IRDA: New business premium in life insurance up 12% in 2013-14

New business premium in the life insurance segment increased by 12 per cent in the year ended March 31, 2014, compared to the previous year, according to T S Vijayan, Chairman, Insurance Regulatory and Development Authority (IRDA).

“We have got only provisional, unaudited figures so far. The growth in the non-life sector was around 13 per cent,’’ Vijayan told Business Line on the sidelines of the first Insurance Awareness Day celebrations organised by IRDA here on Saturday.

During the year 2012-13, total premium in life and non-life insurance stood at Rs 2.87 lakh crore and Rs 63,000 crore respectively.

On the growth potential in the current year, the regulator said health insurance was poised for “significant” growth, while group insurance would drive growth in the life insurance segment. “In the non-life sector, things will depend on how the industry performs,” he added.

The market for traditional policies vis-à-vis unit-linked insurance products was gaining traction, the Chairman said.

Bancassurance

When asked about the delay in making banks insurance brokers, he said: “There are some concerns expressed by banks in becoming brokers.” On whether banks can be permitted to tie up with more than one insurer as a corporate agent, Vijayan said: “All this is only nomenclature but the point is better distribution.”

Earlier, while speaking after the formal launch of the regulator’s official page on YouTube and 12 animation films and brochures to promote insurance awareness, he said the foundation day of IRDA would from now on be celebrated as Insurance Awareness Day.

Since its establishment on April 19, 2000, IRDA had taken measures to promote the industry and welfare of consumers, he said, adding: “Life insurance penetration had gone up from 2.15 per cent of gross domestic product in 2001 to 3.17 per cent in 2012.”

IRDA imposes fine on Reliance Life Insurance for violating underwriting regulations

The Insurance Regulatory and Development Authority (Irda) has imposed a monetary penalty of INR17.7m ($294,166) against Reliance Life Insurance for violating various insurance regulations in the country.


During the course of investigation, the Indian insurance watchdog scutinized 47 charges leveled against the life insurance company, which includes violation of advertisement and product distribution norms, as reported by PTI.

The market regulator slammed the insurance for indulge in the business sourced from unlicensed entities through multi level marketing for which the company will have to reimburse a fine of INR6.5m ($108,027).

Additionally, the insurer was fined INR2.5m ($41,549) for service agreements with various entities, which IRDA claimed were also engaged for providing services of lead generation and dissemination of information.

The market regulator said that such agreements with various third parties have violated the Insurance Advertisement Regulations, 2000.

Apart from this, IRDA fined INR2.5m ($41,549) on the insurer for the procedure adopted in issuing cheques favoring the Master Policy Holder which breached its group insurance guidelines.

"Further, payment of significant monies for an unskilled job of distribution of publicity material under the guise of 'Dissemination of Information' is questionable," said Irda in the order. Reliance Life has been directed to immediately discontinue the payments.

"...the penalty of Rs1.77 crore shall be remitted by the Life insurer by debiting shareholders' account within a period of 15 days from the date of issuance of this order...," Irda said in its order.

Source: http://lifeinsuranceandpensions.insurance-business-review.com

Life Insurance : Investment options

Here is a good article on what type of Life insurance you should choose in case you want to use it as an investment option..

When the stock market does well, it becomes easier for life insurance companies to sell "permanent life" products that grow in value in step with general increases in the stock market. Unlike term life policies, which only pay when the insured person dies within a specified period, permanent life policies are not restricted to a specific period and accrue cash value.

Read on: Is life insurance a good way to invest?
Source: http://www.chicagotribune.com

6 Key Insurance Business Impacts from Analytics

Stephen Applebaum, a claim specialist and insurance industry veteran shares his views on the recent "Insurance for Analytics" USA conference.
 
Stephen says, "I am convinced that analytics is not only one of the most valuable and promising technology disciplines to ever find its way into the insurance industry ecosystem, but that it's very adoption and use clearly identifies those carriers – and their information technology partners – who are and will continue to be the most innovative in their markets."

Read more: 6 Key Insurance Business Impacts from Analytics
Source: Insurance & Technology

Genpact Named a "Leader" in Insurance BPO by NelsonHall in 2013 LA&P BPO and P&C BPO NEAT Assessments

Genpact Limited (NYSE: G), a global leader in transforming and running business processes and operations, today announced it was named a "leader" in industry analyst firm NelsonHall's two recently-released NEAT rankings for the insurance market: Life, Annuities and Pensions (LA&P) BPO and Property and Casualty (P&C) Insurance BPO.

NelsonHall's vendor Evaluation and Assessment Tool, or "NEAT" score, is based on a combination of analyst assessments of a vendor's "ability to deliver immediate client benefits" and feedback from clients on levels of partnership and "ability to meet future client requirements." NelsonHall cites that continued regulatory changes has caused an inflection in the LA&P market forcing insurers to reduce core administration costs and make improvements to overall operational processes, which is driving the related BPO market. In addition, P&C insurers face additional challenges for reducing time to market and risk associated with new product introduction, improving combined ratio (CR) and establishing a presence in emerging markets. These factors also spur the need for BPO services. 

Read more: Genpact Named a "Leader" in Insurance BPO by NelsonHall in 2013 LA&P BPO and P&C BPO NEAT Assessments
Source: The Wall Street Journal

Florida-Based P & C Insurance Carrier Upgrades to Distribution Management Suite from VUE Software

VUE Software announced today that the largest property & casualty insurance carrier in Florida has selected VUE Software's Producer Management and Compliance, VUE Producer Onboarding, VUE Producer Self Service Portal and VUE Analytics solutions to help foster better producer relationships while reducing operation cost and time.

Read more: Largest Florida-Based Property & Casualty Insurance Carrier Upgrades to Distribution Management Suite from VUE Software
Source: Digital Journal

CFC Underwriting introduces insurance cover for not-for-profits

CFC Underwriting, a London-based cyber risk specialist MGA, has introduced its new insurance solution for the not-for-profit sector.

Called ExecSurance NFP, the new insurance solution has been designed to meet the needs of not for profits that range from trade associations and charity workers to leisure groups and schools.

ExecSurance NFP will combine management liability covers including trustee liability, employment practices liability, pension benefit plan liability, crime, cyber and privacy, and kidnap and ransom.

Additionally, the product will include other essential covers such as professional liability, commercial general liability and property.

CFC senior management liability underwriter, Kate Lyes, said: "The role of a not for profit organisation is going through significant change and they are finding themselves more exposed than ever before. For years they have been reliant on income from government contracts and grants, however due to the economic downturn, they face government cuts and a reduction in public donations at a time when their services are in demand more than ever.

"The result has been a significant change to the way their services are being commissioned and financed. There is an increased reliance upon volunteer work, continual discussions on mergers with other not for profits and growing potential for staff redundancies. All this gives rise to management liability risks that must be addressed."

Source: Insurance Business Review

3i Infotech Releases Premia 11j Life Insurance Suite

3i Infotech, a global provider of IT solutions announced the release of its latest version PREMIA 11j, a comprehensive core Insurance solution for Individual and Group Life business. Premia 11j covers end to end automation of insurance life cycle across customer acquisition, re-insurance, policy administration, persistency and distribution management, The solution is built on a state-of-the-art Java platform & robust Oracle database to deliver a scalable & technologically superior product.

Premia 11j Life Insurance addresses both Conventional and Takaful markets across Asia Pacific, South Asia, Middle East and Africa. The solution provides insurers with unparalleled flexibility to manage product offerings and distribution across a wide spectrum of the sector. Premia interfaces and renders a full and flexible real-time self-service for the community of participants, agents, brokers and sponsors through its Premia E-Portal & Zeus Mobility framework.

Source: The Wall Street Journal
Read on : 3i Infotech Releases Premia 11j Life Insurance Suite

Guidewire Recognized as European Market Leader

Guidewire Software, Inc. (NYSE:GWRE), a provider of software products to Property/Casualty (P&C) insurers, today announced that it has been named a "Market Leader" by global industry analyst firm Ovum in its report "Ovum Decision Matrix: Selecting a P&C Insurance Policy Administration Platform -- Europe, 2013--14." In the report, Guidewire PolicyCenter(R) earned high marks for its core P&C functionality, strong partner network and new large-scale deployments.

Read on full news here.
Source: The Wall Street Journal

Insurance Myths that should die!

In this info-age, where would of information is at your finger tips, you will be surprised to see the kind of myths and false information people are living with.

Here is an article from www.thestreet.com that talks about 7 Life Insurance Myths That Should Die

It's not possible for a company to pay $500,000 in death benefits when I'm only paying $50 a month. If all policy holders kept their policies, life insurance companies would be in trouble, Bet-David says. "But they make their money because people tend to cancel their policies every seven to 10 years or so," he says. "If you're smart, you'll keep the policy. They can afford to give $500,000 for $50 a month when they know that 98% of policyholders won't keep their policy for the life of the policy."

I'm young and don't have a need for it. Most people eventually get married, Bet-David says. If you're smart enough to buy it when you're young and single with a low monthly cost, you'll benefit in the long run. Also, you still have a need for final expenses, unpaid debts and medical bills.
 
Life insurance is more expensive today because of inflation. Life insurance cost is based mainly on your life expectancy. "If you live longer, your policy will be cheaper," he says. "And today's life expectancy is longer than ever, which means insurance is cheaper."

Only breadwinners need coverage. Imagine what it costs to hire a homemaker raising kids, Bet-David says. Now multiply that times the amount of years your kids will be under your support financially -- that's how much insurance the homemaker needs. 

Better to invest that money than buy coverage. You really can't have too much life insurance. "The complaint is always, I wish I had more," Bet-David says. "If you can't afford a permanent policy the least you should do is protect yourself with a 30-year term" if age allows.

I won't be dying anytime soon. I'll get it later. "A very extensive study of roughly 113 billion people shows that 100% of people die," Bet-David quips. "The only problem with that study is we don't know when."

My policy at the company I work at is plenty. It usually isn't, since your life insurance value is normally two to three times your income. But even with that amount it's very annoying when you get laid off from the company you've been with for 17 years, landing in your early 40s with no coverage and three dependents who count on your income. "Having your own policy outside of work protects you regardless of what your company decides to do," he says.

Source: www.thestreet.com