Bajaj Allianz Life’s new ULIP

Bajaj Allianz Life Insurance has brought in a new Unit Linked investment plan, called Century Plus which is said to provide high allocation i.e., 98% in first and second year and 100% from third year onwards, high flexibility, loyalty benefits along with many riders offering different options. This is 10-year unit linked insurance and investment plan. Mr. Kamesh Goyal country manager Allianz and CEO Bajaj Allianz Life said, while launching the product, “ Century Plus an investor focused plan gives the benefit of high allocation and also gives twin benefits of sum assured plus fund value” and that “ For the first time we offer loyalty units to our customers which will enhance the investors’ fund value”. The loyalty units are offered from the sixth year onwards at 7% of first year’s annualized premium and additional 0.25% of fund value in respect of regular premium. It is also informed that their new Asset Allocation Fund takes care of the investment even if market conditions change. This product provides partial withdrawals after three years and three free switches between the five different options every year. Many more options and benefits are also available in riders which can be chosen by investor.

BOB enters Life Insurance

Bank of Baroda have entered into an agreement with British Insurer Legal & General and Andhra Bank to start a life insurance venture. Finance Minister presided over the ceremony. Speaking of the potential of insurance sector in the country Mr.Chidambaram, Finance Minister said, “ Today, the question is not whether you want to be in India but if you can afford not to be in India”. In this joint venture BoB will hold 44%, the British firm 26% and Andhra Bank remaining 30% respectively. Together the new venture will have a branch network of 4053 branches with access to 50 million customers.

Life Insurers enter health insurance.

After the announcement of LIC’s intentions to enter health insurance business in a big way with an investment of Rs.5000 crores within three months ‘more and more companies are interested in coming out with a health insurance product’ according to Mr.SV Mony secretary general Life Insurance Council of India. Mr. P. Nandagopal of Reliance Life said that they are looking at the health segment seriously.

Reliance Life to increase capital

Reliance Life Insurance, which is a wholly owned subsidiary of Reliance Capital, will be getting additional capital infusion to the tune of Rs.1500 crores from its parent by 2010. Mr. Nandagopal CEO of Reliance Life said “ This year we have grown by 160% and are targeting to grow by 200% for the remaining year. Last year, we did a business of Rs.930 crores, which we have already crossed a few days ago. Currently we are in 500 cities and towns and plan to be present in 1000 cities by the next year.” The company has four unit-linked insurance plans, which contribute 90% to new business premium. Their six traditional products bring in the remaining 10% of the premium. The company launched an Ulip named Reliance Secure Child Plan. This product will provide 10% of the sum assured each year in case the child meets with total and permanent disability due to an accident, throughout its life. The company manages Rs.2500 crores of funds of which 65% are in equities. Reliance life has achieved a market share of 6.25% in September. Recently they brought out Express Life where they issue the Ulip over the counter.

LIC’s pension Fund Company.

LIC has set up a subsidiary to manage the New Pension System, which will target government employees initially. The company may have schemes for voluntary contributions from individuals later. LIC’s executive director Mr.H.Sadhak would be heading the new subsidiary with HQ at Mumbai.

Growth of Insurance Industry in 2006/07

Mr. Pawan Kumar Bansal, minister of state in finance ministry told Lok Sabha that the general insurance in private sector have achieved 34.72% of market share and in life insurance it is 18.08%. The market share of public sector insurance companies in life insurance was 81.92% and in general insurance it was 65.28%. In life insurance LIC has registered a growth to Rs.562.23 billions in terms of first year premium. He further said that public sector insurance companies were re-orienting their operation by re-structuring the business segments, introducing new products, entering in alliances and upgrading their IT network.

HDFC Standard Life floats IPO

HDFC Standard Life Insurance Company intends to offer 10% equity shares thro’ IPO. This will be the first life insurance company in the country to be listed on the Indian stock exchange if the plan goes through. This was confirmed by Mr.Deepak Satwalekar MD of HDFC Standard Life who further said that ‘the nitty gritty was being sorted out and that the IPO size would be above 100 crore rupees’. HDFC Standard Life Insurance is a joint venture between HDFC and Standard Life of U.K. Standard Life was recently listed on London Stock Exchange.

Max New York Life in Uttarkhand and UP

Max New York Life Insurance Company is planning to increase its business in Uttar Pradesh and Uttarkhand aiming to sell 1000 policies in one month for its new SMART investment plan. Mr.Anil Misra, regional manager UP said “ UP is a very important market for us. The insurance awareness in the state is about 77% while ownership in terms of any policy is about 18%, which certainly indicates ample opportunities that exist to be exploited.” Mr.Vipul Jain Managing partner Max New York Life Insurance said that the driving force for them were their trained agents,” we have about 359 trainers to train the agents in the right direction. In the process, the company penetrates in various segment of the society.” On their SMART invest Pension he said that it was a unit-linked pension plan that was affordable, efficient and flexible. The plan is structured to meet the retirement needs of the evolving Indian consumer, according to Mr.Vipul Jain. This plan provides for taking it at a lower premium and later increasing the premium by 5% every time. This facility enables the consumer to provide for his retirement in stages.

Birla Sun Life engages Angel Broking

Birla Sun Life Insurance has engaged the services of Angel Broking for distribution of the former’s products. Angel Broking employs 2000 persons and services 3 lakh retail customers through 100 branches. BSLI President and CEO Mr.Vikram Mehmi said that as part of their expansion plans for the year they are strengthening their distribution through intermediaries.

ING Vysya Life Insurance expands

Mr. TK Uthappa, director of sales, Tied Agency said, while explaining the plan of ING Vysya Life Insurance to expand its distribution network, “ We will open 200 new branches by the end of December 2008 or even earlier. Once that happens, the company’s branch network would go up to 500 offices, with a simultaneous increase in the number of employees by around 1000, taking the total count to 7000. Then the company will be present in 180 locations up from 138.”

Bajaj Allianz Life’ plan for housewives

Bajaj Allianz Life Insurance Company has announced simpler norms for encouraging life insurance cover for housewives/homemakers. The company offers life insurance to housewives/homemakers up to Rs. One lakh, without confirming whether their husband has insurance. As a norm in the industry, housewives/homemakers are provided with insurance cover only if their husband already has insurance cover. Therefore this initiative from Bajaj Allianz is path breaking and first of its kind. Mr. Kamesh Goyal Country Manager Allianz and CEO, Bajaj Allianz Life says” Housewives/homemakers add economic value to a household and have their own independent identity. Bajaj Allianz Life Insurance recognizes both these as important factors and keeping this in mind have launched our new initiative to empower housewives/homemakers to make independent financial choices for their families. Over 25% of our policyholders are women and in the current fiscal we have already issued over 4 lakh policies to women. This new initiative will help us to reach out to many more housewives/homemakers and help them secure themselves as well as their family’s future”. The company has a specific vertical for Women and Children with customized products. It offers lower premium rates/mortality charges to women. It has exclusive women centric health riders. The company plans to come up with insurance solutions combined with health and investment plans exclusively for women.

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