A STUDY ON THE FACTORS INFLUENCING THE PERFORMANCE OF LIC OF INDIA DURING THE POST REFORM PERIOD

Abstract

The structure 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 Life Insurance Corporation. Thus, the Life Insurance public sector giant,i.e. LIC, which never faced competition earlier, would compete with the 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 also expected that the total business of Life Insurance Corporation, 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 of Life Insurance Corporation (LIC) after the liberalization policy regime and also the changes that might have occurred or any restructuring that might have been done by the LIC in the wake of entry of private players in the Life Insurance Sector. Hence, it becomes imperative to evaluate the performance of Life Insurance Corporation of India and its determinants