Insurance Newsletter – August 12 to August 16, 2013

India Infoline News Service | Mumbai |

There is no capital requirement for insurance broking business carried out by banks, according to IRDA Regulations, 2013.

Top Stories 

IRDA allows banks to act as insurance brokers
The Insurance Regulatory and Development Authority (IRDA) has allowed banks to act as brokers and sell products of more than one insurer in order to increase the penetration of the sector across the country.

There is no capital requirement for insurance broking business carried out by banks, according to IRDA (Licencing of Banks as Insurance Brokers) Regulations, 2013.

To qualify for the licence, each bank will have to have the principal officer. 'Principal Officer' means — a general manager or equivalent cadre of the respective licensed entity appointed exclusively to carry out the functions of an insurance broker and positioned at corporate office, the IRDA said in the notification on 8th August... Read more

Housing finance cos to get higher funding from insurers
To increase flow of funds to housing finance sector, the Insurance Regulatory and Development Authority (IRDA) has enhanced the exposure limits of insurers to housing finance companies.

Insurers' single company exposure limit including debt and equity is increased to 20% from existing 10%. The 20% limit can be further increased by an additional 5% with the prior approval of Board of Directors, the IRDA said in a circular on 7th August.

The group and promoter group exposure norms will continue to apply on the investments made in a Housing Finance Company, it said... Read more

Miscellaneous insurance premiums rise to Rs. 84bn in FY13
Premium collection from the miscellaneous insurance segment increased to Rs. 83.97 billion in the financial year 2012-13 from Rs. 70.49 billion in FY11-12, according to IRDA (Insurance Regulatory and Development Authority) data.
Of the total Rs. 83.97 billion premium amount, public general insurers accounted for Rs. 65.99 billion, it added. The miscellaneous insurance segment is considered a small area of business by general insurers... Read more

No extra charges for ECS payment: IRDA

The Insurance Regulatory and Development Authority (IRDA) said that no life insurer will levy any additional charge towards cancellation of the electronic clearing service (ECS) mode / recover such additional charge from the benefits payable under the policy.

“As the ECS mode enables collection of premiums without any manual intervention of policyholders, the Life Insurers shall allow the policyholders facility to withdraw from the ECS mode at least fifteen days prior to the due date of ECS submission,” IRDA said in a circular on Wednesday... Read more

Domestic News

Max Life re-invents pension planning
Max Life Insurance has launched ‘Max Life Forever Young Pension plan’ and ‘Max Life Guaranteed Life Time Income Plan’- a unique pension planning solution, with features based on extensive consumer research. This solution ensures a carefree and financially-secured retirement for an individual and the spouse.

The ‘Max Life Forever Young Pension Plan’ is a unit-linked plan with a minimum guaranteed return of premiums that helps in accumulating a retirement corpus... Read more

DLF Pramerica Life launches Aajeevan Samriddhi
DLF Pramerica Life Insurance Co. Ltd. (DPLI) has launched ‘Aajeevan Samriddhi’, a participating whole life insurance cum savings plan that helps customers protect the financial security of their families through their life time. The plan provides life cover till the age of 99 years with premium required to be paid only for a limited tenure.
Aajeevan Samriddhi also doubles up as a smart savings tool to help customers plan for the golden years of their retirement... Read more

Reliance General focuses on SME sector
Reliance General Insurance, a part of Reliance Capital, is focusing to service the SME (small and medium enterprise) sector through the sale of health insurance products as parts of its plans to achieve full-year profitability this fiscal.

According to the private insurer, SME sector is a highly under-penetrated, widespread and unorganised with most organisations in the country not providing health insurance cover to their employees... Read more

SBI Life Q1 net profit at Rs. 2.12 billion
SBI Life net profit stood at Rs. 2.12 billion for the quarter ended June 30, 2013 as against Rs. 1.63 billion for the same quarter last year.

During the period under review, the insurer's income from investments rose to Rs. 2.1 billion from Rs. 1.65 billion... Read more

Central Insurance Repository gets IRDA Repository License
Central Insurance Repository Ltd (CIRL) received the IRDA (Insurance Regulatory and Development Authority) Repository License on 31 July 2013.

CIRL is an insurance repository set up under the guidelines on insurance repositories and electronic issuance of insurance policies. It is promoted by CDSL, CVL along with various Life Insurance & Non-Life Insurance Companies with an objective to provide policyholders a facility to keep insurance policies in electronic form... Read more

IRDA cancels licence of Karvy Insurance Broking
The IRDA (Insurance Regulatory and Development Authority) has the Direct Broker License granted to Karvy Insurance Broking Ltd on 8th August.

Hyderabad-based Karvy had been granted license by the Authority to act as a Direct Broker in January 2011 for three years pursuant to the provisions of the IRDA (Insurance Brokers) Regulations, 2002... Read more

PFRDA hails National Pension Scheme
Achieving broad pension coverage and income protection in an affordable and fiscally sustainable fashion has remained an elusive goal worldwide, PFRDA Chairman Yogesh Aggarwal said.

Greying populations have triggered pension reforms and the focus has shifted from mandatory systems to social pensions and defined contribution voluntary pensions. The demographics of today also indicate an increasing longevity with a more active lifestyle post retirement owing to betterment in medical facilities. With the shift to nuclear families, inter-generational support cannot be the sole source of old age security...
Read more

Learning

How to achieve financial independence
Financial freedom is necessary for each one of us so that we are not dependent on other people to support us for our requirements... Read more

International News

Swiss Re Q2 profit surges to $786mn

Swiss Re Group on Thursday reported net income of USD 786 million for the second quarter of 2013, a period that saw high levels of natural catastrophes. 

Premium growth in the property and casualty businesses continued with a good renewal season in July. All business segments contributed positively to the robust results and profitable growth.

Michel M. Liès, Group CEO, says: "The robust performance comes against the backdrop of high claims, especially those caused by the devastating floods in Europe and Canada.”... Read more
 

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