Insurance Newsletter – September 16 to 20, 2013

Union Finance Minister P Chidambaram on Monday launched the IRDA's Insurance Repository System (IRS) in Hyderabad

September 20, 2013 5:25 IST | India Infoline News Service
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FM launches IRDA's Insurance Repository System
Union Finance Minister P Chidambaram on Monday launched the IRDA's Insurance Repository System (IRS) in Hyderabad. Insurance Repository system for individual policyholders is a pioneering initiative of India’s Insurance Regulatory and Development Authority (IRDA), as part of its efforts to improve services to policy holders and Insurance penetration.

Insurance Repository system will enable policy holders to buy and keep insurance policies in dematerialized or electronic form (e-Policies). e-Policies will eliminate paper and associated risks of storage and loss and provide convenience and safety to the customer. It will also make it an economical preposition for Insurance companies to issue and service e policies as compared to traditional paper policies. This reduced cost will make lower ticket policies much more viable and is expected to give a further boost to greater penetration of insurance in India.

IRDA has licensed five entities – NSDL Database Management Ltd., Central Insurance Repository Ltd., SHCIL Projects Ltd., Karvy Insurance Repository Ltd., and CAMS Repository Services Ltd – to act as Insurance Repositories (IRs). The IRs will also act as a single point of service for all e-Policies held by a policyholder, making it convenient for policy holders to get service on demand. All the Repositories will be directly regulated by IRDA...
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Insurance M&A faces ‘quiet revolution’: PwC
PwC has revealed the recovery in insurance M&A finding that the strategic importance of M&A to insurers across the globe is set to increase. However the report says that transaction volumes won’t recover along the same lines as during the last decade. Instead, the next few years will see a quiet revolution in global insurance M&A. In the short to medium term, low profitability will have a critical effect on insurance M&A.

Weak profitability is closely linked to low investment yields, and is encouraging insurers in mature markets to seek domestic deals and to plan international expansion. The report also finds that technology will continue to grow in influence in insurance deals; political risks, the economic climate and regulatory reform will all continue to shape the market; and Asian and Latin American targets top the wish lists for insurers with capital to spend...
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Domestic News

AIC to use services of non-life insurance agents: IRDA
In order to enhance penetration of crop insurance in India, Insurance Regulatory and Development Authority (IRDA) has allowed Agriculture Insurance Company of India (AIC) to use the agent network of other non-life insurers.

On 12th September, IRDA said that AIC can distribute its own products by using the services of agents and corporate agents of other general insurers.

IRDA said that agents, who want to offer services to AIC, will have to submit a 'No Objection Certificate' obtained from their parent general insurer and enroll themselves with AIC.

IndiaFirst policies available in demat format
IndiaFirst Life has announced the availability of all its policies in dematerialized format as the Insurance Repository goes live. The Insurance Repository will provide policyholders the facility to keep insurance policies in electronic form and provide a single platform for making any changes in the same. The electronic insurance account will do away with the need for KYC norms like address and identity proof for every purchase and will bring in all the benefits of demat to the insurance business, including automatic reminders for premium... Read more

ING Life Insurance launches Guaranteed Income Insurance Plan
ING Life Insurance on Thursday launched ING Guaranteed Income Insurance Plan, a traditional life insurance product that offers guaranteed benefits to the customers.
This plan complies with the new product guidelines applicable from 1st October 2013.
According to the private insurer, ING Guaranteed Income Insurance Plan offers Guaranteed Tax-Free Regular Income from mid of policy term. The Guaranteed Income payout is at the rate of 11% to 13% per annum. The income payout is calculated on the sum assured which is derived from the premium paid by the customer. UcoVegter, Chief Financial Officer, ING Life Insurance said, “In this plan, the customer makes premium payments for 50% of the chosen policy term and enjoys guaranteed tax free regular income over the remaining policy term. At the end of the policy term, the customer gets a guaranteed tax free lump sum payout. Based on the premium paying ability, the customer can decide the income payout option he would like to benefit from.” Headquartered in Bangalore, ING Vysya Life Insurance is 100% owned by Exide Industries.

ICICI Prudential Life launches ICICI Pru Easy Retirement
ICICI Prudential Life Insurance Company Ltd, announced the launch of ICICI Pru Easy Retirement. This unit linked plan enables customers to build their retirement corpus in a cost effective and convenient manner. Higher the contribution and longer the contribution tenure, lower is the cost of building this corpus. This plan safeguards the customers’ capital against market downturns through the capital guarantee feature, while providing customers the flexibility to choose their equity exposure according to their risk appetite. ICICI Pru Easy Retirement rewards customers for continuing over the long term through Pension Boosters which add 5% of the fund value every five years after the tenth policy year onwards thereby enhancing the corpus built which provides regular income for life... Read more

Women in non-metros have lower intent to buy life insurance
The intention to buy life insurance has declined from 20% in 2010 to 17% in 2013, according to a study by global information and insights company Nielsen. The study, LIFE 2013, said that penetration of life insurance in urban India increased 3% points from 63% in 2010 to 66% in 2013. The gain is due to a significant increase in penetration in the metros from 59% to 64%. However, non-metros with limited diversification in portfolios continue to lead with a penetration of 68%. Traditional policies still comprise a large portion (86%), while unit-linked policies (Ulips) are down to 14% in 2013... Read more

Max Bupa announces second edition of Walk for Health
Max Bupa Walk for Health 2013 will hold three categories-Adults, Children and Elderly. They will pledge their allegiance to include walking as an integral part of their lives. This year the distance for each category will be 5kms walk for Adults and avid walkers and 2kms walk for Senior citizens and children. This year, Max Bupa Walk for Health is focused on Delhi and Mumbai, as owing to a sedentary lifestyle, people living in these metropolises are more prone to stress and lead an unhealthy life. Prominent as the IT/Telecom and BFSI hubs of India, the people in these cities work long hours which leaves them with hardly any spare time to exercise. Bupa’s global research in 13 countries has revealed that high stress level, unhealthy diets and sedentary lifestyle has high negative impact on people’s health... Read more


Healthcare financing for medical professionals
What does a doctor do if he needs to expand his business or purchase a very expensive medical equipment. Does he take recourse to a home loan, mortgage loan or personal loan or is there a loan which is tailored to meet his professional needs. A number of financial institutions now provide healthcare financing. If you are a doctor or healthcare professional and looking to expand your business, the article will guide you on the requirements needed to avail of such a loan. A new loan product, healthcare finance is offered by banks and non-banking financial companies to doctors, medical practitioners, limited companies, private hospitals, eye and diagnostics centres, pathology laboratories, nursing homes, medical and dental colleges. It is offered against the security of equipment and personal guarantee. Healthcare financing is also offered to speciality clients like skin and dental clinics... Read more

International News

Asia-Pacific insurers improves ERM capability: S&P
Asia-Pacific insurers have generally enhanced their enterprise risk management (ERM) capability over the past 18 months, said Standard & Poor's Ratings Services in report published titled "Asia-Pacific Insurers' ERM Continues To Improve, But Still Lags Behind The More Developed Markets." According to the report, this development reflects the regulatory focus on insurers' risk framework regimes. Improving ERM capability also reflects the indirect influence of foreign insurance groups domiciled in Europe that are under the Solvency II regime and which have subsidiaries in Asia-Pacific... Read more

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