Insurance Newsletter – September 10 to 13, 2013

The objective is to ensure that banks do not sell customised insurance products where risk assessment is more complex, the report added

September 14, 2013 1:06 IST | India Infoline News Service
Top Stories 

IRDA tightens advertising rules for life insurers
The Insurance Regulatory and Development Authority (IRDA) has asked life insurance companies not to offer any awards or reward points to attract customers in their advertisements. “To enhance the extant transparency of the insurance advertisements, and to improve compliance... life insurance advertisements should not offer, as inducement, any award/reward points, discounts and rebates, except those approved by the Authority as part of product features,” IRDA said on Wednesday. The IRDA said an examination of the advertisements – espec  ially Internet advertisements - revealed the necessity to improve the compliance... Read more

Banks to sell only standard insurance products
The ministry of finance said that banks will be permitted to sell only standard insurance products through their branches following the relaxation of brokerage norms by IRDA (Insurance Regulatory and Development Authority), according to a media report. The objective is to ensure that banks do not sell customised insurance products where risk assessment is more complex, the report added. Products with same features will aid to prevent mis-selling and also ensure that customers can chose a product based on the performance of the insurer, report further said.

Domestic News

Tata Capital, Axis Bank seek PFRDA nod for pension AMC
Tata Capital and Axis Bank are seeking Pension Fund Regulatory Development Authority (PFRDA) approval to register as a pension fund asset management company (AMC), according to a media report. The two companies had several rounds of discussions with the PFRDA for registration as pension fund, the report added. However, PFRDA has not received any formal applications from the two companies for the same. Currently, there are eight pension fund managers for both the public and private sector National Pension Scheme (NPS).

Car insurance premiums may rise due to weak rupee
General insurance companies said that car insurance premiums may rise in the coming days due to the rise in cost of imported spare parts, according to a media report. The general insurers said that because of the sharp depreciation in rupee, the cost of imported spare parts has increased, the report said further. The Indian currency has depreciated more than 20% since May and is hovering around 65 per dollar as of now... Read more

LIC Nomura MF targets assets of Rs. 100 billion in FY14
LIC Nomura Mutual Fund aims to achieve Rs. 100 billion of assets under management (AUM) this financial year on the back of the good performance in its debt schemes, according to a media report. The fund house said that its outflows from the equity schemes of the company were not significant, the report added... Read more


All about Pension Fund Regulatory and Development Authority Bill
The PFRDA Bill 2011 (proposed to be enacted as a law) provides for the establishment of an Authority to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto... Read more

International News

Swiss Re highlights huge loss potential for marine, airlines
Swiss Re’s latest sigma study "Navigating recent developments in marine and airline insurance" reviews recent changes in the marine and aviation insurance markets. Over the past decade, global marine and aviation insurance premiums have roughly doubled and are estimated at $44 billion in 2012. Though only about 2% of global non-life premiums, transport insurance plays a crucial role in global economic development... Read more

Catastrophe cover to rise by over 50% by 2020: Swiss Re
Swiss Re expects the demand for natural catastrophe reinsurance to double in high-growth markets and to rise by around 50% in mature markets by 2020. Alternative capital is focusing on peak exposures in the US nat cat markets where entry barriers are low and margins high. Swiss Re estimates that prices for nat cat covers will stabilise in 2014 after a decline this year. With clients looking for more than just capacity, Swiss Re is well positioned to take advantage of its full service business model... Read more

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