After playing second fiddle to the life insurance industry for several years, the non-life business has roared back into growth mode. In the first six months of the current fiscal, the industry has recorded 23% growth and there are signs that profitability has improved as well.
“In a stable price environment, the non-life industry should grow by 2-2 .5 times the rate of GDP growth. What we are now seeing is some stability in pricing coupled with opening up of hitherto untapped sectors because of government schemes like the Rashtriya Swastha Bima Yojana,” said ICICI managing director Bhargav Dasgupta .
The growth rate in the first half is almost twice the 13% growth recorded in the whole of 2009-10.
The last time the non-life industry saw such growth was in 2005-06. After that, the insurance regulator freed pricing on all lines of businesses which led to a fall in prices. While the reduction was as high as 80% in the property insurance, the competition also ensured that prices of health and motor insurance — the fastest growing segments were kept under check despite high claims ratio.
“Pricing has improved in health, but in parts of motor insurance, it continues to remain very competitive,” said Mr. Dasgupta. What has kept the price war alive was the continuous entry of new players in the market who were willing to sacrifice margins to build up an underwriting book.
For the first half of the current fiscal, private insurers have recorded total premium of . 9,204 crore against. 7,312 crore in FY10 — recording a growth of 25.9%. Stateowned insurers have collected total premium of . 14,500 crore in the first half of FY11 against . 11,184 crore in the previous year — resulting in a 21% growth.
While health insurance continues to be a major driver of growth — with a 40% rise in health premium in the first half of FY11, all other segments, barring property insurance have recorded a healthy growth. Health insurance today accounts for more than one-fifth of total premium in the country.
Aviation insurance, which has seen some price hardening, coupled with an increase in fleet size, has grown by 40% in the first half. Marine Cargo, which is a reflection of trade in goods, grew 26.3%.
Among companies, HDFC Ergo continues to be one of the most aggressive growing by 49%. ICICI Lombard General Insurance — leader among private companies — has grown 32%. Tata AIG General has also managed a 33% growth despite its foreign parent’s troubles internationally.
Reliance General Insurance , which is currently in merger talks with Royal Sundaram General Insurance is the only private insurer to have shown a drop in premium income (-24 %).
Friday, October 15, 2010
Monday, October 11, 2010
How to find cheap auto insurance?
YES, Cheap Auto Insurance is possible. But getting it cheap is synonyms with little extra work to take advantage of savings that aren't always advertised. Here is heads up to what you need to know to find the best deal on auto insurance:
Shopping ability
If you want to cut down your insurance costs, you need to do two things;
1. Understand exactly how much coverage you need. The question is how much you'll pay for coverage in these three categories:
a. Bodily injury liability for a single person,
b. Bodily injury liability for all injured parties and
c. Property damage liability.
2. Compare before you shop. When it comes to getting the best deal on your auto insurance, you have to compare auto insurance quotes. You can use online calculators available on www.bimadeals.com to streamline your search as well as reach out to our customer care representatives for a quote.
Cut costs
There are various ways to save on auto insurance but nothing beats to cutting costs. How?
• You can raise your deductible, but the downside is that you'll pay more out of pocket after an accident.
• Or reduce your coverage. You don't want to go below your state's minimum guidelines, but if you're looking to save, you need to ask if you're overvaluing your assets and the coverage you need.
• You may want to drop some coverage altogether. It may not add up to much, but you may not need coverage that provides rental car and towing coverage.
Look for discounts
Yes, its true the key to cheap motor insurance is to maximize discounts. Insurers have been known to offer discounts based on the type of work you do, your driving record and whether you're married. Insurers also offer discounts for those who pay their yearly premium in full, and there's usually a discount for insuring more than one vehicle on the same policy.
So, follow these basic tips and get the cheapest auto insurance easily.
Shopping ability
If you want to cut down your insurance costs, you need to do two things;
1. Understand exactly how much coverage you need. The question is how much you'll pay for coverage in these three categories:
a. Bodily injury liability for a single person,
b. Bodily injury liability for all injured parties and
c. Property damage liability.
2. Compare before you shop. When it comes to getting the best deal on your auto insurance, you have to compare auto insurance quotes. You can use online calculators available on www.bimadeals.com to streamline your search as well as reach out to our customer care representatives for a quote.
Cut costs
There are various ways to save on auto insurance but nothing beats to cutting costs. How?
• You can raise your deductible, but the downside is that you'll pay more out of pocket after an accident.
• Or reduce your coverage. You don't want to go below your state's minimum guidelines, but if you're looking to save, you need to ask if you're overvaluing your assets and the coverage you need.
• You may want to drop some coverage altogether. It may not add up to much, but you may not need coverage that provides rental car and towing coverage.
Look for discounts
Yes, its true the key to cheap motor insurance is to maximize discounts. Insurers have been known to offer discounts based on the type of work you do, your driving record and whether you're married. Insurers also offer discounts for those who pay their yearly premium in full, and there's usually a discount for insuring more than one vehicle on the same policy.
So, follow these basic tips and get the cheapest auto insurance easily.
Sunday, October 10, 2010
Term Life Insurance Policy | Parties & Participants
The parties and participants in a term life insurance contract include
• The company providing the coverage - The policy owner and the insured individual of the policy are not necessarily the same person although they usually are.
• The owner of the policy – The policy owner is the one who will pay for the policy. It can be, and usually is, the person who is covered by the contract. But the policy owner can be the spouse of the insured or a relative or even a business partner. Companies try to limit purchase of life insurance policies to those who have an insurable interest in the covered individual so the purchaser will actually suffer type of loss from the death of the individual.
• The insured individual - The insured individual is the one whose death causes the payment of the coverage amount of the policy. The insured individual is a participant but not necessarily a party to the contract. It is the this individual's health history, current health condition, family health history, status as a smoker, age, gender, etc. upon which the eligibility for coverage and premium amount are established.
• The beneficiary of the proceeds of the policy - The beneficiary is the named individual or entity who will receive the proceeds of the term insurance policy upon the death of the insured individual. The owner of the policy names who the beneficiary of the policy would be. The beneficiary is a participant but not a party to the contract. If the policy has an irrevocable beneficiary clause then that beneficiary must agree to any change in whom, the named beneficiary is.
Insurance companies have eliminated policy owners insuring individuals with whom the policy owner had no insurable interest (that is, who would not suffer a loss upon the death of, the insured). This was done to reduce speculative or scheming interest in insuring someone.
• The company providing the coverage - The policy owner and the insured individual of the policy are not necessarily the same person although they usually are.
• The owner of the policy – The policy owner is the one who will pay for the policy. It can be, and usually is, the person who is covered by the contract. But the policy owner can be the spouse of the insured or a relative or even a business partner. Companies try to limit purchase of life insurance policies to those who have an insurable interest in the covered individual so the purchaser will actually suffer type of loss from the death of the individual.
• The insured individual - The insured individual is the one whose death causes the payment of the coverage amount of the policy. The insured individual is a participant but not necessarily a party to the contract. It is the this individual's health history, current health condition, family health history, status as a smoker, age, gender, etc. upon which the eligibility for coverage and premium amount are established.
• The beneficiary of the proceeds of the policy - The beneficiary is the named individual or entity who will receive the proceeds of the term insurance policy upon the death of the insured individual. The owner of the policy names who the beneficiary of the policy would be. The beneficiary is a participant but not a party to the contract. If the policy has an irrevocable beneficiary clause then that beneficiary must agree to any change in whom, the named beneficiary is.
Insurance companies have eliminated policy owners insuring individuals with whom the policy owner had no insurable interest (that is, who would not suffer a loss upon the death of, the insured). This was done to reduce speculative or scheming interest in insuring someone.
Saturday, October 9, 2010
Is it possible to increase life insurance policy?
You could have numerous reasons to want to increase your life insurance coverage. Namely,
• If your insurance does not provide for growing inflation
• It could be due to a growing family,
• New job
Above mentioned could thereby require more insurance in order to keep up their quality of life.
For the above mentioned reasons you could be interested to expand your life insurance coverage. In order to do this firstly, it is important to consider how much life insurance you need.
Experts advise that ideally a life insurance policy worth should be roughly eight or 10 times the holder's annual salary. Thus, if you wish to expand your coverage then you could purchase an appropriate policy easily.
But you should bear in mind of how the cost of life insurance increases as you age, as well as various other factors.
• If your insurance does not provide for growing inflation
• It could be due to a growing family,
• New job
Above mentioned could thereby require more insurance in order to keep up their quality of life.
For the above mentioned reasons you could be interested to expand your life insurance coverage. In order to do this firstly, it is important to consider how much life insurance you need.
Experts advise that ideally a life insurance policy worth should be roughly eight or 10 times the holder's annual salary. Thus, if you wish to expand your coverage then you could purchase an appropriate policy easily.
But you should bear in mind of how the cost of life insurance increases as you age, as well as various other factors.
Friday, October 8, 2010
How to find missing life insurance policies?
It happens…
It could even happen with you!
Suppose you cannot find an insurance policy which was paid by your parent over 20 years back.
This is a tough problem, yet one many beneficiaries have faced.
When you don't know the name of the life insurance company, a good first step is to look for evidence of premium payments by going through copies of canceled checks or credit card statements, which would show the name of the insurer. This may be difficult since your parent’s were making the payments.
Life insurance companies make efforts to contact policyholders after they stop sending premiums, but if no one ever steps forward, they can't pay out the death benefit. If the insurance company knows the person died but can't locate the beneficiaries, it turns the death benefit over to the state as unclaimed property. States maintain databases of beneficiaries who are heirs of lost policyholders. Check with your state to see how to look up whether you are listed. In addition, the National Association of Unclaimed Property Administrators offers a MissingMoney.com Web site that lets you search nationwide for missing money, including life insurance policies that have been deemed unclaimed and transferred to the state.
Know more about Life Insurance
It could even happen with you!
Suppose you cannot find an insurance policy which was paid by your parent over 20 years back.
This is a tough problem, yet one many beneficiaries have faced.
When you don't know the name of the life insurance company, a good first step is to look for evidence of premium payments by going through copies of canceled checks or credit card statements, which would show the name of the insurer. This may be difficult since your parent’s were making the payments.
Life insurance companies make efforts to contact policyholders after they stop sending premiums, but if no one ever steps forward, they can't pay out the death benefit. If the insurance company knows the person died but can't locate the beneficiaries, it turns the death benefit over to the state as unclaimed property. States maintain databases of beneficiaries who are heirs of lost policyholders. Check with your state to see how to look up whether you are listed. In addition, the National Association of Unclaimed Property Administrators offers a MissingMoney.com Web site that lets you search nationwide for missing money, including life insurance policies that have been deemed unclaimed and transferred to the state.
Know more about Life Insurance
Thursday, October 7, 2010
Dept of Posts wants IRDA to control its insurance schemes
In a first significant step towards consolidating similar financial products under one regulator, the department of posts (DoP) is exploring the option of handing over the regulation of its insurance products to the sector regulator, Insurance Regulatory and Development Authority (IRDA), a move prompted by the ugly spat between the insurance regulator and the stock market watchdog, Securities and Exchange Board Of India (SEBI), over the regulation of unit-linked insurance products (ULIPs).
The DoP has sought the law ministry’s opinion on whether the insurance schemes run by it could be brought under the regulatory ambit of the IRDA. It has also proposed to create a corporate entity to handle the schemes.
The decision to refer the matter to the law ministry was taken after the IRDA expressed its inability to regulate financial activities of the government (the DoP), which controls the insurance business of India Post, a government official told ET.
The finance ministry has favoured setting up of a corporate-like identity to handle India Post’s insurance business that can be regulated under IRDA norms, said the official, requesting anonymity. While the IRDA is not opposed to the idea, it wants greater clarity on the matter as it will require changes to the legal framework that govern the insurance policies of the postal department.
The opinion of the law ministry could pave the way for bringing the insurance business of the postal department under the IRDA’s jurisdiction. The department, which sells policies under the postal life insurance and rural postal life insurance schemes, acts within the framework of the Insurance Act. The IRDA has also pointed out that with the premium calculations of the postal department not on an actuarial basis, the postal life insurance schemes could be notching up serious deficits.
The postal department feels that an IRDA-regulated framework will allow it to make the scheme more flexible. The DoP, which acts as an agent of the finance ministry for its insurance schemes, lacks autonomy required to introduce new schemes or even providing attractive discounts to lure customers.
“The department is required to seek direction from the finance ministry for all policy matters like extension of scope to cover other clients and introduction of new products,” said an official with the ministry of telecommunications and IT.
Even as the debate on regulatory control of postal life insurance goes on, the department has also requested for greater autonomy to its insurance schemes as it looks to expand its financial services business. “Corporatisation of the life insurance business will enable the postal department to compete with private insurance players on a level playing field,” said the postal department official.
Private players have welcomed the move. “The move will help bring consistency in norms and activity pertaining to life insurance business,” said Kapil Mehta, MD & CEO of DLF Pramerica Life Insurance Company of India. He added that the proposal, when implemented, will provide the postal department a level playing field as regards right products and schemes into the rural segment, which has been the primary focus for private players as well.
The DoP has sought the law ministry’s opinion on whether the insurance schemes run by it could be brought under the regulatory ambit of the IRDA. It has also proposed to create a corporate entity to handle the schemes.
The decision to refer the matter to the law ministry was taken after the IRDA expressed its inability to regulate financial activities of the government (the DoP), which controls the insurance business of India Post, a government official told ET.
The finance ministry has favoured setting up of a corporate-like identity to handle India Post’s insurance business that can be regulated under IRDA norms, said the official, requesting anonymity. While the IRDA is not opposed to the idea, it wants greater clarity on the matter as it will require changes to the legal framework that govern the insurance policies of the postal department.
The opinion of the law ministry could pave the way for bringing the insurance business of the postal department under the IRDA’s jurisdiction. The department, which sells policies under the postal life insurance and rural postal life insurance schemes, acts within the framework of the Insurance Act. The IRDA has also pointed out that with the premium calculations of the postal department not on an actuarial basis, the postal life insurance schemes could be notching up serious deficits.
The postal department feels that an IRDA-regulated framework will allow it to make the scheme more flexible. The DoP, which acts as an agent of the finance ministry for its insurance schemes, lacks autonomy required to introduce new schemes or even providing attractive discounts to lure customers.
“The department is required to seek direction from the finance ministry for all policy matters like extension of scope to cover other clients and introduction of new products,” said an official with the ministry of telecommunications and IT.
Even as the debate on regulatory control of postal life insurance goes on, the department has also requested for greater autonomy to its insurance schemes as it looks to expand its financial services business. “Corporatisation of the life insurance business will enable the postal department to compete with private insurance players on a level playing field,” said the postal department official.
Private players have welcomed the move. “The move will help bring consistency in norms and activity pertaining to life insurance business,” said Kapil Mehta, MD & CEO of DLF Pramerica Life Insurance Company of India. He added that the proposal, when implemented, will provide the postal department a level playing field as regards right products and schemes into the rural segment, which has been the primary focus for private players as well.
Tuesday, October 5, 2010
IDBI Federal aim at 70% increase in total premium
IDBI Federal Life Insurance yesterday said it is aiming at a 70(%) per cent growth in total premium collections throughout the current fiscal.
Established in March, 2008, IDBI Federal Life had recorded a total business premium of Rs 400 crore in the 2009-10 financial years.
"Our premium income during the April-August period grew by 70(%) per cent to Rs 251 crore. We are hoping to close the fiscal with a related growth in premium income," IDBI Federal MD and CEO G V Nageswara Rao told PTI.
The company also plans to come with one new product in both the ULIP and traditional section by the end of the fiscal.
"We will focus on retirement and child plan products under the category of ULIP and traditional products, for which we would be filing to the regulator, IRDA," Rao said.
IDBI Federal is a joint venture of IDBI Bank, Federal Bank and European Insurance firm Ageas (earlier known as Fortis Insurance International), with a shareholding of 48(%) per cent, 26(%) per cent and 26(%) per cent, respectively.
The insurer has issued over 2.10 lakh policies offering an assured sum of Rs 9,819 crore till July, 2010, and has a presence in 53 cities.
In terms of premium collections from new business, the company's incomes grow by 23(%) per cent to Rs 135 crore at the end of August.
"We aim at a similar growth trend in new business income for the remaining half of the fiscal," Rao said.
The company had last month launched a new ULIP product, Federal Wealthsurance Milestone Plan, which was compliant with the new IRDA guidelines.
As per the new IRDA guidelines effective from September 1, the commission paid to distributors and expenses charged by insurers will no longer be front-loaded and will be distributed over the lock-in period of the schemes, which has been raised to 5 years from 3 years earlier.
Currently, ULIP products account for about 80(%) per cent of the total premium collected by the 23 private life insurance companies.
Established in March, 2008, IDBI Federal Life had recorded a total business premium of Rs 400 crore in the 2009-10 financial years.
"Our premium income during the April-August period grew by 70(%) per cent to Rs 251 crore. We are hoping to close the fiscal with a related growth in premium income," IDBI Federal MD and CEO G V Nageswara Rao told PTI.
The company also plans to come with one new product in both the ULIP and traditional section by the end of the fiscal.
"We will focus on retirement and child plan products under the category of ULIP and traditional products, for which we would be filing to the regulator, IRDA," Rao said.
IDBI Federal is a joint venture of IDBI Bank, Federal Bank and European Insurance firm Ageas (earlier known as Fortis Insurance International), with a shareholding of 48(%) per cent, 26(%) per cent and 26(%) per cent, respectively.
The insurer has issued over 2.10 lakh policies offering an assured sum of Rs 9,819 crore till July, 2010, and has a presence in 53 cities.
In terms of premium collections from new business, the company's incomes grow by 23(%) per cent to Rs 135 crore at the end of August.
"We aim at a similar growth trend in new business income for the remaining half of the fiscal," Rao said.
The company had last month launched a new ULIP product, Federal Wealthsurance Milestone Plan, which was compliant with the new IRDA guidelines.
As per the new IRDA guidelines effective from September 1, the commission paid to distributors and expenses charged by insurers will no longer be front-loaded and will be distributed over the lock-in period of the schemes, which has been raised to 5 years from 3 years earlier.
Currently, ULIP products account for about 80(%) per cent of the total premium collected by the 23 private life insurance companies.
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