Universal Journal of Accounting and Finance Vol. 12(2), pp. 25 - 33
DOI: 10.13189/ujaf.2024.120201
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The Growth and Profitability of Life Insurance Industry in India – A Comparative Analysis between Public and Private Sector Companies

Shahid Husain ^*, Hamad Alhumoudi , Abdullah A. Alakkas
Department of Accountancy, College of Administrative and Financial Sciences, Saudi Electronic University, Saudi Arabia

ABSTRACT

Life Insurers are operating in the public and private sectors in India. A substantial number of policyholders have invested their income in these companies. A company with a proper investment policy and profitability along with the safety of the funds will grow and sustain in the long run. This study aims to help prospective policyholders in choosing a growing life insurer to ensure the safety of their premium money and increased bonus at the time of maturity/claim. Moreover, the present study may provide useful tips for the newly added private sector companies in the industry. The current study reflects on Private Sector Life Insurers to learn from the consistent and smooth growth in profitability of the Public Sector and search for solutions. This paper also compares the investment profitability and profit analysis of the private and public sector insurance companies located in India. Profitability was measured using investment yield and income as two variables. Data collected from life insurance companies operating in India from 2010-11 to 2020-21 was compared. The secondary data was obtained from the companies' annual reports for analysis and comparison. Data was analyzed by using T-Test and significance was determined at 5% confidence. Equal and unequal variances were determined by using the F-Test. The results showed growth in the amount, income, and yield of investment of the Public and Private sectors, but the two sectors did not significantly differ in their investment. By observing the pattern of growth and consistency of public sector, private sector life insurance companies can improve themselves. The study particularly belongs to India but the results and findings can be used by other life insurance companies operating in different countries as well.

KEYWORDS
Life Insurance, Public Sector, Private Sector, India, Investment Growth, Investment Profitability

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Shahid Husain , Hamad Alhumoudi , Abdullah A. Alakkas , "The Growth and Profitability of Life Insurance Industry in India – A Comparative Analysis between Public and Private Sector Companies," Universal Journal of Accounting and Finance, Vol. 12, No. 2, pp. 25 - 33, 2024. DOI: 10.13189/ujaf.2024.120201.

(b). APA Format:
Shahid Husain , Hamad Alhumoudi , Abdullah A. Alakkas (2024). The Growth and Profitability of Life Insurance Industry in India – A Comparative Analysis between Public and Private Sector Companies. Universal Journal of Accounting and Finance, 12(2), 25 - 33. DOI: 10.13189/ujaf.2024.120201.