Eassy
1-1 :Introduction
In the new economic reality of globalization, insurance companies face a dynamic global business environment. Radical changes are taking place owing to the internationalization of activities,the appearance of new risk ,new type of covers to match with new risk situations ,and unconventional and innovate ideas on customer service.Low growth rates in developed markets, changing customer needs, and the uncertain economic conditions in developing world are exerting pressure on insurer‘s resources while testing their ability to survive. The existing insurers are facing difficulties from non-traditional competitor that are entering the retail market with new approaches and through new channels. The basic premise of globalization is opening up of new service markets to provide the developing countries with new opportunities for the expansion of trade and economic growth. The rapidly changing economic scene, the political attitude social values and structures, cultural patterns, developments in Information Technology (IT) have transformed life style in urban and rural areas. Their cumulative impact introduces an element of uncertainty in the probable development in all sectors. At the same time insurance industry also does not remain untouched. Development in other parts of the world, which is witnessing sweeping changes in terms of financial and insurance markets through bancassurance, replacement of reinsurance contracts by financial instruments, sale of insurance through unconventional distribution channels and consolidation through mergers and acquisitions will also have their impact on international industrial world. Till the year of 2000, the insurance industry was a government monopoly and is now experiencing cut-throat competition because a number of players have entered into Indian market in the form of joint ventures with Indian private sector partners. Consequently, Indian insurance industry has closely
1
integrated with world economy
In the new economic reality of globalization, insurance companies face a dynamic global business environment. Radical changes are taking place owing to the internationalization of activities,the appearance of new risk ,new type of covers to match with new risk situations ,and unconventional and innovate ideas on customer service.Low growth rates in developed markets, changing customer needs, and the uncertain economic conditions in developing world are exerting pressure on insurer‘s resources while testing their ability to survive. The existing insurers are facing difficulties from non-traditional competitor that are entering the retail market with new approaches and through new channels. The basic premise of globalization is opening up of new service markets to provide the developing countries with new opportunities for the expansion of trade and economic growth. The rapidly changing economic scene, the political attitude social values and structures, cultural patterns, developments in Information Technology (IT) have transformed life style in urban and rural areas. Their cumulative impact introduces an element of uncertainty in the probable development in all sectors. At the same time insurance industry also does not remain untouched. Development in other parts of the world, which is witnessing sweeping changes in terms of financial and insurance markets through bancassurance, replacement of reinsurance contracts by financial instruments, sale of insurance through unconventional distribution channels and consolidation through mergers and acquisitions will also have their impact on international industrial world. Till the year of 2000, the insurance industry was a government monopoly and is now experiencing cut-throat competition because a number of players have entered into Indian market in the form of joint ventures with Indian private sector partners. Consequently, Indian insurance industry has closely
1
integrated with world economy