Impact of Foreign Direct Investment in Insurance Sector

Research Project
including Research
Methods

Table of Contents
Topic: Impact of Foreign direct investment in Insurance sector. A case study on AIA Group.......1
INTRODUCTION...........................................................................................................................1
Aim..................................................................................................................................................1
Objective..........................................................................................................................................1
QUESTION......................................................................................................................................1
METHODOLOGY..........................................................................................................................2
Literature Review.............................................................................................................................2
Introduction............................................................................................................................2
Meaning and Definition of FDI..............................................................................................2
Claims settled, underwriting policies in FDI:.........................................................................3
Strategic marketing practices followed in FDI:......................................................................6
Impact of FDI on European insurance companies:................................................................8
FDI and its impact on premium collection of Public and Private Life Insurance Companies10
How FDI impacted insurance industries in other countries like Germany, China, etc........11
Conclusion and Recommendations................................................................................................12
Data Handling................................................................................................................................13
Challenges of handling data.................................................................................................13
REFERENCES..............................................................................................................................14

Topic: Impact of Foreign direct investment in Insurance sector. A case study
on AIA Group.
INTRODUCTION
FDI is a sort of investment in which one party outside the local boundaries intend to
invest within a company in totally different nation with the main motive to expand business and
earn huge profit. There have been number of method (such as merger, joint venture or even
setting new business in other country) which a local investor can use to acquire legal business
right in a international company. FDI comes with numerous benefits for both parties the host and
the investor like market diversification, tax benefits, subsidies and lower labour cost. In present
time FDI act as a lifeline for Insurance sector all over the world and it provides number of
advantages for the development of economy. These benefits in respective industry are increase in
insurance penetration, boost in capital inflows, increase level of employment, impact of
development of economy.
Aim
“To recognise the overall importance of FDI in insurance industry”. A case study related
to AIA Group.
Objective
1. To Determine the role of FDI in increasing the insurance sector which is dominated by
public sector.
2. To recognise the product elements which are prioritize by consumer while making a
choice in order to purchase a insurance product that is intend to be improved by FDI in
insurance.
3. To ascertain that decision regarding hike in the FDI in insurance is either favourable to
public or not.
QUESTION
 What is the main role of FDI in raising insurance sector?.
 What are the main elements of insurance product that are improved by FDI?.
 Does decision related to increase FDI in insurance sector is beneficial?
1