Introduction:
Insurance plays a pivotal role in the economic landscape of any country, providing financial protection and risk mitigation for individuals and businesses. In the context of India, the insurance sector has witnessed significant growth and transformation over the years. This article delves into the intricacies of the insurance industry in India, exploring its historical evolution, current landscape, regulatory framework, challenges, and future prospects.
I. Historical Evolution of Insurance in India:
The roots of insurance in India can be traced back to the early 19th century when the British established the Oriental Life Insurance Company in Kolkata in 1818. Subsequently, several foreign and Indian companies entered the market, leading to the formation of the first comprehensive insurance legislation in 1938. The Life Insurance Corporation of India (LIC), a state-owned entity, was established in 1956, consolidating the life insurance sector.