Category: Insurance

As presumed, if the government dilutes 10 per cent ofLIC’s stake, the sum of the initial public offer (IPO) isexpected to be around ₹1 trillion to ₹1.5 trillion, whichthe Indian IPO market has never seen in history. Thesize would be roughly 10 times the size of the biggestprevious primary market issue and substantiallyhigher than the secondary market’s total cashsegment volume. In August 2002, when Union Bank of India came out with its first public issue, then Chairman and Managing Director Leeladhar told me: “Our public issue persuaded many people in places like Uttar Pradesh where Union Bank of India has a considerable presence, to subscribe to the equity offer. The issue made many people open de-mat accounts and contributed to the proliferation of equity cult.” Similarly, LIC’s colo...

Challenges and Opportunities. The industry has witnessed a major disruption with the introduction of insur-techs. This has led to a better pricing and improved service levels including claims management. With this change, the industry has seen introduction of innovative products as well as coverage. The last decade has been phenomenal for non-life insurance industry in India. There has been a transformation from being a protected and controlled industry into the current liberal and open architecture. Also, there has been a gradual shift from man to machine. The industry has welcomed and adapted to the technological changes with open arms, which, in turn has immensely benefitted the industry in terms of overall efficiency, faster response, delivery of products and service qualit...

Customer trust, product transparency, quick claim settlement. With strong bancassurance channel, agency portal, online platform for distribution and rapid rural penetration strategies, USGlC's business is set to grow faster. While the existing customers are expected to stay with it for being happy to receive excellent services and faster claim settlement, a special focus on selling more motor and health products would push its position up to a new level. Its rapid growth in rural market through PMFBY is also expected to give it newer opportunity to sell other products in rural market. Universal Sompo General Insurance Company (IJSGI) is India's first public-private partnership in the non-life insurance sector. While public sector banks. Allahabad Bank and Indian Ov...

When the insurance regulator regulates the industry, GI Council creates a desirable platform for the general insurers to broad-base their business with necessary feedback and data supports. The General Insurance Council (GI Council) has a legacy of more than six decades, passing through phases of evolution that has taken place in India’s general insurance industry over the years. It traces its root in the era of Insurance Association that existed in the early 50s before the nationalization of non-life insurance companies. The Indian general insurance business was nationalized in 1972 bringing the then existing 55 insurance companies and more or less the same number of general insurance operations of other companies under the government control. The reason behind the nationalization was...

Life business in Indiais three and half times more than the size of non-life business in terms ofpremium, a starring contrast to the global trend. This indicates a huge legroom for non-life to grow as the penetration is gaining momentum, to reach closerto the world average ratio of life and non-life business. Non-life business isthe biggest contributor to the reinsurance business that accounted for as highas 95 per cent of the total premium ceded. This obviously shows that thereinsurance business is in for a boom as non-life business is set to grow morerapidly in tune with the economic growth and industrialization. In the boom,GIC Re, the biggest reinsurer with proven track record of four and halfdecades, is set to be one of the major beneficiaries. GIC Re is the world’sfastest growing re...