Pros And Cons Of Fdi In Insurance

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CHAPTER 3
RESEARCH DESIGN

LITERATURE REVIEW

A milestone was achieved when the nation decided to privatize the industry along with requisite regulations. The industry functioned under a monopoly for several decades thereafter. However, other problems surfaced such as limited reach and penetration of enterprise and deteriorating servicing standards. Indian insurance sector was liberalized in 2001. Liberalization has led to the entry of the largest insurance companies in the world, who have taken a strategic view on India being one of the top priority emerging markets.

The three most important questions asked frequently by foreign investors are:

 What methods of FDI in insurance are currently allowed in India and what is the
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The insurance sector in India is still under developed as compared to developed countries, and despite private players now allowed to enter this sector, we only have a small number of providers. FDI would increase the number of insurance companies and may also make possible better plans at lower prices. But careful consideration is required to ensure that the investment stays for long term and does not get withdrawn, leaving the companies and their domestic customers in a miserable position, and not all profits are moved outside the country but some reinvested or spent in our country. Regulations need to be revisited to ensure that Insurance Companies are subject to relevant and strict governance.
Increasing the FDI ceiling will make the Indian Insurance sector more vibrant and dynamic in the intermediate and long term. Increased competition coupled with wider variety of products will result into a healthy Industry. Insurance companies and other players have to gear-up and plan now to reap the future
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 To know the investors who bring along best global practices of management.

 To study its influence in increasing employment.

 To study its impact on Customer Support.

OBJECTIVES

 To Study the pattern of FDI in Insurance Sector and the Government regulation involved in them.

 To Study the current trend in Insurance Sector, the challenges and the prospects ahead.

 To study the Effect of FDI on ICICI Prudential.

 To study its impact on Customer Support.

SCOPE OF THE STUDY

 The study aims to understand the fundamental analysis and FDI impact on insurance sector. It provides the relevant information about the economy, industry in insurance sector.

 To study the fundamentals analysis on insurance sector and will find the problems in insurance sector and performance of insurance sector.

 To study impact of FDI in the performance of ICICI

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