AN ANALYSIS OF INVESTMENTS OF INDIAN INSURERS IN THE FINANCIAL YEAR 2012-13

Even after Liberalization, the Insurance sector remains the key contributory in building the nation in the form of statutory investments made in Central and State Government Securities and in other forms of securities approved by the Insurance Regulatory and Development Authority (IRDA). The IRDA prescribes the prudential norms for the investments to be maintained by all Life and Non-Life Insurance companies. Liabilities of life insurance companies are of longer term whereas the liabilities of general insurance companies are primarily of a short term nature. Applying the matching principle accordingly, within the Life segment also, stipulations are given for the Life fund, Pension, General Annuity, Group Fund, and ULIP Funds. The investment norms and the actual amounts of investment by all the insurers till 31st March 2013 are analysed in this article. Fund-wise and insurer wise analyses of investments are made separately for the life and non-life insurance category wherein the dominance of the public sector insurers is brought out.