A STUDY ON THE GROWTH AND PERFORMANCE OF LIFE INSURANCE CORPORATION DURING THE POST REFORM PERIOD IN INDIA- AN INTROSPECTION

Abstract

The structures of the service sectors have undergone a drastic change after liberalization, privatization and globalization of the Indian economy, in general and the insurance sector in particular. For almost four decades LIC had been the sole player with virtual monopoly in the life insurance sector. In the early 90’s the government of India ventured into the policy of liberalization, privatization and globalization. It was assumed that the entry of so many companies in this sector was likely to affect the performance of LIC. Thus, the life insurance public sector giant i.e., LIC, which never faced competition earlier would compete with private players who boast the rich and long experience of their partners from the developed countries of the world. They are also coming up with different types of innovative policies and other strategic plans. It is expected that the total business of LIC, in terms of premium, sum assured and number of policies and its market share would get affected. It is therefore necessary to study the business performance and strategies of LIC after the liberalization policy regime and also changes that might have occurred or any restructuring that might have been done by LIC in the wake of entry of private players in the Life Insurance sector. Hence it become imperative to evaluate the performance of Life Insurance Corporation of India.