A study on new developments in Indian insurance sector

The current paper discuss briefly about the IRDA act, 1999, major changes in insurance sector in India, highlights of the notified guidelines, opportunities for future growth, Sigma repor and Challenges for foreign players. The Indian insurance industry is going through fundamental changes. What was until now an area falling within the exclusive domain of the public sector in India is now open to private enterprise. Since late last year, 12 licences have been issued – eight in life and four in non-life insurance. Of these, 11 licenses have been issued to companies with 26% foreign equity each. These include Standard Life, Prudential Life, New York Life, Sun Life, Old Mutual, Cardiff, ING, AIG, Royal Insurance and Tokio General Insurance. For 150 years, the Indian insurance industry proffered life and general insurance through both Indian and foreign players. The complexion of the life insurance business in India changed 45 years ago when the life insurance business was nationalized, with this came into being the Life Insurance Corporation of India (LIC). In 1971, nationalization was extended to the general insurance business. The result was the creation of General Insurance Company (GIC) as a holding company of four subsidiaries.