Review of market share of life insurance sector in India

Insurance sector along with banking sector contributes to 10.31% (2011–2012) to GDP of the country. India being densely populated and spread in rural as well as urban areas, insurance penetration is very low. When Life and Non-Life Insurance are compared the contribution of Life Insurance is negative than Non-Life Insurance based on Real premium growth rate. Till the year 2000–2001 public sector companies had monopoly i.e. 100 market share. With the entry of private players monopoly is converted into monopolistic competition. The paper examines the Insurance penetration of Insurance sector of India for the year 2011–12 and 2012–2013. It also includes the study of market share of Life Insurance Companies in India for last 13 years from 2000–2001 to 2012–2013 i.e. after liberalised period. The study is based on published data in the annual reports of IRDA. Market share in percentage of public sector LIC and private sector Companies are compared on basis of Regular premium, Single Premium, First year premium and Renewal Premium.