State-owned banking mechanism is the preferred choice for majority of salaried employees for insurance products given the reliability and security such institutions provide.
Over 60 per cent of salaried employees prefer state-owned banking mechanism, while 20 per cent prefer private banks for the same purpose and remaining 20 per cent have shown their indifference to either of the two. However, half of the salaried employees prefer private sector for mutual fund (MF) products, while only 20 per cent prefer public sector banks (PSBs) for the same, the study, which interviewed over 250 salaried employees. About 20 per cent are indifferent to either of the two sectors for parking their funds in MFs, while 10 per cent do not avail this service. Over 40 per cent of the employees prefer PSBs for purposes of investment in bonds and securities as compared to 30 per cent who prefer the private banks.
For bonds and securities, businessmen's preference is the other way round i.e. 80 per cent preferring PSBs. For Demat services, 40 per cent prefer private banks while 20 per cent are indifferent. For opening demand deposit accounts 40 per cent of businessmen prefer PSBs, while the same percentage prefer the private banks for demand deposit.
For credit cards and ATMs, 60 per cent of the businessmen prefer PSBs, while for debit cards 40 per cent prefer private banks, 20 per cent prefer PSBs and 20 per cent being indifferent.
Source: www.insuremagic.com
Wednesday, May 14, 2008
ICICI Pru to ramp up rural presence
13/May/2008
In line with its thrust on establishing added rural presence, ICICI Prudential Life Insurance will expand its presence in interior Kerala this year.
They have decided to open at least five new branches in Kerala this year. The locations are being finalized. This is part of the company's initiative to grow more in the tier-II and tier-III locations this year.
Adding that the life insurance player has made a successful foray into the rural segment posting significant growth in fiscal 2007-08. The company had opened over 1,000 rural branches in 12 states.
It had also launched tie-ups with key state-governed institutes to increase convenience among rural customers. During fiscal 2007-08, it tied up with the Department of Posts in the states of Andhra Pradesh, Uttar Pradesh, Punjab and Gujarat.
In Kerala, apart from the Department of Posts, we have formed an alliance with South Indian Bank to provide convenient premium paying facilities to customers. The bank also sells our products.
The bank has more than tripled its distribution capabilities and the number of branches has gone up from 583 to 1,950 across the country. This includes the 1,000-plus micro branches in the rural segment.
The company had maintained its position as the largest private life insurer for the seventh year in a row. It currently manages the largest funds among private life insurance companies with over Rs 28,000 crore of assets and the total capital base stands at Rs 3,772 crore.
Source: Domain-b
In line with its thrust on establishing added rural presence, ICICI Prudential Life Insurance will expand its presence in interior Kerala this year.
They have decided to open at least five new branches in Kerala this year. The locations are being finalized. This is part of the company's initiative to grow more in the tier-II and tier-III locations this year.
Adding that the life insurance player has made a successful foray into the rural segment posting significant growth in fiscal 2007-08. The company had opened over 1,000 rural branches in 12 states.
It had also launched tie-ups with key state-governed institutes to increase convenience among rural customers. During fiscal 2007-08, it tied up with the Department of Posts in the states of Andhra Pradesh, Uttar Pradesh, Punjab and Gujarat.
In Kerala, apart from the Department of Posts, we have formed an alliance with South Indian Bank to provide convenient premium paying facilities to customers. The bank also sells our products.
The bank has more than tripled its distribution capabilities and the number of branches has gone up from 583 to 1,950 across the country. This includes the 1,000-plus micro branches in the rural segment.
The company had maintained its position as the largest private life insurer for the seventh year in a row. It currently manages the largest funds among private life insurance companies with over Rs 28,000 crore of assets and the total capital base stands at Rs 3,772 crore.
Source: Domain-b
Now, pay insurance premium via your mobile
MAX New York Life Insurance announced the launch of a convenient and secure payment solution for its policyholders to make policy payments using their mobile phones. Powered by Citibank and mChek, this smart and secure solution enables policyholders to pay their renewal premiums, subscribe to and top-up investments in ULIPs and links the charges to their preferred bank account or credit card.
The company values policy holders’ faith in them and is committed to bringing benefits of modern technology at their fingertips. Their customers can now use this ubiquitous channel and transact on a 24X7 basis. Due to delay in payments, many policies lapse or policyholders have to shell out additional charges for their policy revival. This new service is an attempt at streamlining timely payments by policyholders to ensure that they remain financially protected throughout the term of the policy.
All transactions are secured by a mChekPIN, and encrypted end-to-end with 3DES encryption, ensuring banking-grade security from the convenience of the mobile phone. Settlements are powered by Citi’s cash management services.
Citi is committed to providing innovative, practical and secure payment solutions. We pioneered payments by mobile phones and are pleased to extend this service to Max New York Life and its customers. In banking and payment transactions, secure remote authorizations are crucial and we are delighted to work closely with Citi and Max New York Life to pioneer the use of the mobile phone for such transactions.
Source: Reuters
The company values policy holders’ faith in them and is committed to bringing benefits of modern technology at their fingertips. Their customers can now use this ubiquitous channel and transact on a 24X7 basis. Due to delay in payments, many policies lapse or policyholders have to shell out additional charges for their policy revival. This new service is an attempt at streamlining timely payments by policyholders to ensure that they remain financially protected throughout the term of the policy.
All transactions are secured by a mChekPIN, and encrypted end-to-end with 3DES encryption, ensuring banking-grade security from the convenience of the mobile phone. Settlements are powered by Citi’s cash management services.
Citi is committed to providing innovative, practical and secure payment solutions. We pioneered payments by mobile phones and are pleased to extend this service to Max New York Life and its customers. In banking and payment transactions, secure remote authorizations are crucial and we are delighted to work closely with Citi and Max New York Life to pioneer the use of the mobile phone for such transactions.
Source: Reuters
IRDA panel moots changes in distribution set-up
13/May/2008
The Committee on Distribution Channels, constituted by the Insurance Regulatory and Development Authority (Irda), has recommended that banks should not have referral arrangements with more than one life insurer and a non-life insurer.
The committee also recommended a drastic reduction in the capital required for a corporate agent from Rs 15 lakh to Rs 1 lakh. Irda, which constituted the committee on September 21, 2007.
In its 60-page report, the 10-member committee constituted under the chairmanship of NM Govardhan, former chairman of LIC, stated that urban cooperative banks, regional rural banks, microfinance institutions registered with the RBI and non-government organizations registered as trusts should be permitted to distribute micro insurance policies.
The committee also recommended direct marketing and web-based selling of all insurance products. These should be developed as channels to reach out to the mass market with simple products requiring limited or no advisory.
The report also stated that a customer who buys through the telecalling mode should be provided a printed copy of the caller's questions and the resultant responses. In case of e-mail interactions, encryption should be used to protect the target person's privacy.
The committee has made over two dozen recommendations on retail products with the intention of increasing the penetration of general insurance in the country.
Max New York Life Insurance Company emphasized that banks should be permitted to sell products of more than one life insurer. This would be in the interest of the customer and has also been strongly recommended by the Indian Banks Association.
Source: www.insuremagic.com
The Committee on Distribution Channels, constituted by the Insurance Regulatory and Development Authority (Irda), has recommended that banks should not have referral arrangements with more than one life insurer and a non-life insurer.
The committee also recommended a drastic reduction in the capital required for a corporate agent from Rs 15 lakh to Rs 1 lakh. Irda, which constituted the committee on September 21, 2007.
In its 60-page report, the 10-member committee constituted under the chairmanship of NM Govardhan, former chairman of LIC, stated that urban cooperative banks, regional rural banks, microfinance institutions registered with the RBI and non-government organizations registered as trusts should be permitted to distribute micro insurance policies.
The committee also recommended direct marketing and web-based selling of all insurance products. These should be developed as channels to reach out to the mass market with simple products requiring limited or no advisory.
The report also stated that a customer who buys through the telecalling mode should be provided a printed copy of the caller's questions and the resultant responses. In case of e-mail interactions, encryption should be used to protect the target person's privacy.
The committee has made over two dozen recommendations on retail products with the intention of increasing the penetration of general insurance in the country.
Max New York Life Insurance Company emphasized that banks should be permitted to sell products of more than one life insurer. This would be in the interest of the customer and has also been strongly recommended by the Indian Banks Association.
Source: www.insuremagic.com
Insurance products may soon be sold over the net, phone
14/May/2008
You may soon be able meet all your insurance needs online. Web-based selling and tele-marketing of all insurance policies could be a realty if the insurance regulator accepts the recommendations of an expert committee on distribution channels for insurance products.
The panel has recommended new sales channels for retail insurance products with safeguards such as provision of encryption to protect the target person’s privacy or a voice record of sales call. Tele-marketing agencies should follow the norms laid down by the telecom and insurance regulators, the panel said. Direct marketing channels for insurance products are popular in Australia, Korea, Japan, China, Indonesia, the UK, among others. The distribution channels here include agency, corporate agency, bancassurance, referrals and direct sales. New channels will enable insurers to increase insurance penetration.
Although insurance companies sell some products online, they are not able to sell all products on the net as existing laws require a signed proposal form. For instance in marine cargo insurance, which is governed under a separate act, the proposal form is treated as the basis of a contract.
The committee was mandated to assess the functioning of these channels, factoring in view constraints faced by general insurance agents, including low-ticket size, fixed commission rates and restrictions on selling products of more than one insurer. It has made a slew of recommendations, including differential commission, pricing and product structure for various channels to give flexibility to insurers and reducing the capital required for a corporate agent from Rs 15 lakh to Rs 1 lakh, among others. It has also suggested allowing banks and financial service companies — with group companies that have a separate management and an independent line of business — to have different corporate agencies. The net-worth criteria would be over Rs 10 crore.
Currently, banks are barred from setting up a broking company. The panel reckons that safeguards need to be provided in the form of a minimum capital of Rs 1 crore to ensure that such group companies have not been floated for backdoor entry into broking. But it has voted against multiple tie-ups of a corporate agent with an insurer. This could be a big dampener for banks that were hoping to sell products of several insurers. Banks had argued that they offer products of multiple mutual funds and hence, should be allowed to sell insurance products of multiple companies. The panel has recommended considering a model akin to Independent Financial Advisors (IFA) in the future.
It has also made out a case for a change in the definition of corporate agents to include an institution or an organization other than a person. The panel has proposed calling referral providers as introducers like in the UK. The UK model of introducer envisages the introduction of customers to insurance products. But the sale has to be concluded by an insurer.
Banks should not have referral arrangement with more than one life insurer and one non-life insurer. These recommendations, if implemented, would require changes in the Corporate Agents Regulations 2002.
Broadening the definition of a micro-insurance agency to include rural kiosks and other rural distribution networks also features in the recommendations. Micro-insurance agents should be allowed to work with multiple insurers.
Source: www.insuremagic.com
You may soon be able meet all your insurance needs online. Web-based selling and tele-marketing of all insurance policies could be a realty if the insurance regulator accepts the recommendations of an expert committee on distribution channels for insurance products.
The panel has recommended new sales channels for retail insurance products with safeguards such as provision of encryption to protect the target person’s privacy or a voice record of sales call. Tele-marketing agencies should follow the norms laid down by the telecom and insurance regulators, the panel said. Direct marketing channels for insurance products are popular in Australia, Korea, Japan, China, Indonesia, the UK, among others. The distribution channels here include agency, corporate agency, bancassurance, referrals and direct sales. New channels will enable insurers to increase insurance penetration.
Although insurance companies sell some products online, they are not able to sell all products on the net as existing laws require a signed proposal form. For instance in marine cargo insurance, which is governed under a separate act, the proposal form is treated as the basis of a contract.
The committee was mandated to assess the functioning of these channels, factoring in view constraints faced by general insurance agents, including low-ticket size, fixed commission rates and restrictions on selling products of more than one insurer. It has made a slew of recommendations, including differential commission, pricing and product structure for various channels to give flexibility to insurers and reducing the capital required for a corporate agent from Rs 15 lakh to Rs 1 lakh, among others. It has also suggested allowing banks and financial service companies — with group companies that have a separate management and an independent line of business — to have different corporate agencies. The net-worth criteria would be over Rs 10 crore.
Currently, banks are barred from setting up a broking company. The panel reckons that safeguards need to be provided in the form of a minimum capital of Rs 1 crore to ensure that such group companies have not been floated for backdoor entry into broking. But it has voted against multiple tie-ups of a corporate agent with an insurer. This could be a big dampener for banks that were hoping to sell products of several insurers. Banks had argued that they offer products of multiple mutual funds and hence, should be allowed to sell insurance products of multiple companies. The panel has recommended considering a model akin to Independent Financial Advisors (IFA) in the future.
It has also made out a case for a change in the definition of corporate agents to include an institution or an organization other than a person. The panel has proposed calling referral providers as introducers like in the UK. The UK model of introducer envisages the introduction of customers to insurance products. But the sale has to be concluded by an insurer.
Banks should not have referral arrangement with more than one life insurer and one non-life insurer. These recommendations, if implemented, would require changes in the Corporate Agents Regulations 2002.
Broadening the definition of a micro-insurance agency to include rural kiosks and other rural distribution networks also features in the recommendations. Micro-insurance agents should be allowed to work with multiple insurers.
Source: www.insuremagic.com
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