Name: Meenu Gulati
Country: India

Year: 2019
Volume: Volume-4, Issue-1 (January-June)
Page Number: 28-34

Till 2000 there was only one life insurance company (LIC) which was doing life insurance business in India. Soon after privatization insurance market was flooded with private life insurance companies in India. Presently Indian insurance industry is going through the phase of high growth but the penetration rate of insurance is low in the country in comparison to other developed and developing countries. It becomes essential to measure the business performance of life insurers on the basis of key indicators of performance so that proper measures can be taken timely to improve the performance of life insurance companies in India. Insurance industry is the backbone of the economy and it is estimated that India’s insurance industry will be fifth largest industry in the world economy by 2025. This requires in depth study of business performances of life insurance industries so that any flaw can be checked and controlled timely in order to achieve the above estimation. The parameters against which life insurers business performance is measured are: Total life insurance premium and market share, total number of new policies issued and its growth rate, business in force in terms of policy, total number of branches / offices and growth rate, number of grievance reported, grievance resolved, percentage of grievance resolved, individual death claim settlement and group death claim settlement for the financial years. Business performance parameters have been taken from the literature reviews and are explained in the following sections. With the help of these parameters the comparative business performance of public and private life insurance companies is also evaluated.
Key words:Privatization,Business performance, Parameters, Penetration