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Volume 9, Issue 5, May 2013
 


Canara HSBC OBC Life books profits 2012-13
Canara HSBC OBC Life is a joint venture between Canara Bank(holding 51%), HSBC Insurance (Asia Pacific) Ltd (holding 26%), the Asian insurance arm of one of the world's largest banking and financial services groups - HSBC and Oriental Bank of Commerce (holding 23%). The private insurer has been in the insurance industry since June 2008 and has reported its profit of Rs 23.5 crore for the first time for the fiscal ending March 2013. The premium income was recorded at Rs, 344 crores for March 2013 while the overall premium income for the whole year was at Rs. 1912 crores.

The company has issued 3.90 lakhs policies since its inception.

The Chairman Mr. R K Dubey attributes the success of the company to the strong focus on need-based selling and also to the regular collection of renewal premiums that has ensured that the business remains stable and sustainable.

John Holden, CEO, Canara HSBC Oriental Bank of Commerce Life Insurance, said, “While a lot has changed in the last five years, we are confident of sustained profitable growth; we have the right business model and we have the right business partners. Our focus on regular premium policies, which is closely aligned to the long-term nature of life insurance, has ensured continuous inflows and helped to build sustainable income to support the cost base, delivering a path to profitability. Our philosophy is based on propositions aligned to the core needs of customers, which don't change even if the platform or product structure does and we welcome the pro-consumer product regulations introduced by the IRDA.”

SBI Life Insurance Records Profit for 2012-13.
SBI Life Insurance Company has recorded an all time record profit of Rs. 622 crores for the FY 2013. This is an increase of 12% over the last financial year. The driving factor of SBI Life’s profitability can be attributed to its effective operational efficiency and got the accolade of being the number one among the private insurance companies.

While most of the life insurance companies have shown fall in business revenue, SBI Life has recorded new business premium at Rs. 2618 crores, 19% increase over the previous financial year.

The Asset Under Management (AUM) jumped by 11% to Rs. 51, 912 Cr from Rs. 46, 576 Cr as on 31st March, 2012.

Atanu Sen, MD & CEO, SBI Life Insurance said “Despite the continued tough environment, we were able to change the business mix and sustain a profitable growth primarily due to our brand strength, multi distribution model and high productivity of our retail channels. We will further leverage our extensive Bancassurance network, Agency productivity and tap into opportunities emanating from new technology usage.”

SBI Life’s focus on rural segment has brought in 23% of its total policies from the rural segment. The company also covered 68714 lives from the underprivileged social sector. This has endorsed the company’s approach towards life insurance inclusion.

Being customer-centric, the company has taken initiatives towards strengthening the customer bondage by way of extensive customer education program reaching out to all socio-economic segments across the country. The company, leveraging on the technological developments, focused on the younger audience who are net savvy, has launched online protection plan e-Shield. During the year, the company introduced several new products designed on variety of need-based platforms. These include guaranteed income plan – Smart Income Protect, Pure Protection Plan – Smart Income Shield, and Pension Plan – Saral Pension.

Insurance Bill to be taken on top priority
Indian insurers have brought in capital worth around Rs. 320 billion since 2000, of which Rs. 210 billion has been invested by Indian promoters. According to Insurance Regulator and Development Authority (IRDA), the sector would require an additional Rs. 500 billion in the next five years.

Raghuram Rajan, Chief Economic Adviser at the finance ministry, is of the view that passage of the insurance bill would signify the country’s reform process. According to him, the new Insurance Bill will seek to increase the foreign direct investment (FDI) level from 26% to 49%.

He also emphasizes on the point that passing of the Insurance Bill would help in addressing the widening current account deficit (CAD) besides expanding the penetration of insurance in the country.

HDFC Life reports net profit of Rs. 4.51 billion in FY13
HDFC Life Insurance Company has registered net profit of Rs. 4.51 billion in 2012-13. The company recorded 16% positive growth in new business premium income (individual business).

The new business premium income increased to Rs. 31.13 billion from Rs. 26.95 billion in 2011-12.

Assets under management zoomed 24% to Rs. 401.08 against Rs. 322.54 billion in the previous year, HDFC Life said in a press release.

Renewal premium income (individual business) increased 9% to Rs. 68.86 billion from Rs. 63.45 billion in 2011-12, while total premium income rose 11% to Rs. 113.23 billion from Rs. 102.02 billion.

Amitabh Chaudhry, MD& CEO, HDFC Life, said, “The financial year 2012-13 was one more year of the company consistently outperforming the industry growth rates in new business premium, reducing its operating expenses ratio, growing both individual & group premium, increasing renewals and improving new business margins.”

HDFC Life, Birla Sun Life and Bharti AXA among six best bidders for HSBC's 26% insurance stake
HSBC has chosen, among the six bidders, HDFC Life, Birla Sun Life Insurance, and Bharti AXA Life Insurance for its sale of 26% insurance stake. While the foruth bidder is Manulife, the remaining two bidders are not known.

The sale of stake in the Indian insurance venture is part of HSBC global chief executive Stuart Gulliver's plan to exit insignificant businesses.

Sahaj Suraksha from DLF Pramerica Life Insurance
DLF Pramerica Life Insurance Company Limited is a joint venture between DLF Limited, one of India’s largest and most respected real estate organizations, and Prudential International Insurance Hold.

The company has launched Sahar Suraksha, a Savings cum Protection plan. At the age of 75, one is most likely to see a dip in savings and an increase in unexpected expenses, which could result in a person compromising on his or her style of living. This plan is designed to help customers meet essential expenses and help the customers continue with their lifestyle without making any compromises by supplementing existing retirement savings.

HDFC Life launches new health insurance product
Health Insurance is growing at a CAGR of more than 30% and with current total market size of about Rs. 14,000 crores. This market is expected to show robust growth and is projected to be more than Rs. 30,000 crores in size over the next 5 years.

HDFC Life, has launched its new new health insurance product – HDFC Life Health Assure Plan, aimed at providing a comprehensive health cover. The plan offers reimbursement of medical expenses incurred in a hospital and is available in two variants – Gold Plan and Silver Plan. The plan allows coverage for families on floater cover basis, covers 200 day care procedures, Pre and Post Hospitalization Benefit and offers a host of other benefits.

The new health plan was launched by Mr. AMitabh Chaudhry, MD & CEO of HDFC Life. He said, “Customer centric product innovation has been our prime focus at HDFC Life. In line with our philosophy, we are proud to announce the launch of Health Assure – a health insurance plan that will provide long term protection to our customers while offering a 50 per cent no claim bonus.”

The entry age for this plan is up to 70 years and there is no exit age. The plan provides assurance of a lifelong renewability. This has the option of Individual or Family Floater features at the choice of the customers. HDFC Life, through TPA has a tie-up with over 4,500 hospitals for cashless claims.

IRDA plans to standardize Life Insurance Plans
IRDA had constituted four working groups last year for the sole objective of standardizing 18 life insurance plans.

The working group committees were expected to set up the benchmark for products by April, but parameters for only one product could be standardised.

According to IRDA, the complete process of standardising 18 life insurance products should be completed by August 2013.

ICICI, HDFC Bank direct staff not to push insurance products
Following the allegation posted by Cobrapost on the money laundering by 23 private and PSU Banks, ICICI and HDFC Banks have verbally instructed their staff of their branches not to pursue sale of insurance voluntarily till the issue is resolved. Cobrapost has alleged that may PSU banks including SBI, IDBI, OBC, Dena Bank, IOB, Yes Bank, Dhanlaxmi Bank, PNB, ICICI Bank, Axis Bank, Canara and BoB had engaged in money laundering and there was violation on PMLA (Prevention of Money laundering Act), KYC (know your customer) and banking norms.

An investigation conducted by the Reserve Bank of India (RBI) into three private lenders—ICICI Bank, HDFC Bank and Axis Bank—revealed that they may not have been involved in money laundering “in the strictest sense” but there could be instances of tax evasion.

IndiaFirst Life to enter health, micro insurance in FY14
India First Life is a joint venture between two of India’s public sector banks – Bank of Baroda (44%) and Andhra Bank (30%), and UK’s financial and investment company Legal & General(26%) incorporated in 2009.

The company has shown significant growth of business on critical parameters, with its new business premium increasing by 34% from Rs. 9.8 billion to Rs. 13.16 billion. The company is confident of achieving break-even sooner than expected.

The company is planning to enter into health insurance segment and micro insurance from the current financial year. IndiaFirst started its operations with the bancassurance model but is steadily and surely developing multi channels and corporate business which are tough to build but provide a firm competitive advantage in the long run.

IRDA joins IAIS to share info with global peers
IRDA (Insurance Regulatory and Development Authority) has joined hands with some of its global peers for sharing and exchange of sectoral information.

IRDA has become a signatory to the global supervisory cooperation and information exchange agreement under the support of International Association of Insurance Supervisors (IAIS).

The MMoU is a global framework for cooperation and information exchange between insurance supervisors. It sets minimum standards to which signatories must adhere, and all applicants are subject to review and approval by an independent team of IAIS members.

Through membership in the MMoU, jurisdictions are able to exchange relevant information with and provide assistance to other member jurisdictions, thereby promoting the financial stability of cross-border insurance operations for the benefit and protection of consumers.

IRDA Chairman TS Vijayan said the regulator attaches great importance to sharing and exchanging information among supervisors.

Max Life's records at Rs. 8.6bn Profit Before Tax
Max Life Insurance has recorded its profit before tax at Rs. 8.6 billion for 2012-13 which has increased by 17% over the previous financial year.

Gross written premium of the company grew 4% to Rs. 66.39 billion. Max Life declared dividend of Rs. 2.59 billion and bonus of Rs. 2.97 billion to participating policyholders, a 5%-7.5% upward revision from previous year.

Max Life's assets under management increased by 19% to Rs. 204.58 billion in FY13. The company’s solvency ratio is 521% as of now. The company has paid 94.3% of its claims during the year amounting to Rs. 2.33 billion.

Reliance Life targets 10% growth in FY14 premium income
Reliance Life Insurance has plans to achieve double digit % growth in FY 2013-14 and it also targets to maintain a 10% growth in the total premium income by way of better policy renewals.

Towards the objective the company had already developed a unique distribution channel through its Career Agency during December 2012. This was aimed at widening the company’s reach across the country. This also enables the agency force to keep in touch with the existing policyholders. As an initiative towards accomplishing double digit growth, the company is planning to expand its base in pure health insurance space.

Swabhimaan Careers – HDFC’s Customer-Centric approach
With a view to build long-term relationships with customers, HDFC has launched Swabhimaan Careers that offers employment opportunity to the deceased policyholder’s family. Under this plan, HDFC Life will contact the policyholder’s dependants after settlement of a claim and consider them for employment opportunities with HDFC Life based on their qualification and merit. This will enable the dependent to lead a life with financial freedom.

While insurance compensates only the financial losses due to premature death of the family head, it can compensate the emotional loss by way of providing a fair employment opportunity to the dependents. According to HDFC Life, the relationship with the customer does not end with the settlement of claim, but continues with them even thereafter.

LIC to open 1800 Offices more in 2013-14
Life Insurance Corporation of India currently has about 2067 offices across India.

The Finance Minister, P. Chidambaram has given a target to the LIC to open 1800 offices by 2013-2014.

Insurers to maintain policyholders’ records for 5 years: IRDA
The IRDA (Insurance Regulatory and Development Authority) advised insurers to maintain records of customers and beneficiaries for five years after termination of business relationship. The documents would include those pertaining to the identity of the customers and beneficial owners as well as account files and business correspondence relating to the customer shall be maintained for at least a period of five years after the business relationship with the customer has ended.

The new guidelines are in line with the changes in the Prevention of Money Laundering (Amendment) Act, 2012.

Shriram Life Insurance Q4 PAT at Rs. 82cr vs Rs. 56cr
Shriram Life Insurance Company Limited, the life insurance arm of 60,000 Crore Shriram Group has announced its Annual Results for the financial year ended 31st March 2013.

Ms. Akhila Srinivasan, Managing Director, Shriram Life Insurance said, “During the year 2012-13, we collected a gross premium of 618 Crores on 1.54 Lakh policies. The new business premium at 421 Crores saw a growth of 7% over last year. The growth is commendable in times when industry has de-grown by 6%. Our Pre-tax surplus has grown by 50% over last year to 100 Crores. Retained earnings have climbed to 163 Crores at the end of last fiscal”.

She added, “2012-13 was the biggest year for us in terms of policy count. The company sold 1.54 lakh policies, a growth of 20% over last year. We are among the top ten private life insurers on policy count. The strong growth in policy count is testimony to company’s focus on financial inclusion. The individual life policies sold in rural areas stood at 50% (Up from 43% last year), accelerating our numero uno position in the industry and surpassing regulatory requirements of business through the social and rural sector”.

Shriram Life Insurance aims to sell 2 lakh policies in 2013-14
Shriram Life Insurance Company has reported 46.4% increase in its net profit at Rs. 82 crores for the year ending March 31, 2013 as against Rs. 56 crores during the corresponding previous year.

For the financial year ending March 31, 2012 the company had sold 1.31 lakh policies. The company plans to sell about 2 lakh policies in the current financial year.

 

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