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The Indian economy has been growing and has become one of the fast growing economies in the world. Industrial production has picked up in 2004-05 by a rebound in global trade and increased business consumer confidence. Industrial growth was across basic goods, capital goods and consumer goods. The improved performance in ´finance, insurance, real estate and business services´ contributed 12.9 per cent to growth in the real GDP. The net retention ratio of the public sector insurers increased to 74.37% from the previous year´s level of 72.30%. Space The four public sector had a higher retention ratio - New India 76.33% (73.86% in 2003-04); National 74.32 (73.78); United 73.79 (70.23), and Oriental 71.77 (70.11) based on the segment-wise exposure of the individual insurers, the retention ratios varied within individual segments. While the retention ratio in case of fire segment ranged between 78.12 and 66.61%, in the marine and miscellaneous segments it ranged between 55.97 to 45.63% and 77.87 to 75.02 % Respectively. The retention ratios of the new insurers have broadly varied depending upon the composition of their portfolio.

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Dr.K. Ravichandran holds a Ph.D. from Madras University and post-doctorate fellowship from University Kebangsan Malaysia (UKM). He has written a book on merchant banking and financial Services which was published by Himalaya Publishing House, Bombay. He has published more than 15 research articles in reputed journals.

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