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Investment Portfolio Performances of Public Sector General Insurance Firms in India: An Empirical Approach

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  • Joy Chakraborty
  • Sankarshan Basu

Abstract

Deregulation of the Indian insurance sector has witnessed the rise of private players in the Indian general insurance sector post-1999. Though the four major public sector general insurers still continue to dominate the Indian general insurance market, an abrupt rise in the number of private players has raised concerns upon the solvency position of the public sector general insurance companies in safeguarding their policyholders’ interests. The major reason for this concern could be attributed to the existing investment portfolios of the general insurance firms, the impact of which has been felt upon their solvency position. The present study investigated the investment portfolios of the four major public sector general insurance firms in India involved in multiline businesses, and its subsequent impact upon their solvency position. The application of the multiple linear regression model has been employed to investigate the solvency determinants of the public sector general insurance firms in view of their short-term and long-term investment portfolios, covering the study period from 2005–2006 to 2014–2015. The findings of the study have pointed out the necessity for the four public sector general insurers to focus on certain key investment variables in their investment portfolios in ensuring a sound solvency position in the long run.

Suggested Citation

  • Joy Chakraborty & Sankarshan Basu, 2018. "Investment Portfolio Performances of Public Sector General Insurance Firms in India: An Empirical Approach," Business Perspectives and Research, , vol. 6(1), pages 61-75, January.
    • Handle: RePEc:sae:busper:v:6:y:2018:i:1:p:61-75
    DOI: 10.1177/2278533717734701
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    2. repec:eme:jrfpps:v:14:y:2013:i:2:p:286-302 is not listed on IDEAS
    3. Joseph Oscar Akotey & Frank G. Sackey & Lordina Amoah & Richard Frimpong Manso, 2013. "The financial performance of life insurance companies in Ghana," Journal of Risk Finance, Emerald Group Publishing, vol. 14(3), pages 286-302, May.
    4. T. Joji Rao & Krishan K. Pandey, 2013. "A study on factors influencing claims in general insurance business in India," Journal of Risk Finance, Emerald Group Publishing, vol. 14(3), pages 303-314, May.
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