DETERMINANTS OF LIFE INSURANCE INDUSTRY IN INDIA - A COMPARATIVE ANALYSIS OF LIC AND SELECTIVE PRIVATE INSURANCE COMPANIES

Abstract

This paper endeavor has facilitated to understand the comparative analysis of Public Sector LIC and Private Sector life insurance companies in India. In this paper the data was analysed on the variables Number of branch, Number of agents, Number of policies, Share capital, Commission paid, Claim paid, Operating expenses, Working fund, Net profit, and Total assets. With the help of this analysis, efficiency of selective life insurance companies including one public insurance company has been checked by taking one output namely (Net Premium) and inputs (Equity Capital, Labor). It has been found that out of 4 life insurance companies considered in this study; only ICICI was able to reach to full technical efficiency and that too in first five years of study period i.e. year 2010-11 to year 2015-16. In the year 2020-21, only HDFC Life insurance Company and SBI Life Insurance Corporation of India found efficient in all years. Based on this and the other results of the study, the insurers can get aware of their position and efficiency level as compared to their competitors and take required managerial steps to improve upon the resource utilization and accordingly enhance their operational efficiency.