Like most general insurers, Royal Sundaram Alliance Insurance (RSA) too has witnessed a slowdown in growth of premium income in the detariff regime. Also in the news
To get back, the company is planning to offer differential pricing and policies to customers. The focus this year will be on the growth of personal and commercial insurance, and the company will aim for at least 15% growth.
At present, customers get a choice of prices for the products sold by general insurers, but not on the terms and conditions of the specific policy.
Customised insurance products could be introduced in a few months from now across all categories, including fire, motor and marine.
"We are closely working with leading actuarial consultants to assist us in gaining technical knowledge," Ajay Bimbhet, managing director, RSA told DNA Money. "We will be able to offer innovative value-added products and differential propositions once the relaxation on policy covers, terms and conditions comes into effect."
"Our focus will be on the growth of select segments in personal and commercial insurances. We believe this is the best approach to increase insurance penetration. The company will also focus on distribution enhancement to access more locations across the country," Bimbhet added.
As per Insurance Regulatory & Development Authority data, RSA has a 2% market share at present.
The company has underwritten gross premium of Rs 695.16 crore for the year 2007-08, a growth of 15.75% over the previous year.
Motor insurance is the company's largest portfolio, contributing 58% of total premium.
Health contributes around 21%, while commercial insurance, which includes property and engineering insurance, contributes around 19%. About 7% of premium comes from the personal insurance category.
Does the company bother about market share and their slower growth? No, says Bimbhet: "Since inception we have been prudent in risk selection while remaining focussed on our bottom line. This strategy has paid dividends and our profit ratios have shown a market improvement."
"Though tariff abolition has challenged our ability to sustain this trend, we will continue to be focussed on delivering profitable growth in the future," he adds.
Source: DNA
Monday, May 19, 2008
Marlabs’ KPO unit for health insurance sector
Chennai: Marlabs India, a wholly owned subsidiary of Marlabs Inc, announced the launch of their new unit to provide KPO services in health insurance sector. The unit, which currently operates from the company’s Bangalore and Mysore offices, will soon expand to other cities as well.
Marlabs intends to hire over 2,000 medical professionals over the next 18 months to staff the KPO division and is investing close to $7-8 million in the venture. The KPO unit, which is already functional in Bangalore and Mysore currently, has 400 professionals on its rolls.
Announcing the new business unit, Krishnan Ramachandran, CFO, Marlabs Inc. said, ”With our extensive experience in providing value added services to US corporations, the KPO division will be a significant component of our long-term business plans.”
Source: Sify Finance
Marlabs intends to hire over 2,000 medical professionals over the next 18 months to staff the KPO division and is investing close to $7-8 million in the venture. The KPO unit, which is already functional in Bangalore and Mysore currently, has 400 professionals on its rolls.
Announcing the new business unit, Krishnan Ramachandran, CFO, Marlabs Inc. said, ”With our extensive experience in providing value added services to US corporations, the KPO division will be a significant component of our long-term business plans.”
Source: Sify Finance
ICICI Pru life Insurance topped among private insurers
19/May/2008
India's leading private insurer, ICICI Prudential Life Insurance completed seven full years of operations during which period it sold over seven million policies and crossed the Rs 28,000 crore in assets held.
During the financial year 2007-2008, the ICICI Prudential Life Insurance continued its strong new business performance with retail new business weighted premium of Rs 6,684 crore, registering a growth of 68 per cent over the last year. The company sustained its leadership position with an overall market share of 11.8 per cent.
As compared to financial year 2006-007, the company had more than tripled its branch network to increase customer convenience in financial year 2007-08.
Today, the company has over 1,950 branches in over 1,665 cities across the country, including over one thousand branches in rural segments. The last financial year saw a increase in distribution network and strengthen its service infrastructure and continued to introduce innovative products in the health, retirement and wealth creation space. This strategy helped them to maintain their leadership position in the market and also enhance their customers experience in many distinct ways.
Source: Insuremagic
India's leading private insurer, ICICI Prudential Life Insurance completed seven full years of operations during which period it sold over seven million policies and crossed the Rs 28,000 crore in assets held.
During the financial year 2007-2008, the ICICI Prudential Life Insurance continued its strong new business performance with retail new business weighted premium of Rs 6,684 crore, registering a growth of 68 per cent over the last year. The company sustained its leadership position with an overall market share of 11.8 per cent.
As compared to financial year 2006-007, the company had more than tripled its branch network to increase customer convenience in financial year 2007-08.
Today, the company has over 1,950 branches in over 1,665 cities across the country, including over one thousand branches in rural segments. The last financial year saw a increase in distribution network and strengthen its service infrastructure and continued to introduce innovative products in the health, retirement and wealth creation space. This strategy helped them to maintain their leadership position in the market and also enhance their customers experience in many distinct ways.
Source: Insuremagic
LIC eyes Singapore as base for SE Asia
19/May/2008
Seeks Branch Licence There; Insurer Also Keen on US, Australia
The country’s largest financial institution, Life Insurance Corporation (LIC), eyes operations in Singapore. LIC is planning to set up a representative office first and later a subsidiary in Singapore, which could serve as its base for the region.
LIC has got the go-ahead from the Centre to set up an office in Singapore. A representative office was expected to be opened in a few months’ time after authorities there approved the corporation’s choice of a chief executive.
At present, LIC does not have a presence in the south-east Asian region. The corporation is looking at Singapore as a base. The only south-east Asian presence LIC has is a tie-up between LIC International in Bahrain and a Thai broker. The representative office is expected to open up within the next six months. It will study the market for a year and then draw up a business plan to set up its local operations.
Unlike banking, insurance licenses are easier to get. However, life insurance operations are much more capital-intensive as the business takes several years to break even. Many countries, which allow foreign investment in insurance, insist that multinationals have locally incorporated companies. In Singapore too, LIC will need to have a local subsidiary.
The corporation plans to enter Australian and US markets. It is in the process of appointing management consultants to advice on how to approach such markets.
LIC generates a sizeable business from overseas Indians through LIC International in Bahrain, which was established in 1989. The company caters to the Gulf region and has operations in all six GCC countries — Bahrain, Saudi Arabia, Kuwait and the UAE (through chief agents), Qatar (through broker) and Oman, Dubai (through branch offices).
Besides, LIC has operations in Nepal through a joint venture company between LIC and Vishal Group of companies, which was established in ‘01. In ‘03, the corporation established LIC (Lanka), a JV company between LIC and the Bartleet group.
Source: Insuremagic
Seeks Branch Licence There; Insurer Also Keen on US, Australia
The country’s largest financial institution, Life Insurance Corporation (LIC), eyes operations in Singapore. LIC is planning to set up a representative office first and later a subsidiary in Singapore, which could serve as its base for the region.
LIC has got the go-ahead from the Centre to set up an office in Singapore. A representative office was expected to be opened in a few months’ time after authorities there approved the corporation’s choice of a chief executive.
At present, LIC does not have a presence in the south-east Asian region. The corporation is looking at Singapore as a base. The only south-east Asian presence LIC has is a tie-up between LIC International in Bahrain and a Thai broker. The representative office is expected to open up within the next six months. It will study the market for a year and then draw up a business plan to set up its local operations.
Unlike banking, insurance licenses are easier to get. However, life insurance operations are much more capital-intensive as the business takes several years to break even. Many countries, which allow foreign investment in insurance, insist that multinationals have locally incorporated companies. In Singapore too, LIC will need to have a local subsidiary.
The corporation plans to enter Australian and US markets. It is in the process of appointing management consultants to advice on how to approach such markets.
LIC generates a sizeable business from overseas Indians through LIC International in Bahrain, which was established in 1989. The company caters to the Gulf region and has operations in all six GCC countries — Bahrain, Saudi Arabia, Kuwait and the UAE (through chief agents), Qatar (through broker) and Oman, Dubai (through branch offices).
Besides, LIC has operations in Nepal through a joint venture company between LIC and Vishal Group of companies, which was established in ‘01. In ‘03, the corporation established LIC (Lanka), a JV company between LIC and the Bartleet group.
Source: Insuremagic
Life insurance is where the life is
17/May/2008
There seems to be shift in favor of life insurance, in contrast with earlier rosy projections about general insurance. Every would-be insurer wanted to be in general insurance. Now the choice is life insurance. Allianz, which has tied up with Alpic Finance for general insurance, has now decided to start a life insurance venture. There are others in the pipeline, like GIO Australia, which is withdrawing from the Indian general insurance business so that its new parent AMP can run a life insurance business unfettered. The reason is simple. The Life Insurance Corporation of India registers a premium of Rs.20,000 crore, double that collected by GIC and its subsidiaries. Also, LIC's claims experience is far better than GIC's.
According to projections made by Confederation of Indian Industry, life insurance premiums will grow to Rs 1,48,000 crore in 2009-2010 and the pension business to around Rs 14,000 crore.
It was earlier assumed that private players would exploit the immense potential offered by health insurance. But with life insurance companies ready to package a health insurance product with their life policies, a plain vanilla medical insurance policy is unlikely to make waves.
The other added attraction of life insurance is that a policy holder gets his money back at the end of the maturity period or his family gets the money on his untimely death. With a major chunk of the potential market, read health, targeted by the life insurance companies too, what is left behind for general insurers to fight over is fire, burglary, transit and other such insurance lines.
The hitch again here is the possible fall in premium rates because of competition. For instance, the fire insurance premium -- the most profitable product for the four government insurers -- is all set to be reduced, and motor insurance is really a drag on bottom lines.
The other likely problem that a new private general insurer would face is finding a re-insurer.
Source: Insuremagic
There seems to be shift in favor of life insurance, in contrast with earlier rosy projections about general insurance. Every would-be insurer wanted to be in general insurance. Now the choice is life insurance. Allianz, which has tied up with Alpic Finance for general insurance, has now decided to start a life insurance venture. There are others in the pipeline, like GIO Australia, which is withdrawing from the Indian general insurance business so that its new parent AMP can run a life insurance business unfettered. The reason is simple. The Life Insurance Corporation of India registers a premium of Rs.20,000 crore, double that collected by GIC and its subsidiaries. Also, LIC's claims experience is far better than GIC's.
According to projections made by Confederation of Indian Industry, life insurance premiums will grow to Rs 1,48,000 crore in 2009-2010 and the pension business to around Rs 14,000 crore.
It was earlier assumed that private players would exploit the immense potential offered by health insurance. But with life insurance companies ready to package a health insurance product with their life policies, a plain vanilla medical insurance policy is unlikely to make waves.
The other added attraction of life insurance is that a policy holder gets his money back at the end of the maturity period or his family gets the money on his untimely death. With a major chunk of the potential market, read health, targeted by the life insurance companies too, what is left behind for general insurers to fight over is fire, burglary, transit and other such insurance lines.
The hitch again here is the possible fall in premium rates because of competition. For instance, the fire insurance premium -- the most profitable product for the four government insurers -- is all set to be reduced, and motor insurance is really a drag on bottom lines.
The other likely problem that a new private general insurer would face is finding a re-insurer.
Source: Insuremagic
Bajaj Allianz ties-up with Maharashtra Co-op
16/May/2008
Private sector life insurance company Bajaj Allianz Life Insurance has joined hands with Maharashtra State Co-operative Bank to provide life insurance solutions across the state through the bank's 265 branches.
This tie-up will greatly improve our distribution strength in all Maharashtra and help provide life insurance solutions across the rural and semi-rural customer base of Maharashtra State Co-operative Bank. They are proud to tie-up with Bajaj and will now be able to offer insurance benefits and products to their customers.
Source: Insuremagic
Private sector life insurance company Bajaj Allianz Life Insurance has joined hands with Maharashtra State Co-operative Bank to provide life insurance solutions across the state through the bank's 265 branches.
This tie-up will greatly improve our distribution strength in all Maharashtra and help provide life insurance solutions across the rural and semi-rural customer base of Maharashtra State Co-operative Bank. They are proud to tie-up with Bajaj and will now be able to offer insurance benefits and products to their customers.
Source: Insuremagic
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