General insurers can double their investment in liquid MFs: IRDA
After repeated request from the mutual fund association, the Insurance Regulatory and Development Authority (IRDA) has decided to double the investment limit in liquid mutual funds for general insurance companies, according to a media report.
At present, general insurers are permitted to invest 1.5% of assets into liquid mutual funds under the approved investment category where the size of the fund is above Rs. 20 billion, the report added.
Now, general insurers will be allowed to invest an additional 1.5% i.e. Rs. 35 billion. However, the relaxation is temporary. General insurance industry manages assets worth around Rs. 2.5 trillion, the report further said.
FDI in services sector falls 47.5% to $1.19bn in April-Aug 2013
Foreign direct investment (FDI) inflows into the services sector declined by 47.5% to $1.19 billion during the April-August 2013 period, according to the Department of Industrial Policy and Promotion (DIPP) data.
The services sector, which contributes over 60% to India’s GDP, had received FDI worth $2.28 billion in April-August 2012 period.
In 2012-13, foreign investment in the segment fell to $4.83 billion from $5.21 billion in 2011-12.
The services sector includes banking, insurance, outsourcing, R&D, courier and technology testing.
Aadhaar Card to be accepted as KYC proof: PFRDA
The PFRDA (Pension Fund Regulatory and Development Authority) has notified that the letter issued by Unique Identification Authority of India (UIDAI) will be accepted as a valid proof for Identity and address.
It has now been decided to accept e-KYC service launched by UIDAI as a valid process for KYC verification in consultation with UIDAI. The information authenticated and transferred by UIDAI containing demographic details and photograph as a result of e-KYC process shall be treated as sufficient proof of Identity and Address of the client, PFRDA said in a circular on 24th October... Read more
Reliance Life Insurance launches initiative to revive lapsed policies
Reliance Life Insurance Company (RLIC), part of Reliance Capital Ltd, announced its new initiative to revive lapsed policies for its policyholders.
The revival initiative allows RLIC policyholders to renew their lapsed policies by simply paying their due premium – without any penalty or medical tests. Generally, a lapsed policy can only be revived by payment of due premiums along with applicable interest and Declaration of Good Health by the policyholder... Read more
SBI General books premium of Rs. 540.93 crore in H1 FY14
SBI General Insurance Company Ltd, a joint venture between the State Bank of India and Insurance Australia Group (IAG), has garnered a premium income of Rs. 540.93 crore during the first half year of FY14, registering a growth of 83%.
BJ Sarma, MD and CEO said, “We have been able to achieve 83% growth in spite of difficult economic conditions and slow down in the automobile sector. Automobile sector slow down has forced many of the Insurers to look at renewal business aggressively over the last few months. In this backdrop, we were able to grow our Motor Insurance business by 136% during the first six months. We have increased our branch office network to 44 locations.”
“We intend to go pan India by December’13. Our focus will be to aggressively expand our health & motor insurance portfolio during rest of the FY” Mr. Sarma further added.
United India Insurance PAT rises 4% to Rs. 3.64bn in H1 FY13
United India Insurance Company said that its profit after tax in the first-half of the current year ended September 30, 2013 increased 4% to Rs. 3.64 billon from Rs. 3.5 billion in the corresponding period last year.
According to a press release from the company, it was able to absorb the losses arising out of the Uttarkhand floods, totalling 15 property damage claims, involving about Rs. 9 billion... Read more
Business interruption insurance: Protecting profits from disaster
When the disaster strikes, the basic question for any small and medium enterprises (SMEs) is how to reinstate the property to run the business operation smoothly. It is a nightmare for a business owner to see his factory or warehouse destroyed by fire.
Little do they realise that mere restoring or reinstating the property in a pre-fire level is not the foolproof that the operations will run profitably immediately thereafter as before. A business that has to close down while the premises or factory building are being repaired may lose out to competition as its market share is diminished... Read more
Swiss Re reports net income of $1.1bn for Q3 2013
Swiss Re reports a net income of USD 1.1 billion for the third quarter of 2013. Group premiums earned and fee income increased by 14% to USD 7.5 billion (vs. USD 6.6 billion in the prior-year period). Swiss Re's Group combined ratio was 83.4% (vs. 72.0%). The investment result was also strong, with investment income of USD 1.0 billion and a Group return on investments of 3.5%.
Shareholders’ equity increased to USD 31.9 billion (vs. USD 30.1 billion) and book value per common share rose to USD 90.06 or CHF 81.43, compared to USD 84.03 or CHF 79.50 at the end of the second quarter 2013. Earnings per share for the third quarter 2013 were USD 3.12 (vs. USD 6.33 in the third quarter of 2012)... Read more
Swiss Re sees emerging market countries to boost premiums
The world's urban population is forecast to grow by about 1.4 billion to 5 billion between 2011 and 2030, with 90% of the increase coming in the emerging markets.
Swiss Re's latest sigma study Urbanisation in emerging markets: boon and bane for insurers reviews the rapid growth of towns and cities in emerging markets. It also addresses the opportunities and challenges that urbanisation presents with respect to risk management for insurers and governments alike.
Rising incomes, increased asset ownership, infrastructure investments and further industrialisation will benefit non-life insurance... Read more
90% US drivers prefer self-driving cars to save on insurance: Survey
Nine of 10 licensed drivers would consider buying a self-driving car if it meant paying a lot less for insurance, a new survey by consumer website CarInsurance.com said. The survey asked consumers if they would buy -- or consider buying -- an autonomous vehicle if they could get an 80 percent discount on their auto insurance. Over 34% of respondents said they "very likely" would buy a self-driving vehicle and 56% said they would consider it if such an insurance discount was offered... Read more