Insurance Newsletter - October 07 to 11, 2013

India Infoline News Service | Mumbai |

IRDA chairman TS Vijayan said that the total premium collected by both general and life insurance industry stood at Rs. 3.75 trillion last year.

Top Stories

IRDA focuses on distribution network to focus growth

In order to enhance growth, Insurance Regulatory and Development Authority (IRDA) will introduce another round of regulatory reforms, particularly related to distribution channel.

IRDA Chairman TS Vijayan said that the insurance regulator is focusing on bank channels and sub-broker level distribution and citizen service centres (CSCs) for better growth prospects.

Vijayan was speaking on the sidelines of the convocation of the Institute of Insurance and Risk Management (IIRM) in Hyderabad on Tuesday.

According to Vijayan, insurance industry was going to see major changes in the coming days. Several insurance companies would be listed on stock exchanges and open up abundant opportunities in the segment... Read more


IRDA extends definition of Key Persons

The Insurance Regulatory and Development Authority (IRDA) on Wednesday expanded the definition of ‘key persons’ to include the posts of ‘compliance officer’ and ‘chief risk officer’ of insurers. IRDA said that key persons in all insurance companies play an important role not only in running the business enterprise successfully but also for compliance of all regulatory requirements.

It is further expected that the ‘Key Persons’ are not only responsible for executing the Board’s decisions, but also have to be accountable for effective implementation of statutory and regulatory provisions for overseeing the operations of the Insurers, in order to put in place the best governance procedures and market conduct practices, IRDA said in a notification.

According to IRDA’s latest decision, “key persons” include the chief executive officer, chief marketing officer, appointed actuary, chief investment officer, chief of internal audit, chief finance officer, chief risk officer and chief compliance officer of insurance companies... Read more

Insurance business to touch Rs. 4 trillion in FY14

Insurance Regulatory and Development Authority on Tuesday said that insurance business in India is estimated to touch Rs. 4 trillion in the current financial year, according to a media report.

IRDA chairman TS Vijayan said that the total premium collected by both general and life insurance industry stood at Rs. 3.75 trillion last year.

Special Stories

India's retirement savings, income index improves: Mercer

India's retirement savings and income system index has improved over the last year and the performance is likely to improve significantly as pension coverage of the unorganised sector increases, according to the Melbourne Mercer Global Pension Index report.

India's overall value increased from 42.4 in 2012 to 43.3 in 2013, out of 100. Of the 20 nations on the list, India is ranked at the 19th position, Mercer said.

FM likely to raise PF wage cap to Rs. 15,000 per month

The finance ministry is considering a proposal suggested by the labour ministry to raise the statutory wage limit for provident fund contributions to Rs. 15,000 per month from Rs 6,500, according to a media report.

The objective is to reduce the government's borrowing costs, bring long-term savings into the infrastructure sectors and enhance investment in corporate bond market, the report added... Read more

Domestic News

Future Generali launches Pearls Guarantee

Future Generali India Life Insurance, the insurance joint venture between Future Group of India and Generali Group of Italy, has launched Future Generali Pearls Guarantee; a non-linked, non-participating life insurance plan with limited premium payment term and guaranteed cash back.

Future Generali Pearls Guarantee offers investors guaranteed ‘Protection’ & ‘Cash Back’. The plan provides fixed policy terms of 16 years & 18 years for which the customer would pay the premiums for 10 years and 12 years respectively. After the premium payment term, at the end of every year till maturity, 10% of the sum assured is paid to the customer as money back. At maturity, 70% of the sum assured is paid as maturity benefit. In case of survival of life assured during the policy term, Guaranteed Cash Backs as percentage of sum assured are paid after premium payment term till maturity, provided all due premiums have been paid... Read more

Bharti AXA General launches e-commerce enabled website
A recent user research on online buying patterns of insurance, conducted by Bharti AXA General Insurance (GI) has thrown up key insights about online purchase of insurance in India.

The research covered three key cities – Mumbai, New Delhi and Bangalore – which ranked amongst the highest in demand for online insurance, and was conducted across health and motor insurance.

The research report deep dived into customer behaviour online and drew out specific nuances that appeal to customers while buying insurance online. The report formed the basis for the launch of Bharti AXA GI’s new website which is e-commerce enabled and is designed to ease the online buying process of insurance... Read more

IRDA to appoint retired insurance professionals on contract
 
The Insurance Regulatory and Development Authority on Tuesday invited applications from experienced insurance professionals retired from public sector insurance companies on a contract basis.

The place of posting will be at Hyderabad/Mumbai/New Delhi, IRDA said in a notification.

The candidates should possess qualification in CA/CFA/CS/ICWA/LLB/MCA/B.Tech (IT)/FIII or equivalent and should have experience in Audit/Inspection/Accounts/Legal/Information Technology/Insurance and have retired from a public sector insurance company in Scale–II or Scale-III, IRDA added.

The number of positions is 15 and the candidate should not be above 62 as on November this year.

The last date of receipt of application if 31 October 2013.

Learning

Manage your insurance policy effectively to make it work better for you
Insurance buys you peace of mind against financial adversity. All types of insurance policies, whether related to life and health or those pertaining to property are meant to secure you against financial blows in the event of some unforeseen incident or emergency. However, this security does not come simply by purchasing an insurance policy. Your responsibility does not stop at selecting and buying a policy. Once the policy has been purchased, you must take necessary steps to manage you policy effectively. Neglecting this may result in claim rejection and render the policy meaningless... Read more

International News

Wealth in India rises by 7.4% to $3.6 trillion in mid-2013

Credit Suisse Research Institute on Wednesday released its fourth annual Global Wealth Report 2013, which finds that from mid-2012 to mid-2013 aggregate global household wealth increased by 4.9% in current dollar terms to USD 241 trillion.

North America overtook Asia Pacific and Europe to be the wealthiest region with an 11.9% wealth growth to USD 78.9 trillion, fueled by a recovery in house prices and a bull equity market in the USA. As a result of a 22% depreciation of the Japanese yen against the US dollar during the period, household wealth in Japan dropped 20.5% to USD 22.6 trillion, leading total wealth in Asia Pacific to decline by 3.7% to USD 73.9 trillion. However, Asia Pacific ex-Japan continued to register stable wealth growth of 6.2% to USD 51.3 trillion in mid-2013, with India registering USD3.6 trillion in total wealth, an increase of 7.4%.


Giles Keating, Global Head of Research for Private Banking & Wealth Management, Credit Suisse, said: “The report shows a USD 11 trillion rise in wealth to USD 241 trillion, with the USA as the clear winner, overtaking Europe, while APAC fell back due to sharp depreciation of the yen.”... Read more

 

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