mar"et.

The share of insurance companies in overall investment in the

=sec mar"et has more than doubled to 2#4 during 2 3= 5 from 94
during the previous fiscal year.'.)I ,-T /0,-TI+ ;A7,R I* ,>6IT7 0AR<,T- :
According to R)I8s annual report for 23= 5! the insurance companies
invested Rs. #?55 crore in the =sec mar"et! which is over 13#. (4
higher than the Rs.1#55 crore they invested in 2 (= 3. Thus insurers
have emerged as the biggest domestic institutional players in the e@uity
mar"ets.+.
SOCIAL FACTORS :
1.;/ I*-6RA*+, +/,RA, : In India insurance is considered as which is
pushed upon the customers to buy. eople are unwilling to buy insurance
due to lac" of awareness. 2.I*+R,A-, I* ;I%, - A* A* RI-, I* ,; ,R;7
/6;ATI/* : In India life span has increased over past few years due to which
the elderly population in India is rising day by day. To live a happy and
independent life! more no. of educated peoples is moving towards investing
in insurance to ensure a respectful and independent life even in old
age.#.6*+,RTAI*IT7 A)/6T ;I%, : ue to increasing no. of events of terrorist
attac"s in various parts of the country! people have started viewing life as
more uncertain. It has developed a "ind of fear factor in the minds of people
leaving them more worried about their family and "ids. ue to this reason
they are moving more and more towards buying insurance policies in order to
secure their family8s future.'.+BA*I* I*IA* ,R+,TI/* : In India earlier
people used to view insurance as a tax saving device or as a method of
investment. )ut! nowadays a great change in the perception has come.
eople have started realiCing the importance of getting insured. *ow more
no. of people is viewing it as a transfer of ris" for a good future.?.+BA* , I*
%A0I;7 -7-T,0 : -ince past! Doint family system was the most prevalent in all
the stratus of Indian society. At that time! in case of a man8s death! there
were other people in the family to ta"e care of his wife and "ids. )ut! with the
passage of time! a big change in our culture has come. 0ore no. of people is
moving towards nuclear family system. In today8s scenario there is no one to
help a widow and her "ids because everyone is busy with hisEher family. In
such a situation more no. of people are opting for insurance to secure their
spouse and children8s future.(.I*+R,A-, I* ;I%, -T7;, I-,A-,- : ue to
moderniCation! the life has become very fast. 0any changes have ta"en
place in the life style of people! due to which a large no. of new life style
diseases have made their place in our country. Thus! more no. of people is
opting for health insurance etc to lead a better and more secured life.

D. TECHNOLOGICAL FACTORS:
1.A6T/0ATI/* /% R/+,--,- :
Nowadays, wit ad!a"#$%$"t i" t$#"o&o'y t$ wo&$ ()o#$ss o*
i"s+)a"#$ as $#o%$ a+to%at$d,arlier it used to ta"e 1?days to '?days for the issuance of policy documents. )
ut! nowadays the whole process gets completed within ? to 3 days.2.I*T,R*,T
RI,* I*%/R0ATI/* ,RA : ith an increase in internet usage and its increasing
spread! it has become easier for people to get informed about everything at
their home only. *ow they don8t have to waste time in gathering information
before ta"ing any financial step. ,very information is now=a=days is available
on the net.#.)6-I*,-- R/+,-- 0/*IT/RI* : It has become easier fo r people to
trac" every event in a business process. It has resulted in more transparency
in every aspect of business processing.'.,=)A*<I* %A+I;IT7 : 0ore no. of
people in urban sector are moving towards e= ban"ing and credit card
facilities etc! which has made payment of premium much easier! convenient
and hassle free for customer.,.
LEGAL FACTORS:
1.R,6;AT/R7 )/I,-: IRA $Insurance Regulatory evelopment Authority&
"eeps on changing policies related to insurance which ma"es difficult for the
companies to adopt @uic"ly.2.R,*,A; /% R,I-TRATI/*: An insurer! who has
been granted a certificate of registration! should have the registration
renewed annually with each year ending on 0arch #1 after the
commencement of the IRA Act.#.R,>6IR,0,*T- A- T/ +AITA;: The minimum
paid up e@uity capital! excluding re@uired deposits with the R)I and any
preliminary expenses in the formation of the country! re@uirement of an
insurer would be Rs 1 crore to carry on life insurance business and Rs
2 crore to exclusively do reinsurance business as per -ection (.