Ajit Banerjee

#General #Insurance #market #share #GWP #April 24. GI Industry clocked 29.6 K Cr premium with a growth of 16% Top Four Insurance companies. Newindia Assurance Company seen a #degrowth in Market share from 19.75% to 17.72 with 3.93% Growth at 5259 Cr leading the industry . ICICI Lombard General Insurance Company Limited with impressive growth of 22.65% had reached a market share of 11.34% Bajaj Allianz General Insurance with 45.42% Growth had grabbed 8% market share United India Insurance Co. Ltd. on 4th position had seen a growth of 11% with market share drop from 7.11% to 6.82% Companies whose market share decrease from last FY are #Godigit #TataAiG #Oriental #chola #Iffco #LIBERTY #Aic Maximum growth of 54% from #Magma #Zuno #standalone #health insurance companies are still leading the industry growth with more than 23% Star Health and Allied Insurance Co. Ltd Niva Bupa Health Insurance Care Insurance Aditya Birla Health Insurance Company Limited #data courtesy CD

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Mr. Casparus Kromhout, MD & CEO of Shriram Life Insurance, shares his vision for the organization, including its expansion strategy across India. Article Summary: • Focus on lower-sum policies, particularly in rural areas. • 44% of the individual business comes from rural India. • Significant growth in individual policy sales (131%). • Expanding market share in states where it is currently below 1%. • The strategic goal is to increase the market share by 2% or more in targeted states. To read more: https://lnkd.in/g8gHuDV6 #ShriramLifeInsurance #ShriramLI #CasparusKromhout #MD #CEOofShriram #India #ProtectEveryFamily #SecuringFutures #LifeInsuranceForAll #AffordableCoverage #InnovatingForYou #RuralInsuranceReach #FamilyProtection #SecureFuture #CustomerFirstAlways #SmartInsuranceSolutions #FinancialSafetyNet

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ICICI Lombard General Insurance Company Limited Q1 PAT up at Rs 580 crore on motor, health insurance boost India's #ICICILombard General Insurance reported a nearly 49% jump in first-quarter #profit , helped by an increase in #premiums in its #motor and #health #insurance segments. #Profit after #tax rose to 5.80 billion rupees ($69.4 million) for the quarter ended June 30 from 3.90 billion rupees a year earlier. General insurance, especially the motor and health segments, has seen rapid #growth in the country in recent years with a rise in vehicle sales and improved awareness following the Covid-19 pandemic and resultant medical costs. Motor insurance, which accounts for half of ICICI Lombard's business, grew around 12%, while premiums from its retail health insurance and corporate health insurance units grew about 19% and 24%, respectively. #Combined ratio, a key profitability metric for an insurance firm's underwriting business, improved to 102.3% from 103.8% a year earlier. A lower ratio indicates the insurer is earning more through premiums in relation to its claims paid and operating expense incurred.

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#GST on Health Insurance and Life Insurance must be reduced if not eliminated In a post on X, #Rahul claimed BJP looks for a "tax opportunity" before every disaster, which is proof its "insensitive thinking". "Modi government has looted Rs 24,000 crore even from those who save each and every penny to avoid bowing before someone in the event of a health crisis," Rahul said in a post in Hindi. He said that the INDIA Alliance opposes the opportunistic thinking of the government and called for #Health and #life insurance to be made #GST #free.

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Big Changes at LIC of India! ( commission) As of October 1, Life Insurance Corporation (LIC) of India has introduced significant updates to its commission structure and policy requirements! *Key Changes:* - _First-Year Agent Commission Reduced_: From 35% to 28% - _Renewal Premium Commission Increased_: From 5% to 7.5% - _Minimum Sum Assured Increased_: From ₹1 lakh to ₹2 lakh These changes follow the revision of surrender value norms by the Insurance Regulatory and Development Authority of India (IRDAI) . The new norms aim to ensure better payouts for customers who exit their policies prematurely. #LIC #Insurance #FinancialServices #IndustryUpdate https://lnkd.in/gZt6bY8h

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Looking at the numbers: Change in severity of claims across LOBs #AverageClaimSize Continuing my posts under heading “looking at the numbers “ this post provides comparative data across LOBs in FY 2018-19 and 2022-23.I tried to collate the information through IRDAI annual report but sufficient information was not available. I have collated the information from GI Council reports. Average Claim Size is measure of severity and trust that the information given will be helpful in analysis on both #Benchmarking and #Baseline methods. As per table, the  Fire & Engineering  average claim paid size has increased by 25% ,Motor TP claim paid size has increased by 51% however the corresponding increase in size of average Motor OD claim is 7%. I hope the information will provide input for informed discussion and look forward to your inputs. 

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#Three state insurers may get Rs 5,000-cr infusion for revival The government may delay a planned #privatisation of state-run general insurers, focusing instead on strengthening the three insurers-#Oriental Insurance Co. Ltd, #National Insurance Co. Ltd, and #United India Insurance Co. Ltd-through #capital #support and business revival plans. It is expected to infuse about ₹5,000 crore into the three insurers, shelving any privatisation plan this fiscal, said officials aware of the development. "Deliberations have been held with all stakeholders, and an announcement regarding capital support is expected in the upcoming budget," one of the officials said. He said the final amount may vary but the government is committed to supporting the general insurers to further strengthen their balance sheets. #Solvency ratio for the three insurers remained at about 0.58 as of December 2023, compared to the regulatory requirement of 1.50 times. The solvency ratio is the excess of capital and the value of assets over the insured liabilities. It indicates the buffer an insurer has to settle all claims in extreme situations.

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In an exclusive conversation with ET Edge Insights, Vurakaranam Ramakrishna, Chairman, India Insure, delves into India’s evolving dynamics of risk management and insurance brokering. Read more - https://lnkd.in/dq5wmsfB #ETEdgeInsights #India #RiskManagement #Insurance #BFSI #FinTech Tanmoy Mitra

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🔍 The Hidden Cost of Misclassifying Expenses: A Lesson from Bajaj Allianz’s ₹121 Crore PF Case 🔍 In business, how you account for something can drastically impact your financial health. While accounting treatments are often seen as technicalities, they can lead to significant consequences when regulatory compliance is involved. A recent example? Bajaj Allianz Life Insurance’s ₹121 crore Provident Fund (PF) liability. A Costly Accounting Misstep: At the heart of this issue lies the concept of "universally paid components"—a term that might sound mundane but has powerful implications in PF calculations. Here’s how: Under the Provident Funds and Miscellaneous Provisions Act, both employers and employees must contribute 12% of the basic salary towards a PF corpus. The term basic salary isn’t just a random number; it includes all universally paid components—those that are consistently paid to employees across the board, such as: a. Conveyance allowance b. Other allowance c. Professional allowance What Went Wrong at Bajaj Allianz? Instead of treating these allowances as part of the basic wages, Bajaj Allianz categorized them separately, reducing their PF contribution base. While this might have seemed like a smart cost-saving strategy in the short term, it backfired when the EPFO deemed these allowances to be universally paid and therefore part of basic wages. The result? A ₹121 crore liability covering five years of underpaid contributions. The Broader Accounting Lesson: This situation isn’t just about one company’s PF misstep—it’s a stark reminder of how different accounting treatments can impact liabilities: 1. Understating Basic Wages: Reducing obligations in the short term may create hidden liabilities, resulting in massive losses when regulators catch up. 2. Misclassifying Expenses: Treating universally paid components as discretionary allowances can appear to save costs but exposes the company to compliance risks. Key Takeaways for Businesses: 1. Understand Regulatory Definitions: Terms like basic wages aren’t open to creative interpretation when tied to legal obligations. 2. Audit Salary Structures: Regularly review how you classify components of employee compensation to ensure full compliance. 3. Long-Term vs. Short-Term Gains: Saving today at the cost of compliance can lead to financial and reputational losses tomorrow. Bajaj Allianz’s case shows that accounting is not just about numbers—it’s about how those numbers align with legal frameworks. A slight tweak in classification today can mean millions in liabilities tomorrow. #AccountingMatters #ProvidentFund #Compliance #BajajAllianz #ProvidentFund #Finance #RiskManagement #CorporateGovernance #HRPolicies #Leadership #Business

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*The Indian government is set to introduce significant reforms in the #insurance #sector*, including allowing 100% #foreign #direct #investment (#FDI) and easing #restrictions on #insurance #agents.¹ The proposed Insurance Amendment Bill will lift the 74% FDI cap, allowing foreign players to enter the market and operate independently. This move is expected to attract large global insurance firms, boosting #competition and #investment in the sector. Key highlights of the proposed reforms include: * *Allowing 100% FDI*: The FDI cap for insurance companies will be lifted, allowing foreign players to enter the market and operate independently. * *Easing #restrictions on #insurance #agents*: Insurance agents will be allowed to sell policies from #multiple #companies, removing the existing cap that restricts them to one life and one general insurer. What will be difference in #broker and #agent? * *#Relaxing #solvency requirements*: The government is looking to relax solvency requirements, freeing up capital for insurers to enhance their operations and offerings. * *Easing regulatory requirements*: The Insurance Amendment Bill is expected to ease certain regulatory requirements, including those #related to #company #directors. * *Allowing #composite #licenses*: The IRDAI has proposed changes to allow companies to hold composite licenses, benefiting firms like LIC that want to expand their product offerings. These reforms are part of the government's strategy to #increase #insurance #penetration in India, which remains low at around 4%. The policy aims to bring in more insurers to #underwrite #policies and give #agents the flexibility to offer a broader range of products to consumers.

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I came across a thought-provoking article, which put me into a contemplative mode to understand the reality of farm labourers in India. While insurance and pension schemes like PM-SYM offer some security, they don’t address the deeper issues like low wages, seasonal unemployment, and job displacement due to mechanisation. With nearly 107 million agricultural workers in India, it’s clear that we need to focus on skill development to help these workers transition to other sectors like manufacturing or services. This would provide them with better-paying, more stable jobs, improving their overall well-being. The government’s initiatives like “Make in India” are a step in the right direction, but we need more targeted solutions, especially for those affected by farm mechanisation. It's crucial we invest in holistic upliftment, creating opportunities and ensuring the empowerment of workers, particularly women, in rural areas. Only then can we build a more resilient, prosperous rural India. https://lnkd.in/g5Xnn3p5 #Agriculture #RuralIndia #SkillDevelopment #JobCreation #SocialWelfare #EconomicDevelopment #SustainableAgriculture #FarmerWelfare

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NRI term #insurance plans in India offer a straightforward approach to securing financial stability for an NRI's family. These policies work similarly to regular term insurance but are specifically tailored for NRIs, ensuring they can easily manage premiums from abroad using foreign or NRI bank accounts, options like Return of Premium (ROP) are available, where all paid premiums are returned. Are you an #NRI exploring term insurance in #India? Here’s the rundown: 💳 Seamless Premium Payments: Effortlessly manage premiums online via NRO, NRE, or FCNR accounts, even from overseas. 🛡️ Flexible Coverage Options: Tailor coverage to your family's needs, with age options up to 100. 🕒 Adjustable Policy Terms: Customise your policy length from 10 to 40 years to fit your financial goals. 💰 Return of Premium (ROP): Choose ROP to receive all your premiums back if you outlive the policy. 📄 Simple Documentation: Experience a streamlined process with minimal paperwork. 💸 Tax Advantages: Benefit from tax deductions on premiums and tax-exempt payouts under sections 80C and 10(10D) of the Income Tax Act. Secure your family's financial future from anywhere in the world. Interested in setting up your term plan? Let’s chat! #NRIInsurance #TermInsurance #FinancialPlanning #SecureYourFuture

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#General #insurance sector gets Rs 18,000 crore #GST bonanza The GST demand was on #co-insurance and #reinsurance #commissions and taxing of reinsurance on crop schemes. The reliefs allowed by the GST Council include the #dropping of GST demands amounting to over Rs 18,000 crore at an industry level. Ahead of the Union Budget, the general insurance sector has received a bumper relief amounting to over Rs 18,000 crore with the GST Council dropping the tax demand that the insurers had been slapped with. The reliefs allowed by the GST Council include the dropping of GST demands amounting to over Rs 18,000 crore at an industry level, providing a significant respite to the sector, according to the General Insurance Council (GI Council), the apex body of general insurance companies in India. The GST demand was on co-insurance and reinsurance commissions and taxing of reinsurance on crop schemes

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IRDAI has implemented new regulations prohibiting insurers from collecting premiums upfront without conducting medical tests. This shift towards transparency benefits customers while posing challenges for insurers. #InsuranceRegulations #CustomerTransparency #IRDAI #InsuranceIndustry

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#Lic sold a total of 2.03 crore #policies in the individual segments compared to 2.04 crore policies sold in FY23. Life Insurance Corporation (#LIC) of India is targeting double-digit growth in financial year (FY) 2024-25, said Chairperson Siddhartha Mohanty. “Our focus will be on topline numbers in the year ahead. And we are looking at a double-digit growth in FY25,” Mohanty said at a post-results conference call on May 27. The country’s largest insurer reported a 2.5 percent year-on-year rise in net #profit at Rs 13,762 crore for the March quarter of the financial year 2023-24, from Rs 13,421 crore in the year-ago period. Asset quality improved in the final quarter of FY24, the company said on May 27. The #insurer announced an interim dividend of Rs 6 per share. Its gross non-performing asset (GNPA) stood at 2.01 percent against 2.56 percent in the year-ago period.

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OPD coverage can reduce the large ticket hospitalisation claims being received/ handled by Insurers in the country. May be India is an exceptional country where the importance of OPD and Family Doctor (General Physician) is not being apprecaited. My views on BT Money Today (on Aug 07, 2024) will result in beginning of new era in Indian Health Insurance industry . The views are: If OPD (Outpatient Department) services are allowed liberally by insurers then individuals can visit doctors (family doctor or general physician), take necessary medications, and receive treatment without the need for hospitalization. Read the full article also available on https://lnkd.in/gUpmEVYU & https://lnkd.in/gHt-w_ug #OPDinsurancecoverage #OPDhealthinsurnace #healthinsurnacecompanies #increaseinsurancecoverage #hospitalisationIndia #healthinsuranceindia

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Star Health and Allied Insurance Co. Ltd VENKATASAMY Jagannathan Anand Roy Kapil Punwani Aneesh Srivastava MBA, CFA, FRM, CQF(Fitch) Nilesh Kambli am writing this after showing a lot of conviction and patience with your claim team but your team has been the most unprofessional in Insurance industry. Being founding agents(since 2006) , Being club winners every year this is the kind of treatment we have been getting. Simple claims are getting rejected/ not getting approved of cashless even after furnishing all documents/ huge delay of 5 months in reimbursements/ every reply of client is acknowledged after 20-25 days. Our SMs have no answers, there is no contact point of claim team. Mental illness cases are not getting cleared ! On what grounds? Every month team would come up with new baseless query. Simple biopsy claim is on investigation for last 3 months!!! What kind of investigation is going on. As a mediator, I regret suggesting those clients Star health.

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