The Indian Insurance sector is having a dream run. Today people have become very conscious about their future and so they are spending nearly 6 times on life insurance than they did before. The number of life insurance policies in India is the largest in the world and this sector contributes nearly 4 % in the GDP. The Indian insurance companies recorded a growth nearly 20% in premium in dollar terms, compared to the world market growth rate 0f only 3%.

Steps Taken by Government to Promote Insurance Sector
According to a study, the life insurance market premiums is like to be around US$100 billion by 2012, and its contribution to GDP is likely to rise by 6%. The general Insurance Company has also grown to nearly 12% in 2007. Meanwhile the government has also taken few measures to boost this industry. Some of such measures are:

FDI up to 26% has been permitted.
Some state governments have also taken the initiatives to promote this sector. The government of Andhra Pradesh has decided to issue health cards to 18 million people living below poverty lines. As a result nearly 60 million people of the state will have insurance cover.

Major Foreign Insurance Companies in India
Many of the foreign companies are also coming to India. Global giants such as New York Life, Tokyo Marine, UK based prudential have formed joint ventures with many Indian companies. Some of the major joint venture companies are Bajaj Allianz, HDFC Standard, Aviva Life Insurance, Birla Sunlife, Met Life, Royal Sundaram etc.

The domestic insurance industry is believed to be around US$ 61 billion by 2010 and non- life insurance market is estimated to be around US$25 billion. The booming Insurance sector is sure to grow further in the coming years and it can be said that in the next few years, the Insurance sector in India will be on the top of the world insurance market.