M2 : SERVICES MARKETING

CASE STUDY : GROWTH OF INSURANCE SECTOR IN INDIA INSURANCE PRODUCT OF LIC

SUBMITTED BY: SANDEEP D S USN :11XQCMZ118

COURSE INSTRUCTOR : Dr. N.S.VISWANATH
PROFESSOR & DEAN

M P BIRLA INSTITUTE OF MANAGEMENT

INSURANCE INDUSTRY

Insurance industry contributes to the financial sector of an economy and also provides an important social security net in developing countries. The growth of the insurance sector in India has been phenomenal. The insurance industry has undergone a massive change over the last few years and the metamorphosis has been noteworthy. There are numerous private and government insurance companies in India that have become synonymous with the term insurance over the years. Offering a diversified product portfolio and excellent services the many insurance companies in India have managed to make their way into almost every Indian household.

A HISTORICAL REVIEW OF INDIAN INSURANCE INDUSTRY

In 1818, a British company called Oriental Life Insurance setup the first insurance firm in India followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance Society in 1829. Though all this companies were operating in India but insuring the life of European living in India only. Later some of the companies started providing insurance to Indians with approximately 20% higher premium than Europeans as Indians were treated as “substandard”. Substandard in insurance parlance refers to lives with physical disability. Bombay Mutual Life Assurance Society was the first company established in 1871 which started selling policies to Indians with “fair value”. Insurance business was subjected to Indian company act1866, without any specific regulation. In 1905, the slogan “Be Indian-Buy Indian” declared by Swadwshi Movement gave birth to dozens of indigenous life insurance and provident fund