HDFC Standard Life

HDFC Standard Life Insurance has sold 7.15% of its shares to Standard Life at a cost of about Rs.201crores making Standard Life holdings in the Insurance venture to the admissible 26%. HDFC Standard Life is expected to go public before end 2009. The company has around 12000 employees and hundred thousand financial consultants in 700 cities.

Bajaj Allianz Life increases paid up capital

Bajaj Allianz Life Insurance co. has infused Rs.175 crores to its capital increasing it to Rs.875 crores. This infusion is to speed up its growth on services. The insurance company has branches in 900 towns and it has already collected Rs.11000 crores of new business premium in the last six years issuing over 50 lakh policies. In this financial year Bajaj Allianz has issued over 20 lakh policies as reported.

ICICI Prudential in Andhra Pradesh

ICICI Prudential Life Insurance Co. has tied up partnership with AP Online the E-Governance site of the State Government and Department of Posts to strengthen service infrastructure in rural Andhra Pradesh through the 730 branches of AP Online and 382 Post offices. This was informed by Mr. Rishi Shrivastava, Sr. Vice President and Head of Rural business, ICICI Prudential Life. He further said that they have achieved Rs.3684 crore business and underwritten more than 6 million policies.

Reliance Life Insurance’s rural foray

Reliance Life Insurance is reported to have collected premium worth Rs.140 crores from rural market during this financial year. Their CEO Mr. Nandagopal said “we see a significant growth potential in the suburban and rural market. People in these areas have not been provided with adequate choice of quality insurance products and need to be educated on the benefits of insuring their lives”. He further said that the company is developing a rural business model to ensure smooth operation as a strategy to tap this market. They expect that by building a support system i.e. support in regional languages, automated micro offices, which can take quick decisions and offer lot of consumer education initiatives would enable them to achieve their ambitious target. This will be in addition to tying up with rural banks and NGOs. Mr. Nandagopal said that against the stipulated requirement of 18% of the policies to be sold in rural areas, the company has sold over 20% .

ING Vysya Life Insurance plans expansion

ING Vysya Life has presently 308 branches in 246 cities. Out of them 164 branches are in Tamilnadu, Karnataka and Andhra Pradesh. To expand their business Mr. T.K. Uthappa, Director, Sales of ING Vysya said, “ We are looking at aggressive expansion in north and central part of the country to tap business. The company also plans to increase its number of advisors to 100000 from 50000 before the end of the year. The company has brought out a ULIP ING Guaranteed Growth Plan offering 5% return on premium in addition to possible increase due to investment in equity markets. The policy is offered into terms of 10 and 15 years with choices in premium payment. In case of death the sum assured or guaranteed benefit or the fund value whichever is higher will be paid. The policy also allows partial withdrawal on completion of 5 years.

ICICI Prudentail Life to tie-up with NBFC

Mr. Tharun Chugh, of ICICI Prudentaial Life Insurance Co. said that they are planning to tie up with some reputed non-banking financial companies to increase its retail sales. The company plans to sell group insurance policies in rural area and target to 35% to 45% of business from non-metros. Last year the total premium collection on this account i.e. Group Insurance was Rs.820 crores and this year it aims for10% growth. The company has reported, during the nine month period of the current financial year a total premium income of Rs.7758 crore. Their market share was 11.8% . The company has issued more than 18 lakh policies during the period. Commenting on the performance, Ms. Shikha Sharma, MD & CEO of the company said, “we have continuously invested in understanding our customer needs and introduce unique products and services to enable our customers to meet their insurance needs. We have also strengthened our distribution network to ensure our products and enhanced services reach customers across the country. “ The company has increased their no. of branches to over 1000 with 31200 employees and 263000 advisors.

Micro insurance for poor women of women self-help groups

It is expected that the Government might be bringing out a micro insurance scheme for women self-help groups to provide security to poor women in the country through the Life Insurers providing life cover also. The government is expected to bear part of the premium. It is also reported that Government is looking at various such schemes, such as Bhagyalakshmi Insurance Scheme of Karnataka Government (for providing support to families below poverty line with a girl child) for introduction at national level. This proposal is also expected to come with some conditions such as ensuring schooling of children and family planning to be eligible. This is the first time a Government is considering an exclusive scheme for women.

SBI Life Insurance records highest profit

SBI Life Insurance Co. posted 101% growth in total premium collection in this financial year, up to December 2007 clocking Rs.2748.28 crores of premium collection earning a net profit of Rs.37.74 crores. Mr. U.S. Roy, MD & CO, SBI Life said, “our business performance for the first nine months has been very encouraging despite slowing down in the Industry over last year. Our capital efficient business model has helped us to wipe out accumulated losses from our balance sheet”. The company’s assets under management have crossed Rs.7300 crore till December 07. SBI Life promotes its products through 14500 odd State Bank group branches and 33000 Insurance advisors. The company is third among private insurance companies with a market share of 12.08%. It is reported to be the most trusted private life insurer expecting AAA rating.

Aviva Life Insurance and Bank of Rajasthan

Aviva Life Insurance has tied up with Bank of Rajasthan as Bancassurance partners for distribution of its products through the bank’s branches. This arrangement is expected to expose Aviva products to 2.5 million customers across the country. Aviva is having 40 such partnerships in Bancassurance model with a reach to 1700 locations and 46-million customer base. Mr. Bert Paterson, MD & CEO, Aviva Life said during the occasion, “With this strategic tie-up, Aviva has found a partner with an extensive distribution reach thus strengthening our position in the country. The company is a joint venture between Dabur and Aviva. with a
paid-up capital of 758 crore rupees at present.

Max New York Life’s new focus

Mr. A.P.S. Bhalla, Zonal Head of the Max New York Life Insurance Co. informed that they would be directing the focus on the middle class segment and rural areas of the country. He further said that the company would be bringing cheaper Insurance schemes for the middle class households, which according to him are around Rs.10 crore. To quote part of his speech,” Insurance is knowledge based intensive business. It is the job of the insurance agent to explain clearly to the customer about the need for the insurance, therefore the company gives more prominence towards training of its agents. Max New York Life is the only company which has in-house training facilities for its agents in all the branches and 100 hours of training made compulsory for every agent.” As long-term goal Mr. Bhalla told that their company is planning to appoint 200000 agents in the country and 1000 agents in the city branches.

Bharti AXA Dreamlife pension

Mr. V. Srinivasan, CFO of Bharti AXA Life Insurance announced the launch of Dreamlife Pension, a policy basically meant for early planners thinking of retirement in their thirties. This product provides for increasing the premium in tune with the increase in their income to build a larger kitty for future for the policyholder.

Life Insurance demands in Budget

The life insurance council has announced that the life insurers have requested for being allowed to float ULIP Infrastructure bonds to raise long-term resources for the core sector. They have further asked for permission to carry forward losses for 12 years and new tax-breaks for policyholders. They have also asked for increase in tax exemption for health insurance.

One of their demands is for providing exemption to insurance agents from service tax as long as their service charges are less than Rs.800000/- per annum.

BSNL launches free insurance for its customers

BSNL the largest telecom service provider in the country has offered free personal accidental insurance policy for all its customers. The policy is to cover death or permanent disability due to accident or decease of their customers for a sum of Rs.50000/- This policy has been launched with effect from 14th Jan.08 in collaboration with Bajaj Allianz and National Insurance.

TATA AIG plans growth

Mr. Trevor Bull, MD of TATA AIG Life Insurance said that business of the company was growing for which substantial investment would be required which will be provided by Tata and AIG. The current capital base is Rs.700 crores. The company today launched a new ULIP Invest Assure Flexi, a flexible policy with term between five and forty years.

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