Globalization: A boon to insurance sector in India

Economic and financial development of any country generally depends upon the insurance sector business. In India, insurance companies have become competitive in nature and are providing appropriate distribution channels to get maximum benefit and serve customers in manifold ways. Indian insurance industry has a big opportunity to expand in the given large population and untapped potential. During the financial crisis, the insurance industries have continued to provide cover and pay claims, reflecting the industry's robustness. Generally, Insurance penetration and density reflect the level of development of insurance sector in a country. Further, globalization of economy resulted in the increase of registered insurers in India. After globalization, the private insurers are playing the vital role in Indian insurance business by creating competition in the insurance business. The government monopolistic companies like LIC and GIC also face the competition from private insurance companies. Nationalized Insurance companies have done a commendable job in extending the volume of the business, opening up insurance sector to private players was a necessity in the context of globalization of financial sector.