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Abstract
Insurance reforms are a prerequisite for reforms in social security, health care systems and financial markets. In developed economies insurance companies and pension funds are a major source of long-term capital and have dominant share (50 per cent or more) in total financial assets.1 They provide funding for end-of-service indemnity, life insurance benefits, annuity and gratuity. They also increase the depth and liquidity in stock and bond markets, particularly in long-term bonds.