Life Insurance companies diversion to health sector.

Health Insurance is predominant focus of general insurance companies so far. This also happens to be the fastest growing business currently clocking 44% growth during year
2006-07. To have a pie of this, Life insurance companies are also entering this sector. Though public sector insurers are holding a large portion of the sector due to their vast distribution network, private insurers are also providing stiff competition in urban areas.

Max New York launch new ULIP

As we have seen in recent months, Life insurance as an industry has attained high awareness due to the launch of Unit Linked Insurance Plans by both the private insurers and public sector insurance company. The guidelines issued by the IRDA for ULIPs have brought about greater transparency for these long term investment products.

Max New York Life Insurance has launched their latest ULIP – Max Life Maker Premium Investment Plan. This product provides life cover besides Disability cover, Dreaded Disease cover, along with usual maturity benefit. Special feature of this product is that this instrument provides loyalty allocation. It also permits partial withdrawal. on policy anniversary after three years. The investor is given the option to choose his sum assured, premium payment terms and depending on his risk appetite he can also choose any one of the five schemes - Secure, Conservative, Balanced, Growth and Super growth -with the additional option for switching between the schemes every year and allowed redirection of premium during renewal. Usually only a few investors use the switch option, but switches and redirection can provide big advantages for maximizing returns and protection of the port folio value.

Life Insurers in pension business.

With increased awareness of investors to provide for retirement, pension business has seen huge growth. Till 1999-2000, LIC had a monopoly of pension business collecting Rs. 852 crores premium for pension plans. But now, after liberalization of the life insurance sector with 16 private insurers in the business, premiums collected from pension plans have grown to staggering Rs.2,22,268 crores ,a stunning increase of 2599%, as per data from Life Insurance Council, for year 2006-07. This incidentally also makes a case for private insurers’ active participation. Says Mr.S.V. Mony secretary general of Life Insurance Council ‘ the insurance companies are able to manage and secure long term funds like pension plans. With such huge growth in the numbers and existing infrastructure, products and skilled people, we would like to stress that life insurance companies can play a vital role in the new pension policy’. Because of the huge growth and vast potential with increased awareness among investors to look for post retirement security, almost all life insurers are attracted to pension business and have brought in 10 different pension products currently.

Birla Sun Life Insurance’ new policy

Birla Sun Life Insurance Co., have brought out a new ULIP targeting the middle income group [people with an annual income of Rs.2 lakhs] and the HNI group [high net worth individuals with income of Rs.2 million and more per annum] to meet the requirements for mid term life insurance product. This plan called Gold Plus has a term of 8years.with flexibility in the premium amount. This product has all features of a ULIP with many options. The company is planning to promote this product though their 50000 agents, besides distributors such as banks and direct corporate sales. Ms. Anjana Grewal Sr. VP, marketing and communications Birla Sun Life said that their marketing spend this year would be around Rs.220 million and their focus would be towards promotion of the Children’s Dream Plan. BSLI has been launching life insurance products after carrying out market research to address the needs of niche segments, according to company spokesman.

Tata AIG’s new rural policy

Mr.Joydeep Roy, chief distribution Officer, Tata AIG Life Insurance said that the company is coming up with rural health insurance product in the next six months. He further said that the company is working to find out an innovative way of distribution of their life insurance product in rural market. Their attempt is at a distribution model to have a situation for flow of services similar to the manner in which agricultural produce move without restriction to any one market.

Bajaj Allianz Life at health insurance.

Ujjaini Dasgupta, Head [health insurance] of Bajaj Allianz Life said that health insurance was an important vertical for them. While launching their first medi-claim policy ‘Care First’ Dasgupta said that they are targeting 20 to 30 % of premium income from health insurance products. CEO of Bajaj Allianz Mr. Sam Ghosh said that the company was working out other verticals on health insurance like pension-linked plans for women and for the rural market. He further said that they would infuse Rs.250 crores to their capital base of Rs.700 crores, targeting 100% growth in premium income on their last year’s premium income of Rs.4300 crores.

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