Reliance Life’s performance

Reliance Life Insurance had achieved an impressive market share of 14.51% in March 2010 and as a whole in 2009-10 registered a growth of 10.5%. The company also has sold the maximum number of policies in the year 2009-10 among the private sector insurance companies and stands second in selling individual premium WRP (weighted received premium). Mr. Malay Ghosh, president of Reliance Life Insurance said “Retail focus, innovative products and strong distribution network were key growth drivers during the year that helped us improve our market share and retain number one slot in terms of number of policies sold in the private sector”. He also added that the company would give more attention on other smaller cities and would reach more customers, mainly smaller cities in this financial year.

Bajaj Allianze Life’s introduce new customer friendly policy

One of the leading private life insurers, Bajaj Allianze Life Insurance has introduced new product named “Invest Plus Premier”. It is a traditional plan with Guaranteed Investment Return.

The product can be bought in five simple steps.

Launching the product, Akshay Mehrotra, Head - Marketing, Bajaj Allianz Life Insurance, said, "Customer insights had revealed that they prefer an easy-to- understand and easy-to-buy life insurance policy. With Invest Plus Premier, we have incorporated these features besides offering "certain" benefits in these uncertain times." The product has flexibilities such as the customer can decide the policy as per his needs and instantly get the policy. Choice of options is available to choose sum assured of 10,15 and 20 times of annualized premiums. Even if the customer fail to pay the premium after paying continuously three years the life cover continues. Option to pay additional premiums. The sum assured and the accrued maturity value will be paid as the death benefit.

SBI Life’s impressive performance again

SBI Life Insurance has achieved a Net profit of Rs.276 crores in the financial year 2009-10. The company has achieved the unique target of crossing Rs.10000 crores in GWP (gross written premium) in the financial year 2010. The company has shown a remarkable growth of 40% in 2009-10 and its Asset under Management improved by 96% to Rs.28551 crore and New Business Annualised premium equivalent by 37% to Rs.6358 crores. SBI is one of the capital efficient Life insurance companies with a share capital of Rs.1000 crore and with a solvency ratio of 2.2.The company also maintains continuously the lowest” expense to GWP” ratio in industry at 6.5%.

IRDA goes ahead with ULIPs

IRDA had instructed the 14 insurance companies to conduct business as usual as SEBI had ‘no jurisdiction’ on the insurance companies. Following SEBI banning the sale of ULIPs by the 14 insurance companies, the IRDA had contended that there is no jurisdiction for SEBI.

Finance Ministry asked both of them to maintain status quo till pending legal resolution of the issue. But SEBI came up with the fresh order raising more doubts among insurance companies and policy holders.

Insurers to disclose commission on policies

The insurance regulator IRDA has told the insurers to disclose the commission paid to agents on each policy. A signed copy of the ‘benefit illustration alongwith the proposal form is mandatory for issuing a policy. IRDA in a circular said that all the companies would have to disclose the agent’s commission with effect from 1st July 2010. They said that this would bring more transparency by informing the policyholders the exact amount of commission/brokerage paid by insurers.

Bright growth of Life Insurance business in 2009-10

Life insurance Industry registered 25% growth during 2009-10 in their new business.
They have overcome the decline happened in the past year due to global recession. As per industry sources, total of 23 life insurers registered Rs.1.09 lakh crore of first year premium in 2009-10 against Rs.87108 crore in the previous year. The insurers faced degrowth of 6% in 2008-09.

ULIPs

The standing committee of parliament on finance has suggested to the ministry to look into the dispute between SEBI & IRDA on ULIPs and has also advised the finance ministry to institute comprehensive regulation for ULIPs.

Listing of Insurance companies under examination

Government is examining the possibilities of allowing the insurance companies for listing after five years instead of the present 10-year norm. Revision of lock in period for listing of insurance companies is under examination by govt. IRDA chairman Shri J. Harinarayan had said last month that IPO guidelines would take a month.

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