Macro economic factors of public sector non-life insurance companies in India

The insurance industry has an important economic function to discharge and as such it plays a leading role within the financial system in a country. It has a decided benefit over most other financial activities in the present economic world. This study is taken up mainly to assess Macro Economic factors of the Non-life segment with regard to the public sector Non-life Insurance Companies. The study is based on secondary data, collected from annual reports of the public sector Non-life Insurance Companies in India. The analysis of multiple regression informs us the Durbin-Watson static whether the assumption independent error is reasonable. The value between the 2 to 4 is the better and the coefficient output collinearity statistics, obtained VIF values are achieved from 1to 10, it can be fulfilled that there are no multicollinearity symptoms. In this study concluded that the India is in the stage of an emerging market with most of the macroeconomic variables conducive to the growth of non-life insurance sector. The Non-life insurance need to build a framework to catch on the opportunity i.e. recent increases in the cap for foreign players in this sector, the non-life insurance need more such decisions.