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Life

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Life insurers see recovery in new premium income, subdued growth in policy sales in H1 FY 20-21

The life insurance behemoth LIC is at the verge of recovery as its new premium income, at Rs88, 018 crore, has shown a de growth of just two per cent.

Among the listed players, HDFC Life reported robust growth of 43 per cent y-o-y , followed by Max Life (16 per cent y-o-y growth), while SBI Life posted 4 per cent y-o-y-o decline. On the other hand, ICICI Prudentail Life Insurance (IPRU Life), which declined 24 per cent y-o- y continued to witness pressure.

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IRDA panel favours setting up of Standalone Microinsurance Company with a capital of Rs 20 cr

The panel has suggested that microinsurance companies (cooperatives and mutuals as well) should be allowed to act as composite insurers to transact both life and non-life business through a single entity.

IRDAI may establish a Microinsurance Development Fund to support and promote the growth of the microinsurance business across the country.21 The fund could support human resource development, digital and financial literacy, IT infrastructure and product development.
By implementing changes to facilitate standalone microinsurance businesses with reduced capital requirement, over 500 million Indians will have the
opportunity of obtaining financial protection and security, enabling them to emerge from poverty and to move towards self-reliance.     , 

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Federation of LIC Class-I Officers’ Associations rejects 15 % wage hike offer by the Corporation

MR Kumar, chairman, LIC pointed out that the corporation has done extremely well even in the most trying situations. He said that, he is happy as the LIC had regained some of the lost market share and is leading the Indian insurance market with over 71 per cent market share. The LIC chief said that, the COVID 19 pandemic had thrown up new challenges and businesses have to attune themselves to new technologies.

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Lack social bonding, rising insecurity, hypertension & stress increase heart disease risks amid COVID-19: Bharti AXA Study

·         50% of respondents over 45 years of age experienced anxiety due to lack of social bonding, heightening stress level

·        Better work-life balance in smaller cities as larger cities are seen grappling with it

·       Males are more focused on their health and well-being than their counterparts

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China to tighten supervision of country’s booming online insurance business

The rules will also require Internet companies to obtain insurance licenses before involving in the business, according to the draft.”The fast development in the online insurance sector has exposed certain problems,” the CBIRC said, “The rules are to effectively defuse the risks and protect the interest of consumers.”

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Govt may sell 25% stake in LIC in phases

As part of the proposal, the government will also move an amendment in parliament for an authorized capital of Rs 20,000 cr which will be divided into 20 billion shares, the people said.

A ministerial panel set up for asset sales will decide on the size of the public offering while the cabinet will consider changes to capital structure of the insurer, the people said. Taking the insurer public will help instill “discipline” and unlock value, Finance Minister Nirmala Sitharaman had said in her budget speech in February, without providing details or the time line for the sale.

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About 50% term policy buyers opt cover of Rs 1 cr or more during Apr-Aug: Policybazaar

“For the age group 42-50, we witnessed the highest year-on-year increase in term insurance buying i.e. 77 per cent and for year 2020 the age group 31-35 holds the largest share in terms of policies bought i.e. 30 per cent,” the firm said basis its data.

It further said in the High Net Individual (HNI) segment, more than 80 per cent customers went for the cover of Rs 1 crore and above, out of which 25 per cent invested in the cover bracket of Rs 2 to Rs 5 crore.

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