Cost Effectiveness in select Life Insurance companies: A Case Study from India

The study investigates the cost-effectiveness of selected life insurance companies in India, focusing on both public and private firms in the post-liberalization era. Using data from 2014–15 to 2022–23, sourced from IRDA and company reports, the research applies regression models to evaluate cost and profit efficiency. Findings reveal that total gross premium and labor costs significantly drive profitability, while commissions negatively impact profits. Conversely, determinants of total cost show limited statistical significance, suggesting other unobserved factors influence cost structures. The analysis highlights LIC’s consistent efficiency compared to variability among private insurers, underscoring the importance of operational strategies, technology adoption, and financial discipline.