Chennai: Nearly 4.7 lakh families living below the poverty line in two districts in the State will be covered by the national health insurance scheme for unorganised workers in the next couple of months.
Inaugurating a State workshop on the Rashtriya Swasthya Bima Yojana (RSBY), Labour Minister T. M. Anbarasan said about Rs.5.5 crore would be spent by the State on the pilot scheme in Kancheepuram and Tirunelveli districts. The premium has been fixed at Rs.512 for a family of five with the State government’s share amounting to Rs.113.
Source: The Hindu
Friday, June 27, 2008
RISING HEALTH INSURANCE TO BOOST TPA BUSINESS
Mumbai: The ongoing focus on health insurance business is expected to provide the much needed boost to the third party administrator (TPA) business. TPAs provide the much needed linkage services to the customers and insurance Companies by managing the claims.
However they are not allowed to market health insurance products.
The business of health insurance which is offered by both life and general insurers are growing at 50% and is being encouraged by the Insurance Regulatory & Development Authority.
By 2012, the Indian TPA industry is expected to grow exponentially to Rs 15,000 crore in size in terms of value of premiums managed. With around 30 players, the current size of the TPA is estimated at Rs 4,400 crore and the business growing at 40%. The top five players have a market share of 60%.
Among the top ranking TPA players are TTK manages around premiums worth Rs 560 crore followed by MediAssist (premiums worth Rs 450 crore approx),and Paramount (with premiums worth Rs 400 crore approx), Raksha (premiums worth Rs 430 crore approx), Family Health Plan (premiums worth Rs 250 crore approx), MD India (premiums worth Rs 350 crore approx).
The life insurance behemoth Life Insurance Corporation(LIC) has now entered the health insurance market and has mobilised premium income of Rs 100 crores in last two months of 2007-08.
Observers say some Third Party Administrators (TPAs) in the Indian health insurance sector are spinning-off separate insurance brokerage firms or looking at strategic alliances with insurance brokers with a focus to improve overall business margins
Also some insurance brokers are looking at diversifying into TPA services or being strategically aligned to TPA service providers. Also some players in the TPA industry do not find the volumes and the fees economically lucrative proposition.
Source: The Financial Express
However they are not allowed to market health insurance products.
The business of health insurance which is offered by both life and general insurers are growing at 50% and is being encouraged by the Insurance Regulatory & Development Authority.
By 2012, the Indian TPA industry is expected to grow exponentially to Rs 15,000 crore in size in terms of value of premiums managed. With around 30 players, the current size of the TPA is estimated at Rs 4,400 crore and the business growing at 40%. The top five players have a market share of 60%.
Among the top ranking TPA players are TTK manages around premiums worth Rs 560 crore followed by MediAssist (premiums worth Rs 450 crore approx),and Paramount (with premiums worth Rs 400 crore approx), Raksha (premiums worth Rs 430 crore approx), Family Health Plan (premiums worth Rs 250 crore approx), MD India (premiums worth Rs 350 crore approx).
The life insurance behemoth Life Insurance Corporation(LIC) has now entered the health insurance market and has mobilised premium income of Rs 100 crores in last two months of 2007-08.
Observers say some Third Party Administrators (TPAs) in the Indian health insurance sector are spinning-off separate insurance brokerage firms or looking at strategic alliances with insurance brokers with a focus to improve overall business margins
Also some insurance brokers are looking at diversifying into TPA services or being strategically aligned to TPA service providers. Also some players in the TPA industry do not find the volumes and the fees economically lucrative proposition.
Source: The Financial Express
NEED TO RAISE AWARENESS OF INSURANCE COVER IN FILM INDUSTRY
Chennai: There is a need to raise awareness levels of insurance in the entertainment industry, particularly in the film industry, a section of artists, technicians and producers note. With more Tamil films boasting of ‘Hollywood-like’ action sequences usually involving a greater degree of risk, the need for safety precautions and insurance is being felt more than ever, say many in the industry.
The passing away of 24-year-old Udaykumar and 26-year-old Sigamani on the sets of ‘Sarvam’ on Monday has brought to focus the issue of lack of awareness of the same.
Pushpa Kandaswamy, managing director of Kavithalaya, says it is certainly worthwhile taking insurance for projects involving very risky action sequences. “However, we have to keep in mind the cost element and perhaps work it out according the budget. We have started this practice,” she says.
G. Srinivasan, chairman and managing director, United India Insurance Company, says not everyone in the industry is aware of the various policies that could be useful in the entertainment industry.
“It is popular only among certain producers but there needs to be more awareness,” he says. The idea is yet to pick up on a large scale, says Krishna Rao, insurance broker. “This industry employs many on a temporary basis. Contractors engage workers as per the requirement in a particular production.”
Taking a workmen’s compensation policy, as is done by many construction companies, would be an appropriate option for them, he says. Insurance cover not only comes in handy in the case of injuries or death during risky action sequences, but also does in other aspects of production, says Sudha Panchapakesan, vice-president, advertisement film company J.S. Films.
“We have taken the Cine Mithra policy. You can choose to cover sets, costumes and also those whose work involves risk. For instance, when we shoot a car racing past at a high speed, we definitely insure the driver. We may insure him at a higher value than someone else whose work does not involve much risk. But yes, insurance is vital,” she adds.
Source: Meera Srinivasan
The Hindu
INDIA’S SHARE OF LIFE INSURANCE GROWTH RISES
Mumbai: India’s share of the world life insurance business market grew marginally during 2007 to 1.97% from 1.68% a year ago. Life insurance premia generated from India amounted to equivalent of $47.1 billion in 2007, up from $37.22 billion in 2006.
Although new life insurance business in India slowed down considerably in 2007-08, the overall business grew by over 36% in dollar terms. This was partly because of the strengthening of the rupee vis-a-vis the US dollar. Also, the absolute growth includes renewal premium. According to a report by Swiss Re, the world life insurance market grew by 12.6% which translated to a real growth of 5.4% after adjusting for inflation. India’s real growth at 14.2% in 2007-08 is more than two-and-half times the world average.
Although, China has a slower growth rate, its market share has grown faster because of its high base. The country now accounts for 2.45% ($58.6 billion) of the world market in 2007, up from 2.04% ($45 billion) a year earlier. According to the latest Swiss Re sigma study, world insurance premium income (life and nonlife) grew 3.3% in real terms in 2007, reaching $4,061 billion. This growth was primarily driven by the life business in industrialised and emerging markets, and to a lesser extent, by the non-life business in emerging markets.
For Asia, insurance premium income reached $841 billion, representing an increase of 4.5% in real terms. India insurance premiums attained double-digit growth of 13% to $54 billion. Life insurance premiums increased 5.4%, which is above the previous 10-year average. Non-life premium growth was robust in the emerging markets (+10%), but decreased in the industrialised countries (0.3%). However, both life and nonlife industries are financially sound despite the challenging economic environment.
Daniel Staib, one of the study’s authors, says, “Despite a macroeconomic environment characterised by marginally slower economic growth and rising inflation, life insurance continued to expand in 2007 with world life insurance premiums increasing by 5.4% to $2,393 billion.” Sales of retirement and other wealth accumulation products spurred growth in the industrialised economies. Life insurance in emerging markets was fuelled by strong economic performance and catch-up potential.
The key driver of growth in life insurance business was the trend toward single premium business and pension and annuity products. According to the report, the insurance industry was shifting one from providing traditional life insurance to these new sectors because of ageing populations and reduction in state social security benefits. The report points out that although there was a severe credit crisis in 2007 which led to turbulence in the financial market insurance, sales were unaffected.
The non-life business continued to be profitable despite slow growth. Global non-life premium growth slowed to 0.7% in real terms, totalling $1,668 billion in 2007. Non-life premium growth continued to follow divergent trends in developed and emerging markets. While premium volume retreated in industrialised markets, growth slowed marginally in emerging markets.
Though downward pressure on premium rates continued in some countries, overall technical results were favourable and profitability remained sound. According to the latest Swiss Re sigma study, world insurance premium income (life and non-life) grew 3.3% in real terms in 2007, reaching $4,061 billion.
Source: The Economic Times
Although new life insurance business in India slowed down considerably in 2007-08, the overall business grew by over 36% in dollar terms. This was partly because of the strengthening of the rupee vis-a-vis the US dollar. Also, the absolute growth includes renewal premium. According to a report by Swiss Re, the world life insurance market grew by 12.6% which translated to a real growth of 5.4% after adjusting for inflation. India’s real growth at 14.2% in 2007-08 is more than two-and-half times the world average.
Although, China has a slower growth rate, its market share has grown faster because of its high base. The country now accounts for 2.45% ($58.6 billion) of the world market in 2007, up from 2.04% ($45 billion) a year earlier. According to the latest Swiss Re sigma study, world insurance premium income (life and nonlife) grew 3.3% in real terms in 2007, reaching $4,061 billion. This growth was primarily driven by the life business in industrialised and emerging markets, and to a lesser extent, by the non-life business in emerging markets.
For Asia, insurance premium income reached $841 billion, representing an increase of 4.5% in real terms. India insurance premiums attained double-digit growth of 13% to $54 billion. Life insurance premiums increased 5.4%, which is above the previous 10-year average. Non-life premium growth was robust in the emerging markets (+10%), but decreased in the industrialised countries (0.3%). However, both life and nonlife industries are financially sound despite the challenging economic environment.
Daniel Staib, one of the study’s authors, says, “Despite a macroeconomic environment characterised by marginally slower economic growth and rising inflation, life insurance continued to expand in 2007 with world life insurance premiums increasing by 5.4% to $2,393 billion.” Sales of retirement and other wealth accumulation products spurred growth in the industrialised economies. Life insurance in emerging markets was fuelled by strong economic performance and catch-up potential.
The key driver of growth in life insurance business was the trend toward single premium business and pension and annuity products. According to the report, the insurance industry was shifting one from providing traditional life insurance to these new sectors because of ageing populations and reduction in state social security benefits. The report points out that although there was a severe credit crisis in 2007 which led to turbulence in the financial market insurance, sales were unaffected.
The non-life business continued to be profitable despite slow growth. Global non-life premium growth slowed to 0.7% in real terms, totalling $1,668 billion in 2007. Non-life premium growth continued to follow divergent trends in developed and emerging markets. While premium volume retreated in industrialised markets, growth slowed marginally in emerging markets.
Though downward pressure on premium rates continued in some countries, overall technical results were favourable and profitability remained sound. According to the latest Swiss Re sigma study, world insurance premium income (life and non-life) grew 3.3% in real terms in 2007, reaching $4,061 billion.
Source: The Economic Times
RELIGARE SET TO FORAY INTO NON-LIFE SECTOR
Mumbai: Religare Enterprises (REL), promoted by Malvinder Singh, CEO of Ranbaxy, is proposing to raise Rs 1,075 crore through a combination of either global depository receipt/ American depository receipt/ qualified institutional placement/ foreign currency convertible bonds and equity shares or warrants to promoters or promoter-entities. A spokesperson for REL, which is one of the largest broking houses in the country, said the fund raised could be used for working capital requirements and will also enhance the firm's net worth.
The board has also approved Religare's entry into the non-life insurance sector and the company has started scouting for partners. KPMG has been given the mandate to look for possible partners.
Malvinder Singh has recently sold the promoter family's stake in Ranbaxy to Japan's Daiichi Sankyo for Rs 19,780 crore. Singh has said that the promoters want to pump money into Religare and Fortis to make them the top firms in their respective sectors. "Healthcare and financial services are two focus areas for us," Singh had said.
Recently, Religare Capital Markets International UK, an indirect subsidiary acquired Hichens, Harrison & Co. Plc. The company has also received the in-principle approval from Sebi for being the sponsor for an asset management JV with Aegon (50:50) and has put in place its core team and will shortly apply for the final license.
The broking house has posted a profit after tax (PAT) of Rs 91.97 crore for 2007-08, up 270 per cent from that in the corresponding period last year. The financial services company has seen its PAT margins grow from 7.77 per cent in FY07 to 10.26 per cent in FY08. The board has recommended a final dividend of 11 per cent, or Rs 1.1 per share, for the face value of Rs 10 each share.
The company has made a loss provision of Rs 13.5 crore for the financial year 2007-08. The provision was made in its subsidiaries Religare Finvest and Religare Securities on account of bad debts arising out of margin funding and client defaults.
With Religare's provision, the total loss provisions by stock brokers in the country has reached Rs 63 crore. Earlier, Prime Securities made the highest provision of Rs 23 crore and J M Financial made a provision of Rs 12 crore. The maximum losses for stock brokers are arising out of the margin funding business, which went for a toss after the market meltdown since the start of 2008.
Meanwhile, the Reserve Bank of India has cancelled the certificate of registration granted to Fortis Financial Services as the company had voluntarily approached for the cancellation of the the NBFC licence.
When contacted, an official spokesperson for the company said ,"We have asked for the cancellation as Fortis Financial Services is changing the line of business to technology."
Source: Business Standard
SMALL PLAYERS DIVERSIFY INTO INSURANCE SERVICES BUSINESS
Mumbai: After the rush of Indian conglomerates and foreign insurers in all segments of the underwriting business, domestic companies, which service these firms in the life and non-life categories, are charting growth strategies in new areas.
A host of family-run companies that were earlier confined to a segment of the insurance services business, are now venturing into other areas. For instance, the Apollo group, promoted by the Reddys, has ventured into the broking segment by acquiring E-Meditek.
Similarly, Bhaichand Amulok group, which has an insurance and reinsurance broking company called Bhaichand Amoluk Consultancy Services, has acquired a 26 per cent stake in another broking firm Willis BA.
Willis BA, one of the largest players in brokerage market, holds shares in a TPA called Health India. A TPA is a specialised health service provider rendering a variety of services, like arranging for hospitalisation and processing and settling claims. On the other hand, an insurance broker's job is to get the best cover with the lowest premium for its corporate clients. There are 30 TPAs registered with Irda, which managed premiums of Rs 4,400 crore in 2007-08.
A host of other promoters, such as Delhi-based Vipul group, Alankit and Safeway, Heritage, are in the TPA segment as well as the broking business. There are many others, such as broking outfit India Insure Risk Management Services, which plan to have a presence in more than one segment of the insurance services market.
While the service providers are venturing into related fields, many in the insurance industry are complaining that regulations prohibit brokers from processing claims. Also, at the time of renewal of big ticket corporate policies, insurance brokers do not disclose the information that they have gathered from TPAs to insurance companies.
Experts said that there is a possible conflict of interest, too, as TPAs, with broking arms, may entertain borderline claims associated with the clients.
An official of the Insurance Regulatory & Development Authority, however, pointed out that while issuing licences, the regulator tries to ensure that there is no common promoter or director.
"If the two companies (the insurance broker and TPA) are within the same group, there should be different directors and different promoters for the two companies," the source said.
Source: Falaknaaz Syed
Business Standard
A host of family-run companies that were earlier confined to a segment of the insurance services business, are now venturing into other areas. For instance, the Apollo group, promoted by the Reddys, has ventured into the broking segment by acquiring E-Meditek.
Similarly, Bhaichand Amulok group, which has an insurance and reinsurance broking company called Bhaichand Amoluk Consultancy Services, has acquired a 26 per cent stake in another broking firm Willis BA.
Willis BA, one of the largest players in brokerage market, holds shares in a TPA called Health India. A TPA is a specialised health service provider rendering a variety of services, like arranging for hospitalisation and processing and settling claims. On the other hand, an insurance broker's job is to get the best cover with the lowest premium for its corporate clients. There are 30 TPAs registered with Irda, which managed premiums of Rs 4,400 crore in 2007-08.
A host of other promoters, such as Delhi-based Vipul group, Alankit and Safeway, Heritage, are in the TPA segment as well as the broking business. There are many others, such as broking outfit India Insure Risk Management Services, which plan to have a presence in more than one segment of the insurance services market.
While the service providers are venturing into related fields, many in the insurance industry are complaining that regulations prohibit brokers from processing claims. Also, at the time of renewal of big ticket corporate policies, insurance brokers do not disclose the information that they have gathered from TPAs to insurance companies.
Experts said that there is a possible conflict of interest, too, as TPAs, with broking arms, may entertain borderline claims associated with the clients.
An official of the Insurance Regulatory & Development Authority, however, pointed out that while issuing licences, the regulator tries to ensure that there is no common promoter or director.
"If the two companies (the insurance broker and TPA) are within the same group, there should be different directors and different promoters for the two companies," the source said.
Source: Falaknaaz Syed
Business Standard
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