The insurance industry landscape in India has dramatically changed. New delivery channels bancassurance, corporate agents, brokers, MFIs, post offices, SHGs and direct selling through Internethave totally revolutionalized the process of insurance selling. An attempt is made to compare the knowledge level of insurance products, service quality and problems confronted by the customers across public and private sectors.

The insurance sector in India has undergone significant changes during the last decade. There have been new institutions, instruments, windows and new opportunities, along with all this, new challenges with changes in traditional face of insurance. The life insurance business showed a rapid growth throughout the country during the last decade. The economic scenario in our country is rapidly changing. Since the entry of private insurers, the insurance penetration has increased from 1.39% in 1999 to nearly 4% at present. High quality products with quality support services both in terms of international standards and competitiveness have entered into our country. As a result, the life insurance sector has experienced a stiff competition. Customer satisfaction has emerged as the key differentiator and defining attribute. During pre-nationalized period, LIC enjoyed monopoly in life insurance sector and later on, the private players with foreign tie-up came into the Indian market.

Consequent to the implementation of government policies on globalization and liberalization, the consumers have become more critical of the quality services. Consumers are now aware of the alternatives available in relation to services and their expectations are rising hence, the provider organizations should be aware of these expectations. In such an environment, it is time that the industry paid attention to the untapped market opportunities before them. The insurance industry is estimated to be a Rs. 400 bn business in India and the gross premium collection is around 2% of the country's GDP. The industry is growing at a rate between 15% and 20% per annum. The total investible funds with LIC alone are almost 8% of the GDP. Yet, more than three-fourths of India's populations have no life insurance cover. As the competition and the awareness level of insurance products intensifies across the country, the insurance industry is poised to touch $60 bn by 2010 from the current $10 bna sharp jump of 500% in the next four years. Therefore, the potential for the insurance market is quite evident.

Insurance Chronicle Magazine, Life Insurance Services, Insurance Industry, Insurance Products, Public Sectors, Private Sectors, Insurance Sectors, Globalization, Liberalization, Gross Domestic Product, GDP, Private Insurance Companies, Insurance Regulatory and Development Authority, IRDA, Public Insurance Companies, Insurance Market.