Bajaj Allianz General appoints Tapan Singhel as MD & CEO
The board of Bajaj Allianz General Insurance has appointed Tapan Singhel as its new MD & CEO. Tapan has been the chief marketing officer (CMO) of the company. He will be taking over from Hemant Kaul who has relocated to Singapore for an assignment at Allianz Asia Pacific. Tapan Singhel, an alumnus of BHU has been with Bajaj Allianz General for over 10 years. He has over 20 years experience in the industry of which the last 10 years have been with Bajaj Allianz. He was also a part of the team which chalked out its entry and rapid growth in the retail segment. Tapan has handled various roles in the company as zonal head, president and his most recent role as CMO.
National Insurance targets 22% rise in premium for FY12-13
Kolkata-based National Insurance Company Ltd said that it is aiming to achieve around 22% rise in premium for the current financial year. In an interactive session organised by the MCC Chamber of Commerce and Industry on 20th April, the public sector insurer said that, it is eyeing a premium of Rs 9500 crore for FY12-13 compared to Rs 7,800 crore in FY11-12. Last year, National Insurance registered about 25% rise in premium against 23% for the entire general insurance industry.
Secure your vehicle online
One must take care to complete all necessary formalities and have the requisite paper-work in place—be it appropriate registration of the vehicle, application for a loan or a PUC certificate. According to Berkshire Insurance, given all the other complexities involved in purchasing a vehicle, it is a good idea to simplify the process of purchasing motor insurance by procuring a policy online. Read more
IRDA: Feedback on draft regulations
The IRDA has proposed to mandate a revised proposal form for life insurance in respect of individual policies. It is available on the website of IRDA (www.irda.gov.in) as an exposure draft. The regulator has invited comments from all stakeholders, particularly from the agents and brokers. Feedback on the draft regulations may be sent to email@example.com by 15 May 2012.
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Tata AIG General launches MediPrime
Tata AIG General Insurance has launched its first domestic lifetime renewable reimbursement health insurance policy, MediPrime. According to the company, MediPrime is designed to meet the current requirements of the consumer and ensure their needs from a health policy are met. Among the features of MediPrime include no sub-limit for in-patient hospitalisation, total reimbursement or no co-pay and ayush benefit that is coverage for non-allopathic in-patient treatments like ayurvedic, unani or homoeopathy.
Co-pay means that out of the total billed amount, the patient is required to pay certain percent. It is available for individuals between 18-65 years with cashless options currently through a network of 3,000 hospitals. The policy also provides 10% discount if three or more members of the family are covered under the individual plan. The slab for the policy begins from Rs2 lakh and goes up to Rs 10 lakh.
ICICI Pru iCare awarded ‘Product of the Year 2012’
ICICI Pru iCare, an online term insurance product from ICICI Prudential Life Insurance was awarded the Product of the Year 2012 in the Life Insurance category. ‘Product of the Year’ is the global consumer recognition standard that celebrates and rewards the best innovations in consumer products and services done through an independent consumer survey across the country. ICICI Pru iCare was shortlisted by the jury post which the product was put through an independent and 100% face to face consumer survey. The survey was conducted by AC Nielson in 36 markets across India with a participant size of more than 30,000 people. The consumers have voted for ICICI Pru iCare as the Product of the Year 2012 in the Life Insurance category for its easy accessibility, convenience and affordability.
US health insurers will pay $1.3 billion in rebates
A study, published by Kaiser Family Foundation, said that the US health insurers will pay $1.3 billion in rebates to customers and employers by 1st August under a provision of President Barack Obama’s healthcare reform law that penalises plans which contribute very little of their premium revenues to health services. Obama’s healthcare law requires most insurers to spend at least 80% of their premiums which they collect from customers on health-care claims—leaving 20% for administrative costs, such as salaries, marketing and profits for investors.
The “medical loss ratio” requirement started in 1 January 2011, so under the current law, any plans that exceeded their limits last year must refund customers the difference by 1st August. The refund amount will vary depending on the state and plan. This difference may range from about a dollar to more than $500. Some refunds will be made in the form of cheques, while some would be discounts given on premium to customers and employers by insurers.
According to Kaiser—a nonprofit healthcare research group, 31% of consumers in the individual insurance market could expect to receive a total of $426 million in rebates on 2011 premiums, for an average of $127 per person. About 20% of the insurance industry’s market for large employers could receive $541 million, while more than one-quarter of the small group market that serves small businesses could look forward to rebates totaling $377 million.
Life insurance costs 3 times actual product cost
According to a report released by the nonprofit LIFE Foundation and LIMRA, customers believe that life insurance costs nearly three times the actual price of the product which may be preventing them from buying the product. The survey respondents were asked to estimate the annual cost of a 20-year, $250,000 level-term life policy for a healthy 30-year old consumer. The actual cost is around $150, but Americans estimate the cost to be $400. Younger adults, who are most likely to qualify for preferred pricing, overestimate the cost by nearly seven times the actual cost.
However, the 2012 Insurance Barometer Study said that nearly a third of all consumers believe they need more life insurance, including 20% of current policyholders and about half of those who do not have any coverage. Yet one of the top reasons consumers cite for not obtaining more life insurance coverage is that the product is "too expensive" (83%), second only to those who say they haven't purchased more because they have "other financial priorities" (85%).
Fewer employers offer health benefits to workers
According to a survey by Employee Benefit Research Institute, fewer employers are offering health benefits to their workers and thus more employees are becoming uninsured. The survey said that, in 2010, 67.5% of US employees had jobs that included health benefits, down from 70.1% in 1997. Rising health care costs are making health insurance too costly for employers and workers alike. Therefore a greater number of employees turning down health benefits even when available. In 2010, 83.6% of employees who were offered benefits signed up for company health insurance against 86% in 1997.