International Business Case Study
International Business Case Study
Sun Life Financial and Indian Economic Surge
How is the Insurance market in India changing? Why is India an attractive market for investment?
The insurance market in India has undergone significant changes over the past few years
The Insurance Act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business.
Life insurance in India was completely nationalized on January 19, 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India
1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.
Till end of FY 1999-2000, two state-run insurance companies, namely Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the monopoly insurance providers in India. Under GIC there were four subsidiaries
• National Insurance Company Ltd. • Oriental Insurance Company Ltd. • New India Assurance Company Ltd. • United India Assurance Company Ltd.
In the fiscal year 2000-01, the Indian federal government lifted all entry restrictions for private sector investors. Foreign investment insurance market was also allowed with 26 percent cap. GIC was converted into India 's national reinsure from December, 2000 .All the subsidiaries working under the GIC umbrella were restructured as independent insurance companies. Since opening up of the insurance sector 21 private companies have been granted licenses.
With the de-regulation in Indian Insurance industry, the monopoly of public sector companies in life insurance and general insurance has come to an end. This has augmented the innovative practices initiated by the private players. Growth in the interactive technology such as internet has further created a wave of
Sun Life Financial and Indian Economic Surge
How is the Insurance market in India changing? Why is India an attractive market for investment?
The insurance market in India has undergone significant changes over the past few years
The Insurance Act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business.
Life insurance in India was completely nationalized on January 19, 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India
1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.
Till end of FY 1999-2000, two state-run insurance companies, namely Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the monopoly insurance providers in India. Under GIC there were four subsidiaries
• National Insurance Company Ltd. • Oriental Insurance Company Ltd. • New India Assurance Company Ltd. • United India Assurance Company Ltd.
In the fiscal year 2000-01, the Indian federal government lifted all entry restrictions for private sector investors. Foreign investment insurance market was also allowed with 26 percent cap. GIC was converted into India 's national reinsure from December, 2000 .All the subsidiaries working under the GIC umbrella were restructured as independent insurance companies. Since opening up of the insurance sector 21 private companies have been granted licenses.
With the de-regulation in Indian Insurance industry, the monopoly of public sector companies in life insurance and general insurance has come to an end. This has augmented the innovative practices initiated by the private players. Growth in the interactive technology such as internet has further created a wave of