AN ANALYTICAL STUDY ON THE PROFITABILITY GROWTH RATE OF LIFE INSURANCE CORPORATION OF INDIA

The Life Insurance Corporation of India was founded in 1956 when the parliament of India passed the Life Insurance of India Act that nationalized the private insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state owned Life Insurance Corporation. LIC’s slogan Sanskrit “Yogakshemam vahamyaham” which means “Your welfare is our responsibility”. The insurance industry has undergone a drastic change since liberalization, privatization and globalization of the Indian economy in general and the insurance sector in particular. The setting up of the Insurance Regulatory and Development Authority (IRDA) was a clear signal of the end of the monopoly in the insurance sector. It has become imperative for LIC to face the competition posed by the entry new private players. The topic basically revolves around the Life insurance sector which has been recently opened for the private players. LIC has for a long period of time has enjoyed a dominant market of life insurance and the fact cannot be denied that LIC has a pre accomplished market leadership which makes it difficult for the new players to complete. The study entitled the Growth Rate of Life Insurance Corporation of India. Insurance is an integral part of national economy and a strong pillar of financial market. Therefore, waves of globalization have also deeply influenced the insurance market worldwide. Financial market Globalization has also been strongly supported by Globalization of Insurance. The performance of LIC has been exemplary and it has been growing from strength to strength be it customer base, agency network, branch office network and the like. LIC has played a significant role in spreading life insurance among masses and mobilization of people’s money for people’s welfare. Even after the entry of private insurers for almost a decade now, LIC continues to be the frontrunner in the industry in terms of market share. Life Insurance Corporation of India is one of the most significant public sector which plays excellent job in its selling products. LIC still continues to be dominant life of insurer even in the liberalized scenario of Indian insurance and is moving fast on new growth surpassing its own past record. The study entitled the Growth Rate of Lif