An Analysis of FDI inflow in the Insurance Sector : What Needs to be Done?

Abstract

Insurance sector forms a very significant pillar of the financial sector of the nation. Though, it would not be incorrect to state that it has not developed to an extent, which it should have been. The most primary reason is the opening up of the sector, which took place only after 1999. The paper is an attempt to discuss the relevance of Foreign Direct Investment in India. The initial aspect of the paper deals with the importance of the insurance sector, which is thereby followed by some statistical depiction of where the sector stands. The paper then deals with the aspect of FDI in the insurance sector and the rules pertaining to it. It looks through various committees on insurance which discussed the aspect of foreign investment.

The paper then moves towards the recent amendments with respect to insurance intermediaries. The paper presents a detailed analyzes of why there is a dire need of FDI in the sector and presents reasons as to why it should be brought about.

An in depth analysis of the above mentioned theme has been presented along with an organisational conclusion of the subject matter. The paper has sought to resort to different reliable sources, both online and offline, inclusive of different online reports, surveys, statistics, studies, books and articles inter alia for the purpose of research, analysis, interpretation and execution of the subject matter and ensures maximum creativity, research work, and personal ideas in the same.

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