Air India premium to increase from October: Reports
Premiums for Air India's annual insurance policy may increase marginally. The new premiums—to be renewed on October 1—are likely to be $30 million (Rs. 160 crore), according to media reports.
In 2011, the national carrier’s premium outgo was $28 million. The marginal increase in the premium was attributed to AI’s strict conditions of the tender, higher rates in the foreign market compared to last year and depreciation of the rupee. Also, there were no major claims over the past couple of years and it is operating with almost the same fleet size which was part of the reason behind stable premium rates, the reports added.
Among the AI’s strict norms included upfront payment in the case of claims and low margins. In 2011-12 (October-September), the premium rates increased to 15%-20%. However, AI’s overall premium outgo was lower, as its fleet declined to $9 billion from $9.5 billion. Air India paid a premium of $30 million in 2010-11 for insuring its fleet, valued at $9.5 billion at that time. This was 15% higher than the previous year, the reports further pointed out… Read more
Insurers asked to tap overseas markets
Sudhin Roy Chowdhury, Member (Life), Insurance Regulatory and Development Authority, on Friday said that insurance companies should tap the overseas markets.
“If foreign companies can come to India in a big way, why can’t we spread our wings abroad,’’ Mr Chowdhury said in Kolkata at an insurance summit organised by the Indian Chamber of Commerce.
Loans against ULIPs not allowed: IRDA
Loans under ULIPs (unit-linked insurance plans) shall not be allowed, according to IRDA’s (Insurance Regulatory and Development Authority) second draft guidelines circulated to the insurance companies. The regulator had objected to the practice of giving loans against ULIPs in January.
Insurers may not give loan to policyholders against their ULIPs in case the regulator puts into operation the latest draft guidelines on new products. Loans against ULIPs started in September 2010 after the lock-in period on these products was raised from three to five years.
The loan amount depended on the equity exposure of each portfolio. The greater the equity exposure, the lesser the loan amount. Generally, the maximum loan limit on these products is up to 75% of the fund value and the loan tenure can be equivalent to the policy tenure… Read more
Tata AIA Life to issue life insurance policies on real-time basis
Private insurer Tata AIA Life has developed a tool called ‘e-life’ through which all life insurance policies could be issued immediately.
The insurer will approach the IRDA (Insurance Regulatory and Development Authority) soon on the e-life tablet. Once approved, e-life will be launched in the metros initially. According to the company, e-life tablet would enable instant delivery of all kinds of life insurance policies. This would save time and cost for the agents.
The tool will be carried by agents who would suggest an insurance product suiting the need of the customer based on the information provided by him. The agent would upload the information provided by the customer regarding his financial goals on the software installed on the e-life tablet. The tablet would then run an algorithm that would immediately come out with the total insurance need of the customer… Read more
International insurers put plans on hold
Several global insurance companies that were looking for a joint venture with Indian insurers have put their plans on hold due to new guidelines from Insurance Regulatory and Development Authority (IRDA) and uncertain policy framework. The new IRDA guidelines have resulted in an overall increase in costs.
Among the international insurers include South Korea’s Samsung Life Insurance, French firm Scor Global Life and Canada-based Manulife that were interested in entering the Indian market and were looking for domestic partners.
Many life insurers that are already present in India have started restructuring exercise. They have significantly reduced their employees to cut costs. Several midsized insurers were also looking for a tie-up with a third partner to support their businesses. The insurance regulator has also capped surrender charges for ULIPs (unit linked insurance policies) and reduced agent commissions. The move would benefit customers as the charges become more transparent while preventing mis-selling… Read more
Life insurance product shouldn’t be purchased in a hurry: MyInsuranceClub.com
According to Deepak Yohannan, CEO, MyInsuranceClub.com, a life insurance product should not be purchased in a hurry. It is better that the customer spends time in understanding the product and only then should he go in for the plan. It is a long-term commitment… Read more
“We expect to breakeven in FY15,” says SBI General
RR Belle, MD & CEO, SBI General Insurance, said, the finance ministry, IRDA and GIC have called on industry participants to stop ‘suicidal pricing’. Insurers have been asked to adopt risk-based pricing for all products. The industry needs to move in this direction for a sustainable future… Read more
Sunil Sharma joins Kotak Life as appointed actuary
Kotak Mahindra Old Mutual Life Insurance has appointed Sunil Sharma as appointed actuary from 1st July. Mr Sharma has more than 21 years of experience in life insurance and reinsurance practice areas in India, USA, UK and South East Asia, having worked with companies such as Swiss Re, GE Financial Assurance and leading life insurers in India… Read more
Govt employees…Protect your future with postal life insurance
Postal life insurance (PLI) is similar to insurance plans offered by other insurance companies such as LIC (Life Insurance Corporation of India). PLI is a contract entered into by the government to pay a given sum of money on the death of an insured to his nominee or himself, if he survives that period. PLI is a good option for people, who are ‘eligible’ for it, as it charges lower premiums and offers higher returns than comparable policies of life insurers… Read more
Future Generali launches Sampoorna Suraksha
Future Generali India Insurance Company Ltd, the general insurance joint venture between Future Group of India and Generali of Italy, has launched Future Sampoorna Suraksha, a comprehensive micro insurance product tailored specifically for the rural and semi urban, urban poor segment, to provide valuable protection to insured and his business under a range of covers conveniently brought into one package policy.
Through Future Sampoorna Suraksha, Future Generali Insurance is looking to tap into the growing rural opportunity. The package policy covers hospital cash benefit, personal accident, building & contents, robbery & burglary, farm produce, agricultural pump set, cart protection & liability, and pedal cycle… Read more
Tata AIA Life reports net profit of Rs. 260 crore for FY12
Tata AIA Life said that its net profit for the financial year ended March 2012 stood at Rs. 260.31 crore from Rs. 52 crore reported a year ago.
The total premium income for FY12 stood at Rs. 3,630 crore against Rs. 3,985 crore in FY11. Of this, the new business premium collection stood at Rs. 940 crore. The renewal premium for the same period was at Rs. 2,690 crore against Rs. 2,653 crore in FY11. Traditional business accounted for 45% of the new business premium against 29% in FY11.
During FY12, the company further enhanced its operating efficiencies resulting in the reduction of the operating expenses to total premium ratio to 21% against 24% in FY11. The total assets under management (AUM) of the company have increased by 15% to Rs. 14,519 crore from Rs. 12,622 crore in FY11. As on 31 March 2012, the paid-up capital of the company stood at Rs. 1,954 crore… Read more
Bharti AXA General to expand biz in Andhra Pradesh & Madhya Pradesh
Bharti AXA General Insurance—which is amongst the fastest growing multi-line insurers in India—is focusing on Andhra Pradesh and Madhya Pradesh to further expand its business.
The company’s gross written premium rose 60% in 2011-12 to Rs. 8.92 billion. The non-life insurer is now planning to grow its business in the South by 60% in FY12-13. It is planning to double Andhra Pradesh’s contribution to the south zone. Since its inception in 2008, the company has sold over 3.73 lakh policies and settled 53,767 claims in the south zone.
The company is also planning to strengthen its Madhya Pradesh’s business by 40%. Since its inception, the company has sold over 527,571 policies and has settled 88,191 claims in the west zone. It has 15 branches in the west zone, which include Indore and Bhopal in Madhya Pradesh… Read more
Tata AIG to become Tata AIA Life
The life insurance unit of Tata AIG will be called Tata AIA Life Insurance. The company was set up as a joint venture between Tata Group and international insurer American International Group, Inc (AIG). It started operations in April 2001. Since its inception, Tata Sons owns 74% stake in joint venture with the remaining 26% share held by AIA, a 100% owned-subsidiary of AIG at that time… Read more
Moody's changes outlook on Japan's life insurance industry to stable
Moody's Japan K.K. has revised its outlook for the Japanese life insurance industry to stable from negative. This change mainly reflects Moody's expectation of a continuing stable business environment and insurers' focus on prudent business strategy.
Moody's will explain in more detail its outlook for the Japanese life industry in a new report, "Japanese Life Insurance Industry: Outlook Revised to Stable." to be published shortly. The change in outlook to stable takes into account the improving trends evident in the business overall and the sector's investment portfolios.
In particular, Moody's first notes that surrender and lapse rates for policies continue to improve, reflecting the stronger efforts of insurers in Japan to focus on retaining existing policyholders… Read more