Role of Insurance Sector on Inclusive Growth in India

In the present era insurance sector plays a vital role in both developed and developing countries. Insurance markets working as a financial intermediary to contribute economic growth of the country as well as risk management more efficiently. The purpose of the study is to investigate the relationship between insurance sector development and economic growth in India. For this study, data has been collected only from the secondary sources for the period 2000 to 2019. To run linear regression, four variables are taken viz. GDP as a surrogate of economic growth and Real Premium Growth Rate, Total Investment in Insurance Sector and Insurance Claim. Finally, it can be suggested that more attention in the insurance market is to be paid so that proper economic growth will be possible in the developing country in India.

In the present era insurance sector plays a vital role in both developed and developing countries. Insurance markets working as a financial intermediary to contribute economic growth of the country as well as risk management more efficiently. The purpose of the study is to investigate the relationship between insurance sector development and economic growth in India. For this study, data has been collected only from the secondary sources for the period 2000 to 2019. To run linear regression, four variables are taken viz. GDP as a surrogate of economic growth and Real Premium Growth Rate, Total Investment in Insurance Sector and Insurance Claim. Finally, it can be suggested that more attention in the insurance market is to be paid so that proper economic growth will be possible in the developing country in India.

LITERATURE REVIEW
Some important studies which the author has come across are mentioned below.
Ghosal ( Researchers disclose that both unidirectional and bidirectional causality between insurance market penetration and per capita economic growth.

Objectives of the study
The objectives of the study are as follows: 1. To assess the growth of life insurance sector in India.
2. To assess the relationship of GDP with real premium growth rate, total investment in insurance sector and total insurance claim.
3. To examine the effect of GDP with real premium growth rate, total investment in insurance sector and total insurance claim.

Hypothesis to be tested
H 01 : There is no relationship of GDP with real premium growth rate, total investment in insurance sector and total insurance claim.
H 02 : There is no significant effect of GDP with real premium growth rate, total investment in insurance sector and total insurance claim.

Research Design
The empirical work is based on insurance sector Claim . In order to analyze the data, statistical tools like descriptive statistics, correlations and regression analysis is done by SPSS 20.

Insurance Claim
From the

Dependent variable: GDP
The regression analysis is conducted to find the relationship between dependent variable and independent variables. Thus, this helps to identify the variation in GDP based on variation in total insurance claim, total investment in insurance sector and real premium growth rate.
To test the hypothesis representing the relationship between GDP with total insurance claim, total investment in insurance sector and real premium growth rate, multiple regression was run, the output of which result is shown in Table 7.
From 4. The study only applies few statistical tools to draw the conclusions.

Suggestion for Future Research
On the worth of this work, the study will offer input resources for further research. The insurers and reinsurers will be exposed to the trend and level of their activity towards economic growth. More research effort need to be done in the similar path by applying different time phase and different methodologies. The study recommends that the compulsory insurance policies stipulated by the insurance Act should be properly sold in the society and well publicized. Finally, it is suggested that more research should be carried out to find out more about the impact and competence of insurance segment upgrading on economic growth and development in the Indian environment.