Company helps you to protect yourself from contingencies or unexpected events by providing various categories policies like for travel, health, medical and mortgage purpose. The industry in India is thriving and customers are taking advantage of the fast-paced and competitive market in easy way.
The word insurance refers to managing risk. You pay a certain amount of premium to the company against which the company provides you services like protecting your health, your car, your home or your family members. When the policy attains its maturity period or the insured person passes away, the company returns the claim amount to beneficiaries.
Insurers receive premiums from the policyholders and invest the money in risk free investments for increasing money to pay their interest. There are different types of beneficiaries such as life, health, auto and home or property beneficiaries.
The Indian insurance industry has undergone a sea change over the last few years. Deregulations of the sector and massive globalization have contributed to the growth of the companies. Insurance sector in India comprises both private and government beneficiaries. Some foreign ones have also started operating in the market. FDI (Foreign Direct Investment) in the sector has grown significantly when the sector was opened by the Government of India to private carriers in 1999.
On the basis of public and private companies Insurance industries in India can be broadly categorized into life and general insurance companies:
Life insurance companies
The following are names of the prominent life insurance in India:
HDFC Standard Life
Birla Sun Life
Life Insurance Corporation of India
Max New York Life
OmKotak Mahindra Life
General insurance companies
Given below are the names of the popular general insurers in India:
Cholamandalam MS General Insurance
Employee State Insurance Corporation
Export Credit Guarantee Corporation
Peerless Smart Financial
Royal Sundaram Alliance
Challenges confronting in India
The Indian insurance industry is facing the following challenges which are growing day by day:
Reduced purchasing capacity of consumers
Risk of new players
Availability of alternatives
Competition from foreign insurance companies