Insurance companies are financial institutions that provide various insurance policies to conserve an individual and establishment against financial risk. 

As a part of Financial Sector Reform, a Committee on Reforms in Insurance (CRIS) came into existence in 1993, headed by Shri R.N. Malhotra. The objective of the CRIS committee was to open an insurance sector, improve the standard services of the Indian insurance majors, and widen the scope of insurance coverage to the more significant section of the Indian population. 

After the commencement of CRIS, the Insurance Regulatory Development Authority came into existence under Insurance Regulatory and Development Authority Act,1999 (IRDAI Act) as a regulatory authority to supervise and develop the Insurance sector.

Moreover, IRDAI Act also protects the interest of insurance policyholders, and its objective is to control, encourage, and ensure proper growth and development of the insurance sector.

To be noted, the Insurance sector has been playing a fundamental role as a component of the economy on account of premiums and scale of investment it collects, including its role in social and economic development by covering personal and business risk.

India comprises 57 insurance companies (24 engaging in life insurance and 33 in non-life insurance).