The insurance regulator has asked companies to play an active role in the general meetings of investee companies and engage with the management at a greater level to improve governance so as to increase returns on investments for insurers.
“Insurance companies are significant institutional investors in listed companies and the investments are held by them as custodians of policyholders,” Insurance Regulatory and Development Authority (Irda) stated in a circular. “Therefore, it is felt that insurance companies should play an active role in general meetings of investee companies and disclosures relating thereto.
This will be applicable from next financial year.
The regulator said the state of governance at the companies where insurance companies have invested is important. It has also laid out a set of principles, which insurers will have to adopt. The principles are being uniformly adopted for institutional investors like mutual funds, pension funds, foreign portfolio investors and alternate investment funds
(Source : Economic Times – 24th March,2017)
KRA- Health Insurance Cost to more
Biggest non-life insurer hikes med rates by 25%
Mumbai: India’s largest nonlife insurer New India Assurance (NIA) has increased premium on health insurance by an average of 25% for individuals. Along with the revision in rates the company has done away with the rate differential based on region and has introduced a uniform rate across the country.
Announcing the company’s results on Friday, chairman G Srinivasan said that although the ratio of claims to total premium in health insurance had improved from 116% to 105% following an increase in group rates, it continued to be a loss-making busi- ness. Despite the underwriting losses New India Assurance has reported a net profit of Rs 1,008 crore for FY17—an increase of 22% over Rs 829 crore in FY16.Besides being the largest non-life company, NIA is also the largest health provider in the country.
The Insurance Regulatory and Development Authority of India (IRDAI) allows companies to revise their rates once every three years to keep up with medical inflation. New India Assurance had last revised rates on individual health insurance five years ago in 2012.
( Source : Economic Times. 5th May 2017 )
KRA- DHFL General Insurance to start operation soon
DHFL General Insurance on Thursday said it has received certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI) and will start its business operations soon.
The venture has been promoted by Wadhawan Global Capital(WGC), whose flagship brand is Dewan Housing Finance Ltd (DHFL), a listed entity.
Our general insurance venture would help us in our commitment to offer protection and mitigate the economic effects of illness, accidents, death, disability and disasters,” Kapil Wadhawan, chairman of WGC, said in a statement. (READ MORE)
“It also helps us provide the protection for assets as a safety net to cope with economic consequences of unexpected events,” said Wadhawan, who is also chairman of DHFL General Insurance.
Along with the traditional channels, the focus of this new venture would be to give a cutting edge digital experience to the customer that will empower them to take insurance buying decisions, he added.
“DHFL General Insurance will focus on providing a positive customer experience not only at the point of sale but across the customer engagement cycle to ensure customer retention,” said Vijay Sinha, CEO-designate of DHFL General Insurance.
(Source : The Times of India 26/05/2017)
KRA- Health Insurance Cost to more
KRA- Global reinsurers cut exposure to crop insurance
Global reinsurers are losing interest in Pradhan Mantri Fasal Bima Yojana (PMFBY), the government’s flagship crop insurance scheme which was launched last year.
Sources in the industry said that global reinsurance companies with presence in India have considerably reduced exposure to this scheme, reported Moneycontrol without naming its sources
A senior industry official said that without foreign reinsurance support, Indian reinsurance support will not be able to sustain the scheme. The targeted coverage under the scheme has been increased to 40% of cropped area in the current fiscal year ending March 2018 (FY18).
“While the domestic reinsurer, General Insurance Corporation of India (GIC Re), is providing cover for crop insurance, this may not be adequate when 50% of cropped area is covered in FY19. We will need global reinsurance support for that,” said a senior public sector insurance official.
In India, while government-owned GIC Re shares about 50% of the risk as a reinsurer in crop insurance policies, the balance is taken up by international reinsurers.
The PMFBY will have a higher profile in FY2018 as the government has allocated INR90 billion (US$1.4 billion) for the scheme but may have to increase the provision. In 2016-17, the government allocated INR55 billion but later revised the Budget estimate to INR132.4 billion.
Data from the IRDAI show that for the kharif (monsoon) season from June to November 2016, insurance companies grossed more than INR158.9 billion in premiums from the PMFBY. Claims amounted to a little over INR59.6 billion.
(source : Asia Insurance Review dated 26/07/2017)