Mr. AMit Malk joins as Director –HR for Aviva Life Insurance
Aviva Life Insurance has appointed Amit Malik as Director- HR.

Mr. Malik has pursued his Personnel Management degree from Symbiosis Institute of Business Management, Pune. He will be functioning from Gurgaon, the headquarters of Aviva and will be part of the India Management Committee. He will be responsible for the development and execution of HR policies and strategies.

Mr. Malik hails with diverse experience and exposure as he has held several top positions in his earlier stints with Bank of America Continuum, Royal Bank of Scotland, American Express Bank and GlaxoSmithKline.

IRDA directives on Life Insurer’s participation on repo transactions
The Insurance Regulatory and Development Authority (IRDA) has made it clear that life insurance companies should not participate in repo transactions.

The regulator has allowed insurers to undertake reverse repo transactions in corporate debt securities. According to a circular issued by IRDA, the exposure to reverse repo transactions (Lending) in government securities and corporate debut securities shall not exceed 10% of all funds taken together at any given point of time. Prior approval of the Investment Committee has to be obtained before entering into such repo transactions (Borrowing) The underlying corporate debt security shall be listed and have a minimum rating of AA or equivalent.

While entering into such repo transaction (borrowing), prior approval of the Investment Committee shall be obtained. The underlying corporate debt security shall be listed and have a minimum rating of AA or equivalent.

Insurer shall enter into bilateral reverse repo/ repo agreement as per the documentation finalized by FIMMDA. Reverse repo/repo transactions in corporate debt securities shall not be permitted between the Insurer and its promoter group entities.

Companies would have to follow the January 2010 directions of Reserve Bank of India with regard to matters related to accounting and reporting of trades for reverse repo transactions.

Online Point of Sales by HDFC Life
HDFC has launched the Online Point of Sale System called as “CLICK2BUY” for its distribution channels. This new technology has been aimed at enhancing the experience of the customers while they purchase the insurance cover online and simultaneously to increase the internal productivity of HDFC in its distribution channels.

While speaking to the Press, Frederick D’Souza, Senior Vice President, HDFC Life said that CLICK2BUY is a sales tool that simplifies the purchase process by customers. It also enables the company to develop a zero-defect proposal form online using the internet facility. In other words, it helps the sales force to achieve 100% of the proposal “First Time Right”. CLICK2BUY is a big long-term step towards faster policy processing, improved customer purchase experience, and increased business productivity.

This system is designed in such a way that every question required for underwriting a proposal is presented up front. On providing the answers and clicking the “Submit” button, the underwriting decisions for underwriting purpose are communicated upfront to the customers. The system also sends an email to the customer along with the copy of the proposal form immediately on submission of the proposal. To put it in simpler terms, CLICK2BUY, enables the company’s sales team to underwrite and communicate the decision or requirement up-front right at the Point of Sale.

This new initiative has already won the Asian BFSI Award 2012 in the “Underwriting Initiative of the year” category.

New branch at Bangalore – Edelweiss Tokio Life
Edelweiss Tokio Life Insurance has inaugurated its 38th branch in Bangalore. It already has one branch in Bangalore and this is the second one in Karnataka. The address of the new branch is at 318,1st Floor, 9th Main, 5th Block, Diagonally Opposite to LG Showroom, Jayanagar in Bangalore.

Jun Hemmi, Executive Director, Edelweiss Tokio Life said, “We are extremely glad to expand our presence in the south with the inauguration of our branch in Bangalore. We expect the region to be a growth driver for Edelweiss Tokio Life in the country and aim to meet the insurance needs of 100,000 lives in Karnataka by 2015.”

IndiaFirst Life ties up with CSE Capital Markets Ltd.
IndiaFirst Life Insurance has entered into a corporate agency agreement with CSE Capital Markets Ltd., which is the local bourse of Calcutta Stock Exchange. CSE Capital Markets Ltd has around 25 certified insurance professionals who are competent to sell insurance products.

This tie up, according to the MD & CEO P Nandagopal, would help expand their reach since CSE has a longer association in the financial markets. The company is in the process of tying up with more regional bourses. As per Mr. Nandagopal, this distribution channel would help reduce the dependence of revenue from banca channel which accounts for 80% of its revenue.

Multimedia educational advertising campaign by SBI Life
Consequent to the evolution of Indian consumers and their high level of detailing during their shopping pattern, SBI Life has launched a multi-media educational advertising campaign. This educational campaign is to break the inertia of the individuals while buying insurance product. This campaign contains seven short audio visuals on television which would highlight the basic requirements to be followed by the individuals before buying any insurance product. This has been adjudged as the most customer friendly education program.

This campaign is carried out across social media platforms, such as FaceBook, Fan Page, “Celebrate Life”, Twitter and YouTube. The company also plans to extend this initiative to shopping malls and provide the educational message live to the customers while they do shopping of other products.

Aviva to sell Aviva USA for US$1.8 billion
Aviva has decided to sell Aviva USA Corporation, its US life and annuities business and the related asset management operations, Aviva USA, to Athene Holding Ltd., for USD 1.8 billion. Aviva shall retain the North American asset management activities of Aviva Investors and Aviva plc assets outside of USA. This transaction will increase Aviva's pro forma economic capital surplus coverage ratio by 17 percentage points to 165%

This decision to disinvest reflects the company’s focus on businesses and markets where Aviva claims top positions and is able to generate attractive returns with a high probability of success.

Aviva will receive sale proceeds of US$1.55 billion (£1.0 billion) in cash, after the repayment of external debt. Of this, an amount of up to $250 million may be received in the form of an interest-bearing vendor loan, repayable in cash within 12 months of completion. Cash proceeds will increase central group liquidity and will be used for general corporate purposes.

Edelweiss Tokio Life to recruit 30000 advisors by 2015
Edelweiss Tokio company is a joint venture between Edelweiss Financial Services, one of India's leading diversified financial services companies with business straddling across Credit, Capital Markets, Asset Management, Housing finance and Insurance and Tokio Marine Holdings Inc, one of the oldest and the biggest Insurance companies in Japan now with presence across 39 countries around the world. The insurer started its business a year and a half ago.

The private insurer plans to build a network of 30000 advisors by 2015. The company aims to achieve a new business premium of Rs. 450 million in 2012-13.

New Distribution Channel from Reliance Life
Reliance Life will hire 5,500 career agents across 220 branches by the end of 2012-13

Mr. Malay Ghosh, President and Executive Director of Reliance Life Insurance Company (RLIC) has launched the new distribution channel under the brand of Career Agency with the view to enhance the company’s reach across the country.

Under this new model, the prospective advisors will get a fixed amount as stipend and also variable commission during the training period. This is a first-of-its-kind distribution channel based on stipend and variable commission pay-out structure by any private insurer in the domestic insurance Industry.

This concept of Career Agency is designed to support the new recruits and help them learn the business rather than pressurizing them to generate business to earn commission from the very first instance. This model also would help the agents understand the business and take insurance as a long term career option. In the career agency distribution model, the recruits called ‘sales trainees’ will be given a fixed stipend for the first six months, which is also the training period. Once the advisor completes this training period and passes the licensing exam, he/she becomes a ‘career agent’ and moves to a variable commission-based pay-out structure.

Under the new model, Reliance would hire 5,500 career agents across 220 branches by the end of 2012-13, with a view to expanding and strengthening its existing distribution network. RLIC has already recruited around 2,500 career agents and deputed them in over 150 branches across the country and will hire about 3,000 career agents in the next three months.

Max Life Insurance announces special bonus of Rs. 130 crores
Max Life has recorded profits and wants to share the same with its loyal policyholders.

To this effect, Max Life Insurance has declared a ‘one time’ special bonus of around Rs. 130 crore to its active policyholders. The longer the stay of the policyholder with the company, higher would be percentage of special bonus. Over 2.6 lakh policyholders are estimated to receive this special bonus to the tune of 100% of their annual premiums irrespective of the premium term or policy term. Policies that have been surrendered will not be eligible.

The bonus will be calculated as a percentage of the annual premium paid.

IndiaFirst Life’s Financial Planning Centre at Jaipur
IndiaFirst Life Insruance has opened its Financial Planning Centre in Jaipur Rajasthan which was inaugurated by its MD & CEO Mr. P. Nandagopal. This is the first Centre in Jaipur, while the company has its presence in Rajasthan through over 450 Bank of Baroda, Andhra Bank branches plus 300 branches of Baroda Rajasthan Grameen Bank.

IndiaFirst Life Insurance, a joint venture between two of India’s largest public sector banks—Bank of Baroda and Andhra Bank along with UK’s leading risk, wealth and investment company Legal & General, on Tuesday opened its Financial Planning Centre (FPC) in Jaipur, Rajasthan. According to him, Rajasthan is a key market for IndiaFirst and opening up of this Centre here is a part of their long term strategy to ramp up their presence in tier II and tier III cities. The company has generated approximately Rs. 1.25 billion and has covered nearly 39,000 lives through their bancassurance model in 3 years of its operations from Rajasthan.

Mr. Nandagopal also expressed his happiness that the Financial Planning Centers not only help the customers buy policies but also help the company to service their requests speedily.

The company has approximately 100+ advisors attached to its Jaipur FPC along with its employees. The advisor lounge would be used by advisors and customers to complete their transactions. Customers can also visit the FPC to meet the company’s relationship managers and analyze their overall financial plans.

Re-launch of Health Suraksha with new features by Future Generali
Future Generali Insurance Company has re-launched its Health Plan Future Health Suraksha with bunch of new features which are beneficial to the customers.

Future Generali India Insurance Company is the Insurance joint venture between Future Group of India and Generali Group of Italy.

Future Health Suraksha offers enhanced features, such as life long renewals, floater options above the age of 45 years, entry age up to 70 years, upward revision of premiums, cumulative bonus options, deletion of lifetime Indemnity clause for members above 60 years, to mention a few.

The unique feature of this plan is that no medical tests are required for age upto 50 years for all fresh proposals/rollover cases where the proposal form is clean and/or with no claims history in the expiring policy.

New Pension / Annuity Plans from HDFC Life
HDFC Life Insurance has announced launch of two market-linked pension plans and a traditional annuity product.

Pension Super and Pension Super Plus are pension plans which are unit-linked, designed to build a sizeable corpus for post retirement income. Both these Pension Plans offer assured benefit on death and vesting. These plans have been designed for people in the age group of 35 to over 45 years.

HDFC Life Pension Super Plus offers assured death benefit of total premiums paid to date accumulated at a guaranteed rate of 6 per cent per annum and an assured vesting benefit of 101 per cent of total premiums paid. The Single Premium Pension Super offers assured benefit of 101 per cent of total premiums paid on death and vesting.

The New Immediate Annuity Plan, a traditional annuity product has been launched with a wide range of annuity options that ensures a regular income stream post retirement.

Newer version of Life eProtect from Bharti AXA Life
Bharti AXA Life Insurance has announced the launch of its Life eProtect, the online term insurance plan after redefining its features. Life cover for eProtect has now been increased to age 75 years and the maximum age of entry has been increased to 65 years as well.

The online eProtect has been well received by the customers and Bharti AXA is among the top five players in the online term insurance market within a span of 6 months. Thus, the company has also incorporated the customer feedback in the revised version of the eProtect to ensure that this term insurance policy is really the best in the market.

Not to miss this opportunity, the existing eProtect policyholders also has the option to upgrade to the new version at a nominal cost.

Fall in Number of New Life Insurance Policies FY 2011-2012
The government has reviewed the performance of life insurance industry with the insurance companies and the regulator. The finding was that there was a 8.22 per cent fall in the number of new life insurance policies sold during 2011-12 compared to the previous fiscal.

"Insurance Regulatory and Development Authority (IRDA) has informed that the life insurance industry witnessed 8.22 per cent decline in number of new policies issued during the last financial year 2011-12 as against policies issued in financial year 2010-11," Minister of State for Finance Namo Narain Meena said in a written reply to Lok Sabha.

According to Mr. Namo Narain Meena, this fall may be because of the IRDA’s new regulations in the design of ULIP products in the interests of policyholders' welfare and general market conditions prevailing in the country.

With the objective of boosting the life insurance industry, certain measures have been identified for action which includes taxation benefits and regulatory issues relating to product design, distribution and investment.

Insurance Amendment Bill postponed to Next Session
The Insurance amendment bill, which seeks to raise the FDI cap in the private sector insurance companies to 49 per cent from 26 per cent, is expected to be deferred to the next session. As part of economic reforms, the government is keen to pass the Bill, but main Opposition party BJP is for keeping the FDI ceiling in the sector at 26 per cent. The Left Parties are opposing the Bill.

The winter session of Parliament commenced on November 22 and ended on December 20.

The Insurance Laws (Amendment) Bill has been pending in the Rajya Sabha since December 2008. Because of the deferment of the insurance bill, the legislation to reform the pension sector is also likely to be delayed as the two are related.

Claim payments - LIC Stands Better
The Insurance Regulator, IRDA has recorded in its latest annual report 2011-12 that : Life Insurance Company (LIC) has better record of paying death claims than that of private life insurers.

While LIC is the only Government owned life insurance Company, there are about 25 private life insurance companies which provide life cover.

According to the report, LIC has settled 97.42 per cent cases relating to death claims during 2011-12 compared to 89.34 per cent by private sector companies. The industry average worked out to be 96.26 per cent.

On the positive side, settlement ratio of private insurers improved during the year to 89.34 per cent from 86.04 per cent in the previous year.

LIC had 70 per cent market share in 2011-12 in the life insurance industry, while the rest is with 23 private sector players.

Insurance Companies to open New Offices
IRDA has proposed in its Draft Exposure on Insurance Regulatory and Development Authority (Places of Business) Regulations, 2012 to make it mandatory for insurers, who have been in business for 10 years, to open at least 25 per cent of new offices in areas that have a population less than 1,00,000.

The proposed regulation would increase the penetration of the insurance sector in rural and semi-urban areas. The proposed limit of 1,00,000 on population is, to encourage the opening of places of business in Tier 2 and below towns/villages.

Archives | Top