Insurance Newsletter - 08 April to 12 April, 2013

Aviva Life Insurance announced that they have covered over 40,000 lives under Aviva i-Life, their online term plan, since its launch last year. To enhance the protection cover for their customers, the company has further strengthened its portfolio with an online health and term with return of premium product.

April 12, 2013 4:11 IST | India Infoline News Service
Top Stories 

Only licensed insurer can offer insurance products: IRDA

The Insurance Regulatory and Development Authority (IRDA) is a regulatory body established by an Act of Parliament to protect the interests of the policyholders and to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith, the IRDA said in a circular on Monday.

According to IRDA, a few entities under the banner of cargo carriers, couriers / logistic providers / freight forwarders / transporters or involved in similar trade are charging consideration from their clientele towards their contractual liabilities, using the terminology ‘insurance’, thus creating an impression that they are either insurance entities or arranging insurance on behalf of their clientele… Read more

CIBIL in process to set up credit bureau for insurance sector

UIDAI ‘Registrar’ insurers to disclose expense in P&L account

Insurance companies working as registrars to Unique Identification Authority of India (UIDAI) would have to provide the income / expense arising out of 'Aadhaar' enrolment process, while preparing financial statements.

The Insurance Regulatory and Development Authority (IRDA)—in a circular on 4th April to chief executive officers (CEOs) of all insurers—said that these details should be disclosed as a separate line item under the profit & loss account.

“Currently UIDAI has primarily engaged with state governments, central ministries and public sector organizations to act as Registrars. As per the information available with the Authority, in the insurance sector only Life Insurance Corporation of India (LIC) is registered as Registrar with UIDAI,” the circular added… Read more

HSBC Insurance to sell general insurance business in Macau

HSBC Insurance (Asia) Ltd, a subsidiary of HSBC Holdings Plc, said that it has signed an agreement to sell its general insurance business to QBE Insurance (International) Ltd in Macau. However, no financial details of the deal have been provided.

The deal is expected to complete in the first half of 2013. The Hongkong and Shanghai Banking Corporation Ltd, an indirect subsidiary of HSBC Holdings plc, has also signed a non-exclusive agreement with QBE to distribute their general insurance products to the Bank's customers in Macau. QBE will pay commissions to the Bank on product sales… Read more

Manulife, HDFC Life in race for HSBC insurance stake

Special Stories

SEBI prevents attempt to mis-sell an investment product

Capital market regulator SEBI (Securities and Exchange Board of India) on Tuesday prevented an attempt to mis-sell an investment product to an investor in Delhi by a person claiming as agent of mutual funds.

SEBI had received a complaint from an that some unknown persons claiming to be ‘agents’ and ‘brokers’ of mutual funds and insurance companies have been contacting the complainant saying that the deceased son of the complainant had invested in mutual funds and they are maturing in a short while… Read more 


Mutual funds vs ULIP investments

These investments offer investors an exposure to a market linked portfolio giving an opportunity to earn positive returns. Here’s a quick look at both the options… Read more

Smart Indian Consumer? Not really, when buying life insurance products

Here are the ten most important things you should do before signing the life insurance proposal form… Read more

Looking for health insurance

Here are some tips to help you select a plan that fits your needs and offers you the maximum value for money… Read more

Guide to planning health insurance

A family floater plan is easier to manage compared to multiple individual plans for members of a family. However, a floater plan may seem inadequate in case an entire family suffers an emergency such as an accident… Read more

Selecting a suitable health insurance plan

Here are some tips to help you select a plan that fits your needs and offers you the maximum value for money… Read more

Quote, Unquote

“To believe that monetary policy by itself can stimulate growth and answer all problems is incorrect because monetary policy is just one instrument”

Dr Duvvuri Subbarao, governor, RBI, in “Weekly” Magazine, Mauritius

“If monetary policy is accommodating, then fiscal policy has to be tight so that there is adjustment. If both are accommodating, there will be inflation”

Dr Duvvuri Subbarao, governor, RBI, in “Weekly” Magazine, Mauritius

Domestic News

Cobrapost expose: RBI initiating action against 3 private banks

Reserve Bank of India Deputy Governor HR Khan said the RBI has initiated action against ICICI Bank, HDFC Bank and Axis Bank in connection with allegations of money laundering by online portal Cobrapost.

Actions are being taken both in respect of systemic level and at the individual banks, the RBI governor said on the sidelines of an event organised by National Housing Bank in New Delhi.
The central bank would soon release the investigation report, Mr Khan added… Read more

IndiaFirst Life grows at 34% to Rs. 13.16bn

In what's supposed to be another gloomy year for the life insurance industry, IndiaFirst Life defies the industry trend with a growth of 34%. The announcement was made by Dr. P. Nandagopal, Managing Director & CEO, IndiaFirst Life Insurance.

The company has shown significant growth of business on critical parameters, with its new business premium increasing by 34%, from Rs. 9.8 billion to Rs. 13.16 billion.

“We choose to follow a straightforward and simple strategy of introducing customer friendly products and processes right from the start.  Our business strategy of keeping operational expenses low and pushing efficiency by introducing new technology initiatives is paying off,” said Dr. Nandagopal… Read more

SBI to discontinue free accident cover from 1 July

State Bank of India (SBI) will discontinue a free accident insurance cover provided to its home and car loan customers from July 2013.

The complimentary group personal accident insurance cover (death only) for home and car loan customers will be discontinued on the expiry of current Master Policy on July 1, 2013, SBI said in a notification to its customers… Read more

Aegon Religare Life launches Flexi Money Back Plus Plan

Aegon Religare Life Insurance (ARLI) launched Aegon Religare Flexi Money Back Plus Insurance Plan. The Aegon Religare Flexi Money Back Plus Insurance Plan is a product aimed at combining certainty along with returns at regular intervals. The plan is targeted at customers looking for a simple insurance plan with guaranteed benefits.

Yateesh Srivastava, chief marketing officer & head–talent, ARLI, said, “The investment climate remains uncertain and volatile. In such times customers seek shelter in products that provide guarantees. At the same time the ‘money back’ component of the plan allows for a cash flow at regular and pre-determined intervals.”… Read more

Aviva Life plans to launch investment linked plans

Aviva Life Insurance announced that they have covered over 40,000 lives under Aviva i-Life, their online term plan, since its launch last year. To enhance the protection cover for their customers, the company has further strengthened its portfolio with an online health and term with return of premium product. The company soon plans to launch investment linked plans on the online platform.

Being among the leading players in the online segment, Aviva commissioned a research with IMRB to understand the online customer and their behavior and what are the key triggers and barriers to buying insurance… Read more

Max Bupa wins AIMA Global Innovation Award 2013

Max Bupa Health Insurance has been awarded the Breakthrough Innovation in Marketing Award by All India Management Association (AIMA) for Max Bupa Walk For Health 2012. The award was presented at AIMA’s 4th Global Innovation Conference among industry stalwarts.
The Max Bupa Walk for Health is a unique initiative that has been encouraging thousands of Indians to walk for a healthier lifestyle. More than 18, 000 Indians in 9 cities participated in Max Bupa Walk for Health 2012 and pledged to incorporate more walking into their daily lives… Read more

ICICI Lombard awarded Product of the Year

ICICI Lombard General Insurance Company Ltd., the country's largest private sector general insurance company has been awarded "Product of the Year" for its recently launched product "Complete Health Insurance" (CHI). The award was announced at a ceremony held in Mumbai and was presided by Nandan Nilekani, Chairman, Unique Identification Authority of India (UIDAI)… Read more

International News

Eurozone Q4’12 data: Ins, pension funds see assets rise 1.3%

In the fourth quarter of 2012, the total financial assets of euro area insurance corporations and pension funds increased to €7,623bn, from €7,523bn in the previous quarter. Over the same period, the insurance technical reserves, which are the main liabilities of insurance corporations and pension funds, increased to €6,461bn, from €6,388bn, mainly due to positive transactions. 

Selected balance sheet items of insurance corporations and pension funds (EURbns; not seasonally adjusted; amounts outstanding at the end of the period; transactions during the period)… Read more

Property insurance rates edging higher: Willis Group

Willis Group Holdings Plc, the global risk advisor and insurance broker, expects commercial insurance buyers to experience moderate upward pressure on rates through the remainder of 2013. The range of anticipated increases is moving slightly higher for most key product lines, although commercial Property rates for non-catastrophe (CAT) exposed risks and some specialty lines may see slight reductions, according to Willis’ 2013 Marketplace Realities report. The annual report serves as a guide for North American insurance buyers preparing for upcoming 2013-14 insurance program renewals and coincides with the Risk & Insurance Management Society’s Annual Conference in Los Angeles April 21-24… Read more

ING publishes historical trend data adjusted for changes

Dutch bancassurer ING Group N.V. announced that, starting per the first quarter of 2013, it will align its insurance reporting structure with the evolving restructuring of ING Group. 

As previously announced, ING is making preparations for standalone futures for Insurance/Investment Management Europe and ING U.S., its US based retirement, investment and insurance business. Adjusted historical trend data are published to allow easy comparison with first quarter 2013 results that will be published on 8 May 2013… Read more

ING US files update of IPO registration statement

Protective Life arm signs agreement with Mony

Protective Life Corporation announced that its principal subsidiary, Protective Life Insurance Company, has signed an agreement with certain subsidiaries of AXA SA to acquire Mony Life Insurance Company and reinsure certain policies of Mony Life Insurance Company of America.

Assuming a closing date of October 1, 2013, the purchase price paid to AXA is estimated to be approximately $1.06 billion, including statutory capital and surplus of approximately $303 million… Read more 

Swiss Re shareholders approve special dividend

Swiss Re Ltd’s shareholders approved all the Board of Directors' proposals at its Annual General Meeting held on Wednesday in Zurich. This included the increase in regular dividend to CHF 3.5 per share (from CHF 3 in 2012) as well as an additional special dividend of CHF 4 per share. Together, this represents a return of USD 2.8 billion of capital to shareholders and is a reflection of Swiss Re’s strong capital position… Read more 

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