In the Indian context life insurance industry faced many challenges like low literacy rate, consumer perception, awareness, Income of people, Government policy etc. A major cause for this upliftment is indeed the acceptance and adaptation of liberalization privatization and globalization (LPG) in the year 1991. After 1991 the Indian life insurance industry has geared up in all respects, as well as it is being forced to face a lot of competition from many national and international private insurance players. This paper is aimed at examining the status of Insurance Industry of India in pre & post liberalized era as well as estimating future trend of insurance business in India, as to analyze its future position in the day- by- day enhancing competition. In this paper attempt has been made to analyze the overall performance of Life Insurance Industry of India between pre- and post economic reform era. To measure the current status, volume of competitions and challenges faced by the Life Insurance Corporation of India and to measure the effectiveness of penetration over the period 2011 to 2018. The study reveals that there is a tremendous growth in the performance of Indian Life Insurance industry and LIC due to the policy of LPG. Insurance industry also improved a lot due to the emergence of Private sector and opening up for foreign players. Further there is also a huge change in the investment pattern of LIC.

Life Insurance, Liberalization, Privatization, Globalization.