Religare Health Insurance explores the Bancassurance channel

The bancassurance channel has always been a promising distribution channel for the insurance companies. Through it the insurance companies can use the bank's network to reach out to the different areas of the country. All major insurance companies are tied up with banks to increase penetration to the different parts of India. 

The newest in the line exploring this idea is Religare Health Insurance Company Limited (RHICL). The standalone health insurer which began operations in the year 2012 is planning tie -ups with several banks to expand its bancassurance channel. According to CEO Anuj Gulati, the company would break even by 2017-18. 

Till now banks have been following a corporate agency model where a bank can represent one life insurer, one general insurer and one standalone health insurer. The recent relaxation of the Insurance Regulatory and Development Authority (IRDA) to banks allows them to act as brokers as well. This gives the bank the option to pitch different insurance companies products to the same customer. This option is however still to be approved by the Reserve Bank of India, the regulator for Indian banks. Religare's CEO is open to tie up with banks functioning as brokers

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Insurance for HIV Positive People in India

Insurance for HIV positive people in India may soon become a reality. In one of its most humanitarian moves, Insurance Regulatory and Development Authority (IRDA) of India has asked insurance companies to put in place a board approved underwriting policies with respect with life insurance for people living with HIV/ AIDS. The underwriting policy is to cover clear guidelines on life insurance with people living with HIV/AIDS (PLHA). IRDA has also asked the insurance companies to put in place underwriting policies for health insurance offered by life insurance companies to people acquiring HIV/AIDS after the commencement of insurance policy. Guidelines also facilitates conversion of the lump sum amount into an annuity for life, if the insured became HIV positive while holding the policy

Unlike India, insurance is available for the HIV people in the West. The Indian insurance market is quite aggressive on their financials and costing. The guidelines provided by IRDA are more humane and less lucrative. Experts feel that this initiative might not be welcome by the Indian Insurance Companies. That is, of course, unless IRDA decides to take a leap ahead and impose mandatory bindings on the insurance companies.

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Max Life Insurance rewards its customers

For a policyholder of Max Life Insurance, there is a reason to be happy this New Year. The private insurer has announced a special one-time bonus for its active policyholders. The estimated amount to be distributed in this special award would be around 130 crore. The bonus shall start from February 1^st 2013 and shall be awarded at the policy anniversary of each policyholder.

The parameters on which the respective bonuses would be calculated are

 1. The bonus is calculated as a percentage of annual premium.
 2. Policies with higher term of insurance would earn higher percentage in this special bonus
 3. A reinstatement which causes a policy to be active will be eligible
 4. Surrendered policies will not be eligible

The CEO and managing director of Max Life Insurance expressed his gratefulness to the loyal policyholders and said that a share of their robust growth must also be given to their customers. Max Life Insurance is a joint venture between Max India and Mitsui Sumitomo Insurance, a member of MS&D Insurance Group.

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Private insurer Max Life Insurance reports 6% growth

The first half of this fiscal (April 2012 – September 2012) reflected healthy figure for Max Life Insurance. Although most private players were not able to grab a profitable share, Max Life Insurance reported a 6% growth. The net profit for this period was INR 398 as compared to INR 375 for the corresponding period last fiscal.  The total premium stood at INR 2900 crore against INR 2872 crore from the last fiscal. Max Life Insurance is a joint venture between Max India and Mitsui Sumitomo, a leading general insurance company in the world.

CEO and Managing Director Rajesh Sud that the growth was primarily due to their advice based sales, diversified distribution channel, comprehensive product portfolio and superior customer experience through claims and complaint management.

Apart from the premium collection other parameters like Assets Under Management increased by 30% and the sum assured increased by 7%. Solvency surplus grew to 60% and the company’s paid up capital as on September 2012 was at INR 2127 crore. Overall the figures looks impressive despite the pressing times the insurance industry is facing due to economic and regulatory challenges.

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Common Third Party Administrator for the Indian PSU General Insurer

The general insurance companies have finally decided to bring an in house solution to the mounting pressure of Third Party Administrator (TPA) that’s curbing their profits drastically. The claims ratios or the percentage of claims to the premium earned of the public sector companies is over 120% and the insurers blame the TPA for these figures.

State run general insurance companies like New India Assurance, National India, United India and Oriental India Insurance have partnered with the country’s largest life insurer “Life Insurance Corporation of India” (LIC) and reinsurer “General Insurance Corporation of India” (GIC) to set up the TPA. Although there is an initial set up cost, the insurers are optimistic that the investment would eventually lead to profitability. Moreover the 5% commission which is collected by the TPAs would now be transferred to the policyholders. This would help bring down the insurance premium. The new TPA could also result in market dominance by state-owned companies, which together account for over 80% of the TPA business


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