Life Insurance in India

This article presents an overview of Life Insurance operations in India, and have identified the emerging strategic issues in light of liberalisation and the impending private sector entry into insurance. The need for private sector entry has been justified on the basis of enhancing the efficiency of operations, achieving a greater density and penetration of life insurance in the country, and for a greater mobilisation of longterm savings for long gestation infrastructure projects. In the wake of such coming competition, the LIC, with its 40 years of experience and wide reach, is in an advantageous position. However, unless, it addresses strategic issues such as changing demography and demand for pensions, demand for a wider variety of products, and having greater freedom in its investments, LIC may find it difficult to adapt to liberalised scenario.