The Government of India decided to regulate the insurance business so as to harness it to the needs of the socialistic pattern of society in 1956 by nationalising life insurance business. Accordingly, the Government of India established the Life Insurance Corporation as a statutory public corporation of 1956. Since then all the life insurance business formerly undertaken by private insurance companies, came under this Corporation. General insurance business was kept open for the private companies initially. However, it was also nationalised subsequently in 1972 in order to mobilise the funds for economic development.

Prior to the incorporation of the Life Insurance Corporation of India there was very little development of insurance business in Sholapur district inspite of the fact that the district is industrially developed. There was very little progress even in general insurance also.

According to new organisational and administrative set-up of the insurance corporation Sholapur district is placed under the territorial jurisdiction of Satara division. Table No. 36 gives the statistics of insurance business from 1961-62 to 1968-69 and 1972-73 in Sholapur district.