Role of insurance sector on economic development of India

Insurance in India is a flourishing industry, with several national and international players competing and growing at rapid rates. Insurance companies offer a comprehensive range of insurance plans, a range that is growing as the wealth of the middle classes increases and the economy. This paper is based on secondary data which were collected from highly reliable sources such as annual reports of LIC, IRDA, and RBI and economic surveys of various years. This paper is aimed at describing in detail the role of insurance sector in the development of our growing economy. Great emphasis has been given in exploring the share of insurance fund to GDP, proportion of life insurance fund in financial saving and total investments of both life and non-life insurers in different investment instruments. Suggestions for the future development of insurance sector in the competitive business environment have been laid down in this paper.