The Bombay Stock Exchange is open to the idea of creating a separate platform for small and medium enterprises, SMEs to tap the capital markets.
“We can always explore the possibilities (for a separate platform) for SMEs because they have a different need and one has to take that into consideration,” BSE’s CEO and managing director Rajnikant Patel told PTI.
“Can you charge the same listing fees that is charged by the national level exchanges? SMEs have small capital bases and they need differential pricing,” he said. There is a strong case for a separate trading platform for SMEs to enable them raise risk capital.
The London Stock Exchange has received a very good response for its Alternative Investment Market (AIM) for medium and small companies, where regulatory norms are diluted.
As stricter corporate governance norms were being insisted on by the national-level bourses - the BSE and the National Stock Exchange - it was increasingly becoming difficult to tap them.
Small and medium enterprises are coming in hordes to raise money from the capital market but stock exchanges cannot afford to dilute compliance norms for them, reports DNA
Monday, February 19, 2007
Monday, February 12, 2007
Insurance cover for AIDS patients
Institute for Financial Management and Research (IFMR) is designing an insurance policy against AIDS.
It is tying up with NGOs and micro finance institutions for access to data that will aid in designing of health insurance products, which have AIDS insurance as a rider.
"We will soon be starting a pilot to test these products and are looking at creating comprehensive health insurance plans," said Ms Rupalee Ruchismita, Research Head and Co-ordinator, Centre for Insurance and Risk Management, IFMR. She was speaking at a seminar organised by the National Insurance Academy. IFMR is in talks with life and non-life insurance companies to market these products.
Currently, AIDS insurance is not offered in India and insurers have complained that lack of representative data has kept them from venturing into the segment. Globally, the Government of Uganda was the first to offer AIDS insurance to 25,000 miners. IFMR is also working on technology solutions like RFID chips for tagging cattle and bringing down claims ratios in livestock insurance.
The institute is also working on flood and multiple drought insurance products.
source:Business Line
It is tying up with NGOs and micro finance institutions for access to data that will aid in designing of health insurance products, which have AIDS insurance as a rider.
"We will soon be starting a pilot to test these products and are looking at creating comprehensive health insurance plans," said Ms Rupalee Ruchismita, Research Head and Co-ordinator, Centre for Insurance and Risk Management, IFMR. She was speaking at a seminar organised by the National Insurance Academy. IFMR is in talks with life and non-life insurance companies to market these products.
Currently, AIDS insurance is not offered in India and insurers have complained that lack of representative data has kept them from venturing into the segment. Globally, the Government of Uganda was the first to offer AIDS insurance to 25,000 miners. IFMR is also working on technology solutions like RFID chips for tagging cattle and bringing down claims ratios in livestock insurance.
The institute is also working on flood and multiple drought insurance products.
source:Business Line
Thursday, February 8, 2007
IRDA worried over surge in Unit-Linked Plans
Individuals fancy unit-linked invstment plans (ULIPs) feeling they only have an upside in exposure to equity market, but the insurance regulator is concerned.
The regulator, Insurance Regulatory and Development Authority (Irda), about two weeks ago commenced an internal study to understand the reasons behind life insurance companies giving preference to selling ULIPs over traditional insurance products.
Irda Chairman C S Rao said, “We are studying the impact of regulations on traditional policies. We want to examine whether there are features in traditional plans that inhibit their growth?”
ULIPs have been a major factor in life insurers enjoying over 100 per cent growth in new business premium over the last few years.
The government-owned Life Insurance Corporation (LIC) have witnessed over 180 per cent increase in its new business premium income in the current financial year, thanks to its agents going on an overdrive for selling ULIPs. About 71 per cent of LIC’s new premium income of Rs 23,585 crore came from ULIP sales.
The share of ULIPs for the largest private sector life insurer, ICICI Prudential Life Insurance, as well as for Bajaj Allianz Life Insurance in their new business premium income is about 90 per cent.
One of the major drivers for life insurers to sell more ULIPs is the solvency margin. The insurance component in the amount invested in ULIP is about 20 per cent, which results in a much lower capital requirement.
The life insurers have to provide a much higher capital for traditional products, where the entire premium paid is accounted for insurance cover.
The regulator’s idea behind the internal study is to work out a plan for popularising traditional insurance products.
“One of the reasons could be the solvency margin. We will study what needs to be done to bring about a balance (between ULIPs and traditional products),” Rao said.
Rao also pointed out life insurers might be focusing on selling ULIPs as the investment risk is borne by a policyholder as against the insurance company in the case of traditional policies. “In a few years, the move will stabilise. We don’t want to take any step (now) that will act as a hindrance towards insurance penetration,” Rao added.
Sanjay Jain, head marketing at Bajaj Allianz Life Insurance, said “Customers prefer ULIP because of their transparent nature wherein they can decide returns at every stage. Customers want to take the benefit from the strong growth in equity market, which they would not have benefited in a traditional product.”
Source: Business Standard
Individuals fancy unit-linked invstment plans (ULIPs) feeling they only have an upside in exposure to equity market, but the insurance regulator is concerned.
The regulator, Insurance Regulatory and Development Authority (Irda), about two weeks ago commenced an internal study to understand the reasons behind life insurance companies giving preference to selling ULIPs over traditional insurance products.
Irda Chairman C S Rao said, “We are studying the impact of regulations on traditional policies. We want to examine whether there are features in traditional plans that inhibit their growth?”
ULIPs have been a major factor in life insurers enjoying over 100 per cent growth in new business premium over the last few years.
The government-owned Life Insurance Corporation (LIC) have witnessed over 180 per cent increase in its new business premium income in the current financial year, thanks to its agents going on an overdrive for selling ULIPs. About 71 per cent of LIC’s new premium income of Rs 23,585 crore came from ULIP sales.
The share of ULIPs for the largest private sector life insurer, ICICI Prudential Life Insurance, as well as for Bajaj Allianz Life Insurance in their new business premium income is about 90 per cent.
One of the major drivers for life insurers to sell more ULIPs is the solvency margin. The insurance component in the amount invested in ULIP is about 20 per cent, which results in a much lower capital requirement.
The life insurers have to provide a much higher capital for traditional products, where the entire premium paid is accounted for insurance cover.
The regulator’s idea behind the internal study is to work out a plan for popularising traditional insurance products.
“One of the reasons could be the solvency margin. We will study what needs to be done to bring about a balance (between ULIPs and traditional products),” Rao said.
Rao also pointed out life insurers might be focusing on selling ULIPs as the investment risk is borne by a policyholder as against the insurance company in the case of traditional policies. “In a few years, the move will stabilise. We don’t want to take any step (now) that will act as a hindrance towards insurance penetration,” Rao added.
Sanjay Jain, head marketing at Bajaj Allianz Life Insurance, said “Customers prefer ULIP because of their transparent nature wherein they can decide returns at every stage. Customers want to take the benefit from the strong growth in equity market, which they would not have benefited in a traditional product.”
Source: Business Standard
Wednesday, February 7, 2007
Public sector insurers lose 9% market share this fiscal
Life Insurance Corporation (LIC), the sole public sector player, may be regaining its lost market share, but its counterparts in the general insurance business continue losing business to private parties at a much faster pace.
Numbers released by the regulator, IRDA, depict that the four public sector general insurers have lost 9% market share in the first nine months of 2006-07. By comparison, they had lost only about 6% of their pie to private players during in the whole of 2005-06.
The eight private insurers controlled 26% of the market till March 2006. Which increased to 35% in the first nine months of 2006-07. Interestingly, their share during 2005-06 rose from 20% in March 2005 to 26% in March 2006 — a rise of only 6%.
The four public sector general insurers — National Insurance, Oriental Insurance, New India Assurance and United India Insurance — collectively controlled around 65% of the market by December 2006, against 74% in December 2005. Incidentally, the entire general insurance industry has witnessed a 24% growth in premium income during the first nine months of the current fiscal. Total premium income for the period stood at Rs 18,577 crore in the period under consideration, against Rs 15,023 crore in the previous period.
Private insurers registered a higher total premium income of Rs 6,517.9 crore in the period under consideration against Rs 4,010.4 crore in the previous corresponding period. The four public sector insurers, on the other hand, recorded a total premium income of Rs 12,059.3 crore in the first nine months of the current financial against Rs 11,012.4 crore in the nine months period of 2005-06.
Source: Times News Network
Life Insurance Corporation (LIC), the sole public sector player, may be regaining its lost market share, but its counterparts in the general insurance business continue losing business to private parties at a much faster pace.
Numbers released by the regulator, IRDA, depict that the four public sector general insurers have lost 9% market share in the first nine months of 2006-07. By comparison, they had lost only about 6% of their pie to private players during in the whole of 2005-06.
The eight private insurers controlled 26% of the market till March 2006. Which increased to 35% in the first nine months of 2006-07. Interestingly, their share during 2005-06 rose from 20% in March 2005 to 26% in March 2006 — a rise of only 6%.
The four public sector general insurers — National Insurance, Oriental Insurance, New India Assurance and United India Insurance — collectively controlled around 65% of the market by December 2006, against 74% in December 2005. Incidentally, the entire general insurance industry has witnessed a 24% growth in premium income during the first nine months of the current fiscal. Total premium income for the period stood at Rs 18,577 crore in the period under consideration, against Rs 15,023 crore in the previous period.
Private insurers registered a higher total premium income of Rs 6,517.9 crore in the period under consideration against Rs 4,010.4 crore in the previous corresponding period. The four public sector insurers, on the other hand, recorded a total premium income of Rs 12,059.3 crore in the first nine months of the current financial against Rs 11,012.4 crore in the nine months period of 2005-06.
Source: Times News Network
Mkts close on all time high: Sensex breaches 14600
The markets ended on a new high on the back of heavy buying seen in scrips across sectors. Sensex breached 14,600 levels. The Sensex is up 164.94 points or 1.14% at 14643.13, and the Nifty up 28.35 points or 0.68% at 4224.25.
About 1303 shares have advanced, 1333 shares declined, and 39 shares are unchanged.
The BSE Small Cap Index closed at 7,697.81 up 0.5%.
The BSE Midcap Index closed flat at 6,186.86.
read more....
About 1303 shares have advanced, 1333 shares declined, and 39 shares are unchanged.
The BSE Small Cap Index closed at 7,697.81 up 0.5%.
The BSE Midcap Index closed flat at 6,186.86.
read more....
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