Aegon Religare’s new plans

Aegon Religare is planning for new products in the coming financial year. These are ULIPs as well as traditional insurance products. Mr. Yateesh Srivastava, Chief marketing officer of Aegon Religare Life said, “We will be coming out with 4-5 new products in 2010-11 and these would be a mix of ULIPs as well as traditional insurance products. Aegon Religare which recorded a premium collection of Rs 46 crore in 2008-09 expects to reach a premium collection of Rs 190 crore by the end of this fiscal.”

The company has already sold more than 60000 policies till end Feb2010 and is also aiming to achieve 150000 policies by next financial year end. They have now launched a new product named ‘Aegon Religare Money Back Plan’. This is a ten year plan but the customer needs to pay premium for 5 years only. After 5 years they will get 10% of the assured sum on the completion of sixth year and 15% on completion of the eighth year. When the policy matures after ten years the customers get minimum assured sum of 100%. The maximum is 110% of sum assured. The minimum and maximum entry age is eight and sixty.

ULIPs between SEBI and IRDA

To resolve the differences over the regulation of ULIPs, IRDA Chairman Mr. J. Hari Narayanan met with SEBI Chairman Mr.C B Bhave and had an hour-long discussion. The main reason is the show cause notices issued by SEBI to the life insurance companies about selling certain ULIPs without getting prior approval from them. The copy of the notice is also sent to IRDA. IRDA in reply said that the ULIPs were approved by IRDA under the Insurance Act. SEBI raised question about the ULIPs sale under collective investment scheme, which is under its purview. Regulating ULIPs came after SEBI in August banned the entry load on mutual finds. Later IRDA had capped ULIPs overall charges.

As there is a high level meeting on financial market expected in the next few weeks, the efforts are taken to resolve the issue. ULIPs regulation is also expected in the Agenda.

“LIC’s Bank Plan not approved”

IRDA had not permitted LIC to utilize policyholders’ fund for subsidiary to float a bank. As per LIC Act the corporation is permitted for a paid up capital of only Rs.5 crore and any surplus funds have to be distributed to the government and the policy holders. Now LIC can start its banking subsidiary only by getting additional funds from the Government or when the LIC act is amended it can use the surplus funds for the bank from its networth. There is one more option i.e. if RBI gives permission to LIC HF to promote a bank, LIC could own it indirectly.

IRDA stops pyramid schemes

IRDA has banned companies, which do not have a large customer base from becoming corporate agents. They have said that other than RBI regulated finance companies, anybody seeking corporate agency license should have assets, turnover or income of minimum Rs.15 crore. IRDA member Mr. S. Kannan said the regulations were aimed to prevent pyramid schemes. He also said, “Without the restrictions, it becomes open-ended and the agent has no idea of the risk in terms of the proposals brought in and the income may not be enough to cover the risk.”

IRDA in their latest circular mentioned about the eligibility for a corporate agency license. Only persons part of a Indian Insurance Company or a scheduled commercial Bank within the group could do insurance distribution as the principal business with the condition that there shall be only one corporate agency among the group.

LIC’s growth

LIC expects an above 15% increase in premium of Rs.176000 crore in the financial year 2009-10. The company plans to retrieve Rs.20000 crore of income in the year 2010-11.
LIC Chairman T.S. Vijayan said, "We are expecting to collect around Rs.176,000 crore by the end of March this year and hope to increase it by 18 percent next fiscal (2010-11),"

Aviva Educost – New tool for planning investment

A new online insurance calculator was launched by Aviva Life named as “Aviva Educost”. The tool is for the young parents to plan appropriate investment for their children’s higher education. Keeping in mind the rising cost of higher education for the child after 18 years, Aviva introduced this tool. It is a unique online insurance calculator, which helps to measure the required amount by young parent to plan for their child’s higher education.

Birla Sunlife with BS25999

BS25999 certification has been awared to Birla Sun Life Insurance Co. This is the first and the only insurance co. to receive this certificate. The certificate is given by British Standard Institute (BSI). for its business continuity management system. It will enable the company to deliver high quality services to its customers.

Mr. Mayank Bathwal, Chief Financial Officer, Birla Sun Life Insurance said “Business Continuity Management has always been an integral part of BSLI’s business strategy towards helping the company meet its strategic, operational, contractual, legal and client commitments. The company has always laid significant emphasis on building these robust processes towards creating an organisation that is equipped to meet customers’ long-term financial needs, with us”.

He also added that the BS 25999 certificate is an indicator of their continuous good services to customers. This achievement motivate for stronger security measures to customer investment

IDBI Fortis plans expansion

IDBI Fortis Life Insurance after completing the first year with profits, now planning to enlarge its insurance business. It decided to club the products of IDBI Bank and Federal Bank to the insurance basket. Presently it is operating in 36 cities and intend to increase 17 more in the coming three months time. CEO and MD, IDBI Fortis Life, Mr. Nageswara Rao said,
"Over the next one year, it is very important to be in all customer segments as our product basket is not complete. We don't have a standalone health or child plan. Also, we need to increase the penetration level. Both our promoter banks have set up 300-400 branches this year and hence the customer base has gone up."

Their two third profits came from bancassurance. Now they have plans to improve strong presence of Federal Bank and IDBI to certain products.

IndiaFirst Life’s bright performance

IndiaFirst Life Insurance Co. is expecting premium collection of Rs.200 crore in the fiscal 2009-10. Mr. A.K. Sridhar, Chief Investment Officer said, “With employee strength of 950 the company, which was formally launched by the finance minister is 23rd player in the life insurance space and collected its first Rs100 crore premium in less than 100 days”. IndiaFirst commenced its operations in November 2009 with partners BoB, Andhara Bank and Legal and General of Britain 44%,30% and 26% shares respectively. Initital product range is focussing on savings, education and retirement based on customer’s age. They have also plans to add whole range of protection, wealth accumulation, health and group insurance plans.

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