A Study to Analyze the Impact of Privatization on LIC of India

Abstract

The Indian insurance sector has come a full circle, from being an open competitive market to complete nationalization and then back to a liberalized market since independence. The setting up of the Insurance Regulatory and Development Authority (IRDA) ended the monopoly of LIC in the insurance sector. It has become imperative for LIC to face the competition post by the entry of new private players. If under this pressure, Life Insurance Corporation of India improves its performance, the whole economy will be benefitted. The LIC- A public sector giant, which never faced competition earlier, now has to complete with the private players, who boast of the rich and long experience of their partners from the developed countries of the world. The Study will highlight, the changes in the insurance environment of India by showing whether, the life insurance industry has been benefitted by government reforms and the impact of privatization on the business, market share and performance of LIC.

Keywords: Insurance, Privatization, nationalization, monopoly.