Insurance industry plays a vital role in the Indian market. Insurance is a mechanism to overcome uncertainty and risk. The concept of insurance has drawn the attention of practitioners, academicians as well as that of the common people. Insurance products are unsought products which people usually do not buy unless and until they are made aware of it. The development of the insurance regulatory and development authority (IRDA) Act in 1999 passed a clear signal to the end of the monopoly of some players in the insurance business. This study makes an attempt to measure the performance of LIC and other three Private Insurance Companies using the CARAMEL model during the period 2012 – 2013 to 2018 – 2019. These parameters capture the key operations of life insurers. Typically, the overall financial soundness and performance is a summation of the adequate risk management & the sound inbuilt control system, and effective & efficient business underwriting. From the result, it is clear that the earning and profitability ratio is the most important indicator of the performance. ANOVA results sum up that there is a significant difference across the four selected life insurance companies with respect to CARAMEL ratios. Thus the null hypothesis is accepted. Thus, this study concludes the investors who are planning to take the life insurance policy can opt for any one of the selected companies.
| Published in | International Journal of Finance and Banking Research (Volume 7, Issue 2) |
| DOI | 10.11648/j.ijfbr.20210702.13 |
| Page(s) | 51-57 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
CARAMEL, Ratio Analysis, ANOVA, Hypothesis, LIC, SBI, ICICI, HDFC
| [1] | Dr. L. Krishna Veni, Karteek Chedadeepu (2018) Application Of Caramel Model To Life Insurance Companies In India - A Comparative Analysis, Vol. 8, Issue 8 (1), August 2018, ISSN: 2249-2496 Impact Factor: 7.081. |
| [2] | Jayant D. Chandrapal, (2017) Evaluation of financial soundness indicators of Indian life insurance industry: LIC of India vs. Private Life Insurance Companies, International Journal of Research in Computer Application & Management, Volume no. 7, issue no. 07 July, pp – 68, ISSN 2231–1009. |
| [3] | C Kalpana Naidu and Dr. C Paramasivan (2015), A comparative study of public & private life insurance companies in India, International Journal of Multidisciplinary Research Review, Vol. 1, Issue – 7, Sep -2015, E- ISSN –2395-1885, ISSN -2395-1877. |
| [4] | V. N. Parthiban, Evaluation of Financial Position and Performance of Selected Life Insurers in India through the Caramel Model, Splint International Journal of Professionals, ISSN 2349-6045, Vol. -2, No. -4. |
| [5] | Anoop Kumar Singh and Sumbul Fatima, (2017), Performance Appraisal of ICICI Prudential Life Insurance Company Limited Using the Caramel Model, The Indian Journal of Commerce Vol. 70, No. 2, April-June 2017, 85–91. |
| [6] | Maraboina Sreedhar Babu (2015), A Comparative Study of Public and Private Insurance Sector Performance, International Journal of Arts and Science Research. 2 (2), 2015, 56–62 July – December, ISSN: 2393–9532. www.ijasrjournal.com. |
| [7] | Manish Dadhich (2015), A Comparative Study of Investment Portfolio of Life fund of LIC of India and ICICI Prudential Life Insurers, International Journal of Research in Economics and Social Sciences (IJRESS), Vol. 6 Issue 10, October – 2016. 229 – 238. ISSIN (O) 2249–7382, Impact factor: 6.225, Thomson Reuters ID: L – 5236–2015. |
| [8] | Surendra Kumar C. Gulhane, Public & Private Life Insurance Companies in India – A Comparative Study, Golden Research Thoughts, ISSN:-2231-5063, Volume 2, Issue. 7, Jan. 2013. |
| [9] | Sonika Chaudhary and P. Kiran (2011), Life Insurance Industry in India - Current Scenario, IJMBS Vol. 1, Issue 3, September 2011.146–150. ISSN: 2330-9519. |
| [10] | Bhuvnesh Gour and M. C. Gupta (2012), A Review on Solvency Margin in Indian Insurance Companies, University of Rajasthan, Jaipur-India, IJRRR, Vol. II, ISSN 2277-8322. |
| [11] | Neelaveni V (2012), Financial Performance of Life Insurance Companies and Products, ZIJBEMR, Vol. 2, Issue 3, 233-258. |
| [12] | B. Charumathi (2011), On the Determinants of Profitability of Indian Life Insurers - An Empirical Study, Proceedings of the World Congress on Engineering 2012 Vol I WCE 2012, July 4 - 6, 2012, London, U. K. |
| [13] | Kumari T. H. (2013), Performance Evaluation of Indian Life Insurance Industry in Post Liberalization, IJSSAH, Vol. 1 (1), pp - 7-14. |
| [14] | Valeed A. Ansari and Wubshet Fola (2014), Financial Soundness and Performance Life Insurance Companies in India, IJR, Vol – 1, Issue – 8 September 2014 ISSN 2348 – 6848. |
APA Style
Kiranmayi Patel, Pavan Patel. (2021). Performance of Selected Life Insurance Companies – Comparative Analysis. International Journal of Finance and Banking Research, 7(2), 51-57. https://doi.org/10.11648/j.ijfbr.20210702.13
ACS Style
Kiranmayi Patel; Pavan Patel. Performance of Selected Life Insurance Companies – Comparative Analysis. Int. J. Finance Bank. Res. 2021, 7(2), 51-57. doi: 10.11648/j.ijfbr.20210702.13
AMA Style
Kiranmayi Patel, Pavan Patel. Performance of Selected Life Insurance Companies – Comparative Analysis. Int J Finance Bank Res. 2021;7(2):51-57. doi: 10.11648/j.ijfbr.20210702.13
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ijfbr.20210702.13,
author = {Kiranmayi Patel and Pavan Patel},
title = {Performance of Selected Life Insurance Companies – Comparative Analysis},
journal = {International Journal of Finance and Banking Research},
volume = {7},
number = {2},
pages = {51-57},
doi = {10.11648/j.ijfbr.20210702.13},
url = {https://doi.org/10.11648/j.ijfbr.20210702.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20210702.13},
abstract = {Insurance industry plays a vital role in the Indian market. Insurance is a mechanism to overcome uncertainty and risk. The concept of insurance has drawn the attention of practitioners, academicians as well as that of the common people. Insurance products are unsought products which people usually do not buy unless and until they are made aware of it. The development of the insurance regulatory and development authority (IRDA) Act in 1999 passed a clear signal to the end of the monopoly of some players in the insurance business. This study makes an attempt to measure the performance of LIC and other three Private Insurance Companies using the CARAMEL model during the period 2012 – 2013 to 2018 – 2019. These parameters capture the key operations of life insurers. Typically, the overall financial soundness and performance is a summation of the adequate risk management & the sound inbuilt control system, and effective & efficient business underwriting. From the result, it is clear that the earning and profitability ratio is the most important indicator of the performance. ANOVA results sum up that there is a significant difference across the four selected life insurance companies with respect to CARAMEL ratios. Thus the null hypothesis is accepted. Thus, this study concludes the investors who are planning to take the life insurance policy can opt for any one of the selected companies.},
year = {2021}
}
TY - JOUR T1 - Performance of Selected Life Insurance Companies – Comparative Analysis AU - Kiranmayi Patel AU - Pavan Patel Y1 - 2021/03/17 PY - 2021 N1 - https://doi.org/10.11648/j.ijfbr.20210702.13 DO - 10.11648/j.ijfbr.20210702.13 T2 - International Journal of Finance and Banking Research JF - International Journal of Finance and Banking Research JO - International Journal of Finance and Banking Research SP - 51 EP - 57 PB - Science Publishing Group SN - 2472-2278 UR - https://doi.org/10.11648/j.ijfbr.20210702.13 AB - Insurance industry plays a vital role in the Indian market. Insurance is a mechanism to overcome uncertainty and risk. The concept of insurance has drawn the attention of practitioners, academicians as well as that of the common people. Insurance products are unsought products which people usually do not buy unless and until they are made aware of it. The development of the insurance regulatory and development authority (IRDA) Act in 1999 passed a clear signal to the end of the monopoly of some players in the insurance business. This study makes an attempt to measure the performance of LIC and other three Private Insurance Companies using the CARAMEL model during the period 2012 – 2013 to 2018 – 2019. These parameters capture the key operations of life insurers. Typically, the overall financial soundness and performance is a summation of the adequate risk management & the sound inbuilt control system, and effective & efficient business underwriting. From the result, it is clear that the earning and profitability ratio is the most important indicator of the performance. ANOVA results sum up that there is a significant difference across the four selected life insurance companies with respect to CARAMEL ratios. Thus the null hypothesis is accepted. Thus, this study concludes the investors who are planning to take the life insurance policy can opt for any one of the selected companies. VL - 7 IS - 2 ER -
Email: