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Insurance sector in India plays a vital role in the welfare of any economy. It significantly increases the prospects for savings amongst the individuals and safeguards their future. Through which insurance sectorform a massive pool of funds which can be highly subsidized to the capital markets resulting large infrastructure developments in India.During liberalization the insurance sector had undergone significant transformation. The globalization brought new investments from global investors which resultedin better penetration and density. It also paved way for the establishment of Insurance Regulatory and Development Authority of India (IRDAI) during 1999 to regulate the insurance industry in India. Further, the insurance sector was opened to private players. Consequently a sound insurance sector with healthy competition emerged. This benefitted the general public with the availability of variety of policies at affordable costHowever, the entry of many private players in industry resulted in underwriting losses for Indian public and private insurers.