Chairman speaks

Dear member,

I would like to share some statistics with you about the booming insurance industry. The insurance industry is booming with a record 35 per cent growth in its premium income during the last financial year, according to a survey. All the 13 private sector players walked away with an impressive 129 per cent growth, according to sources from the Assocham (Associated Chambers of Commerce). The figures for the first two months of the fiscal 2005-06 also speak of the growing share of the private insurers. Among the private players, ICICI Prudential is the market leader with a 6.25 per cent market share during the said period followed by Bajaj Allianz that recorded a 3.63 per cent market share.

The force behind such a booming trend is no doubt, the agents of the insurance companies who take the industry to newer heights.

I wish you all the best.

T Muralidharan
MD & CEO

News

IDBI to enter insurance industry

According to industry grape wine, IDBI may enter both life as well as non-life insurance sector. IDBI is said to have been contemplating to foray into the insurance sector quite sometime. IDBI may join the insurance sector through a tri-partite joint venture since RBI regulations do not permit a bank to hold more than 50% equity in an insurance firm.

The companies that have evinced interest for a JV with IDBI are: Dai-ichi Mutual Life Insurance Company of Japan, Italian insurance group Generali, life insurer Fortis of Belgium and Axa of France, according to sources in the insurance industry. While Dai-Ichi is among Japan's top insurers, French giant Axa is among the largest in the world.

Insurers should submit weekly reports - IRDA

Following the enormous loss of lives and property caused on account of the torrential rains that slashed Maharashtra a fortnight back, the Insurance Regulatory and Development Authority (IRDA) has directed all the life and non-life insurance companies to submit department-wise weekly reports on the settlement of claims to the affected parties. The first return should reach IRDA by August 8 and the subsequent reports by every Monday. IRDA, however, has appreciated the pro-active stands of the insurers who have set up special cells to settle the claim speedily.

Mahila Gail – A new cover for women from Bajaj Allianz

Bajaj Life Insurance Company is planning to target the weaker sex. The private life insurer has come with a new product ”Mahila Gail” designed for women offering cover for critical illness, reconstructive surgery benefit for breasts due to breast cancer, congenital disability and also the post-pregnancy complications.

Mr Sam Ghosh, Country Manager of Bajaj Allianz says that the company is striving to provide financial security to women, so that they march forward and contribute their best to the social development.

Private insurers on a growth ramp – June 05 results

The private insurers account for a total of 25.3 per cent of the market and Rs 1,115.08 crore of the premium collected during the quarter.

ICICI Pru continues to top the race among the private insurers with a market share of 7.53%. The bulk of its premium income at Rs. 268.97 crore was contributed from individual non-single premium policies.

Bajaj Allianz has retained its number two position with a market share of 4.18% with a premium income of Rs. 185.52 crores, as against a market share of 1.80% during June 2004.

HDFC followed in the third position with a total premium of Rs. 142.02 crores and a market share of 3.20% against its market share of 1.45% during June 2004.

The first premium income of the Life Insurance Corporation of India has come down to 74.87% for the quarter ended June 30 as against 82.39% during the corresponding period during the previous year. But LIC has recorded an increase in the premium income for the quarter from Rs. 3014.72 crore to Rs. 3322.35 crore.

LIC staff turns to an insurance agent

IRDA has approved the proposal mooted out by LIC a year back under which the employees can opt for acting as insurance agents to sell the products of LIC and if found suitable after a couple of years, they can choose to retire from the regular rolls of the corporation with all terminal benefits eligible to them and take up selling as their career. In case they find that option not viable, they can come back to the regular job.

But IRDA has stipulated that every employee who want to take up selling the products of LIC should undergo a 100-hour training process.

Bajaj Allianz joins hands with 5 co-operative banks for bancassurance

Bajaj Allianz Life Insurance has secured bancassurance partnerships with five co-operative banks. These include the Parwanoo Urban Cooperative Bank (Himachal Pradesh), Integral Urban Cooperative Bank Ltd (Jaipur), Ajit Sahakari Bank Ltd (Pune), Manjeri Cooperative Urban Bank Ltd (Manjeri, Kerala) and Hubli Urban Cooperative Bank Ltd (Hubli). The company, currently, has bancassurance tie-ups with Standard Chartered Bank, Centurion Bank, Syndicate Bank and Jankalyan Sahakari Bank.

Birla Sun to break even by 2006 end

Birla Sun Life may take the pride of the first private life insurance company to break even by December 2006. Birla is 5 years old in the insurance business while the industry average is seven to eight years to break even.

The MD of the company, Nani Javeri claims that this is because of the effective cost management of the company coupled with long term unit-linked plans.

According to Mr Javeri, the company is likely to take a hit on its group insurance business because of the fringe benefit tax that has been imposed on group insurance. The company hopes to make up for this by reaching out to the mass market. The company plans to reach out to the B and C segments by expanding its branch network in new cities.

Tata AIG to increase its capital by Rs. 60 crores

Tata AIG Life Insurance has infused an additional of Rs. 60 crores and has increased its share capital to Rs 381 crore. Tata AIG has completed fourth year of operations and registered a total premium of Rs 497 crore for the period April 2004-March 2005.

ING Vysya offload its stake to GACL

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