The paper gives an overview on insurance, range of skills, paradigm shift,
long-term collaborations, financial services conglomerates, Indian insurance industry, historical aspects
of insurance in India, insurance sector reforms, private players in the market, present
scenario, benefits of insurance, entry of banks into insurance and General Agreement on Trade in
Services (GATS) provisions.
In the present scenario, the insurance industry faces a dynamic global
business environment. Radical changes have been taking place due to the internationalization
of activities, new risks, and innovative ideas on customer service. After liberalization, the
new players entered into the insurance business and the existing insurers are facing many
problems from non-traditional competitors. In any sector whether it is public or private, the growth
of the business depends on the innovative services that are provided to meet the needs
and requirements of the customer.
A company might have the best products and the widest distribution, but without
complying with the emerging insurance sector environment in the line of GATS agreements, their
strengths can often be eroded. Therefore, this paper attempts to analyze the result and impact of
the insurance negotiations under GATS and explains reforms and new liberalization for
the commitments consolidated by the Indian Government. The Uruguay Round to the
Doha negotiations forms the background for multilateral negotiations in financial services.
The paper deals with GATS, basic principles of GATS, insurance services covered by
GATS, major results of 1997 negotiations in financial services and future issues that are affecting
the financial services negotiations. The paper also explains the insurance penetration in India
as compared to global standards and Indian insurance business after liberalization. The
paper finally presents the conclusion and recommendations. |
