
years, female, house wife group depends on their relatives and friends,
people belonging to joint family group and business/self employment group
depends on loans from financers, people belonging to 31-40 years, male,
micro family group, government, non-government, retired, below 50,000,
50,000 – 2,00,000 income group depends on their past savings.
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27.Investors select medical insurance because of various reasons like, self
interest, it reduces the burden of medical expenses in emergency or peace of
mind in emergency. The investor’s reason behind selecting medical
insurance policy is found to be significant in all factors like age, gender, family
status, employment and income levels. People belonging to 20-30 years,
micro family group, government employment select medical policy because of
their self interest, people belonging to 31-40 years, female, professional,
house wife, business/self employment, 2,00,001 – 5,00,000 income group
select medical policy because it reduces the burden of medical expenses.
People belonging to 41-60 years, male, joint family group, non-government,
50,000 – 2,00,000 and above 5,00,000 income group select medical policy
because of peace of mind in emergency.
28.Although several pension schemes are available in the market, many
investors postpone the selection of pension plans due to several reasons. The
opinion about to take pension policy in near future is found to be significant in
all factors like age, gender, family status, employment and income levels.
People belonging to 20-40 years, male, micro, professional, non-government,
government, 50,000 – 5,00,000 income group wants to take pension plan in
near future. People belonging to 41-60 years, female, joint family group,
house wife, retired, business/self employment, below 50,000 and above
5,00,000 income group do not want to take pension plan in near future.
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29.Investors invest in retirement plan for different reasons. It has been divided
under four heads viz., self interest, benefits of plan attracted, maintaining the
same level of financial strength, useful for some petty expenses after
retirement. The reason behind investment in retirement plan is found to be
significant in factors like age, gender, family status, employment. People
belonging to 20-30 years, micro family group invested because of their self
interest, people belonging to 31-60 years, male group, non-government,
professional, business/self employment respondents invested because of its
attractive benefits, people belonging to government employment invested
because of maintaining same level of financial strength after retirement,
people belonging to female and joint family group invest because, it is useful
for some petty expenses after retirement. Income level do not have any
significant influence on investors opinion and all the respondents belonging to
various income levels invested in retirement plan because of its attractive
benefits. Mostly the housewives and the retired group do not take pension
policy.
30.Children insurance policy is one of the policies which was introduced with a
view to satisfy various requirements of children at different stages. Some
investors felt that, it fulfills the children’s requirements and some may not felt
like that. The opinion of the investors is found to be significant at all factors
like age, gender, family status, employment, income levels. People belonging
to 20-40 years, male, micro family group, professional, non-government,
government, below 2,00,000 income group respondents felt that, children
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policy satisfies the requirements of children. People belonging to 41-60 years,
female, joint family group, housewife, retired, business/self employment and
above 2,00,000 income group respondents felt that, children plan does not
fulfill the specific needs of children.
31.There are several reasons (like education expenditure is changing day by day,
we cannot estimate the future, children ambitions are not matching with the
parents ambitions) behind the investor’s opinion about the children plan does
not fulfill the specific needs of the children. The opinion of the investors is
found to be significant in all factors like age, gender, family status,
employment and income levels. People belonging to 20-30 years, non-
government, professional, below 50,000 income group investors felt that,
education expenditure is changing day by day, people belonging to 31-40
years, male, micro, business/self employment, 50,000 – 2,00,000 income
group investors felt that, we cannot estimate the future, people belonging to
41-60 years, female, joint family group, house wife, retired, government and
above 2,00,000 income group investors felt that, children ambitions are not
matching with the parents ambitions.
32.Although various children insurance plans are available in the market, still
many investors are not having children insurance plan. The opinion of the
investors about taking children insurance policy in near future is found to be
significant in all factors like age, gender, family status, employment, income
levels. People belonging to 20-30 years, male, micro family group,
24
professional, below 2,00,000 income group wants to take a children plan in
near future. People belonging to 31-60years, female, joint family group, non-
government, retired, housewife, above 2,00,000 income group do not want to
take children policy in near future. There is a mixed version in case of people
belonging to government and business/self employment group.
33.Investors invest in children plan for different reasons. It is divided under four
heads viz., for child’s future, based on future earning potential and family
expenses, monthly budget of child’s current cost, for lump sum amount at a
specified age. The reason behind investment in children plan is found to be
significant in factors like gender, family status, and employment. People
belonging to female group investors selected for their child’s future, people
belonging to joint family group, professional, retired, business/self
employment group invested based on their future earning potential and family
expenses, people belonging to male, micro family group, government, non-
government employment invested because of availability of lump sum amount
at a specified age. Factors like age group, income level do not have any
significant influence and all the investors belonging to all age, income groups
invested because of availability of lump sum amount at a specified age.
34.Investors select life insurance policy from private insurance company because
of various reasons like, wide range of products with different needs, treating it
as investment as well as protection plan, based on their savings habit,
adequate and guaranteed returns, attractive maturity amount & tax
25
concessions etc., The reason behind selecting life insurance policy from
private insurance company is found to be significant in factors like age, family
status, employment and income levels. People belonging to 20-30 years, 51-
60 years, professional, government, 2,00,001-5,00,000 income group selected
because of wide range of products with different needs, people belonging to
31-40 years, micro, housewife, business/self employment, 50,000 – 2,00,000
and above 5,00,000 income group investors selected because of treating it as
an investment as well as protection plan, people belonging to 41-50 years,
joint family, non-government, below 50,000 income group investors selected
because of their savings habit, people belonging to retired group selected
policy by considering maturity amount and tax concessions. Factor like
gender group do not have any significant influence on investment decision
and both micro and joint family group respondents selected policy because of
treating it as both investment as well as protection plan.
35.Although various public and private insurance companies offering different life
insurance policies, still many of the investors do not have the policy because
of various reasons like, treating it as not important, not worth investment and
feeling it as inauspicious thing. The reason behind not having life policy is
found to be significant in all factors like age, gender, family status,
employment and income levels. People belonging to 20-30 years, female,
micro family group, house wife, non-government employment, below 50,000
income group feel that life insurance policy is not important to them, people
belonging to 31-50 years, male, joint family group, business/self employment,
26
50,000 – 2,00,000 income group feel that, it is not worth investment, people
belonging to 51-60 years, government, professional, 2,00,001 – 5,00,000
income group investors feel that taking life policy is an inauspicious thing.
36.Some of the investors willing and some are unwilling to purchase policy from
private insurance companies. The opinion of the investor’s taking policy from
private insurance companies is found to be significant at all factors like age,
gender, family status, employment and income levels. People belonging to
20-40 years, male, micro family group, government, professional,
business/self employment, above 50,000 income group willing to take policy
from private insurance companies. People belonging to 41-60years, female,
joint family group, non-government, retired, housewife, below 50,000 income
group investors are not willing to purchase policy from private insurance
companies.
37.Insurance investors have been inspired by three main sources viz., self
decision, agent’s influence, friends influence in taking policy from private
insurance companies. It is found to be significant in factors like, age group,
gender, family status, employment and income levels. People belonging to
31-40 years, male, micro, non-government, professional, 50,000 – 2,00,000
income group investors inspired by themselves, people belonging to 20-30
years, business/self employment, house wife group of investors inspired by
their friends, people belonging to 41-60 years, female, joint family, retired,
27
government employment, below 50,000 and above 2,00,000 income group
investors inspired by their agents.
38.Investors select various policies from various private insurance companies
based on various reasons like, innovative premium structure, because of
customised products, high tax benefits, better services offered by private
insurance companies, due to the agent’s influence, attractive payments, best
suited for specific needs etc., The reason behind selecting policy from private
insurance companies is found to be significant in all factors like age, gender,
family status, employment and income levels. People belonging to 20-30
years, micro, non-government and below 50,000 income group investors
invested because of its innovative premium structure, people belonging to
41-50 years, government employment, 2,00,001-5,00,000 and above 5,00,000
income group investors invested for tax benefits, people belonging to female
group invested because of their agent’s influence, people belonging to 51-60
years, professional, retired group invested because of its attractive payments,
people belonging to 31-40 years, male, joint family group, housewife,
business/self employment, 50,000 – 2,00,000 income group invested because
of treating it as best in investment as well as protection plan.
39.After liberalisation many private insurance companies entered into the market
and competing with LIC. All the respondents aware of various private
insurance companies and the factors like age group, gender, family status,
28
employment and income levels do not have any significant influence on public
awareness about private insurance companies.
40.Investors utilised three major sources like televisions, news paper and agents
to provide awareness of private insurance companies. The major source was
utilised by the investors to have awareness aware about private insurance
companies is found through news papers and agents. It is found to be
significant in all factors. Out of the above three major sources only people
belonging to 20-30 years age group and female respondents utilised
televisions have awareness aware about private insurance companies.
People belonging to 41-60years age group, male respondents, joint family
group, professional, non-government, government employment and people
belonging to below 2,00,000 and above 5,00,000 income group respondents
utilised news papers to have awareness aware about private insurance
companies and people belonging to 31 – 40 years age group, micro family
respondents, house wife, business/self employment respondents and people
belonging to 2,00,001 – 5,00,000 income group respondents aware of private
insurance companies through their agents.
41.Entry of private sector in to the insurance industry may not be supported by all
the respondents. The opinion of the respondents found to be significant in all
factors like age group, gender, family status, employment, income group.
People belonging to 20-50 years age group, male, micro family group,
professional, government employment and people belonging to 50,000 –
29
5,00,000 income group felt that, entry of private sector into the insurance
industry is necessary. And people belonging to 51-60 years age group, female
respondents, joint family group, retired, below 50,000 and above 5,00,000
income group respondents felt that entry of private sector into the insurance
industry is not necessary.
42.Due to the liberalisation of industry, there is tough competition between public
and private insurance companies. The opinion of the respondents regarding
the restriction of competition is found to be significant in all factors like age
group, gender, family status, employment, income group. People belonging to
20-40 years age group, male respondents, micro family group, housewife,
professional, non-government, business/self employment group and people
belonging to below 2,00,000 income group felt that, it is not necessary to
restrict the competition between the public and private sectors. People
belonging to 41-60 years age group, female respondents, retired, government
employment respondents and people belonging to above 2,00,000 income
group felt that, it is necessary to restrict the competition between public and
private sectors. And a person belonging to joint family group has the mixed
version regarding the restriction of competition between public and private
sector insurance companies.
43.Various insurance companies offering different add-ons /riders in addition to
their basic policy. All the respondents were aware of about different add-
ons /riders offered by various private insurance companies. Factors like age
30
group, gender, family status, employment and income levels do not have any
significant influence on the respondent’s awareness about different riders
offered by various private insurance companies.
44.There are three major sources viz., televisions, news papers, insurance
agents, utilised by the respondents to have awareness about different riders
offered by private insurance companies. The major source utilised by the
respondents is found to be insurance agents. It is found to be significant in all
factors like age group, gender, family status, employment, income group.
People belonging to 31-60 years age group, government, non-government,
housewife, business/self employment group and people belonging to 50,000 –
2,00,000 income group get awareness through their insurance agents.
People belonging to below 50,000 and above 5,00,000 income group get
awareness through televisions. People belonging to professional, retired
group and 2,00,001 – 5,00,000 income group set awareness through news
papers. People belonging to female and micro family group utilised both
televisions and agents, people belonging to male and joint family group
respondents utilised news papers and agents have awareness about riders
offered by private insurance companies.
45.The expectations of the public with the entry of private insurance companies is
found to be significant in all factors like age group, gender, family status,
employment, income group. People belonging to 20-30, 41-50 years age
group, female, micro, retired, business/self employment and 50,000 –
31
2,00,000 income group expecting better customer relations, people belonging
to 31-40 years age group, male, joint, non-government, government
employment and above 5,00,000 income group respondents expecting
customised plans, people belonging to retired, housewife, below 50,000
income group expecting low premium with multiple benefits, people belonging
to professional, 2,00,001 – 5,00,000 income group respondents expecting
assurance of professional management and people belonging to 51-60 years
age group expecting speedy claim settlements.
46.The competition between LIC and private insurance companies result in
growth of industry, investors benefited more, wide coverage of gaps and there
is a chance of better employment opportunities. The respondent’s opinion
with regarding the result of this competition is found to be significant in all
factors like age group, gender, family status, employment, income group.
People belonging to 31-40, 51-60 years age group, male, female, micro,
professional, housewife and 50,000 – 2,00,000 income group respondents felt
that, investors are benefited more. People belonging to 20-30 years age
group, non-government , retired, below 50,000 and above 5,00,000 income
group felt that, due to the competition there is a possibility of better
employment opportunities. People belonging to 41-50 years age group, joint
family group, 2,00,001-5,00,000 income group felt that, there is a growth in
industry due to the competition. People belonging to micro family group and
business/self employment group felt that, due to the competition there is a
possibility of wide coverage of gaps.
32
47.Due to the introduction of variety of products by various private insurance
companies, there is a possibility of variety of products make the consumer’s
choice difficult. The opinion of the respondent’s is found to be significant and
it is found to be more significant in factors like age, employment and income
groups. People belonging to 20-40 years age group, female, micro,
housewife, retired, non-government, government employment and above
2,00,000 income group respondents felt that, variety of products do not make
their choice difficult. People belonging to 41-60 years age group, male, joint
family group, professional, business/self employment group and below
2,00,000 income group felt that, variety of products making their choice
difficult.
48.The respondent’s level of satisfaction with the services offered by LIC is found
to be significant. People belonging to 20-40 years age group, male
respondents, joint family group, government, professional, retired group and
people belonging to above 2,00,000 income group are satisfied with the
services offered by LIC. And people belonging to 40-60 years age group,
female group, micro family group, non-government, business/self
employment, housewife group and people belonging to below 2,00,000
income group is not satisfied with the services offered by LIC.
49.The reason behind not satisfying with the services offered by LIC is found to
be significant. It is more significant in case of people belonging to age group,
employment & income levels. Factors like gender and family status do not
33
have any significant influence on respondent’s reason behind not satisfying
with the services offered by LIC. People belonging to 20-30 and 41-50 years
age group, male and female group, micro and joint family group, government,
house wife, business/self employment group and people belonging to 50,000
– 2,00,000 income group not satisfied with the agent’s services. People
belonging to 31-40 years age group, non-government and below 50,000
income group is not satisfied because of poor response from LIC and people
belonging to professional group and above 2,00,000 income group not
satisfied because of lack of up-to-date information.
50.Level of satisfaction with the services offered by Private insurance companies
is found to be significant in the case of employment group. Factors like age
group, gender, family status and income group do not have any significant
influence on the respondent’s level of satisfaction with the services offered by
private insurance companies. People belonging to 20-60 years age group,
male and female group, micro and joint family group, people belonging to
government, professional, non-government, business/self employment group
and people belonging to all income groups is satisfied with the services
offered by private insurance companies. And people belonging to retired
group and house wife group are not satisfied with the services offered by
private insurance companies.
51.5The reason behind not satisfying with the services offered by private
insurance companies is found to be significant in all factors like age, gender,
34
family status, employment, income levels. People belonging to 20-30 years
age group, joint family group, retired, house wife group, below 50,000 income
group is not satisfied because of poor response from agents. People
belonging to 31-40 and 51-60 years age group, female group, micro family
group, business/self employment and people belonging to 2,00,001-5,00,000
income group not satisfied because of facing problems in getting information
about their policy status. People belonging to 41-50 years age group, Male
group, 50,000 - 2,00,000 and above 5,00,000 income group respondents are
not satisfied because of delay in providing required data.
52.The suggestions from respondents regarding the insurance industry are found
to be significant in all factors like age, gender, family status, employment and
income levels. People belonging to male, non-government, professional,
retired, housewife and below 50,000 income group suggested that, LIC & GIC
should be privatised. People belonging to 41-50, micro, government,
2,00,001 – 5,00,000 income group respondents suggested that, tax benefits
should be uniform. People belonging to 31-40years age group, joint family
group, non-government and people belonging to 50,000 – 2,00,000 income
group respondents suggested that, level of supervision should be equal on
both public and private sector insurance companies. People belonging to 51-
60 years age group, female, government employment respondents suggested
that, LIC should improve the present position. And people belonging to 20-30
years age group, male, micro family group, business/self employment and
35
people belonging to above 5,00,000 income group suggested that,
government restrictions on entry of private companies should be reduced.
CONCLUSIONS:
Spreading the awareness about insurance is still limited. The consumer who
is uninformed about insurance cannot distinguish between an improved
product and one which is changed but un-improved. Hence, the consumers
are unable to evaluate the features of various plans introduced by various
insurance players.
The role and importance of government policy in insurance, i.e. the
government intervention into insurance markets is essential but should be
carefully targeted to minimize undue interference.
The extent to which risk perception of the insurer affects the decision of an
insuree in selection of an insurance company and the extent to which Indian
insurers perceive private insurers to offer better services vis-à-vis traditional
life insurance companies.
The Indian customer was not left with much choice regarding alternative
service provider in case he found the quality of services dissatisfactory.
The dependence of the government on insurance sector, high growth rate,
and the presence of large group of middle class people are the strengths of
the insurance industry.
36
Each insurance product is identical, but the insurance companies that sell this
identical product are not necessarily identical. But the consumer’s decisions
to purchase insurance product from different insurance companies can be
affected by several factors.
SUGGESTIONS:
In the light of the above conclusions of the study and the suggestions given
by the respondents, the following measures are suggested to improve the
performance of life insurance industry and public awareness about private
insurance companies.
Public sector insurance company (LIC) in order to face the competition with
the private sector insurance companies have to study the exact cause for a
significant decline in the market share, life insurance premium, thereby initiate
proper remedial measures with in their control. Both public and private insurance
companies have to . . .
Design innovative insurance schemes with attractive premium
structure to suit to the varied requirements of investors by considering their
financial capacities.
37
Create awareness about the various tailor made insurance policies
& riders offered by public and private insurance companies among the public
through innovative channels.
Adopt innovative marketing strategies and need oriented products to
tap the vast saving potential of small investors.
Raise the quality of customer services by improving the rate of
disposal of complaints, early settlements of claims by reducing the delay in
fulfilling the formalities and response against the requirements of policy
holders should be improved.
Improve tax exemptions on all insurance products along with
attractive maturity benefits.
Commitment and dedicated performance at all levels is required to
public sector insurance company (LIC) to face the competition from private
insurance companies and to retain their share in market by improving the
public confidence regarding their operations.
Lengthy and complex procedures should be reduced and there is a
need to introduce a continuous changing mechanism in evaluating the
requirements and designing products according to the changes in the market.
Government restrictions on entry of private insurance companies
should be reduced and the level of supervision should be equal on both public
and private insurance companies.
38
CHAPTERISATION
CHAPTER I : INTRODUCTION
History of insurance: During Pre reforms period - Post reforms
period - Trends in savings and investment in insurance (as a
percentage of GDP & Financial Savings) – Types of
insurance: From business point of view – Life insurance –
General insurance – Social insurance - From risk point of
view - Personal insurance – Liability insurance – Guarantee
insurance – Need of insurance – Pre-requisites for the growth
of insurance as a measure to hedge against risk.
CHAPTER II : OBJECTIVES AND METHODOLOGY
Survey of Literature – Research Problem – Objectives of the
Study – Methodology - Sample of the Study – Sources of
Data – Data Analysis – Limitations of the Study – Significance
of the Study.
39
CHAPTER III : GROWTH OF LIFE INSURANCE DURING PRE & POST
REFORMS PERIOD.
Growth as a percentage of Household Savings and GDP –
Penetration of Life insurance in India vis-à-vis other countries
– Density of Life insurance in India vis-à-vis other countries –
Insurance during Pre & Post liberalisation period – Growth in
insurance & Impact of other Savings – Transfer of funds from
other Financial assets to Insurance - Growth in First Year
Premium (FYP) - Insurance Premium Underwritten – Market
Share of Public and Private players – Disposal of Complaints
– Findings – Conclusions.
CHAPTER IV : PERCEPTIONS OF INVESTING PUBLIC ON INSURANCE
Essentiality of Savings – Mode of Savings – Costliness of
Medical expenses – Pension plan takes care of Post-
retirement Life – Need for Pension plan – Source of Income
after retirement – Educational fund for Children – Marriage
fund for Children – Essentiality of Insurance – Reason for not
essentiality of Insurance – Reason for selecting policy from
LIC – Persons Inspired – Medical insurance would reduce the
burden of medical expenses – Reason for medical insurance
does not reduce the burden of medical expenses – Source of
funds in emergency – Reason for selecting Medical policy –
Opinion about to take Pension policy in future – Reason for
40
selecting Pension policy – Children policy fulfills the specific
needs of children – Reason for not fulfilling specific needs of
children – Opinion about to take Children policy in future -
Reason for selecting Children policy – Reason for selecting
life policy - Reason for not having life policy - Willingness to
purchase insurance policy from private company – Persons
inspired in selecting policy form Private company – Reason
for selecting policy from Private company – Awareness about
Private insurance companies – Source of awareness –
Opinion about the entry of Private sector – Restriction of
Competition – Awareness about Riders/Add-ons – Source of
awareness – Expectations regarding industry – Result of
Competition – Variety of products making the choice difficult –
Satisfaction with the services offered by LIC & Private
insurance companies – Reason for not satisfaction –
Suggestions regarding the Insurance Industry.
CHAPTER V : SUMMARY AND FINDINGS.
BIBLIOGRAPHY
APPENDIX : QUESTIONNAIRE
41
BIBLIOGRAPHY
BOOKS:
1) M.N.Mishra, “INSURANCE-PRINCIPLES AND PRACTICE”, 1st Edition,
S.Chand & Company Ltd,. New Delhi – 1979.
2) Julia Holyoake, Willaim Weipers; “INSURANCE”, 4th Edition, CIB
Publishing, Delhi – 2002.
3) C.Arthur Williams Jr.; Michael L. Smith; Peter C.Young, “RISK
MANAGEMENT AND INSURANCE”, 8th Edition, Irwin McGraw-Hill, New
York – 1998.
4) Harrington Niehaus, “RISK MANAGEMENT AND INSURANCE”,
Irwin/McGraw-Hill, 1999.
5) Sharada Kumaraswamy, V Kumara Swamy, “CORPORATE
INSURANCE”, Tata McGraw-Hill Publishing Company Ltd., New Delhi –
2005.
42
6) Anand Ganguly, “INSURANCE MANAGEMENT”, New Age International
Publishers, New Delhi – 2002.
7) Scott E. Harrington ; Gregory R.Niehaus, “RISK MANAGEMENT AND
INSURANCE”, 2nd Edition, Tata McGraw-Hill Publishing Company Ltd,.
New Delhi – 2004.
8) George e. Rejda, “PRINCIPLES OF RISK MANAGEMENT AND
INSURANCE”, 7th Edition, Pearson Education(Singapore) Pte., Ltd., New
Delhi – 2002.
9) P.S.Palande, R.S.Shaw.lunawat, “INSURANCE IN INDIA”, Response
Books (A division of SAGE publications India Private Limited) - 2003.
10) Julia Holyoake William Weiters, “INSURANCE”, 4th Edition, CIB
Publishing, New Delhi – 2002.
11) S.S.Huelner, “LIFE INSURANCE”, 9th Edition, Kenneth Block, Prcntic Hall,
1976.
12) “LIFE INSURANCE”, ICRIM (The Institute of Certified Risk and Insurance
Managers) Publications – 2001.
13) William Cahn, “A MATTER OF LIFE & DEATH”, Random House, New
York – 1970.
14) Edward E Graves Lynnhayes, “Mc Hill’s LIFE INSURANCE”, The
American College, U.S.A – 1994.
43
15) Jane Light Cap Brown, Kristen L Falk, “INSURANCE
ADMINISTRATION”, 2nd Edition, Life Office Management Association
(LOMA), 2002.
16) Jaseph M Belth, “LIFE INSURANCE - A CONSUMER’S HAND BOOK”,
Indiana University Press, London – 1973.
17) Black & Skipper, “LIFE & HEALTH INSURANCE”, Pearson’s Edition,
New Delhi-2000.
18) Williams C. Arthur & Michael L. Smith, Peter C. Young, “RISK
MANAGEMENT AND INSURANCE”, 8th Edition, Irwin Mc Graw Hill –
1998.
19) Emmett Vaughan, Therese Vaughan, “ESSENTIALS OF RISK
MANAGEMENT & INSURANCE”, John Wiley & Son’s in Corporation,
2001.
20) Dr.Harold D Skipper, “INTERNATIONAL RISK & INSURANCE”, Irwing
Mc Graw Hill – 1998.
21) K.Rama Krishna Reddy, P.MuraliKrishna, “RISK MANAGEMENT”,
Discovery Publishing House, New Delhi- 2000.
22) Harring Ton Niehaus, “RISK MANAGEMENT & INSURANCE”, 2nd
Edition, Tata Mc Graw Hill – 2004.
44
REPORTS:
1)Reserve Bank of India - Report on Currency and Finance (Various Reports).
2)Reserve Bank of India, Supplement; Annual Report (Various Reports).
3)Reserve Bank of India, Reports on Trends and Progress of Banking in India
- 1997-98, Supplement to RBI -1998.
4)Life Insurance Corporation of India – Annual Reports (Various Reports).
5)Era Sezhiyan Committee Report , “Report to review the working of LIC of
India”, September, 1980.
6)Report of the Committee on Reforms in the Insurance Sector ; Government
of India, Ministry of Finance, New Delhi, January, 1994.
MAGAZINES:
1. Insurance Chronicle.
2. Insurance Post.
3. Insurance world.
45
4. Insurance Times.
5. Life Insurance Today.
6. Money Out Look.
JOURNALS:
1. Journal of Insurance & Risk Management.
2. Finance of India.
3. IRDA Journal.
ARTICLES:
1) Harold D. Skipper Jr.,“Liberalisation of Insurance markets: Issues
Concerns”, Journal of Insurance & Risk Management, June, 2004.
2) Dr. Thitivadee Boonyasiai, “The effect of liberalization and deregulation
on Life Insurance Efficiency”, Journal of Insurance & Risk Management,
June, 2004.
3) Mala Srivastava Yogeswarari Phatak, “A Study of Risk Perception of
Indian Insurees towards Private Life Insurers”, Journal of Insurance &
Risk Management, December, 2004.
4) Dharmendra Kumar, “Indian Insurance: The Historical perceptive”,
Indian Insurance Report, Series-I.
46
5) T. Vanniarajan, “Service Quality in L.I.C. with special reference to
Madhurai”, Journal of Insurance & Risk Management, December, 2004.
6) Mark S. Dorfman, “The Theory and Practice of Innovation in the
Private Insurance Industry”, Journal of Insurance & Risk Management,
December, 1978.
7) Michael L. Murray, “The Theory and Practice of Innovation in the
Private Insurance Industry”, Journal of Insurance & Risk Management,
December, 1976.
8) Ashish Sadh & Soniya Billore, “Brand Building and Advertising:
approaches in Indian Life Industry”, Journal of Insurance & Risk
Management, October, 2003.
9) Sanjeev K. Sarma, K.K.Uppal, Upasna Joshi, “Strategies for the
Insurance Business: Marketing Interventions”, Journal of Insurance &
Risk Management, June, 2004.
10) J.D.Agarwal, “Globalisation, Liberalasation, Privatisation of Indian
Economy; its impact on Punjab economy”, Finance of India, June,
1994.
11) Mahito Okura, “An Equilibrium Analysis of the Insurance Market with
vertical Differentiation”, Journal of Insurance & Risk Management, June,
2005.
47
12) G.N.BAJPAI, “The Challenges before the Insurance Industry in India”,
Journal of Insurance & Risk Management, May, 2003.
13) Sabera, “Privatisation of Insurance Industry in India-the growth”,
Insurance Chronicle, January, 2007.
14) D. Tripati Rao, “Privatisation and Foreign Participation in (life)
Insurance Sector” Economic and Political Weekly, March, 2000.
* * *
48