Comparative Study of Public and Private Sector Life Insurance Companies in India

Abstract

Insurance is a financial risk management tool in which the insured transfers a risk of potential financial loss to the insurance company that mitigates it in exchange for money compensation known as premium. Insurance sector in India is one of the fastest growing sectors in the economy. The insurance sector in India has completed a full circle from an open competitive market to nationalization and back to a liberalized market once again.With the entry of private life insurance companies in the year 2000-01,the competition is becoming cutthroat.The objective of present study is to compare public and private sector life insurance companies in India in the post liberalization span.