5 Marks Each

Question

How did policy decision regarding insurance evolve the industry and increased the opportunities?

Vidyadip · Accepted Answer

Helpful in policy decisions:
Understanding the business environment helps in deciding correct business policies.

Example:
Two types of insurance exist in India namely,

Initially, the government companies used to take care of insurance business, but in 1991, the government changed its policy and allowed private companies to enter into insurance business.
Government saw that the business was expanding in India and it became quite important to expand insurance services so that people could do business with ease.
Later, the government also allowed foreign direct investment in private Indian
insurance companies. This further allowed various new business houses to enter in the field of insurance.
These policy decisions have expanded the insurance business in India as a result of which today even a very common man is able to avail insurance.

Answer