1. HISTORICAL BACKGROUND
The concept of life insurance started in England during 16th century. The first policy was issued by Richard Martin on the life of William Gybbon in the year 1536
Earlier life insurance business was undertaken in Joint Stock form but later in parliament act was passed in 1712 which allowed the promotion of companies with the object of Life insurance business.
There was a slow pace of development in this sector in Europe. The first company in life insurance business was started in 1806 in Germany.
The growth of this business was very slow.

2. LIFE INSURANCE BUSINESS IN INDIA
The ancient Indian writers like Manu and Yajnavalkya mentioned about ancient forms of insurance. But the modern concept of insurance came only with East Indian Company in 18th Century. A number of British insurance companies came to India to insure the lives of Britishers working in this country. These companies used to charge very high rates of premium due to higher mortality rates.
The first foreign company which started insurance business in India was Oriental Company in 1818.
In 1823 a company named Bombay Life started insurance business, then Madras Equitable Company came into existence in 1829.

3. Continued....
There were 229 Indian Insurance providers and 16 non-Indian insurers by the year 1956
Life insurance business was nationalised in 1956 and life insurance corporation of Indian was established for undertaking this business.
mostly the Indian companies have set up joint ventures with foreign companies for entering life insurance business. Some of these companies are: HDFC, Standard Life Insurance Co. Ltd, Max New York Life Insurance Co. Ltd, ICICI prudential life insurance co. Ltd.
These companies are registered with Insurance Regulatory and Development Authority (IRDA).

4. NATIONALISATION OF GENERAL INSURANCE BUSINESS
General insurance business was nationalised in 1971 and General Insurance Business(Nationalisation) Act, 1972 was passed to control general insurance business with effect from Jan 1, 1973.
The aim of nationalization was to meet national objectives of growth, equity, resource mobilisation, employment generation etc.
There were 106 Companies dealing with general insurance business at the time of nationalisation
General insurance corporation of India was formed to superintend, control and carry on the business of general insurance.

5. PROGRESS OF GENERAL INSURANCE SECTOR POST NATIONALISATION
Growth of business
Wide product range
Tariff Advisory committee
Taking up socially desirable projects
Growth of trade, commerce and industry
Expansion of organization network

6. DRAWBACKS OF REGULATED INSURANCE SECTOR
Dissatisfaction of customers
Lack of suitable product range
Lack of education to customers
Emphasis on tax planning instrument
Retail business ignored
Tardy claim settlement
Less emphasis on health insurance

7. NEED FOR REFORMS IN INSURANCE SECTOR
Bringing efficiency in working
Growth and customer oriented approach
Avoiding losses of general insurance
Professional outlook by surveyors
Human resource development
Need for regulatory body
Mobilizing rural insurance
Liberation from government controls

8. ARGUMENTS AGAINST PRIVITISATION OF INSURANCE SECTOR
Surplus funds
Scope for competition in present set up
Long term solvency needed
MNC’s to Benefit more
Pricing wars
Absence of social obligations
Large insurance funds
Efficiency not linked to ownership

9. RATIONALE FOR PRIVATISING INSURANCE BUSINESS
Size of the market
Enough for all companies
Low penetration ratio
Growth in economy and insurance business
Good prospects for rural and social sector
Funds for development of economy
The regulatory framework
More products required
Employment generation.

10. ADVANTAGES OF PRIVATISATION
Boon for financial market
More options for customers
Innovative strategies
Cheaper products
Source of employment
Increased market size
Increase in efficiency and productivity

11. DISADVANTAGES OF PRIVATISATION
Price war
Dominance of foreign companies
No emphasis on social obligations
Inclination towards urban sector
Misuse of funds
Fulfilling vested interests
Unhealthy practices

12. STRATEGIES FOR BETTERMENT AFTER PRIVATISATION
Maximising customer
Introducing new techniques
Improving promotional mix
Updating research and development
Strategic approach to fund management
Diversification
Providing zero defect scheme
Minimum government interference

13. THANK YOU…….