The massive increases in the size of the economies, reduced and rapid globalization that were witnessed in the recent times have led to unprecedented changes in the way the economies function. In the same way after the liberalization the Insurance industry too has witnessed revolutionary changes with a creation of recent classes of products, increasing complexity of the products and a growing preference among the institutions to expire investment risk to the investors. At the moment as many life insurance companies are operating in India and everyone is issuing policy formats with different variations. As there's no uniformity, it's difficult for the market furthermore as policyholders to understand and make reasonable comparisons of terms and conditions, privileges and benefits offered by different insurers. Although most of the earliest studies have predicted about the varied problems & growth opportunities in the life insurance sector but most of them belongs to pre- liberalization period which isn't significant during this liberalized and competitive era where most of the businesses are private apart from LIC. Hence, it's worthwhile that a heavy research should be done to search out out the complexities of the life insurance market with a view on growth opportunity which provides much needed solution without compromising the competitive spirit of the market. Therefore this much needed study target this problems with a view to formulate the solutions and explore the new avenues of growth. Since only a few researchers has done significant study in the newly emerging field of life insurance. Supported the above problems & prospect in the insurance market the problems that must be addressed is on a way to sustain the competitive advantage for a protracted period of time with effective service to the shoppers & company’s attempt at build up and maintaining advantage over competition for an extended period. The current study identifies the issues & prospects of the insurance industry with a view to suggest suitable strategies for improving their performance and potential in the global market.

KEYWORDS: Liberalization, Compromising, Strategies, Responsibility, Claim Refund.