Max New York Life and IndianOil Corporation tie-up

Max New York Life Insurance Co Ltd, one of India's foremost private players join hands with IndianOil Corporation.

Max New York Life insurance hopes to sell its products through Kisan Seva Kendras of IndianOil.

This will provide access to Max New York Life Insurance products to a significantly larger number of people in rural markets.

Mr. Rajesh Sud, Max New York Life Insurance Deputy Managing Director, commented: "The tie-up will bring insurance to the masses and help boost financial security."

"Emerging markets have immense need for financial protection and long-term saving instruments but are currently underserved”, he added.

For this purpose, Max New York Life Insurance has adopted a multi-channel strategy and utilizing existing Distribution Networks.

K.R. Suresh Kumar, Indian Oil Corporation's General Manager, Retail Sales, said: "Through our Kisan Seva Kendras we have been successfully reaching vital products including petroleum products to rural India.

From fuel to lubricants besides insecticides, fertilizers, financial services and FMCG products, our Kisan Seva Kendras have proved to be a lifeline for the millions of rural consumers they serve.

In this context, IOCL has entered into various tie ups with leading companies like National Seeds Corporation, Indo Gulf Fertilizer, Bank of Baroda, Oriental Bank, Dena Bank, Dabur etc, to make available their products and services to rural population."

"Given the reach of IndianOil's Kisan Seva Kendras into India's hinterland, Max New York Life will have complete access to the rural markets, for reaching insurance products to them. This tie-up would also enable Kisan Seva Kendras to move up the value chain by making life insurance available to the rural consumers."

Max New York Life will start by setting up offices at 100 such IndianOil's Kisan Seva Kendras across Punjab, Haryana, Gujarat and Western Uttar Pradesh. Eventually, this model will be extended to other Kisan Seva Kendras also across the country.

Birla Sun Life Insurance puts on more market share and New Business Premium

A recent study indicates that Birla Sun Life Insurance Company Ltd. (BSLI) has registered a strong growth among its competitors in the first two months of the year 2008-2009.

Mr. Vikram Mehmi, President & CEO, and Birla Sun Life Insurance, said, "Birla Sun Life Insurance continues its momentum into the new fiscal year. The first quarter has seen a ramp up on account of our expansion in our distribution network, resulting in higher growth rate and market share".

LIC Jeevan Madhur to focus on urban poor in East Zone

Jeevan Madhur, LIC’s micro insurance policy, targets on the east zone to bring the urban poor under insurance cover. The company intends to sell 50,000-60,000 policies of Jeevan Madhur in east zone cities. The company also plans to increase its agents by 100 for boosting up sales.

FDI limit in insurance might raise

Finance Minister Mr. P. Chidambaram hinted that the FDI limit in the insurance sector would be raised from 26% to 49% despite of strong opposition.

Max New York Life to expand its branches

Max New York Life Insurance is expected to extend its network to a number of 450 in the next year. It also plans to increase its paid-up capital to Rs 475 crore.

Migrant Indians’ cup of tea

LIC (International), the global branch of Life Insurance Corporation, has launched a new unit-linked insurance plan (ULIP) called Fortune Builder for Indians abroad. This was introduced as a mark of the company’s20th year in the gulf. Check.

Insurance cos put in Rs 15,000 cr in equities in Q1

Domestic insurance companies are still the large buyers of equity on the bourses. In the first quarter of 2008-09, they are estimated to increase at least Rs 15,000 crore

The analysts say that insurers have found value at lower prices as their customers still go for investing in equity-oriented Unit Linked Insurance Plans (ULIPs).

Life Insurance Corporation of India has put in Rs 12,000 crore in the first quarter. According to a study by BSE figures, domestic institutional investors, mutual funds and banks have put in Rs 20,306 crore in the stock market in the first quarter as against Rs 8,471 crore a year ago.

A study by SEBI data reveal that companies invested Rs 3,131 crore in mutual funds in the first three months of 2008-09 as against Rs 4,152 crore in the last year.

Thus institutional investors have invested Rs 17,175 crore, excluding mutual funds. Based on these study, senior insurance company officials’ estimation is that the insurance industry would have invested at least Rs 15,000 crore in the stock market

Mr. Deepak M. Satwalekar, MD and CEO, HDFC Standard Life Insurance Company, said that from ULIPs invest its 85-90 per cent of the new business premium in equity-oriented funds (where allocation to equity 90-100 per cent).

“Sales have been slow in the past 3-4 months, but customers are still opting for ULIPs with a higher equity contribution. The age profile of the customers has also been getting younger, and customers are choosing plans that have a longer term,” he said.

ULIPs enjoy tremendous reputation with 70 per cent of the industry’s premium coming from these policies. Almost 90 per cent of the new business premium comes from ULIPs for many private insurers.

Suvidhaa Infoserve joins hands with LIC

Suvidhaa Infoserve has tied-up with Life Insurance Corporation. Now it is easy for the customers of LIC from all over the country to pay their premiums through Suvidhaa S-Commerce kiosks.

Tata AIG and Family Credit join hands

Tata AIG Life insurance has tied-up with Family credit of Societe Generale. Through this Tata AIG hopes to market its insurance solutions by giving personal loan insurance to small-ticket personal customers (STPL) of FC. Thereby it hopes to gain access to some of the customers of Family Credit.

Future Generali embarks on its first ULIP

Future Generali India Life Insurance started its first ULIP, Future Sanjeevani on 16th July 2008.

Increasing FDI ceiling key to growth: Aviva Life chief

Bert Paterson, Aviva Life Insurance Managing Director & CEO said that a delay in liberalizing the foreign investment norms in the insurance sector would affect the growth of the industry.
Life insurance involves more capital for growth. Almost all the Indian promoters of life insurance companies have their heart in industries, banks and asset management. All these businesses necessitate scarce capital.

Aviva also plans to introduce an asset management company in the India. Though the insurer had announced its plans last year, the company refused to give a definite time frame for the venture.

With the reopening of the insurance sector to private competition in late 2000, life insurers have put in Rs 10,000 crore to maintain profit in their business and meet solvency requirement.

With the political changes and the introduction of a Bill to amend the Insurance Act, the growth of the life insurance sector has slowed in recent months. When asked about the slowdown impact Paterson said, "Undoubtedly, the current valuations of life insurance companies are unrealistic and driven by the growth in the new business premium. If the new business premium volumes fall, valuations will also fall.”

"At present, multiples such as persistency ratio, profitability margins by product are not factored in while arriving at valuations. When a life insurance company gets listed, investors will want to make an informed decision on the stock data. Therefore, the multiples applied for valuing the insurance company will become more realistic and make insurance companies more transparent", Paterson added.

Reliance Life introduces Project School on Wheels

Reliance Life Insurance declared the launch of its 'School on Wheels' project in collaboration with Project Crayon, an NGO that targets on child rights and youth development. Tina Ambani in Mumbai launched the project.

This project targets to bring a mobile school close to children living in the slums of Mumbai. Children are counseled to ascertain their profile, before any interference. The overall approach is to get ready these children for admission to a formal education stream, pass on appropriate moral and social values, and bring them to the mainstream of society.

Mrs. Ambani said, "Education equals empowerment, the ability to craft a better future. Our vision is to provide access to basic education to underprivileged children”.

The project focuses will initially be on the slums around Chembur and Mankhurd. The mobile school will serve these slums in the first phase with more than 50 children having already been identified and selected for this project.

In its daily routine, the school will cover a few selected slum areas and will run a three-hour class at each of these centres. The teaching methodology is largely based on the Avehi Abacus syllabus, hence informal.

The computer will provide a base for educational software, movies, music and other entertainment-based educational programs to be delivered to the children. Activities like clay making, card designing, theatre/play acting and art classes also form a part of the overall syllabus.

The children would also be provided with toys and educational games as encouragements to keep them motivated to attend the school. Various support services namely first aid, transportation to schools and health camps will also form a part of the programme.

'School on Wheels' is a one-year project and it would be monitored and reviewed quarterly

Special insurance cover for NREGA workers

Government announced insurance for workers of National Rural Employment Guarantee Act (NREGA). This is a government aided cover where the insured or the state government pays half of the premium of Rs.200 per annum. In the event of any mishappening like death, the families of the life insured will receive 75,000 as compensation. In other cases where there is partial disability the amount of compensation is up to 37,000. This is only for persons who do not come under any life insurance or other such schemes.

Max India raised its stake in life insurance JV

Max India raised its stake from 50% to 74% in Max New York Life (MNYL).

Maximum of Max India’s revenues come from MNYL. The estimated value of MNYL is over Rs 10, 000 crore based on 2009-10 premium estimates by a research report.

In 2003, Max India and New York Life signed an options agreement, where New York Life contributed 26% and Max India contributed 50%. The remaining 24%, an advance paid to Max India by New York Life, amounting to Rs. 174 crore.

Canara Bank’s new venture

Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd is a joint venture insurance company by Canara Bank with HSBC and Oriental Bank.

The premium collection is expected to be Rs. 180 crore in the first year

Insurance Bill panel to propose reforms:

The finance ministry decided to form a panel to put forward possible changes in the proposed insurance Bill followed by parliamentary standing committee’s objections to the bill in its present form. This is to smooth the progress of the bill during the rule of the current government.

The proposed panel will constitute four members contributed by the life and non-life sectors equally. They are G N Bajpai and A K Shukla, both former chairmen of Life Insurance Corporation (LIC). The selection process is still going for the non-life sector. The panel would propose changes in the present insurance bill, which aims to bring more foreign players in the sector and increase the foreign direct investment (FDI) limit to 49%. The bill is likely to be taken by the government if it survives

LIC introduces new satellite office

Life Insurance Corporation (LIC) of India has its new satellite office in Kankanady in Mangalore and offices will be opened in Byndoor and Dakshina Kannada district.

These offices will process new proposals and collect renewal premium. Policyholders can also pay the premium through sms.

The Udipi division of LIC, which sold 3 lakh policies last year, has set a target of selling 5 lakh policies in the current fiscal.

Kotak Bank Q1 gains net profit by 3% to Rs 150 cr

Kotak Mahindra Bank has registered a 3% increase its net profit to Rs 150 crore for the first quarter of 2008-’09.

Advances hiked by 39 per cent to Rs 23,169 crore. The consolidated net interest margin (NIM) went up to5.9 per cent for the first quarter, where Retail and commercial loans contributed 85 per cent of the bank’s portfolio

The bank registered a 7 per cent growth, where the total income went up to Rs 1,487 crore and net profit was up 14 per cent to Rs 55 crore. Deposits grew and the net interest income was up 73 per cent to Rs 352 crore in the same quarter. The group also registered 18.4 per cent growth in the total assets, which is now Rs 38,306 crore.

Kotak Life Insurance, the bank’s insurance arm, 95 per cent in its premium income at Rs 400 crore during the first quarter. The first year regular premium was up 107 per cent to Rs 221 crore during the quarter on a y-o-y basis.

The bank declared 7.5 per cent dividend per share in its annual general meeting. It also raised the cap on foreign institutional investors’ equity holdings in the bank to 33 per cent.

Star Union to market products through bancassurance

Star Union Dai-ichi Life Insurance Company, awaits its insurance from the regulator. Bank of India (51%), Union Bank (23%) and Dai-ichi Life of Japan (26%) formed this new company.

The company has a distribution network with Bank of India and Union Bank. It focuses on bancassurance to sell the products.

IRDA opposes to nominate “stranger” nominees

LIC allows policyholders to nominate “strangers” (distant relatives) and religious institutions as beneficiaries of their life insurance policies. This may not be possible henceforth as IRDA; Insurance Regulatory Development Authority is planning to stop this practice.

LIC has made this provision to nominate orphans, orphanages, distant relatives, family friends etc taking the requests of many policyholders into consideration.

The change in nominee rules could pose a threat to the life of policyholders and pave way for money laundering, says a senior industry representative.

Kotak Bank Q1 gains net profit by 3% to Rs 150 cr

Kotak Mahindra Bank has registered a 3% increase its net profit to Rs 150 crore for the first quarter of 2008-’09.

Advances hiked by 39 per cent to Rs 23,169 crore. The consolidated net interest margin (NIM) went up to5.9 per cent for the first quarter, where Retail and commercial loans contributed 85 per cent of the bank’s portfolio

The bank registered a 7 per cent growth, where the total income went up to Rs 1,487 crore and net profit was up 14 per cent to Rs 55 crore. Deposits grew and the net interest income was up 73 per cent to Rs 352 crore in the same quarter. The group also registered 18.4 per cent growth in the total assets, which is now Rs 38,306 crore.

Kotak Life Insurance, the bank’s insurance arm, 95 per cent in its premium income at Rs 400 crore during the first quarter. The first year regular premium was up 107 per cent to Rs 221 crore during the quarter on a y-o-y basis.

The bank declared 7.5 per cent dividend per share in its annual general meeting. It also raised the cap on foreign institutional investors’ equity holdings in the bank to 33 per cent

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