Insurance Newsletter – March 31 to April 04, 2014

India Infoline News Service | Mumbai |

Religare Health Insurance is in discussions with global investors including LeapFrog Investments, General Atlantic, TPG Capital to raise funds, according to a media report

Top Stories

IRDA proposes draft on Insurance Marketing Firm norms
The Insurance Regulatory and Development Authority (IRDA) has been contemplating allowing distribution companies to have multiple tie-ups with insurers, a model akin to Independent Financial Advisor based on the recommendations of the Govardhan Committee on Distribution. In this connection, meetings were held with representatives of life and non-life insurance companies and with cross section of marketing personnel in life and general insurance industry at Hyderabad. Consequently, a working group was constituted having five CEOs each from life and non-life insurance companies to study the concept and recommend a suitable model, the IRDA said in a notification on Monday... Read more

Religare Health Insurance looking to raise capital: Reports
Religare Health Insurance is in discussions with global investors including LeapFrog Investments, General Atlantic, TPG Capital to raise funds, according to a media report. The non-life insurer is planning to raise about Rs. 200 crore in lieu of a minority stake, the report added. According to the department of industrial policy and promotion, there is a 26% cap on overseas investments in insurance companies which would include foreign direct investment (FDI), foreign institutional investor (FII) investments and investments from non-resident Indians (NRIs). Many private insurers have demanded that India raise the FDI cap to 49%, but a draft law that proposes the change is still to be approved by Parliament.

Domestic News

IOB allots shares to LIC on preferential basis
Indian Overseas Bank (IOB) has raised Rs. 401 crore by allotting shares on a preferential basis to Life Insurance Corporation, according to a media report. LIC also has bought shares from the open market to acquire 14.77% stake in the bank, the report added. LIC was issued 8.15 crore shares as part of the preferential allotment. The insurer also picked up 8.62 lakh shares from the open market, IOB said in a filing to the Bombay Stock Exchange. LIC bought a total of 8.23 crore shares of the bank at a rate of Rs 48.34 per share. With the transaction, LIC has increased its stake in IOB by 6.667%. As on May 2012, LIC held 8.107% stake in the bank and the transaction took the total shareholding to 14.77%.

SBI Life settles claim for martyred Lieutenant Commander Manoranjan in 48 hours
SBI Life Insurance said that it has completed the claim settlement of martyred Lieutenant Commander Manoranjan Kumar in just 48 hours. The claim settlement cheque amounting to Rs. 20.91 lacs was handed over by Arundhati Bhattacharya, Chairman, SBI Group to Navin Kumar, father of late Lieutenant Commander Manoranjan Kumar at the Jamshedpur branch. SBI Life Insurance, MD & CEO, Atanu Sen said, "We salute the supreme sacrifice of Lieutenant Commander Manoranjan Kumar and have done our little bit to comfort the family of the departed soul.”... Read more

DHFL Pramerica Life wins Celent ‘Model Insurer Asia’ Award
DHFL Pramerica Life Insurance Company (DPLI) has been awarded the Celent ‘Model Insurer Asia’ Award 2014 in the ‘Distribution: Other channels’ category for its pioneering efforts in using technology to make Life Insurance services easily accessible to the underdeveloped/ underserved rural markets. The award was presented to DPLI at the Celent Model Insurer Asia Summit held in Singapore last month. Commenting on this, Anoop Pabby, CEO Designate, DHFL Pramerica Life Insurance Company, said, “It is indeed an honour for DPLI to be conferred the Celent ‘Model Insurer Asia’ Award 2014. A large chunk of India’s population remains uninsured and as a result, financially unprotected.”... Read more



my:asset Home Insurance from L&T General wins product of the year award
L&T General Insurance, has won the prestigious Product of the Year Award 2014 for its product ‘my:asset Home Insurance’ under the ‘General Insurance’ Category. "Product of the Year" is a global consumer recognition initiative that champions and rewards the best innovations in consumer products. It is based on an independent consumer survey conducted every year across 39 countries and has been in existence for the last 25 years to recognize the most innovative products. In India, "Product of the Year" winners are chosen based on a face-to-face research done with 18,000 respondents across 24 cities. The independent survey conducted by leading research firm, Nielsen, is the largest of its kind in the country... Read more

International News

AIG sues New York Regulator in licensing dispute
American International Group Inc on Thursday sued New York State Department of Financial Services and its superintendent, Benjamin Lawsky, escalating a potentially costly licensing dispute into an unusual confrontation with one of AIG's primary regulators, according to a media report. The global insurer filed a lawsuit in federal court in Manhattan Thursday afternoon, seeking a ruling that the New York Department of Financial Services is wrongly interpreting a state law regarding licensing requirements, the report added... Read more

More than 7mn enrolled under Affordable Care Act: White House
US President Barack Obama announced Tuesday that 7.1 million Americans have signed up for health plans under the Affordable Care Act, the most ambitious federal effort in nearly half a century to widen access to coverage.

The tally, which signified a sharp turnaround from the troubled beginnings of enrollment last fall, was driven upward by a late rush of consumers seeking coverage in the days and hours before the deadline of midnight Monday to select health plans for 2014.

The 7.1 million total means that the six-month sign-up period achieved results that congressional budget analysts had first anticipated — and more recently had thought would be impossible. Two months ago, the analysts downgraded their forecast from 7 million to 6 million, taking into account massive computer trouble with HealthCare.gov for much of the fall that frustrated many people trying to shop for health plans...
Read more

Learning

7 ridiculous insurance myths debunked
Don’t let these insurance myths, keep you from achieving your financial goals. Planning for contingencies like death and hospitalisation forms an important part of financial planning. Buying a life insurance cover provides money to the dependents of the bread earner on his or her death. However, there are a number of myths associated with life insurance that should be debunked first to ensure that one buys adequate life cover to protect the family... Read more

 

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