Foreign Investment in Life Insurance Companies

Abstract

The Insurance sector reforms have open in the door for private players, private insurance companies in the beginning of life insurance business with public sector company (LIC). Foreign Direct Investment (FDI) has allowed in private life insurance companies in India, under an act of IRDA with a limit of foreign equity of 26%. The life insurance sector is playing a pivotal role in both Indian and Global markets. Those factor we have taken for the analysis of private life insurance companies performance are premium growth, market share of the companies, portfolio Investment, equity share capital etc. It is use for a measure of positive or negative impact of FDI investment in Indian private life insurance companies. It has investigated for a sample of five selected private life insurance companies and one public company for the purpose to comparison with selected companies it is using a panel data for analysis in between the period of 2002-10. Different key variable is use to analysis yearly premium income, infrastructure development, employee facilities, business expansion etc. it was examined to identify cause for any significant impact on the life insurance sector. The study has made use of secondary data from different authenticated source to draw a meaningful conclusion.