Carnation Auto scale up insurance broking business Focusing on various segments like fire, engineering, marine, liabilities and group health insurance to expand presence

Multi-brand automotive sales and service provider Carnation Auto is scaling up insurance broking business through its separate arm and plans to significantly increase its presence beyond auto insurance.

 The venture, a brainchild of Jagdish Khattar, the former Chairman and Managing Director of Maruti Suzuki, is now focusing on other segments like fire, engineering, marine, liabilities and group health insurance via its wholly-owned subsidiary, Carnation Insurance Broking.

“We had got insurance broking license last year and started in a small way, focusing mostly on our in-house retail customers. Now, we are looking to expand this through our separate arm, “Carnation Auto Managing Director & CEO Jagdish Khattar told PTI.

Elaborating on the expansion strategy of the vertical, Carnation Insurance Broking Pvt Ltd CEO and Principal Sanjeev Gujral said: “Earlier, we were mostly in auto insurance but now we are getting into other areas like fire, engineering, marine, liabilities and group health insurance.”

For this, the company is targeting mid-sized and large corporate houses as clients, for which the company is in talks at present, he added without disclosing details. In order to meet the scaled up business, the company will also increase its manpower.

“At present, we have a team of about 65 people. This will be scaled up to 85 by March 2014. By 2014-15, we should have a team of around 120-150 people,” Gujral said. When asked about the scale of business, he said: “Currently, on the premium side we have around Rs 16-17 crore. We are targeting about Rs 25 crore and by FY15 we are looking at a total of around Rs 100 crore.”

In the first year, the premium break up is 50-50 between corporates and retail. In future, it can be skewed in favour of the corporate side to about 55-45, he added. Headquartered in Noida, Carnation Insurance Broking has presence in various cities, including Mumbai, Hyderabad, Bangalore and Jaipur. 

 

Source : Business Standard

Date: 10th November 2013

Advertisements

Aviation insurance to emerge as growing segment in GI sector Domestic aviation industry is growing at an average growth rate of around 15% per annum, says Manik Nehra, Senior Manager Aviation Insurance, Bajaj Allianz General Insurance

Aviation Insurance is likely to emerge as a key growth area in the coming years with new airlines starting operations and existing players expanding fleet size, industry officials said.

 Though the current market size of aviation insurance stands at around Rs 500 crore, growth of airlines industry will push the premium growth in the near future, they said.

 “Aviation insurance is an emerging segment in the general insurance industry. We expect much growth coming from addition of new aviation players in the market and expansion of fleet by existing players,” Manik Nehra, Senior Manager Aviation Insurance, Bajaj Allianz General Insurance, told PTI.

 According to the general insurer, domestic aviation industry is growing at an average growth rate of around 15% per annum and is likely to add around 450 aircraft in the next five years.

 Even the number of corporate jets are growing in domestic skies as more and more business houses are acquiring own aircraft for business travel needs, industry experts said.”Currently, around 30 jets belonging to various corporates are insured by us. We are also the lead insurer of the recently launched regional carrier Air Costa. We aim to be a significant player in this segment,” Nehra said.

 

He added the company is working with re-insurers like Allianz, which is one of the leaders in this segment, and GIC Re to provide re-insurance cover to aviation assets as it is a highly reinsurance driven business.”Claims are not much from the aviation insurance segment. The portfolio is profitable,” a public sector insurer said.

 Country’s largest insurer New India Assurance is a major player in this segment. Meanwhile, Chief Executive Officer of Reliance General Insurance Rakesh Jain said the aviation insurance is largely reinsurance driven and a niche product.

 “Currently, the segment contributes less than one% of the total industry. But, the pie is growing,” Jain said. Fleet expansion apart, among the new players Tata SIA Airlines is expected to be the first major companies to start operations next year. 

 

Source: Business Standard

Date: 10th November 2013

United India Insurance absorbs Rs 900 cr loss on U’khand floods The company has reported a premium of Rs 4,768 crore for the half year ended September 30, 2013

United India Insurance Company announced it had absorbed around Rs 900 crore loss arising out of the floods in Uttarakhand.
“The company was able to absorb Rs 900 crore losses from the Uttarkhand floods, totaling 15 property damage claims,” said a company release. The floods caused by cloudburst along with adverse geographic conditions had claimed thousands of lives in the region in June.
The company reported a 4 per cent rise in net profit at Rs 364.54 crore for the first half of the financial year ended September 30, 2013, as against Rs 350.59 crore during the same period last year.
For the period under review, it reported a premium of Rs 4,768 crore. Investment income for the first half rose 11.46 per cent at over Rs 953 crore as against Rs 855 crore for the corresponding period in the previous year.
It was able to reduce the claims ratio from 87 per cent to 83.75 per cent during the first half, resulting in reduction of the combined ratio (a measure of the profitability of insurance operations) to 111.62 per cent from 112.62 per cent.
The market value of its total investment portfolio at the end of the first half was Rs 19,788 crore. The net worth of the company stood at Rs 5,322 crore as on September 30, 2013.
It has a solvency ratio of 2.43  against the regulatory requirement of 1.50, it said.

 

Source: Business Standard

Date: 8th November 2013

 

New India earns Rs 42 crore premium from satellite launches cover

Country’s largest general insurer New India Assurance has earned around Rs 42 crore in premium so far this fiscal by providing cover to satellite launches by theIndian Space Research Organisation from the Kourou French Guiana space centre, according to company sources. 
Isro, which on Tuesday kicked off the Mars orbiter mission from Sriharikota without any cover, had conducted two launches namely GSAT-7 and INSAT-3D by Arianne-5 from the French space centre in July and August this year. 
“The company has earned a premium of around Rs 42 crore by covering these two launches,” sources told PTI. 
They, however, said the domestic space agency has not taken any cover for the Mars mission. “Isro has not taken any cover for the Mars orbiter mission.” As per the sources, the space agency has taken the decision not to insure the Mars missiondue to high cost involved securing the cover. 
“Isro doesn’t take satellite cover for its domestic launches. But it takes cover for launches from foreign shores,” they said. 
Industry players said that getting attractive premium for a satellite launch depends on the track record of the space agency. 
While a space agency with highly successful track record will pay low premium, low success rate will force the agency to pay more,” an official from a public sector general insurance firm said. 
New India Assurance has posted more than three times rise in its net profit to Rs 644 crore in the first half of the current financial year. Its gross written premium rose 12.5 per cent to Rs 6,906 crore during this period.

 

Source: The Economic Times

Date: 7th November 2013

New norms to make health cover claims much easier

Health insurance customers with multiple covers don’t have to fret about making a claim anymore. They have the option of approaching one of the insurance companies and claim the entire amount. 
Earlier, those with multiple policies were required to approach both (or all) insurers and the companies used to settle claim in the ratio of the sum assured. For example, if you had two policies with sums insured of Rs1 lakh each and the claim was Rs1 lakh, both the companies would shell out Rs50,000 each. But, the new health insurance regulations, effective from October, and the abolition of contribution clause that dealt with claims under multiple policies, have made life simpler for health insurance customers. Policyholders will benefit from fewer delays in claim settlement and less paperwork. 
Moreover, one also gets to retain the no-claim bonus on a policy that is not used, which enhances the health cover at no extra cost. “As per the new guidelines, the customer can avail of the entire claim in any of the policies till the sum insured is exhausted and the remaining claim can be settled with other insurer or insurers,” says Sanjay Datta, chief of underwriting and claims at ICICI Lombard. That means insurers cannot insist that the claim burden be divided as long as the amount does not exceed the sum insured. “Even if the claim amount is higher than the cover under one policy, the policyholder has the right to exhaust the limit and make a claim for the balance from the other insurer. So, in a sense, the contribution clause has become somewhat redundant,” says Renuka Kanvinde, assistant vice-president, health insurance, Bajaj Allianz General Insurance.

he new regime is also favorable to those with an individual cover plus group cover from the employer. The new rule gives you the choice of making a claim under the policy of your choice. “The process of claims would be similar as both the policies would be treated as independent policies irrespective of whether it is group or retail,” says Antony Jacob, CEO, Apollo Munich Health Insurance.

However, if you have bought a regular health cover and a fixed benefit cover that offers, say, Rs2,000 per day of hospitalization or a pre-defined lump sum on diagnosis of illnesses to supplement it, the scenario will remain the same for you as the contribution clause does not apply to this combination. The regular health covers promise to reimburse expenses incurred by you, while the fixed benefit covers that are usually sold by life insurers hand out a fixed sum when you make a claim. 
Typically, a policyholder has to submit a bunch of documents, including medical records, original hospital bills and discharge summary, along with the completed claim form while filing a claim for reimbursement of expenses. Since the emphasis is on originals, the procedure of claiming from more than one insurer always tended to be a long-drawn-out affair. While the new regulations have eased concerns on this front by nearly eliminating the contribution clause, you may still have to go through the process if your claim amount exceeds the sum assured. 

Cashless procedure will be simpler. “The claim will be settled on a cash less basis by one insurer and the insured can then submit claim documents with the settlement report received from the hospital to the other insurance company for the remaining amount,” says Jacob. Also, if all your insurers happen to use the same third-party administrator’s services for processing claims, the procedure could be hassle-free.

 

Date: 7th November 2013

Source: The Economic Times

SBI General Insurance premium income up 83% to Rs 541 cr in H1

SBI General Insurance today said it has seen a healthy 83 per cent growth in premium income to Rs 540.93 crore in the first half of the current financial year. 
“We have been able to achieve 83 per cent growth in premium collection despite difficult economic conditions and slowdown in the automobile sector,” SBI General Insurance managing director and chief executive B J Sharma said in a statement. 
As per the company, while slowdown in the automobile sector has forced many insurers to look at renewal business aggressively, SBI General Insurance was able to grow motor insurance business by 136 per cent during the first six months (April-September) of the fiscal. 
The general insurer, which is present across retail, corporate and SME segments, also has piloted a simple health insurance policy through bancassurance channel. 
“The product is gaining traction with SBI customers. We have already acquired over 3,500 customers in select locations where we have launched the product. We intend to go national by next month,” the company said in a statement. 
During the second half of the fiscal, the company will aggressively focus on health and motor insurance portfolio, it added. 
SBI General Insurance is a joint venture between country’s largest lender State Bank of India and Australian insurer Insurance Australia Group with SBI holding the majority stake.

 

Source: The Economic Times

Date: 6th November 2013