Investment pattern of life insurers in India

We are living in an investment Era. The investment is a very important feature of every business. The future of every business depends on investment decisions. The life insurance business is purely related with human's life. A number of people's money is involved in the life insurance business. The people deposit the premium to secure life against risk and uncertainty. The life insurance is not a life saving or tax saving instrument. It is now an investment instrument. The government is responsible to save the people's money. The government establishes an authority to control the insurance sector. The authority issued some regulation for investment purpose time to time. The authority issued first regulation for insurance investment in the year 2000. It amended many times as per the requirement of the economy and sector. The insurers directed to follow the rules and regulation at the time investment. The insurers must invest at least 50% money in central and state government securities. The insurers invest more than 50 percent fund in the government securities. The insurers are investing 90% money in approved or ranked securities. The total investment made by insurers in the year 2015 was Rs. 22, 47, 522 cror in which Rs. 17, 86, 312 cror public sectors and Rs. 4, 61, 210 cror private sectors. The percentage of public and private sector was 79.47 and 20.52 respectively in the year 2015. The insurers are investing their fund according the given rules and regulations.