History of insurance companies in India

Insurance industry in India holds a deep-rooted history. From 1818 till today, the insurance companies in India have gone through many trends. Insurance industry in India was first found mentioned in the scripts of Manu (Manusmriti), Kautilya (Arthasastra) and Yagnavalkya (Dharmasastra), where emphasis was given on pooling-up the resources that were able to be re-used in the event of fire, famine and floods. This was perhaps, the beginning of insurance in India and a pre-cursor to insurance sector as it is in current market. Over a period, the Indian insurance sector has evolved heavily, rising from other countries like England. 1818 saw the arrival of insurance companies in India in large numbers. The second half of 18th century was dominated by foreign insurance companies in India. Companies namely Royal Insurance, Albert Life Insurance, London Global and Liverpool, did big business in the Indian market. The first half of 19th century The Indian government began publishing the returns of Indian insurance companies in 1914. The Indian Life Assurance Companies Act was a major step taken by the government in 1912 to regulate life insurance business. With larger number of insurance companies established in 1950, the competition was high. It was in 1950 when the Indian government nationalized insurance business to better protect the interests of people. The Life Insurance Corporation was established in 1956, when an order was issued to nationalize the insurance business in India. LIC soon absorbed 16 non-Indian and 154 Indian insurers with 75 provident societies. To support the government insurance companies, and with an aim to spread the business, many private insurance companies were established during the period. The second half of 19th century As the Indian insurance business was nationalized, 107 insurers were combined into four groups namely: • New India Assurance Company Ltd. • National Insurance Company Ltd. • Oriental Insurance Company Ltd. • United India Insurance Company Current millennium has already seen insurance companies in India, mushrooming ahead. insurance companies in India have now crossed 200 years long journey. Today 24 general insurance and 23 life insurance companies are offering their expert insurance services all over in India. Currently, Indian insurance sector is growing at a fast rate. With a speedy growth of 15% to 20% every year, the insurance companies in India are moving forward. Today, they are spreading the importance and features of insurance with an aim to meet requirements of the customers. Along with the banking services, the insurance services are able to add 7% to countries GDP. As awareness is well spread amongst the Indians, more and more policies are being sold every year. This has resulted in growth of insurance sector in India, with a bright future ahead. As buying a health or life insurance policy has become a necessity, the insurance companies offer finest of life cover products and services. From selling the insurance policies face-to-face, today they are sold online at secure websites. Thanks to technical advancements, internet and digital marketing platforms, insurance companies are able to advertise their latest life security products so as to reach millions of buyers at a time.