FDI
May 17, 2024
Indian mutual funds face limitations on overseas investments due to regulatory restrictions. The Securities and Exchange Board of India (Sebi) has directed a halt to new […]
March 25, 2013
It is a known fact that India is currently ranked as the 10th largest economy in the world. There was much speculation since 2002 about the […]
March 7, 2013
Capital Market A capital market is a market for securities which can be either debt or equity, where business enterprises which includes companies and governments can raise long-term funds. In other words it is defined as […]
February 25, 2013
Global Crisis & India Currently the global economy is undergoing the state of crisis. The recent eurozone second recession coupled with very slow growth in US […]
February 20, 2013
About Goldman Sachs The Goldman Sachs Group, Inc. is a leading global financial services firm providing investment banking, securities and investment management services to a diversified […]
February 20, 2013
Indian Aviation Industry The Indian aviation industry gave a very poor performance. We are still lagging behind the aviation industry of the other countries in terms […]
February 1, 2013
Indian Aviation / Airline Sector Airline Sector has been one of the most challenging and under developed sector for the Indian economy. The rising fuel costs, inflation […]
January 10, 2013
Role of Real Estate in the Indian Economy The Indian economy which is one of the most sought after emerging economies of the current century saw […]
December 19, 2012
The World Economy is growing rapidly in recent years. The Indian economy has always shocked the global economy by its performance in the international market. Its […]
September 18, 2012
The Indian Government has been enmeshed in a never ending series of scandals and scams. The government constantly fighting the endless attacks on it by the […]
May 17, 2012
Indian Insurance Industry Story Sours with Job Losses and Exits with ULIP Reforms and FDI No-Reforms
The Indian Insurance Industrywhich was massively booming like the telecom industry at one time in India is now seeing similar troubles. The industry saw many entrants […]
January 10, 2012
The Indian government has allowed 100% Foreign Direct Investment (FDI) in Single Brand Retail Stores up from 51% earlier. Note earlier the government had tried to raise the investment limit in multi brand retail which would have boosted Wal-Mart, Tesco and others which have been trying to get into the lucrative Indian market for a long time. However stiff opposition from a number of Indian political parties had scuttled the move .The government has however moved in the Single Brand Retail which is not as contentious and poses as big a risk to the millions who work in India's massive Retail Industry.
April 25, 2011
The Government of India issued an Ordinance on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalization) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.Now more than 20 life insurance companies in India have started operations with the industry size expected to reach a mammoth $350-400 billion by 2020. Before that, the industry consisted of only two state insurers: Life Insurance Corporation of India, LIC and General Insurers (General Insurance Corporation of India, GIC). GIC has four subsidiaries
April 22, 2011
General Insurance covers all the non-life insurance types such as Motor Insurance,Health Insurance,Calamity Insurance,House Insurance etc.The biggest money earner for General Insurance Companies is Health Insurance and its associated policies like Disability Insurance etc.Having health insurance is important for several reasons. Uninsured people receive less medical care and less timely care, they have worse health outcomes, and lack of insurance is a fiscal burden for them and their families.
Government General Insurance Companies are the best ones to take health insurance policies because of a simple fact that do not cheat and harass you like the private insurance companies whose only aim is to earn a quick profit.Given the pathetic system of contract enforcement in India this become especially important as legal cases can go remain stuck in the justice system for years.Just like LIC is the best life insurance company in India because of the TRUST factor so are the Four government health insurance companies because of their government ownership and lack of overarching profit motive.
April 22, 2011
In India, Insurance is a national matter, in which life and general insurance is yet a booming sector with huge possibilities for different global companies, as life insurance premiums account to 2.5% of India's GDP. The Indian Insurance sector has gone through several phases and changes, especially after 1999, when the Govt. of India opened up the insurance sector for private companies to solicit insurance, allowing FDI up to 26%. Since then, the Insurance sector in India is considered as a flourishing market amongst global insurance companies. However, the largest life insurance company in India is still owned by the government.The Insurance Industry has grown (premium as percentage of GDP) from 2.3 per cent in 2001 to 5.2 per cent in 2011.The report estimates the total insurance premium at approximately Rs $350-400 billion in 2020 with Life Insurance making 90% of the premiums.The profitability of the industry is negative as they have spent their energies in expanding their base in a rapidly growing market without concentrating on the margins leading to a cumulative loss by private insurers of around $3.5 billion.However the huge size of the insurance market which has been estimate at an astounding $350 billion in premium by 2020 is attracting companies in droves.Almost all major global insurance companies have a presence in India through JV (as government regulations only allow 26% holding).Major Indian Banks and Finance Companies too have a presence in the sector through JV with foreign partners who bring the expertise.