Abstract:
The Indian non-life insurance industry has experienced noticeable and important
changes throughout the period, shifting from a state-controlled monopoly to a competitive
industry with mixed ownership. This study, titled “Comparative Financial Analysis of Public
Non-Life Insurance Companies and Selected Private Non-Life Insurance Companies with
Reference to CARAMEL Model,” aims to evaluate and compare the financial performance of
chosen public and private insurers using the CARAMEL framework, which covers aspects
such as capital strength, asset quality, reinsurance practices, managerial efficiency,
profitability, and liquidity. The research utilizes secondary sources covering a ten-year period
(2013–14 to 2022–23) and employs ratio analysis and One-Way ANOVA to test statistical
significance. Eight companies—four representing the public sector alongside four leading
private insurers—were selected for the study. The findings reveal that private insurers
consistently outperform their public counterparts in capital strength, cost efficiency,
profitability, and solvency margins. Significant disparities across various CARAMEL
dimensions were observed, underlining the need for reforms and strategic improvement in
public sector operations. The research offers meaningful perspectives for policymakers,
investors, and stakeholders in understanding financial stability, risk management approaches,
and the evolving path of India's non-life insurance sector.
