Are Islamic Banks More Profitable than Non-Islamic Banks This 16 page paper looks at the role and performance of Islamic banks and considers the hypothesis that Islamic banks are ore profitable than non Islamic banks. The paper starts by considering the role of banks and the application of Islamic banking.
LIC, the market leader in this segment, is a state owned organization and has had a monopoly in the life insurance business for over four decades until LIC still remains the market leader, by a wide margin, with an estimated market share of However, at the margin, it has been loosing market share to private sector players.
New india assurance secured 1st position and is enjoying market share of Motor and fire policies are the backbone of non-life business in India. They also contributed the most to overall premium growth in the last five years. Compared to other markets, personal lines insurance is also relatively well-developed in India.
This is mainly manifested in personal motor and private residential fire policies. In fact, among emerging markets with a similar level of per capita Thesis on insurance sector in india, India has the highest share of personal lines business. After the opening of the sector to private players, more new products were introduced.
To take an example, one joint-venture non-life insurer introduced 29 different products during one year, according to the IRDA.
They included products liability, corporate cover, professional indemnity policies, burglary cover, individual and group health policies, weather insurance, credit insurance, travel insurance and so on.
Some of these products were completely new e. They could also be classified by whether they were regulated by tariffs: In addition, most specialized insurance e. The following table shows the age-wise distribution of population in future years: Further incrementally there is a shift happening from large joint families to nuclear families, which increases the need insurance amongst these households as the dependency ratio increases significantly.
Aversion to debt by most of the new generation households has also led to higher monthly debt servicing requirement. Increasing debt servicing has also resulted in higher need for insurance as most of the families have a single bread earner.
Tapping those markets will boost the insurance industry. Privatization of the insurance industry in improved penetration from 1. Life insurance industry has contributed to more than 3. The non-life public sector insurers have been rather slow to respond to the evolving competition.
Both the Authority and the industry have been playing an active role in increasing consumer awareness. Large sections of rural India are still untouched because of long distances, poor distribution and high return costs.
There are farmers, craftsmen, milkmen, weavers, casual laborers, construction workers and shopkeepers and so on. In the context of international comparison, insurance penetration in India is low but commensurate with its level of per capita income.
With such high demand, the insurance industry has created scope for expansion in the employment industry too. Life insurance industry provides increased employment opportunities. Brokers, corporate agents, training establishments provide extra employment opportunities.
Many of these openings are in rural sectors. In contrast, most Asian life insurance sectors are already heavily populated by foreign insurers. Foreign non-life insurers have achieved penetration in India similar to those in other Asian markets. It can be expected that foreign insurance companies will continue to expand their market share in India in the coming years, notwithstanding the fact that public sector insurers are also proactively strengthening their business strategies to fight rising competition.
With the entry of private foreign firms, consumer knowledge is increasing through international approach of advertising and marketing. Also most of the private sector players have set up a vast distribution network, including overagents LIC has over a million agentsmost of whom are more qualified than LIC agents.
A qualified work force and an extensive distribution network has further helped the private insurance companies to increase awareness about life insurance. The mentality of Indian policy holders is only from an investment perspective, and with foreign influence this is changing to awareness of insurance as security and protection.
Pure insurance products like term and health are not yet popular, largely owing to the mindset of the average Indian consumer. This is predicted to change with more western exposure and awareness of other insurance products.Short Essay on Foreign Direct Investment (FDI) Article shared by The term FDI is an abbreviation for “Foreign Direct Investment” and refers to the direct investment that any foreign company makes in another country, by the act of buying that company or by expanding some existing business in .
The Insurance sector in India governed by Insurance Act, , the Life Insurance Corporation Act, and General Insurance Business (Nationalisation) Act, , Insurance Regulatory and Development Authority (IRDA) Act, and other related Acts.
A comparative performance study of General Insurance Public Sector Companies of India Reference: Modi, Manisha S. () A comparative performance study of General Insurance Public Sector Companies of India.
PhD thesis, Saurashtra University. In India, the insurance policies are dratted with all these consideration. But it we look at the. Profitability of Life Insurance Companies in India - An Analytical Study. ABSTRACT. Life insurance in India is a growth-oriented industry.
In the year , life insurance industry has been liberalized after more than fifty years of monopoly with Life Insurance Corporation of India. Thus, by the end of the s, the financial sector in India was virtually ownedby the government with nationalized banks and insurance companies and a single public sector mutual fund.
The industry reports in the Economic Opportunity Series explore this variation, offering more specific and detailed examples for different industry sectors. The research .