Comparative Analysis of Life Insurance Sector in India with BRIC Nations

Abstract

Insurance serves the dual role of savings and investment. Life insurance, primarily, is a tool to mitigate the financial risk arising because of the death of the insured. The capital pool arising from collection of life insurance premium is deployed in numerous nation-building activities which enhance economic growth. The BRIC nations with a combined population of around 3 billion are a prosperous market for life insurance business. All BRIC nations having already liberalized their insurance industry, there is a level playing field for both public and private industries. In the world market, the scope for expansion has reduced in the more matured economies. Hence, global insurance companies are concentrating attention in the emerging markets. In all these markets, life insurance sector represents a vibrant market, which is strongly expanding and establishing itself as a significant contributor of economic growth. India does not find a place in the top ten countries with her life insurance business.