KOTAK LIFE INSURANCE EXPANDS IN HARYANA

Thesynergyonline Insurance Bureau

CHANDIGARH , NOV 20 :
KOTAK Mahindra Old Mutual Life Insurance (Kotak Life Insurance) has formally announced its operations in Panchkula. Kotak Life Insurance will be launching 3 new branches in Ambala, Karnal and Hissar by November 21st 2008. The move is aimed at deepening its reach into the smaller towns of the state.

Mr. Yog Raj Sharma, National Sales Head (Tied Channel) speaking on the inauguration said, “The compapny is on an aggressive expansion mode currently. Branches in Haryana have received an overwhelming response from the customers. The company is ramping up distribution significantly and plan to launch branches in the rural areas in order to emerge as a dominant player in insurance market in the state.”

The company started with one branch and 3 sales managers in Haryana in the year 2002, and has now grown to 17 branches and 266 sales managers over a period of 7 years. All the branches in Haryana have been performing consistently well and delivering as per all the parameters. With the Panchkula, Ambala, Karnal and Hissar branch launches, Kotak Life Insurance will be able to take its world class service to other semi-urban and small towns like Kalka, Pinjore, Ramgarh, Parwanoo, Zirakpur, Derabassi, Nissing, Ghaurandah, Indri, Nilokheri, Tarawari, Hansi, Barwala, Bhivani,Tohana, Fatehabab, Pehowa, Ismailbad, Rajpura, Naryangarh and Shajadpur.

The company continues to invest heavily in maintaining a well-recruited, professionally-trained, and well-monitored life advisor force that is capable of providing appropriate advice and recommend customized solutions to consumers. Currently, Kotak Life has around 5,438 life advisors in Haryana and plans are underway to increase the number to around 9,000 by the end of the financial year.

This move is part of the company’s strategy to set up a robust multi-point distribution network to cater to the mass market in the country. Kotak Life Insurance will aggressively expand its tied distribution channels to create a long-term distribution network in and around Panchkula, Ambala, Karnal and Hissar. Kotak Life Insurance is planning to keep up the growth rate through its core strategy of stronger client relationships, focused product development and leveraging internal synergies of the Kotak Group.

The company has recorded a growth rate of 114 per cent in the First Year Premium (FYP) income in the half year ending September 30th 2008 (FY 2008-09). The company saw its Total Received Premium Income jump from Rs. 467 crore in April- September 07 to Rs. 925 crore in April September 08, a growth of 98 per cent. ”(editor@thesynergyonline.com)

MAX NEW YORK LIFE FORGES ALLIANCE WITH 'ACCESS' FOR 'MAX VIJAY'

Thesynergyonline Insurance Bureau

NEW DELHI, NOV 14 :
MAX New York Life Insurance has entered into a strategic business alliance with ACCESS Development Service wherein ACCESS through its 110 alliances shall refer corporate agents to the company to market and sell ‘Max Vijay’. In the first year of this strategic alliance, ‘Max Vijay’ targets to sell 1.4 lakh policies and double it to 3 lakh by the third year of operations. The company also announced its corporate agency relationship with 8 MFIs

Announcing this tie-up, Mr. Anil Mehta, Sr. Director, New Markets SBU, Max New York Life Insurance Co. Ltd. said, “Through this association with ACCESS, we hope to achieve the true potential of ‘Max Vijay’ and thus be the pioneers in reaching out to the underserved segment of the society.

“ACCESS has shown interest in playing an equal and active role in supporting us to take ‘Max Vijay’ to the remotest of locations and provide protection and savings accumulation opportunities to the underserved population in both urban and rural India. . We are aggressively seeking alliances such as these to expand our footprint for ‘Max Vijay’ and by the end of this year we plan to tie up with 4 more MFI’s under ACCESS to be able to expand our reach”, added Mr. Anil Mehta.

Mr.Vipin Sharma, CEO, ACCESS Development Service, said, “This referral tie-up with Max New York Life Insurance gives us an opportunity to promote ‘Max Vijay’. We find it a unique concept, designed to provide savings and life insurance solutions to our customers as Max Vijay compliments our existing rage of products. I am confident that this relationship will help our existing customers and the underserved masses meet their aspirations from life, as it provides them with an unique opportunity of protection as well savings at their door step ”(editor@thesynergyonline.com)

KOTAK LIFE INSURANCE LOGS 114% FIRST HALF GROWTH

Thesynergyonline Infotech Bureau

MUMBAI , NOV 12 :
KOTAK Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance), has registered a growth rate of 114 per cent in the First Year Premium (FYP) income in the half year ending September 30th 2008 (FY 2008-09). The Adjusted Premium Equivalent (APE), a standard measure in the industry that takes Single Premium at 10 per cent, has grown from Rs. 259 crore in the period April - September 07 to Rs. 566 crore in the period April - September 08, a growth of 119 per cent.. Kotak Life Insurance also saw its total received premium income jump from Rs. 467 crore in April -September 07 to Rs. 925 crore in April - September 08, a growth of 98 per cent.

Apart from the excellent toplines, the insurance major has also managed to curb its losses. The company has decreased its losses to Rs. 35 crore against Rs. 53 crore incurred in the first half of last year. This implies a much lesser capital requirement in the coming year to manage and expand its business.

Commenting on the remarkable performance of the company, Mr. Gaurang Shah, Managing Director, Kotak Life Insurance said, "the increase in productivity was a sheer focus for this half year and we have managed to raise the bar. Higher toplines, reduced Costs
and better customer service were the focus parameters for this year and we aim to continue with the same objectives.

The company has also increased its sales force that supports its Tied Distribution to about 40,000 life advisors and have been
operating at top quartile productivity on industry standard parameters. The company has ramped up its distribution significantly and have expanded to 188 branches in 124 cities pan India.

The company's Dynamic Floor Fund performance stands out sheltering investors from volatility and ensuring a meaningful level of capital protection. The fund's philosophy of booking profits in a rising market and protecting their capital in bearish market has helped deliver this strong performance. The company's capital guarantee products will provide value to the customers in a volatile market scenario. (editor@thesynergyonline.com)

AVIVA 9 - MONTH LIFE, PENSIONS SALES UP 4% AT £25,673

Thesynergyonline Insurance Bureau

NEW DELHI, OCTOBER 30 :
LIFE and pensions sales of Aviva plc went up during 9 months ended September 30 , 2008 to £25,673 million, up 4 per cent on local currency basis. It maintained Group margin at 3.8 per cent. Global long-term savings sales were up 3 per c ent to £29,047 million ,down 5 per cent on local currency basis . Bancassurance sales resilient were also,up 3 per cent to £6,915 million , down 7 per cent on local currency basis.

In strong capital and liquidity position - £1.9 billion IGD surplus as at September 30 with increased protection through hedging . IGD surplus is estimated at £1.3 billion at October 24 ; a further 20 per cent drop in equities would reduce IGD by £0.4 billion . It showed significant equity derisking in 2007 and 2008 . General insurance businesses and in-force life book continue to generate significant cash and capital .The net asset value of 696p per share on an EEV basis demonstrates underlying value of group . The company displayed strong liquidity position with direct access to £1.6 billion of liquid assets and £2.2 billion of undrawn committed credit facilities.

Gaining the benefit of composite model, geographical diversity and balanced distribution UK recorded stable performance in line with the market; growth in annuities and individual pensions .

Europe showed resilient performance reflecting geographical mix and strength of euro . North America also recorded outstanding growth and expect to double new business scale a year ahead of target.- Asia Pacific showed encouraging performances in China and India . In General insurance 98 per cent group combined operating ratio, in line with target.

The company focused on delivering group strategy , that is , accelerating transformational change of existing businesses to maximise potential ; launched Aviva Investors , creating a global business with £235 billion of funds under management . Group dividend policy remains unchanged .

Andrew Moss, Aviva chief executive, said "These are unprecedented times. Our share price has been affected by the huge uncertainty in financial markets, but people around the world are still saving and buying insurance from brands they trust, like Aviva."

"Aviva is strong. The net asset value per share was 696p at 30 September. We are taking an active and prudent approach to managing our capital. Greater security for our customers and shareholders has been achieved through further hedging. Investors and customers can be confident that our disclosures provide a full picture of Aviva's financial position

"Our life and pensions business continued to grow, with margins maintained. Bancassurance sales have held up well at a time of exceptional difficulty for the banking industry. In the US we're set to double our new business scale a year ahead of target.

"We remain focused on our strategy of maintaining our financial strength and transforming Aviva. We will create value for our customers and shareholders by maximising the full potential of our existing businesses. This will position us for further growth, once a more stable economic environment returns." (editor@thesynergyonline.com)

CCI'S 11TH INSURANCE SUMMIT IDENTIFIES OPPORTUNITIES FOR MICRO INSURANCE IN INDIA

Thesynergyonline Insurance Bureau

MUMBAI, OCTOBER 02 :
THE Confederation of Indian Industry on Wednesday organised the 11th Insurance Summit event on "Development of Indian Insurance Industry: The Unfinished Agenda". The post lunch session focused on De-tarrification in General Insurance, Reforms in Health Insurance and Micro Insurance: Deepening of the Markets.

The session on the Detarrification in General Insurance focused on the market response and development of market in terms of impact on growth, price, volume changes, cross subsidization and role of brokers. As of March 2008, all types of insurance business have been detariffed except for motor third party liability.

Speaking on the way forward, Mr. Yogesh Lohiya Chairman & Managing Director, General Insurance Corporation of India stated that we have learnt from pitfalls of global experiences and we now are buyer driven and customer-focused market. Success of Detarrification will happen only if there is enhancement of Detarrification skills, increase in operational efficiency, wider choice to customers and greater penetration of the market.

Looking positive on Detarrification, Mr. Bimalendu Chakrabarti, Chairman & Managing Director, The New India Assurance Co.Ltd, said, "Detarrification was the requirement of the industry because it was necessary to have the market to control pricing.

Special emphasis should be laid on pricing and products as it will result in positive movement. We also have to focus on customer segmentation, offering plethora of products and services. Healthy competition will ideally be a combination of the right pricing and products." He further added, "Brokers could play a vital role in adding value to the system."

Mr. Sandeep Bakhshi, MD, ICICI Lombard General Insurance emphasized on the use of technology to bring cost efficacy in service architecture and scale up quality. There needs to be cooperation between the government and the companies to increase the penetration for micro insurance. One of the targets is to grow above 1 per cent in next three years.

The session on Health Insurance saw eminent dignitaries discuss issues pertaining to the development of the sector and corrective measures required to meet the need gap challenge. The panelists identified low penetration of insurance, loss ratios for health insurers exceeding 100 per cent, high claims rejects, high provider complaints as the major challenges posed by the industry.

The panel strongly felt that data sharing in terms of ensuring completeness and accuracy of claims data collection and better provider insurer relationship would be a step towards ensuring growth in the health insurance sector.

The next session on Micro Insurance addressed the need to shape-up regulations to encourage developing, deepening and strengthening of micro insurance activity in India. Mr. Sanjiv Bajaj, Joint Managing Director, Bajaj capital Ltd. emphasized, "Micro Insurance is a very exciting area but it needs to be redefined."

He further requested the regulators to keep Micro Insurance less The next session on Micro Insurance addressed the need to shape-up regulations to encourage developing, deepening and strengthening of micro insurance activity in India.

Mr. Sanjiv Bajaj, Joint Managing Director, Bajaj Capital . emphasized, "Micro Insurance is a very exciting area but it needs to be redefined." He further requested the regulators to keep Micro Insurance less than Rs. 10 - 15 lakh. Insurance is fast emerging as a prepaid financing option for the risks facing the poor but the micro insurance penetration in India is low. (editor@thesynergyonline.com)

INDIAN INSURANCE SECTOR LIKELY TO BE RS. 2000 BILLION SIZE BY 2010

Thesynergyonline Insurance Bureau

NEWDELHI, AUG 16 :
AN unprecedented growth of over 200% is likely to be seen in Indian insurance business by 2009-10 in which private insurance business would grow @ 140 per cent in view of aggressive marketing technique adopted by them as against 35-40 per cent of state owned insurance companies growth rate, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM). The Chamber expects the total insurance business reaching a level of Rs.2000 billion in next 2 years from current level of Rs. 500
billion.

The findings are made by the ASSOCHAM on `Insurance Sector Futuristic Growth’, pointing out that in the last couple of years, the insurance sector has grown by CAGR of around 175% and the trend will emerge still better because of potential factor.

The chamber president, Mr. Sajjan Jindal said, “on account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies like GIC, LIC and others have already come down to 70% in last 4-5 years from over 97 per cdent and more intense competition is likely to be witnessed in the near future”.

The private insurance players entry into insurance sector is still restricted since India has yet to open it up liberally. But even then, their rate of return (RoR) to their subscribers and policy holders is estimated at about

The private insurance players entry into insurance sector is still restricted since India has yet to open it up liberally. But even then, their rate of return (RoR) to their subscribers and policy holders is estimated at about 35 per cent as against 20 per cent of domestic insurance companies. This factor is mainly esponsible for hike in private insurance market and might grow further exceeding even 140 per cent.

Secondly, the state owned insurance companies have limited number of policies to offer to their subscribers while in case of private insurance companies, their policy numbers are many more and the premium amount as well as the maturity period is much competitive as against those of government insurance companies.

Interestingly, said Mr. Jindal, the private sector insurance players have started exploring the rural markets in which until recently the state owned companies had the monopoly.

The Chamber has projected that in rural markets, the share of private insurance players would increase substantially as these have been able to generate a faith among their rural consumers.

Estimating the potential of the Indian insurance market from the perspective of macro-economic variables such as the ratio of premium to GDP, ASSOCHAM says India’s life insurance premium, as a percentage of GDP is 1.8 per cent as against 5.2 per cent in the US, 6.5 per cent in the UK or 8 per cent in South Korea.

The chamber's findings further reveal that in the coming years, the corporate segment, as a whole will not be a big growth area for insurance companies. This is because penetration is already good and companies receive good services. In both volumes and profitability, therefore, the scope for expansion is modest.

The Chamber has suggested that insurer’s strategy should be to stimulate demand in areas that are currently not served at all. Insurance companies mostly focus on manufacturing sector, though, the services sector is taking a large and growing share of India’s GDP. This offers immense opportunities for expansion opportunities.

To understand the prospects for insurance companies in rural India, it is very important to understand the requirements of India's villagers, their daily lives, their peculiar needs and their occupational structures. There are farmers, craftsmen, milkmen, weavers, casual labourers, construction workers and shopkeepers and so on.

The rural market offers tremendous growth opportunities for insurance companies and therefore, should develop viable and cost-effective distribution channels to create consumer awareness and instil confidence. The ASSOCHAM found that there are 124 million rural households. Nearly 20% of all farmers in rural India own a Kissan Credit cards. The 25 million credit cards used till date offer a huge data base and opportunity for insurance companies. An extensive rural agent network for sale of insurance products could be established. The agent can play a major role in creating awareness, motivating purchase and rendering insurance services. (npsinha@thesynergyonline.com)