Private sector set to play growing role in insurance

For nearly four and a half decades after India’s independence, the insurance sector was monopolized by the state. Life insurance was nationalized in 1956 and the Life Insurance Corporation of India was set up by the government.

Subsequently, general insurance was nationalized. In 1991, there was a turn in economic policy which led the government to usher in economic reforms.

The government’s early reform plans were based on the realization that market dynamics should be the decisive factor in determining economic policies.

Ravi Singhania is the managing partner at Singhania & Partners. The firm is headquartered in Noida and has offices in New Delhi, Mumbai, Bangalore and Hyderabad.