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Volume 7, Issue 5, April 2011
 


Star Union’s impressive performance
Star Union Dai-Ichi Life had achieved 73.21 percent growth amounting to Rs.936.70 crore premimum collection compared to previous year. The company aims to achieve the profitable status from the date of commencement in five years. The company completed 26 months and in the period done Rs.1323.89 crore in new business premium. Mr. Sahay said, “The company is expected to maintain its low cost operation model. The operating expense ratio for the year is expected to be below 15 per cent of total premium”.

The company so far settled 90% of death claims upto 31st March 2011. Around 23% premium collected from rural market, against IRDA stipulation of 9%

SBI Life’s performance in 2010-11
SBI Life’s net profit touched Rs.366 crore in the financial year 2010-11, an increase of 33% compared with the previous year. The total premium income also increased to 28%. Mr. M.N. Rao, MD., SBI Life said, “The containment of expenses ratio, the growth in the renewal premium and persistency levels were key drivers behind the increased profitability”. 42% of the premium came from agency channel and 37% from bancassurance. 69% business came from ULIPs. New policies in the year 2010-11 reduced to 13 lakh compared to previous years’ of 19 lakhs. SBI Life expecting a growth of 35% in total premium in the current year.

Max NewYork Life may break-even this year
Max New York Life is expecting the break-even in this fiscal year and it does not need any captital to be infused this year to improve the business. The comapany has at present Rs.2000 crore paid-up capital. Ms. Anisha Motwani, Director and Chief Marketing Officer, MNYL said, “We have already reported profit in the third quarter of the previous fiscal and were one of the few insurers to post a growth in sales despite the announcement of the tighter norms on the sale of Unit-Linked Insurance Plans. We should break-even this year and do not expect to add any more capital this fiscal as our reserves are adequate”. The company intend to expand the marketing activities and to continue the brand-building.

‘E’ insurance policies – IRDA guidelines
To enable cost reduction and faster modification in insurance policies IRDA has issued guidelines for policy issuance electronically, and this also lays down requirement of repositories. Insurance Regulatory and Development Authority said, “The objective of creating an insurance repository is to provide policyholders a facility to keep insurance policies in electronic form and to undertake changes, modifications and revisions in the insurance policy with speed and accuracy”. An insurer has to take services of a registered depository to issue’ e-insurance policies’. The repositories need a certificate and should also fulfill conditions as per IRDA guidelines.

HDFC Standard Life’s IPO delayed
HDFC Standard Life intend to postpone the release of its initial public offiering to next year. The company deferred its proposal due to slowing down of the industry in general and their valuations in particular. The company feels passage of insurance bill by parliament will boost the industry.

India First Life’s fastest achievement
IndiaFirst Life declared that the company achieved Rs. 900 crore in its new business premium in 500 days of operations. The company achieved Rs.100 crore in 100 days of operations and Rs.300 crore in within nine months. This is the highest ever start-up phase productivity. The company so far sold 1.2 million policies. They also intend to launch health insurance and pension plan in the near future. The company has at present 350 agents and would increse to 1000. The company also plan to extend its network to all 4800 branches of its partner banks. To strength its reach it also plan to launch its alternate distributing channel.

Life Insurance Companies performance - 2010-11
Sale of new life insurance policies down by 10% and 48 million policies were sold in the year 2010-11. Birla Sunlife, Metlife and SBILife plunge in new life insurance policies sale last year even though new premium income rose. LIC sale fell 5% whereas others declined to 23%. MD and CEO Mr. Amitabh Chaudhary of HDFC Life said, "If you look at only new business income from regular premium products, the industry has degrown by over 20%, the products that were earlier sold were incorrect. Now consultants and agents are not interested in selling them”. Conflict between regulators and the Insurance Industry resulted in fall in commissions, handicapped in announcing new products and distribution.

PNB to enter Life insurance in June
Punjab National Bank is entering in the Life insurance market in June and plans to select the partner. Mr. K.R. Kamanth, Chairman and MD of PNB said, we hope to finalise the partner this quarter”. At present there are 3 names in the final list from 41 contenders. They are Bharti AXA, Aviva and Metlife. Based on the proposals submitted the final partner will be selected.

ICICI Prulife’s Immediate Annuity plan
ICICI Prudential life have launched ‘Immediate Annuity plan for NRIs which will help them to provide regular income to their parents in India. However their capital will be preserved.

IRDA prescribe Training syllabus for Telemarketing
The guideline of IRDA for telemarketing and distance marketing also spells their decision to prescribe training syllabus for telemarketing. The guidelines for telemarketing will be implemented from October 1 2011.

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