Literature Review of Life Insurance Markets: Developing a New Perspective to improve the Indian Market
Journal Title: MUDRA: Journal of Finance and Accounting - Year 2018, Vol 5, Issue 1
Abstract
Despite of being the second most populous country, India’s life insurance penetration and density (the two accepted parameters of performance) are low. To look at the causes of underperformance of this vital market, the existing literature needs to be reviewed. Thus the objective of this paper is to identify research gaps and to suggest an appropriate theoretical framework to study the market. An attempt has been made to review the existing literature in relation to foreign as well as Indian life insurance markets. The review of studies in relation to foreign markets clearly shows the difference in the approach to look at the market across the world and the Indian studies. The literature review reveals that most of the existing Indian studies are descriptive in nature looking only at the profile of companies, buyers; nature of products; comparison of public and private companies; service quality etc. However, in case of foreign studies, informational and behavioural aspects are studied in greater detail vis-à-vis the life insurance market focusing on phenomena like information asymmetry, heuristics and biases etc. There is no study till date that has focused on the informational aspects and bounded rationality with respect to Indian life insurance market. It is therefore suggested that Behavioural Economics framework is the appropriate theoretical framework that can help in identifying the causes of underperformance.
Authors and Affiliations
Manisha Choudhary
Keywords
Related Articles
- EP ID EP624858
- DOI 10.17492/manthan.v5i01.13049
- Views 177
- Downloads 0
Impact of CSR Activities on the Financial Performance of Firms
Corporate Social Responsibility has become an integral part of the corporate structure after the rising concerns of people with the manner in which corporates have been operating to maximise their profits. The key object...
Financial Soundness and Shareholder Value of Private Banks in India
Financial strength and wealth maximisation are the two main aspects, important for growth and development of an organisation which is highly applicable to the financial sectors. Banks are the major part of financial sect...
A Case Study of Ageing People: Real Life Scenario and Future Challenges
With people having longer lives, the share of older people in the total population is expanding rapidly, leading many retirees to face a challengeable life. Support from government and family are being reduced for the ol...
Comparative Analysis of Top Private Sector Banks in India based on CAMEL Parameters
The CAMEL rating is a well-established technique to compare the performance of banks and financial institutions. The Compound Annual Growth Rate (CAGR) is a very useful growth measure. We compare the top five private se...
From Cash to Cashless Economy: Catalytic Agent for Financial Inclusion?
The announcement by Prime Minister Narendra Modi on July 1, 2015 towards “making India Digital” was meant to pave Indian economy’s future for larger proposed changes in terms of financial literacy. The drive intended to...