Despite an uncertain regulatory environment, the life insurance industry reported a growth of 8% in total premium income to Rs 286,500 crore in 2010-11 from Rs 265,450 crore in 2009-10 mainly because of increase in income by new policies. Total income is a combination of new and renewal premium.
During the period, renewal premium went up marginally by 3% to Rs 160,700 crore while new business premium income went up by 14.5% to Rs 125,800 crore. Insurance companies took various initiatives to curtail the expenses. According to the data released by Life Insurance Council, the number of direct employees has reduced from 2.67 lakh in 2009-10 to 2.42 lakh in 2010-11.
The number of agents has also reduced by 29.78 lakh to 26.47 lakh. They have shut down 553 branches to trim down costs. In addition, commission paid to agents has come down.
After completing 10 years of opening up, eight insurance companies have reported profit, including ICICI Prudential, SBI Life, Bajaj Allianz Life Insurance, Max New York Life and Kotak Life Insurance.
The industry paid a total death benefit of Rs 10,270 crore against Rs 8,385 crore in 2009-10. Also, as on March 2011, the number of in-force policies stood at Rs 32.54 crore, arguably the highest in the world.
The industry is high capital-intensive with Rs 31,437 crore capital deployed. Net investment by insurance companies has dropped to Rs 336,684 crore in 2010-11 from Rs 61,125 crore in the previous year. The industry invested Rs 506,895 crore in equity and Rs 952,993 crore in fixed income instruments.
The Life Insurance Council expects the industry boom in the coming decade with favorable demographic structure, increasing incomes and financial inclusion.
As per UN population division projections, India's population by 2015 will constitute of 30% individuals under age 14 and a whopping 60% in the age group of 15 to 59 years, indicating a potential high-growth prospect for the Indian Life Insurance industry. Household savings constituted 23% of India's gross domestic savings in 2009-10, compared with 5% in Brazil and 15% in China.
Showing posts with label Kotak Life Insurance. Show all posts
Showing posts with label Kotak Life Insurance. Show all posts
Tuesday, May 24, 2011
New policies help out life insurance companies develop 8%
Wednesday, November 17, 2010
E-Insurance launched by Kotak Life Insurance
The options for those looking to fulfill insurance needs on their own are widening. Kotak Mahindra Old Mutual Life Insurance launched its online term insurance product this month. As the company doesn’t incur expenses to reach out to a customer to sell the product, including the agent’s commission, it is priced 10% cheaper than the term insurance cover available during the company’s agents and distributors.
The buying procedure is almost related to the rest of the online products namely ICICI Prudential Life Insurance iProtect Term Insurance and Aegon Religare Life Insurance’s iTerm plan. While ICICI Prudential and Aegon Religare Life Insurance offer only yearly options of payment, Kotak has monthly, quarterly, half-yearly and yearly options of payment.
The maximum age at maturity under ICICI Prudential’s iProtect is 75 years, 65 years under Aegon Religare’s iTerm, but 70 years under Kotak Life’s e-insurance.
The company also offers a facility of tele-underwriting wherein customers are asked questions and in case answers are acceptable, then no medical tests are required. For sum assured of `30 lakh, no tests or tele-underwriting is valid. If you need medical tests, you will have to go to the hospital to get the tests done. Rest of the documents are picked up from your residence.
Though Kotak Life Insurance and ICICI Prudential offer a maximum term of 30 years, Aegon Religare Life offers a maximum term of 25 years. The premium for the lower term is higher for Aegon Religare than the other two players in the non-smoker category.
But is lower than the Kotak premium in case of a non-smoker. Aegon Religare does not differentiate between a smoker and a non-smoking female, while deciding the premium. Kotak Life actually prices premium for smokers higher than any of the online players.
Unique Option: One feature offered here is the step-up life cover, where you are in a position to pay higher premium and realise you need a higher sum assured, you can opt for it. However, there are charges for taking the step-up option, which is dependent on the premium and the term.
In case the policy is taken for less than 15 years, then you have to pay 3% of the basic premium, while 5% of the basic premium is levied in case the term is above 15 years.
No medical tests are required if you opt for the step-up option.
Why Go For it?: If you are a non-smoking woman, then the online term cover of Kotak Life is the cheapest in the market.
Why Not?: The policy pegs risk for smoking customers much higher than other similar options. Premium for smoking men and women is higher by 7-26% vis-à-vis other players.
The buying procedure is almost related to the rest of the online products namely ICICI Prudential Life Insurance iProtect Term Insurance and Aegon Religare Life Insurance’s iTerm plan. While ICICI Prudential and Aegon Religare Life Insurance offer only yearly options of payment, Kotak has monthly, quarterly, half-yearly and yearly options of payment.
The maximum age at maturity under ICICI Prudential’s iProtect is 75 years, 65 years under Aegon Religare’s iTerm, but 70 years under Kotak Life’s e-insurance.
The company also offers a facility of tele-underwriting wherein customers are asked questions and in case answers are acceptable, then no medical tests are required. For sum assured of `30 lakh, no tests or tele-underwriting is valid. If you need medical tests, you will have to go to the hospital to get the tests done. Rest of the documents are picked up from your residence.
Though Kotak Life Insurance and ICICI Prudential offer a maximum term of 30 years, Aegon Religare Life offers a maximum term of 25 years. The premium for the lower term is higher for Aegon Religare than the other two players in the non-smoker category.
But is lower than the Kotak premium in case of a non-smoker. Aegon Religare does not differentiate between a smoker and a non-smoking female, while deciding the premium. Kotak Life actually prices premium for smokers higher than any of the online players.
Unique Option: One feature offered here is the step-up life cover, where you are in a position to pay higher premium and realise you need a higher sum assured, you can opt for it. However, there are charges for taking the step-up option, which is dependent on the premium and the term.
In case the policy is taken for less than 15 years, then you have to pay 3% of the basic premium, while 5% of the basic premium is levied in case the term is above 15 years.
No medical tests are required if you opt for the step-up option.
Why Go For it?: If you are a non-smoking woman, then the online term cover of Kotak Life is the cheapest in the market.
Why Not?: The policy pegs risk for smoking customers much higher than other similar options. Premium for smoking men and women is higher by 7-26% vis-à-vis other players.
Tuesday, November 2, 2010
Cost-manage push up private insurers' profits
Private life insurance companies have posted robust profits in the second quarter of this fiscal aided by tight cost controls.
However, going forward, companies expect pressure on their profitability as the new regulations governing unit-linked plans could squeeze margins.
SBI Life Insurance posted a net profit of Rs 103 crore in the second quarter, against Rs 77 crore in the year-ago period, as the company reported one of the lowest expense to GWP (Gross Written Premium) ratio in the current fiscal. It brought down its expense to GWP ratio to 7.76 per cent from 9.18 per cent at the end of the first quarter. Mr M.N. Rao, Managing Director and Chief Executive Officer of SBI Life, said despite the challenging environment, the company could post good profits.
Bajaj Allianz Life Insurance reported a business profit of Rs 199 crore, against Rs 125 crore in the year ago period despite a slowdown in business in September.
Mr Sanjiv Bajaj, Managing Director, Bajaj Finserv, said the company focussed on cost rationalization measures to maintain its margins. “We brought down the total commission to GWP ratio to 7.52 per cent from 8.86 per cent. The ratio of operating expenses to GWP also came down to 16 per cent from 17.55 per cent,” he said.
New regulations
Kotak Life Insurance net profit increased to Rs 13.4 crore from Rs 4.4 crore. Mr G. Murlidhar, Chief Operating Officer, Kotak Life, said growth in new business premium along with stable expenditure helped the company register profits. “Our costs have always been under control as we have not been expanding much,” he said.
For most of the companies, new business premium growth slowed down in September after the new regulations came into effect. Going ahead, companies expect their profitability to be adversely impacted as sales slow down and margins get compressed.
Sales are likely to be sluggish for a few more quarters as agents get used to the new commission structures, said Mr Bajaj.
Margins will be adversely impacted in the new regulatory regime, said Mr Murlidhar.
However, going forward, companies expect pressure on their profitability as the new regulations governing unit-linked plans could squeeze margins.
SBI Life Insurance posted a net profit of Rs 103 crore in the second quarter, against Rs 77 crore in the year-ago period, as the company reported one of the lowest expense to GWP (Gross Written Premium) ratio in the current fiscal. It brought down its expense to GWP ratio to 7.76 per cent from 9.18 per cent at the end of the first quarter. Mr M.N. Rao, Managing Director and Chief Executive Officer of SBI Life, said despite the challenging environment, the company could post good profits.
Bajaj Allianz Life Insurance reported a business profit of Rs 199 crore, against Rs 125 crore in the year ago period despite a slowdown in business in September.
Mr Sanjiv Bajaj, Managing Director, Bajaj Finserv, said the company focussed on cost rationalization measures to maintain its margins. “We brought down the total commission to GWP ratio to 7.52 per cent from 8.86 per cent. The ratio of operating expenses to GWP also came down to 16 per cent from 17.55 per cent,” he said.
New regulations
Kotak Life Insurance net profit increased to Rs 13.4 crore from Rs 4.4 crore. Mr G. Murlidhar, Chief Operating Officer, Kotak Life, said growth in new business premium along with stable expenditure helped the company register profits. “Our costs have always been under control as we have not been expanding much,” he said.
For most of the companies, new business premium growth slowed down in September after the new regulations came into effect. Going ahead, companies expect their profitability to be adversely impacted as sales slow down and margins get compressed.
Sales are likely to be sluggish for a few more quarters as agents get used to the new commission structures, said Mr Bajaj.
Margins will be adversely impacted in the new regulatory regime, said Mr Murlidhar.
Saturday, April 17, 2010
All insurers debarred from issuing fresh ULIPs
Union Finance Ministry has stepped in the war between Securities and Exchange Board of India (SEBI) and Insurance Regulatory Development Authority (IRDA) over new unit linked insurance plans.
Insurance companies cannot issue any fresh ULIP products awaiting a court decision. The restriction is also relevant on the Life Corporation of India (LIC) and 8 others companies which be not named in the previous SEBI order that barred 14 insurers from issuing any new ULIP.
But all ULIPs issued before April 9 will carry on. The Finance Minister had already asked the insurance and market regulators to keep status quo on the SEBI order banning new unit linked plan or products by insurance companies.
The market regulator had on April 12 lifted its ban order forced on April 10 on selling of ULIPs by the 14 insurance companies after a meeting with IRDA and Finance Ministry officials in New Delhi.
The IRDA had rejected SEBI's resolution and asked the insurance companies to carry on with business as normal. The insurance regulator had invoked its powers under Section 34 (1) of the Insurance Act to take on SEBI.
SEBI wants all financial products to move to no entry load. ULIPs at present charge entry load.
The insurance companies against whom SEBI passed an order were SBI Life, ICICI Prudential, Tata AIG Life Insurance, Aegon Religare Life, Aviva Life, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sunlife, HDFC Standard Life, ING Vysya Life Insurance, Kotak Life Insurance, Max New York Life, Metlife India and Reliance Life Insurance.
Insurance companies cannot issue any fresh ULIP products awaiting a court decision. The restriction is also relevant on the Life Corporation of India (LIC) and 8 others companies which be not named in the previous SEBI order that barred 14 insurers from issuing any new ULIP.
But all ULIPs issued before April 9 will carry on. The Finance Minister had already asked the insurance and market regulators to keep status quo on the SEBI order banning new unit linked plan or products by insurance companies.
The market regulator had on April 12 lifted its ban order forced on April 10 on selling of ULIPs by the 14 insurance companies after a meeting with IRDA and Finance Ministry officials in New Delhi.
The IRDA had rejected SEBI's resolution and asked the insurance companies to carry on with business as normal. The insurance regulator had invoked its powers under Section 34 (1) of the Insurance Act to take on SEBI.
SEBI wants all financial products to move to no entry load. ULIPs at present charge entry load.
The insurance companies against whom SEBI passed an order were SBI Life, ICICI Prudential, Tata AIG Life Insurance, Aegon Religare Life, Aviva Life, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sunlife, HDFC Standard Life, ING Vysya Life Insurance, Kotak Life Insurance, Max New York Life, Metlife India and Reliance Life Insurance.
Friday, March 26, 2010
Pay insurance by way of Visa cards
Visa Debit and Credit card holders will now be able to pay their insurance premiums in a much easy way. As many as 20 insurance companies have tied up with Visa so as to allow premium payment for both life insurance and general insurance policies.
The companies participating in this tie up are Aegon Religare, Bajaj Allianz Life Insurance, Bajaj Allianz General, Bharti AXA Insurance, Birla Sunlife, Future Generali, HDFC Ergo, ICICI Lombard, ICICI Prudential Life Insurance, IDBI Fortis, ING Vysya, Kotak Life Insurance, Max New York Life, Metlife, Reliance General, Reliance Life, Royal Sundaram, SBI Life, Tata AIG General and Tata AIG Life Insurance.
Visa said. Customers having policies with these companies can now pay their premiums online using during the website www.visabillpay.in or the participating insurance company websites.
Previously the modes of premium payment available were check pick up, cash/ cheque etc.
Other than the internet there are other facilities too that are covered in the process. Customers can make payments over the phone through the call centers of their insurance companies or can teach their banks to make regular payment of their premiums through their Visa cards.
The insurance companies will be benefited as their operational good organization would increase due to timely receiving of insurance premiums. The other benefits that would be achieved by the insurance companies are reduced managing costs due to automated payment process. Thus the customer service would be increased and so would his observation.
The companies participating in this tie up are Aegon Religare, Bajaj Allianz Life Insurance, Bajaj Allianz General, Bharti AXA Insurance, Birla Sunlife, Future Generali, HDFC Ergo, ICICI Lombard, ICICI Prudential Life Insurance, IDBI Fortis, ING Vysya, Kotak Life Insurance, Max New York Life, Metlife, Reliance General, Reliance Life, Royal Sundaram, SBI Life, Tata AIG General and Tata AIG Life Insurance.
Visa said. Customers having policies with these companies can now pay their premiums online using during the website www.visabillpay.in or the participating insurance company websites.
Previously the modes of premium payment available were check pick up, cash/ cheque etc.
Other than the internet there are other facilities too that are covered in the process. Customers can make payments over the phone through the call centers of their insurance companies or can teach their banks to make regular payment of their premiums through their Visa cards.
The insurance companies will be benefited as their operational good organization would increase due to timely receiving of insurance premiums. The other benefits that would be achieved by the insurance companies are reduced managing costs due to automated payment process. Thus the customer service would be increased and so would his observation.
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