Summary |
The book covers the methods and techniques of financial management and regulations for insurance accounting in the aftermath of insurance sector liberalization. This is a dynamic area and more reforms are expected in International Financial Reporting System (IFRS), but such provisions are yet to crystallize in the Indian insurance environment. Insurance management, as we know, is a critical process of fund management, It is the management of policyholders’ fund for timely payment of accidental claims. The efficiency of this fund management function lies in the reduction of risk casts and charging fewer premiums to policyholder so far as general insurance is concerned. For the life insurance business, the insurers are required to manage policyholders’ funds in such a way that they can maintain maximum return to endowment policyholders and unit holders and charge less premium for term insurance policyholders. Insurance accounting is a special type of financial accounting based on Indian Accounting Standards, accounting regulations and the provisions of the Companies Act and the Insurance Act. The process, practices, and techniques of financial management in insurance business will be adopted with reference to the general principles and perspectives of financial management as well as to the above statutory and regulatory aspects. There are several areas in insurance accounting and financial management at both the corporate level and the operational level that need focused attention and critical review of the corporate management for their managerial decisions. The book exhorts the readers to remain dynamically tuned to the changes in accounting practices.
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