Vishal Subharwal

Interviewed Mr. Asit Rath, the MD & CEO of Aviva India today. A very interesting conversation on changing the insurance industry landscape in India 👇 A. Why insurance along with investments? Why not unbundle? He answered that they're doing away with the heavy upfront commissions. Their expense ratio on AUM for ULIPs is around 1.35%, which is less than that of most regular mutual funds. The average time a customer stays in their policies is for about 15+ years, whereas 73%+ of redemptions of regular mutual funds come within 2 years. He believes that it is more about time and insurance products are designed in a way to keep investors disciplined (surrender norms). B. Innovation in products They're coming with products that give customers Smart Watch, AI powered, Nutrition Diet, BP Monitor, Smart Scale along with a minuscule term insurance premium. It will help customers track their daily steps, sleep schedule and lead a healthy life. --------------------------------- I questioned about various other issues and he answered about insurance mis-selling and how it should be tackled by the industry as a whole. Asit is a really humble person and it was a very insightful conversation. Will share the snippets of the interview on YouTube shortly and the transcript in the fourth edition of the magazine. Stay tuned! Disclaimer: Not an investment advice or my personal recommendation.

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Discover the pre-budget expectations for the life insurance sector from Mr. Nitin Mehta, our Chief Distribution Officer - Partnership Distribution and Head Marketing, in the latest article in LiveMint. Read more: https://bit.ly/3LvBvrC #UnionBudget2024 #Budget2024

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"This is what is required today -- more and more information to the buyers," says the highly revered Nilesh Sathe as he speaks about The Policybazaar Insurance Show, recently launched with CNBC-TV18. Painstakingly made just to make insurance more accessible -- we hope our viewers feel the same about this initiative. Don't forget to tune in! #PolicybazaarInsuranceShow #InsuranceEducation #BuyersInformation #CNBCTV18 #FinancialLiteracy #InsuranceAwareness #EmpowermentThroughKnowledge

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Digit Insurance General Insurance, a leading player in India's insurance sector, has raised Rs 1,176 crore ($141 million) from anchor investors ahead of its much-anticipated Initial Public Offering (IPO)! According to regulatory filings accessed from the Bombay Stock Exchange Limited, Digit Insurance has offered its anchor investors 4,32,57,009 equity shares at an issue price of Rs 272 each. Heavyweight names include SBI, ICICI Prudential Life Insurance Company Limited, Axis Mutual Fund, Mirae Asset Global Investments, Tata Group Flexi, Motilal Oswal Financial Services Ltd, PGIM India Mutual Fund, and Edelweiss Financial Services Limited. Notably, 11 domestic mutual funds have been allocated a substantial portion of these shares. The public offering, which began on May 15th and will run until May 17th, 2024, offers shares in the price band of Rs 258-272 with a minimum bid quantity of 55 shares. This move comes as Go Digit moves closer to its IPO, as outlined in its Draft Red Herring Prospectus (DRHP), where the company proposed to raise funds through the issue of equity shares amounting to Rs 1,125 crore, along with an offer for sale of up to 5,47,66,392 equity shares. While the road to the IPO hasn't been without its challenges, including a fine by the Insurance Regulatory and Development Authority of India (IRDAI) over a delay in filing joint venture agreement particulars, Go Digit seems poised for a strong market debut. With Go Digit Infoworks Services holding the most significant stake in the firm at 80.57%, followed by other major stakeholders such as TVS Shriram Growth, A91 Engineering, Faering Capital, and Peak XV, all eyes are on the company's growth trajectory. The company's financial performance has been robust. During the nine months of FY24, it posted a net revenue of Rs 5,631 crore and a profit of Rs 129 crore. In FY23, it posted a revenue of Rs 5,909 crore and a profit of Rs 35.5 crore. This successful fundraising by Go Digit General Insurance reflects the current market trend, as seen in recent similar endeavours like travel tech firm TBO Tek, which raised Rs 689 crore ($83 million) from its anchor investors. Stay tuned as we watch Go Digit General Insurance's journey towards its IPO debut and beyond! Read More: https://lnkd.in/eHdWwdjp #GoDigitIPO #InsuranceSector #AnchorInvestors #IPOAlert #MarketNews

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Highlights⚡️ about Go Digit General Insurance's IPO: - Go Digit General Insurance, an InsurTech unicorn, has launched its initial public offering (IPO) to raise funds. - The IPO aims to strengthen the company's solvency ratio and capital reserves, supporting growth and expansion plans. - It includes an offer-for-sale of up to 54,766,392 equity shares and a fresh issuance worth Rs 1,125 crore. - The company offers a wide range of general insurance products, focusing on technology and customer-centric solutions. - Notable investors, including Canada’s Fairfax Group and celebrity couple Virat Kohli and Anushka Sharma, are expected to retain their investment. - Despite a penalty by the IRDAI for non-disclosure of share conversion ratio changes, the IPO received approval from SEBI in March. - The IPO is set with a price band of ₹258-272 per equity share and will be open from May 15 to May 17. - The share allocation is structured with 75% for QIBs, 15% for NIIs, and 10% for retail investors. - Go Digit General Insurance plans to utilize the net proceeds to fund business operations and support proposed projects. #Insurance #Insurtech #IPO #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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"Insure Smart" with Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance. In conversation with Nidhi Sinha, Editor, Outlook Money, Singhel reveals how wellness incentives like gym discounts and mental health coverage lower claims and benefit everyone. Healthy living truly pays off! #BajajAllianz #Insurance #Health #InsureSmart

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"The Insurance Regulatory and Development Authority of India (IRDAI) seems to have bowled a googly and this may have caught some policyholders by surprise. The IRDAI's latest policy update that took effect from April 1 omitted mentioning a key clause that required insurers to offer health covers to policyholders at least till the age of 65 years. Note that this is not a regulatory cap. However, social media platforms—and the insurance ecosystem at large—have been abuzz with chatter around the IRDAI now ‘allowing insurance companies to sell health policies to those over the age of 65 years’. So what happened? The regulator’s new health insurance product regulations skip mentioning the entry age ‘floor’ of 65 years, below which insurers are not allowed to reject policy proposals from such applicants citing age bar. Put simply, in its earlier Health Insurance Regulations, 2016, which were in force until March 31, IRDAI had mandated that insurers offer policies to individuals at least till the age of 65 years. Were insurers barred from offering health cover to those over the age of 65 before April 1,when IRDAI’s new product regulations came into effect? No. The view that IRDAI has only now allowed insurers to sell regular health policies to people above 65 years of age is misleading. There was never any regulatory bar on insurance companies offering policies to those older than 65. In fact, some insurers already offer a few of their regular plans to those over that age. This is what IRDAI's Health Insurance Regulations, 2016, which were superseded on April 1, say: "All health insurance policies shall ordinarily provide for an entry age of at least up to 65 years." In other words, they could always offer even regular cover to those over the age of 65, which several companies already do. Besides, many also provide senior citizen-specific policies. So, prior to March, insurers had to mandatorily consider proposals of those up to the age of 65—they could not outright reject such proposals citing an age bar. “Some may have taken advantage of the 65-year rule to turn down insurance applications from senior citizens, but now, insurance companies may have to design products and put out premium charts for all age groups,” says Nikhil Apte, chief product officer, Product Factory (Health Insurance), Royal Sundaram General Insurance. But this does not mean IRDAI has removed any age cap or mandated coverage for those over 65. Insurers still have control over the decision to issue policies and fix premiums." Full report: https://lnkd.in/gd7B7YzP

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How did I end up getting "Exceeds Expectations" in Annual Performance Review for 3 consecutive years 1. Clients became my prime promoters : While I was working as account manager and distribution strategist , I had one of the biggest Indian PSU banks as my client. I was always stationed at the Client's head office and during this time I networked with the banks senior officials. Everytime I was meeting them, I used to take detailed notes and take actions later while ensuring we discuss the last meeting notes everytime we start afresh. Not only did I develop an understanding of our products I was also abreast of clients offering and it helped me getting into their inner circle. 2. Managed to become the sole contact for Clients queries : I ensured that I was capable in managing client queries on my own and only reached out to my supervisor (Chief Business Officer) in case of emergency. I trained myself to become indispensable by putting through with constructive embarrassment internally. I was always choosing tasks which would put me on a spot and in that moment the only way out was to speak off the cuff. As and when I kept myself polishing I started to sound logical and structural. PS Try this internally first for a few months and then expose this skill with clients as well 3. Kept Practicing effective communication : Irrespective of the technical endurance I developed, my focus was to never skip communication drills. I used to try this with my peers at the bank, in the company and what not. No matter how well you are technically, clear, concise and confident communication fetches you brownie points - Everytime. Try this out and let me know if it helps #Leadership #ShivWrites #LinkedinCommunity

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Persistancy ratio is a very important number tracked within life insurance companies in India. LIC has a 13th month persistancy ratio of ~68% and 61st month persistancy ratio ~49%. 🤔 🤔 This also means that only 68% policies are being renewed after a year, or in other words - people are not renewing 32% of policies just after a year. Similar interpretation for policy renewals after 5 years(60 month). Now, some of these policies are not getting renewed because the claim has been processed, but others are not being renewed just because those were mis sold and people understood that its not good to renew check this ratio for other life insurance companies too #Insurance #PersonalFinance

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#Generalinsurance industry recorded an annual premium of close to Rs 2.9 lakh crore for FY24, marking a 13% rise from the previous fiscal year's Rs 2.6 lakh crore. #Five standalone #health #insurance companies saw a significant 26.2% increase in total premium, climbing from Rs 26,243 crore to Rs 33,115 crore during the same period. #Standalone health insurance companies' growth can be credited to #larger #policy sizes, as they introduce #high-value #policies worth crores. Premium rates have been adjusted to match #medical #inflation, and coverage has expanded. #Irdai's FY23 report by Emkay Finance shows retail health insurance premiums grew steadily at 20% CAGR from FY12-19. However, between FY19-23, the premium growth rate slowed slightly to 19%, while coverage expansion was limited, with only a 5.9% increase in the number of #insured individuals. The growth was mainly driven by #price and #sum assured adjustments. In the 11 months leading up to Feb 2024, health insurance premium reached Rs 98,716 crore, a 20% rise from last year's Rs 81,997 crore. This figure encompasses health premium from general insurers and SAHI companies, with health insurance's share for this period increasing to 37.5% from 35.2% in the previous year. Two new players, #Galaxy Health and #Narayana Healthcare, enter the health insurance market alongside #Star Health, as per V Jagannathan and Surgeon Devi Shetty. While health insurance premiums are on the rise for most general insurance companies, #slower growth in segments like #motor is holding back their overall performance, #Specialized #insurance sectors, particularly #Agriculture Insurance Company #AIC and #ECGC, have contributed to the non-life industry's #sluggish growth this year. #Agriculture insurance witnessed a significant 32% decline in premiums, falling from Rs 14,619 crore last year to Rs 9,919 crore.

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🚨 Niva Bupa Health Insurance, one of the largest and fastest-growing standalone retail health insurers (SAHI) in India, gets SEBI's approval for its IPO – discover more on FindMyIPO.com! #NivaBupaIPO #HealthInsurer #SEBINews #MarketBuzz #IPOUpdate #InvestmentOpportunities #FindMyIPO #BSE #NSE #IPOAlert

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"The Insurance Regulatory and Development Authority of India (IRDAI) has removed the age cap on buying health insurance policies, effective from April 1, 2024. Earlier, individuals were restricted to purchasing new insurance policies only until the age of 65. However, after the recent changes that have come into effect from April 01, 2024, anyone, regardless of age, is eligible to purchase a new health insurance. "Insurers shall ensure that they offer health insurance products to cater to all age groups. Insurers may design products specifically for senior citizens, students, children, maternity, and any other group as specified by the Competent Authority" said a notification issued by the IRDAI. The move by the insurance regulatory body aims to create a more inclusive healthcare ecosystem in India and to encourage insurance provider companies to diversify their product offerings. IRDAI has also instructed health insurance providers to introduce tailored policies for specific demographics, such as senior citizens, and establish dedicated channels for handling their claims and grievances. "It's a welcome change since it now opens Avenue for people above 65 to seek health cover. Insurers based on their Board approved Underwriting guidelines can cover people above 65. The coverage is subject to offer and acceptance between the Insured and Insurer based on affordability for the senior citizens and viability for Insurers." said an Industry Expert. After the recent notification, the insurers are now also prohibited from refusing to issue policies to individuals with severe medical conditions like cancer, heart or renal failure, and AIDS. According to the notification, IRDAI has decreased the health insurance waiting period from 48 months to 36 months. According to the insurance regulator, all pre-existing conditions should be covered after 36 months, regardless of whether the policyholder disclosed them initially or not. Put simply, health insurers are prohibited from rejecting claims based on pre-existing conditions after these 36 months. The insurance companies are barred from introducing indemnity-based health policies, which compensate for hospital expenses. Instead, they are only permitted to provide benefit-based policies, offering fixed costs upon the occurrence of a covered disease." https://lnkd.in/gHAAZ8ay.

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"Warning: ULIPs on the rise again! Nitin Kamath :- Sales of Unit-Linked Insurance Plans (ULIPs) have surged in the last year, largely due to high commissions for banks. But beware - ULIPs often promise the best of both worlds (investments and insurance) but deliver the worst. High commissions and inadequate insurance coverage make them a costly choice. Instead, consider separating insurance and investments: - Invest in direct mutual funds - Buy a term insurance policy This approach is not only more effective but also cheaper! Don't fall for the ULIP trap. Watch Zero1's video to understand why ULIPs are a bad idea. And if you're unsure about your existing insurance products, let's connect and review them together! X - Link : https://lnkd.in/gbh9TBiJ #ULIP #insurance #investments #mutualfunds #terminsurance" Thanks #NithinKamath (Founder & CEO #Zerodhaonline, #Rainmatterin, #RainmatterOrg) for highlighting the pitfalls of ULIPs and promoting informed investing!

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It is estimated that NRIs living in wealthy nations may have to pay premiums 50-60 per cent higher than in India. To further reduce the premium costs of their Indian health insurance policy, NRIs can opt for a voluntary deductible. . Moreover, the Indian government has made this proposition even more lucrative by offering a GST waiver if you buy insurance from India. That means a flat saving of 18 per cent. How NRIs can extract maximum value from voluntary deductible in their health insurance? Read more- https://bit.ly/3VsdZBP #healthcare #health #insurance #nri #affordable #healthinsurance #healthinsurance

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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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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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