Corporate Social responsibility in Insurance sector and the role of Insurance sector in economic development of India.

Abstract

One strategy to reduce the risk and protect against unplanned losses is insurance. Risks can bring benefits, but the possibility of harm is a disadvantage. Losses can be for many reasons, both professional and personal. Insurance turns accumulated capital into productive investments. Insurance also enables loss mitigation and financial stability and facilitates business leading to sustainable economic growth and development. That is why insurance plays a key role in the sustainable growth of the economy. In the present paper, an effort is made to study the role of Insurance sector in India and the relationship between Insurance and economic growth and the various CSR initiatives taken by insurance companies in India. This paper is a comprehensive descriptive study. Secondary data and information have been analysed for preparing the paper. Secondary information has been taken from various academic sources, such as books, journal articles, conference papers, working papers, and websites. Data on CSR has been collected from annual reports and information available on the companies’ websites. The main result indicates that Indian insurance sector is an integral part of the economic prosperity of the country, yet its penetration rate is significantly lower than 5%. The insurance sector in India is crucial for economic growth by promoting financial stability, encouraging savings and investments, generating employment, and supporting infrastructure development and social security. This indicates that the insurance sector plays a significant role in the overall prosperity of the country. And CSR initiatives taken by companies lead to better corporate governance practices, as companies adopt more transparent, ethical, and responsible decision-making processes.