Summary |
This book, has been written keeping in mind, the widespread interest and curiosity about the future scenario, in the fledging banking and insurance sector in India, which remained fluid during the early years of reforms. With the growing exposure to global markets, it is now being appreciated that the business of insurance with its unique features, has a special place in the economy. Since, features are, highly specialized business where customer trust is of primary importance, insurance is required to follow a set of ethics and principles of corporate governance. It is a risk financing method which provides, a much needed cover to industries/human lives. High volumes in insurance business help spread risks cover, allowing a lowering of rates of premium to be charged, important vehicle of SAVINGS and for providing financial security. Insurance and re-insurance play a crucial role in the commercial lives of nations and act as the LUBRICANTS or FACILITATIORS of economic activities. Insurance companies seek risks to be distributed through REINSURACNE world-wide, the impact of a catastrophe on any one company, groups of companies or country is considerably MINIMISED. India has opted for the general competition and the setting up of the insurance regulatory and development authority, (IRDA) became a clear signal of the end of the monopoly in the insurance sector and freedom to banking sector and allowing entry to foreign banks from April, 2009 (but slowly) has opened competitiveness and efficiency. This book is not about the principles of insurance and banking only but about the future scenario in both the sectors.
|
