Journal Press India^®

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In order to preserve the value of the premiums received, continue to pay for claims when required and offset inflation, insurers invest premiums in the economy and seek investment returns which constitutes a major component on insurance products. For certain insurance products, the time elapsed between an insurer receiving premiums and paying claims can range over many years. Depending on the duration and predictability of their liabilities, insurers adopt different investment strategies. Investors utilize forecasting to determine if events affecting a company will increase or decrease the price of shares in that company. Forecasting also provides an important benchmark for firms, which need a long-term perspective of operations. Time series analysis, forecasting and controlling have become increasingly important. Forecasting of different types of investments by LIC have been made utilizing ARIMA model. ARIMA model has been found to best suited for forecasting investments in most cases.    

Keywords

Premium, Reinsurance, Stock Exchange Security, Pension, Reserve Bank of India

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