Determinants of insurance investment: A case study of life insurance corporation of India

Abstract

Indian insurance markets have changed radically and deeply in the last countable years. Deregulation, globalization of insurance institutions, intensified competition, electronic commerce, banc assurance, and the emergence of new risks are among the challenges confronted by insurance markets. These trends pose both global and local challenges for insurance firms as key advancement in insurance and financial services markets influence insurance markets on a global scale. The paper endeavored to link insurance investment decisions with underwriting activities of insurance companies.Although, underwriting and investment are two important and related business activities of insurance companies, impact of underwriting activities on investment for life insurers has not been rigorously examined in the literature. Using a sample of public life insurer, this article conducts an empirical investigation of how underwriting impact investment in the period of 2004–2017. The result of study suggests that premium and claim is significantly influenced the investment of insurance sector. In the aftermath ofexpanding liberalization in the insurance industry together with the worldwide financial crisis has posed a great deal of challenges for insurance regulatory authorities in monitoring investment of insurance companies.Researcher believes the current paper provides some helpful bits of knowledge in this vein.