A Comparative Study on the Financial Performance and Market Concentration Analyses of the Selected Life Insurers in India

Joy Chakraborty
Assistant Professor (Finance and Accounts), Alliance School of Business, Alliance University, Bangalore, Karnataka, India

Dr. Partha Pratim Sengupta
Professor & Head, Department of Humanities & Social Sciences, National Institute of Technology, Durgapur, West Bengal, India


In the pre-reform era, Life Insurance Corporation of India (L.I.C.I) dominated the Indian Life Insurance market with a market share close to 100 per cent. But the situation drastically changed since the beginning of the year 2000. At the end of the FY 2012-13, there were 24 life insurance companies (inclusive of 1 public sector player, L.I.C.I) presently operating in India. The market share of LICI has also gone down drastically over the years to around 72 per cent at the end of FY 2012-13. The present paper is an attempt to compare the financial performance, solvency and the level of market concentration of the Indian life insurance sector viz-a-viz the four leading life insurers in India namely the LICI, ICICI Prudential Life Insurance Company Limited (ICICI Pru), HDFC Standard Life Insurance Company Limited (HDFC Standard) and SBI Life Insurance Company Limited (SBI Life) respectively, over a span of three successive FYs from 2010-11 to 2012-13. The former is the sole public-sector life insurance player, whereas the latter ones are dominant private-sector life insurance players in India with a market share of 4.72, 3.95 and 3.64 per cent respectively at the end of the FY 2012-13.

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