Role of Insurance Sector in Economic Development of India

Insurance is an important part in the financial sector that contributes significantly to the economy of a country. Insurance serves a number of valuable economic functions that are largely distinct from other types of financial intermediaries. In India, insurance is a flourishing Industry, with several national and international players competing each other's and growing at rapid rates. The insurance industry of India consists of 53 insurance companies of which 24 are in life insurance business and 29 are non-life insurers. Among the life insurers, Life Insurance Corporation is the sole public sector company. Apart from that, among the non-life insurers there are six public sector insurers. India is the fastest growing trillion-dollar economy in the world and the sixth largest with a nominal GDP of $ 2.61 trillion. India is poised to become the fifth largest economy overtaking the United Kingdom by 2019 as per the IMF projection.