Indian Insurance Industry: Transition and Prospects
D C Srivastava/Shashanka Srivastava (ed)
New Century Publications
xv+352 pages/Rs 680
This book examines the interrelationship between insurance services and economic development, government regulations, the present predicament of the insurance industry in India and its future prospects.
The various aspects of the insurance industry, especially of general insurance such as marketing strategies, product designing and pricing reinsurance, risk management and the use of information technology in insurance have been analysed in the light of the experiences of other countries.
The insurance industry in India, the editors of the book feel, has lagged behind because of the state monopoly over it till recently. Lack of competition had been a major impediment to its development.
The consumers now will have a greater choice in terms of the number and quality of products, low premium rates and efficient after-sales services while the economy will benefit in terms of larger flow of savings, increased availability of investible funds for long-term projects, enhanced productivity and growth of multiple debt instruments, the editors say.
The book is divided into three parts. The first, consisting of three chapters, examines the interrelationship between insurance services and economic development, the role of the state in regulating insurance activities, the present stage of development and future prospects. This has been done with special reference to the experiences of other developing countries.
The second part deals marketing strategies, product designing, product pricing, health insurance and agriculture insurance. And, the final part discusses areas relating to tariff structure and management, reinsurance, risk management, alternate risk transfer and information technology.
Each chapter is further sub-divided into parts dealing with specific issues. Various graphics and charts supplement the information and analysis. This makes the book reader-friendly, though technical.
The book also examines how the insurance industry plays a role in the process of capital formation and thereby growth of GDP. The insurance service acts as a tool to mobilise savings, functions as a financial intermediary and at times also indulges in direct investment.
Gaurav Garg, who has written on the role of insurance intermediaries in the emerging market, deals with bancassurance, the new mantra. Bancassurance is a French term referring to the selling of insurance through a bank
