Current scenario and challenges of insurance business in India.

Indian economy is in transition over the last ten years, owing to the initiation of major economic reforms affecting almost all sectors. The paradigm shift from a mixed economic organization to a market-oriented organization has exposed all sectors to an intense competition; insurance business is the most significant one among them. Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of the advantages as an investment option as well. This paper attempts to make an analysis of current status, challenges of insurance business and suggests measures to counter the challenges faced by the insurance sector in India.