Journal Press India^®

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The privatization of India’s insurance sector in 2000 triggered swift expansion and increased rivalry between public and private general insurers. At present, just four out of 28 general insurance companies are publicly owned, whereas private enterprises have enhanced their product ranges and service quality. This research assesses the effectiveness of public and private insurers over ten years utilizing secondary financial information from yearly reports and regulatory documents. Seven essential performance metrics net earned premiums, net incurred claims, solvency ratios, complaint resolution, surplus/deficit trends, equity share capital maintenance, and gross direct premiums were examined using correlation, regression, and the Mann-Whitney U test. Findings indicate a significant positive relationship between premiums and claims, with private insurers excelling in profitability, solvency, and complaint handling, propelled by innovation and a customer-centric approach. Public insurers preserved equity stability but fell short in market adaptability. The results provide important perspectives for policymakers, industry participants, and researchers regarding enhancing sector competitiveness.

Keywords

Competition; General Insurance; Privatization; Public Sector; Private Sector

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