Momentum Picking up for Online Insurance Sales
Boston Consultancy Group and Google conducted a study on internet influenced insurance sales and the study reveals that overall internet influenced sales would be Rs 15,000 crore to Rs 20,000 crore. At present, it is in excess of Rs 700 crore online sales. Life insurance sales contribute around Rs 300 crore, motor insurance around Rs. 250 crore, while other insurance lines such as health and travel make up around Rs 150 crore.

"Today, the overall influence of internet on insurance product purchase in India is already 6x and growing rapidly. Insurance companies in India are still lagging behind the consumers and have not invested enough to create digital assets to engage the mature consumers online," said Vikas Agnihotri, Industry Director, BFSI, Travel Google India. " The biggest challenge for the industry would be to think big."

According to the study, the number of internet users in India is expected to grow from 200 million today to nearly 330 million by 2016, thanks to improving infrastructure, the spread of mobile phones to the most far-flung rural areas and affordable internet facilities.

Online life insurance sales are expected to grow to 3-5% of the individual annualised new business premium by 2020; and non-life insurance sales are expected to grow to 15-20% of non-life retail business. This means the online insurance sales market in India will be around Rs. 3,500-Rs 6,000 crore for life insurance and around Rs 11,000-15,000 crore for non-life insurance. A total of Rs 15,000-20,000 crore, up by over 20 times.

Source: Economic Times

Reliance Life Insurance targets Rs. 1800 crore new business in FY 2014
Reliance Life Insurance is targeting Rs 1,800 crore total new business premiums in the current financial year, ending this month, and expects to continue a double-digit growth in the next fiscal along with full-year profitability.  

The company recorded 56 per cent rise in its new business premium collection to Rs 1,424 crore during April-December period of 2013-14, from Rs 911 crore in the year-ago period.

"We have continued our growth momentum in the first three quarters of this fiscal and achieved robust growth in our new business premium income during April-December 2013-14 with a focus on traditional products, agent productivity and improved quality of business.

"We expect to end this fiscal with a new business premium collection of Rs 1,800 crore and log a double-digit and profitable growth next fiscal," Reliance Life Insurance CEO Anup Rau told a news agency.

The company posted 18.2 per cent growth in its new business premium income in the third quarter ended December 31, 2013 to Rs 401 crore, helped by a significant increase in its individual insurance business.

Reliance Life Insurance sold over 1,50,000 individual policies in the quarter ended December 31, 2013 and was one of the highest in the private sector.

Source: Economic Times

Know about your e-insurance Account
Hold all your policies in a single account through an e-insurance account, thanks to IRDA! IRDA has introduced a new facility which helps you to hold all your insurance policies in a single account. Through this facility, you can view all your live policies and also the history of past transactions at one glance.

The e-insurance account can be opened free of cost. The E-insurance account number should be quoted whenever a new insurance policy is bought in order to include it in the account.

Here are things you should know about an e-insurance account:

Eligibility: All existing and new policyholders can open a e-insurance account with an insurance repository. All the policies issued by an insurance company be held in the electronic form.

Process: The account can be opened with the help of an approved insurance agent of the repository, whose names and addresses are published on the repository's website. Some repositories also provide the online option for the account.

Documents: An account opening form, available with either the agent or on the website, must be filled and submitted, along with KYC documents like PAN, Aadhaar number, valid proof of address and proof of identity.

Time: Once the application and documents are submitted to the insurance repository, it takes nearly seven working days to process it. A welcome kit and PIN mailer are despatched to the account holder to log in to the e-insurance account.

(Courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava)

SBI Life to refund Rs. 275 crores
The Insurance Regulator, IRDA has directed SBI Life Insurance Company to refund Rs. 275 crore of premium collected from policyholders in liew of the mis-selling of its Dhanraksha Plus LPPT through SBI and associate banks and the commission that it has paid out of the premium collected under this policy. According to sources, these policies were sold to those who availed of home loans from SBI and its associate banks during this period. The policy was intended to cover the outstanding loan in case of death of the policyholder during the term of the loan.

The beneficiaries of this order will be those who purchased Dhanraksha Plus LPPT between 2008-09 and 2010-11. The policyholders will get 44% of the Rs 625 crore premium that they collectively paid for the cover. In its order, the regulator said that SBI Life had positioned this plan as a two-year premium paying term but collected premium upfront from policyholders. This was despite the fact that the insurance company had a single premium version of the product. IRDA said that by positioning the scheme as a two-year premium paying plan, the insurer was able to pay 40% of the first year premium and 7.5% of the second year premium as commission to the bank.

Reliance Smart Cash Plus Plan
Reliance Cash Plus Plan is a traditional plan that provides a combination of a long-term protection and savings along with guaranteed lump sum payment once in three years. This plan is designed to provide multiple benefits - long-term security and savings and periodic cash flow - to customers looking for a simple insurance product with guaranteed returns at regular intervals.

HDFC Standard and Birla Sun Life in queue to buy Aviva Life
HDFC Standard Life and Birla Sun Life are among the six insurance companies which have expressed interest in buying Aviva Plc's Indian business Aviva Life, its venture with the Dabur group. The Burmans of the Dabur family, too, will sell their holding as multinational insurers are fast losing interest in the business in India.

Aviva, the UK-based life insurer, has appointed JP Morgan and Deutsche Bank to sell its stake in the Indian joint venture. The company could be valued at around Rs 5,000 crore, Burman said. However, Indian insurance companies are interested in buying the entire business, and not just Aviva's 26%.

However, HDFC Life remains silent on the speculations and refuses to comment unless some kind of disclosure is warranted.

Standard Format for All Insurance Policies – Life and Non-Life
With a view to improve transparency and help people with easy processes and informed decision taking, IRDA has prescribed a standard format for life and non-life insurance policy. The insurers may also make available these forms in languages recognised under the Constitution of India on their website so that the forms may be accessed easily. The Regulator has insisted that there is a need for maintaining minimum or reasonable font size in respect of all the forms provided or used.

"...all the insurers are advised to make available all the policy servicing forms also in languages recognized under the Constitution of India so as to meet the requirements of policyholders," IRDA said in a notification.

It is envisaged that this initiative benefits in increasing informed decisions by policyholders or beneficiaries.

The advice of maintaining minimum font size is also made applicable to policy contracts issued to all policyholders.

ICICI Prudential Life launches new product
ICICI Pru Guaranteed wealth Protector
ICICI Prudential Life Insurance has launched ICICI Pru Guaranteed Wealth Protector which is a unit-linked insurance product. This helps the customers to protect their capital on maturity and have a potential for upside through an exposure to equities.

"We understand that customers are concerned about the volatility of their savings and our approach through this product has been to provide capital protection with a potential for higher returns through equity exposure. We believe this product will facilitate customers achieving their financial goal," Executive Director of ICICI Prudential Life Insurance, Puneet Nanda said.

The company also said through this new product, customers' corpus is insulated from any market downturn.

Source: Economic Times

LIC buys about 4.66% stake in BHEL
India's largest life insurer, Life Insurance Corporation has bought scrips worth Rs. 18.89 billion in BHEL through an open market transaction which is around 4.66% stake. LIC has purchased 11.41 crore shares in BHEL at a price of Rs 165.55 apiece through a block deal on the BSE.

Source: India Info line

Max Life ties up with Toyota Financial Services
Max Life Insurance has joined hands with Toyota Financial Services India Ltd. (TFSIN), a non-banking financial set-up which provides auto finance solely to Toyota customers in India. This alliance has been formed to provide insurance cover for car loan customers of Toyota Financial Services under a Max Life group product called “Max Life Group Credit Life Secure”. As per this agreement, Max Life Insurance will issue a Group Credit Life Secure policy, where Toyota Financial Services India will be the master (group) policyholder and hence their customers can enroll themselves as members within the policy to cover their financial liability pertaining to their car loans. The policy is a single premium insurance plan that provides risk cover to secure the car loan against eventuality of death of the customer. The sum insured for the customer at any point throughout the policy would be equivalent to the outstanding principle amount as per the loan schedule.

Source: India Infoline

IDBI Federal Life elevates Vighnesh Shahane as CEO
IDBI Federal Life Insurance, a joint-venture of IDBI Bank has announced the appointment of Vighnesh Shahane as the Chief Executive Officer & Whole Time Director of the Company. Speaking on the occasion, R. K. Bansal, Executive Director, IDBI Bank, who in the interim had taken additional charge as the Acting CEO, IDBI Federal, said, “At IDBI Federal, we believe in recognising talent and creating leaders from within the organisation. In his capacity as a channel head, Vighnesh has brought about a positive change and under his leadership, the Bancassurance channel registered unprecedented growth.” Mr. Bansal added, “We are at a defining point in the life insurance industry in India. Despite the challenging macro economic conditions and dynamic regulatory environment, our economy promises huge potential for life insurance in the longer term. Vighnesh, with his diverse exposure across various facets of business, will play a key role in leading IDBI Federal towards achieving its goals.” Speaking about his new role, Vighnesh said, “IDBI Federal is a young company that has embarked on a journey to change the way life insurance is sold and bought in the country. It is this approach that has helped us withstand the challenge of the times and emerge as a growing company despite these challenges. It is my honour to lead this dynamic company through its next phase of growth.” Having represented Mumbai in the prestigious Ranji Trophy, Vighnesh has modelled his leadership style on team work and collective contribution. In his career spanning over 20 years, Vighnesh has worked with leading financial organisations across geographies. He brings with him, a rich experience in various facets of business like sales management, strategy and new business development.

Source: India Info Line

SBI Life to appeal against IRDA's order
The Insurance Regulatory and Development Authority (IRDA) on Tuesday asked SBI Life Insurance to refund Rs. 275 crore or 44 percent of the Rs 625 crore premium it had collected against issuing Dhanaraksha Plus Limited Premium Paying Term (LPPT) policy.

“It is found during onsite inspection conducted in December, 2010 that SBI Life Insurance has offered Dhanaraksha Plus Limited Premium Paying Term (LPPT) Group Insurance Product which was a 2 year premium paying term plan, by collecting second year’s premium upfront along with the first year premium,” IRDA said in a notification. Thus the premium collected is more on lines of a Single Premium than two yearly regular premiums against the approved File and Use features, IRDA said. However, SBI Life said that the insurer had not violated any norms and that it would appeal to IRDA chairman against the order.

Tata AIA Life launches Mahalife Gold Plus
Tata AIA Life Insurance Company Limited (Tata AIA Life) has launched Tata AIA Life Insurance MahaLife Gold Plus, a traditional whole of life* plan that protects against the uncertainties of changing time by offering insurance protection and lifetime income. It is a non-linked participating plan that secures the future of the insured and his loved ones, with just one policy. The plan that comes with a minimum basic sum assured of INR 2 lakhs, offers increased guaranteed benefits with higher sum assured and returns till the age 85 years.

The key benefits of the plan includes higher tax free Guaranteed Annual Coupon on choosing higher insurance protection (Basic Sum Assured), limited period paying term of just 15 years. It ensures financial protection for one’s family with a Whole of Life* insurance cover and offers non-guaranteed cash dividends annually from 6th policy anniversary till maturity or death (whichever is earlier).

Future Generali Insurance Q3 profit of Rs. 28.4 cr
Future Generali India Insurance, a joint venture between Future Group - the leading retailer of India and Generali has posted a profit of Rs. 28.4 crore for 9 months ended December 31, 2013. The gross written premium for the period stood at Rs. 944 crore as against Rs. 855 crore for the same period last year. The company has reported positive business growth both Q-o-Q and Y-o-Y. The total premium collection for the quarter stood at Rs. 319 crore as against Rs. 307 crore last quarter. The company’s total premium collection for the same quarter in FY12 - 13 was at Rs. 281 crore.

So far in the April to December period of FY13 – 14, Future Generali India Insurance sold more than 7 lakh policies, as opposed to 6.45 lakh policies during the same period last year. The claim settlement ratio also saw year on year increase to 91% this year. The company’s total funds under management as on December 31, 2013 stood at Rs. 1,460 crore. Source: India Info Line

LIC's pension and group business zooms 50%
Life Insurance Corporation of India (LIC) on Tuesday announced that its pension and group business recorded new business premium of Rs. 391.43 billion as on 28 February for this fiscal. The premium collected between April 2013 and February 2014 was about five times the premium collected by 23 private life insurers put together, LIC said in a press release. As on 31 January, LIC’s market share in group business was 84%.

“Under the Aam Admi Bima Yojana, a social security scheme of the government of India, about 10 million new lives have been covered,” LIC said.

Of the new business premium collected this fiscal, LIC collected Rs. 215 billion through superannuation schemes and Rs. 93 billion through gratuity schemes.

LIC said its pension and group business recorded a 50% sales growth in new business premium and a 20% growth in the number of lives covered as on 28 February.

About 390 million people have been covered this fiscal under various group schemes of LIC.

Source: India Info Line

Edelweiss Tokio Life launches Wealth Builder
Edelweiss Tokio Life Insurance, has launched Edelweiss Tokio Life - Wealth Builder, a non participating, non-linked life insurance plan which offers a combination of savings and protection. The plan addresses the Wealth Accumulation need of a customer and protects the family against any contingency.

Edelweiss Tokio Life – Wealth Builder is a simplified savings plan that guarantees all the benefits of the plan right at the beginning of the policy. The minimum entry age for the plan is 91 days and the maximum maturity age is 70 years. The policy term ranges between 10 and 30 years with the option of paying premiums in monthly, semi annually or annual installments. In addition, the plan offers tax benefits under section 80 C and section 10(10D) of Income Tax Act, 1961.

Edelweiss Tokio Life - Wealth Builder also offers a ’Guaranteed Loyalty Additions (GLA)’. The amount of GLA depends on annualized premium, policy term, premium paying term, entry age and the gender of the life assured. The accrued GLA is payable on death or on maturity. The sum assured on maturity is the cumulative annualized premium. The Premium Paying Term (PPT) can be 5, 7, 10 or 12 years. In case of unfortunate death of the policyholder, the death sum assured ranges between 10 to 13 times of annualized premium and the death benefit is at least equal to 115% of annualized premiums paid until date of death.

The plan offers 15 days of free look period where the customer can go through the policy document and review the terms and conditions of the policy. The policyholder has an option to avail loan facility to meet any urgent / unforeseen liquidity requirements. In addition, the policyholder can choose from a vast array of riders offered by the company (Accidental Death Benefit Rider, Accidental Total and Permanent Disability Rider, Critical Illness Rider etc) to make it a more comprehensive cover.

Source: India Info Line

My Solutions from Birla Sun Life Insurance
Birla Sun Life Insurance has launched MySolutions offering customers tailor-made insurance solutions with combination plans for goal based savings. MySolutions is supported by a unique technology platform that aids sales force and advisor communities to gauge the customers’ requirements and offer customised solutions to help them achieve planned financial milestones in life.

Birla Sun Life Insurance currently offers 4 solutions within the MySolutions basket - BSLI Premier Retirement Solution, BSLI Aspire Future Solution, BSLI Wealth Forever Solution and BSLI Secure Income Solution. Each addresses a distinct need in the customers’ life-cycle including retirement, wealth creation and regular income.

MySolutions adopts a process that is intuitive, enabling customers to enlist their life goals, customise financial plans, and finally make the appropriate investment decisions by co-creating insurance plans to meet their requirements.

Source: India Infoline

Shiksha Plus Super from Max Life Insurance
Shiksha Plus Super, is a unit linked child plan that provides resources for the overall development of the child even in absence of resource provider.

Rajesh Sud, CEO & Managing Director, Max Life Insurance said, “The launch of Shiksha Plus Super completes our suite of products required for all life stage needs that are compliant with the new guidelines effective January 1, 2014.

While in the yesteryears, it was all about focusing only on children’s education to ensure their good career, in today’s day and age of ever evolving needs, development of an all-round personality of children and supporting them in areas beyond education is of utmost importance. Max Life conducted an extensive ethnographic consumer study to understand these deep-rooted behavioral aspects of parents which have helped us formulate this solution.

This offering is targeted at parents who aspire for all round development of their children and want to secure the future of their children whether they are there or not there. This product is packed with with superior customer value proposition and greater emphasis on protection to gain control over uncertainties of life and inflation.

Source: india Info Line

IRDA allows advance premium collection
Insurance Regulatory and Development Authority (IRDA) has revised its linked and non-linked insurance products regulations in order to allow advance premium collection, “Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year,” IRDA said to the CEOs of life insurance companies in a circular on Monday.

The premiums collected in advance can only be adjusted on the due date of the premium. Further, the commission shall only be paid after adjustment of premium on due date.

SBI Life settles claim in 48 hours
SBI Life Insurance has completed the claim settlement of martyred Lieutenant Commander Manoranjan Kumar in just 48 hours. Lieutenant Commander Manoranjan Kumar of the Indian Navy, died while serving on board INS Sindhuratna submarine

The claim settlement cheque amounting to Rs. 20.91 lacs was handed over by Arundhati Bhattacharya, Chairman, SBI Group to Navin Kumar, father of late Lieutenant Commander Manoranjan Kumar at the Jamshedpur branch.

SBI Life Insurance, MD & CEO, Atanu Sen said, "We salute the supreme sacrifice of Lieutenant Commander Manoranjan Kumar and have done our little bit to comfort the family of the departed soul. We are proud of the valiant youth of our country who place their trust in us to protect their loved ones from their liabilities in case of any unanticipated eventualities of life. We will continue to serve them through our customer centric approach."

SBI Life has honoured it's commitment to protect the loved ones of its customers in the same way that Lieutenant Commander Manoranjan Kumar honoured his commitment towards the nation.

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