Performance of Insurance Sector in India-A Review

It has been recognized for many years by the researchers, practitioners and academicians that the insurance sector is instrumental in development and growth of any economy. It seems Insurance not only facilitates economic transactions through risk transfer and indemnification but it also promotes financial intermediation. More specifically, insurance can have effects such as promoting financial stability, mobilize savings, facilitate trade and commerce, enable risk to be managed more efficiently, encourage loss mitigation, foster efficient capital allocation and also can be a substitute for and complement government security programs. In view of importance of the insurance sector in economic development one could expect that good quantum of research might be available on studying direct impact of insurance services on the economic growth. The present study attempts to give a bird's eye view on the different aspects of the insurance sector and its contribution on economic growth and also the financial performance of insurance sector.