Financial engineering in insurance business-a select study

Since last three decades India has witnessed a phenomenal growth in financial innovations and use of financial engineering applications in the design and development of products and services of both financial and insurance nature. The main reason for this revolution is, change in the interest(s) of all financial intermediaries like insurance companies (Life and Non-life), commercial and corporative banks and other financial institutions. After introduction of new economic policies in India (1991) post LPGS (Liberalization, Privatization, Globalization and Stabilization) era has opened doors to more opportunities in the sector, simultaneously it also caused to introduce more innovative and engineering applications in the design and development of various financial products and services. This paper is devoted to examining the source and approach of financial engineering applications in life insurance business in India in the design and development of life insurance policies. We also investigated the evolution of FE in Life Insurance Business in India.