IMPACT OF FDI ON PERFORMANCE OF PRIVATE LIFE INSURANCE COMPANIES

As the limited studies could not dwell on the impact of FDI directly or indirectly on life insurance sector, the present paper is aimed at analyzing the performance of private life insurance companies in the light of FDI. The FDI inflows in insurance sectors is very minimal right from 2004-2005 till 2013-2014, the percentage of FDI inflows into insurance sector over the total FDI was 1.872% in 2004-2005, which was stimulated up by 4.198% in 2013-2014. On the other hand, the percentage of FDI in private life insurance sector over total FDI in insurance sector was 81.6% in 2004-2005 that had decreased to 80.12% in 2013-2014. Hence, the overall trend of FDI in private sector life insurance is considerable. On the contrary the dynamics in claims and settlement was not significantly changed till 2008 2009. Similarly the impact of FDI on performance of private life insurance companies in terms of business in force and premium were also not impressive as well significantly the performance is considerable.