Life Insurance Pensions and Annuities

The life insurance market in India was run by a monopolistic, government backed, public sector insurance company called the Life Insurance Corporation of India for decades until the sector was opened to the private sector and FDI (Foreign Direct Investment). The first private sector Insurance companies after the sector was earlier nationalised, came in 2000 with the entry of new players like:
HDFC Standard Life Insurance Company Ltd
Max New York Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Company Ltd.

Then several other players came in the following years like:
Kotak Mahindra Old Mutual Life Insurance Limited
Birla Sun Life Insurance Company Ltd.
Tata AIG Life Insurance Company Ltd.
SBI Life Insurance Company Limited .
ING Vysya Life Insurance Company Private Limited
Bajaj Allianz Life Insurance Company Limited
Metlife India Insurance Company Ltd.
Sanmar Life Insurance Company Limited.
Aviva Life Insurance Co. India Pvt. Ltd.
Sahara India Insurance Company Ltd.
Shriram Life Insurance Company Ltd.

The latest entrants in the sector have been:
Future Generali India Life Insurance Company Limited
IDBI Fortis Life Insurance Company Ltd.
Aegon Religare Life Insurance Company Ltd.
DLF Pramerica Life Insurance Company Ltd.

Currently the FDI in insurance stands at a maximum of 26%, despite appeal for years from the industry for further reforms and to increase the the FDI limit.

As on 13th July 2008, with the UPA govt. having divorced from the Left, has shown indication that they might increase the FDI to 49% with support from SP. This will give immense boost to the industry, and will be welcomed by companies like Metlife who has management control over the Indian operations without a majority shareholding. They have been finding it difficult to grow because of the FDI norms.

But even 26% FDI have given a much needed boost in the industry in the past 7 years since Private players were allowed. Thousands of new jobs have been created, and the Indian public have been offered innovative products and the sector have become much more transparent. The customers also have a wide choice of products and companies to chose from.

Despite all the new private players, the public sector Life Insurance Corporation is still the number one insurer by a far margin, with it network of agents and offices spread in the nooks and corners of India.