Insurance Sector constitutes an important segment of financial market in India and plays a
predominant role in the formation of capital in the country. The reforms in the insurance sector started
with the enactment of Insurance Regulatory and Development Authority Act 1999 (IRDA). The Act
opened the way for the entry of private insurance companies into the insurance market. Opening up of
doors by many countries of the world has resulted foreign participation in the financial market of
emerging economies. With the new reforms all sectors have recorded good growth in the economy
including insurance sector. It has continued to expand so far in this decade also.