Insurance Sector to Reach $250 b in 10 Years: CII

India’s insurance sector is expected to quadruple to about $250 billion over the next decade from around $60 billion now, according to a report by the Confederation of Indian Industry (CII).

The vision report, prepared by the trade body in partnership with consultancy firm McKinsey & Co. and unveiled by the Insurance Regulatory and Development Authority (Irda) chairman TS Vijayan in Hyderabad on Thursday , recommends an inclusive and progressive growth strategy for the industry . Such a strategy would enable the Indian life insurance industry to report 12% compounded annual growth rate (CAGR) over the next 10 years to reach $160175 billion from around $46 billion now, the report said. The non-life or general insurance part of the industry is estimated to see 22% CAGR during this period, expanding to $80 billion from around $13 billion now, it said.

Vijayan said the regulator has allowed foreign reinsurance firms to open branches in India. He also announced the regulator’s decision on allowing insurance firms to recruit agents on their own, instead of appointing them from those who have qualified in an Irda-organised examination. Vijayan said the upcoming insurance Ordinance has several measures that would support growth. “Our priority would be to protect the interests of the policyholders and we need to ensure the satisfaction of the customer for which we are bringing certain changes in the new Act,“ he said, adding that the sec . 50,000 crore of fresh capital to tor needs at least ` achieve coverage of 6% from the existing 4%.The life insurance segment would require more capital over general insurance, he said.

Analjit Singh, head of the CII national committee on insurance and pensions and chairman of Max India, said the industry has the potential to grow three to five times in size over the next decade. “For this to happen, policy action by the regulator, collaboration between players, individual player’s push to develop distribution and technical capabilities would be critical,“ he said.

Source: The Economic Times (Mumbai)

Date: 27th Feb,2015

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NEWS ROUND UP – SALARY HIKE

A on Hewitt, a global HR consultancy, recently announced the results of its latest `Annual Salary Increase Survey in India’. The study, which analysed data from more than 580 companies, reports that Indian employees, on an average, will receive a 10.6 per cent hike in their salary this year.
Anandorup Ghose, rewards consulting practice leader, Aon Hewitt India said, “On the back of improving business confidence, a stable government and moderating inflation, there is a significant improvement in business confidence across companies.However, this confidence is not reflecting in salaries. The projected salary rise shows a subtle improvement over salary increases in the last three years. Companies across industries are continuing to take a cautious stance and are not going for aggressive pay increases.“
Sectors such as life sciences, engineering services, chemicals and media, which have consistently led the salary increase numbers since 2012, are projecting a higher increase than the market average.

Source : Mumbai Mirror
Date : 26th Feb 2015

INSURANCE BILL – What’s the Way Out for Modi-led NDA Govt?

Centre wants to withdraw insurance Bill from Rajya Sabha, Opposition isn’t allowing it. Here’s a look…

WHY THE INSURANCE BILL IS STUCK…
THE CENTRE
promulgated an ordinance after it failed to get RS to clear the Insurance Laws (Amendment) Bill 2008. Bill has to be passed in this budget session to prevent it from lapsing
SINCE THE NDA doesn’t have majority in RS, it wants to get the Bill introduced & passed in Lok Sabha, thus paving the way for convening a joint session to push the bill through. As per rules, if a Bill is passed in either House, govt can call a joint session. NDA has numerical superiority in a joint sitting
AS BILL
is already pending in RS, it remains the property of that House irrespective of the ordinance. That mandates govt getting leave of the House to withdraw the pending bill before rerouting it through LS
BUT GOVT can withdraw the bill only if that leave is granted by the House. So when government sought the leave for permission to withdraw the bill, the Opposition asked for a vote
KNOWING A trial of strength will lead to the defeat, Finance Minister Arun Jaitley avoided that embarrassment by `deferring’ the motion to withdraw the bill
WHILE WITHDRAWING,
he tactically claimed the rules allow the government to introduce `new bill’ straightaway in the Lok Sabha
WHAT HAPPENS NOW…
NDA HAS
the option of -just as it had in last session -continuing to negotiate with Oppn for a give-and-take formula or try to divide rival camps. The passage of Bill is crucial as no insurance company would be willing to put its money unless there is legislative backing for reforms in the sector

Source : The Economic times
Date : 26th Feb 2015

5 WAYS TO – Deal with Blues After Appraisal

For every employee happy with the outcome of their appraisals, there’s a bunch of others who end up feeling they’ve been shortchanged. Sreeradha D Basu shows how both employers and employees can deal with post-appraisal blues.

1 Seek Support

Don’t judge if you are not in agreement with the feedback. Ask for instances and data to support it, says Nishchae Suri, head of people and change, KPMG in India. “Appreciate the spirit with which the feedback is being given. Your manager and the organisation are interested in your growth and development. Ask for support which will help you address your areas of development,“ says Suri.

2 Introspect Dispassionately

Do some honest self-analysis, suggests Meeta Wasan Gujral, founder and director-salesprograms, Doon Consulting, a lead generation and market research firm. “If you were not able to perform to the expected level, where was the gap? Was there something lacking in the skills required at your end to perform the expected task? Then every effort should be made to acquire that new skill required to perform the job well,“ she says.

3 Keep your Cool

Avoid acting impulsively and allow a cool-off period. Wasan Gujral says it’s important to keep calm. “That, and not losing self confidence even after a difficult appraisal, are traits that can help anyone overcome difficult times. Also remember the good times as this will help you deal with the negativity that may emanate from the situation,“ she says.

4 Draw an Action Plan

KPMG’s Nishchae Suri advocates managers doing the appraisals to chalk out a specific action plan. “Managers can provide concrete and actionable development items that can support what may otherwise be perceived to be a generic assessment,“ he says.

5 Create the Right Environment

Organisations need to create a psychologically safe environment such that individuals feel that they can express concerns without feeling threatened, says Nishchae Suri. “They can provide post-appraisal counselling to combat insecurities, counter negativity and maintain an ongoing healthy dialogue,“ he adds.

Source: Economic Times

Date: 24th February 2015

Target GenNext: Future Group to Tweak HR Systems

Group to build more data-driven, customer-centric processes in line with changing consumer mindsets and behavior

Future Group is revamping its human resource process and systems to build a more consumer-centric and datadriven organisation and achieve strategic business goals for 2020.

Plans include attracting young management talent at top business schools across the country this year and building teams of customer experience, design experts, data scientists and social media managers. The company has also introduced Chairman’s Club, wherein group CEO Kishore Biyani will directly mentor the top 100 employees.

“Our Vision 2020 needs a new people strategy . We have to change with the times. It’s about how you include the new millenials in your system, and deal with changing customer mindsets and behaviour,“ says Biyani. With an omni channel retail strategy and digital payments, the organisation will have to deal with younger customers, he adds. The omni channel strategy is aimed at integrating offline and online retail models to make buying convenient.

To understand young customers better, the retail major, which has around 36,000 employees and a turnover of around . 15,000 crore, is eyeing young management ` talent at top business schools across the country. It hired management trainees from top B-schools like IIM Bangalore and IIM Calcutta for the first time this year and has hired close to 80 graduates so far with a target of hiring a total of 100. The trainees will be mentored for a year on different projects and roles, before being absorbed in specific departments in 2016.

“We have got an amazing response at campuses and we were present on day zero and day 1 at top B-schools. Our compensation may not match that of top recruiters but we have clicked with students because of the brand connect, our work and values,“ says Kaustubh Sonalkar, chief HR officer at Future Group.

The group launched Chairman’s Club four months ago. The employees, selected after being nominated by their respective managers and a group-based evaluation process which includes personal interviews and psychometric assessments, will directly work with Biyani in realising Vision 2020.

While the Chairman’s Club includes a group of business leaders along with the chairman, at any given time he will have 10 employees under him. If there’s a business goal, there has to be a people strategy and a total rewards strategy, says Sonalkar. “The total rewards strategy is not just about compensation but development plans and other benefits. It’s about assessing people for skills, attitude and knowledge and getting your people ready to meet those goals and targets,“ she adds.

While the group attributes the revamp to changing customer base and needs, changes in people strategies could also be a result of greater online competition and rising popularity of young and dynamic e commerce companies which are eyeing top talent.

Private investors pumped in $2.3 billion into India’s e-commerce companies last year, according to consulting firm Technopak, giving them the wherewithal to attract and entice shoppers and pay competitive hikes to lure top talent.

“The single biggest factor in the changing HR strategy of brick-and-mortar retailers could be e-commerce,“ says Arvind Singhal, chairman of Technopak Advisors.

In line with the changing business models, e-commerce companies will lead physical retailers to reorient their people strategy to understand digital customers better.Customer behaviours and profiles are changing drastically, and logistics and supply chains need to be restructured for an omni channel strategy.

Source: Economic Times

Date: 24th February 2015

Plan to Hire Private Sector CEOs for PSBs Put on Hold

The government has kept in abeyance its plan to hire chief executives for public-sector banks from the private sector, as it is yet to come up with a clear procedure for the appointment.

The original plan was to widen the search by inviting applications from the private sector for Canara Bank, Punjab National Bank and Bank of Baroda, where the positions of CEO have been vacant for several months. For the first time, the government had indicated at the Gyan Sangam -a two-day conference held in December on the future of public-sector banks -that it would advertise the vacancies.

But the government has recently made the senior-most executive directors at two banks as their CEOs. It named VS Krishna Kumar the managing director and CEO of Canara Bank until he reached superannuation in March 2015, while Gauri Shankar has recently been given the same positions for three months at Punjab National Bank. Sources say the government is set to appoint Ranjan Dhawan, the senior-most executive director of Bank of Baroda, as the lender’s MD and CEO.

The Department of Personnel & Training had previously proposed to engage an HR firm to screen all the applicants, which would then be followed by interviews by the appointment committee, sources said. “However, it appears that the government is not clear about the process of the appointment,“ said a senior bank official, who tracks people movement at PSU banks. “Due to lack of clarity and time, the appointment process is pushed behind and, as a result, the senior-most executive director is given the charge,“ he added.

For years, PSU bank chiefs -designated as chairman and managing director -were chosen from among the executive directors of all state-run banks. However, at the State Bank of India, the chief was selected within the bank by the government while SBI posted its deputy managing directors to head its associate banks.

Source: Economic Times

Date: 23 /2/2015

Foreign Job Offers Decline in Top Business Schools – Devina Sengupta & Sreeradha D Basu Mumbai

Excitement around India, fewer profiles in US & Europe prompt grads to work here
The placement report card of top B-schools in India shows them scoring poorly in one subject -international job offers.
Offers for foreign posts have dipped by 39% in IIM Bangalore and 40% in IIM Kozhikode.
Placement teams say the increased excitement around India and reduced US and Europe profiles have led to students opting to stay within the home turf.
“India is becoming a nerve centre for many companies. There were some cases where a student had a choice of two job locations; one abroad, and the student chose a domestic option,“ said Sankarshan Basu, chairperson, Career Development Services. “Also, no job offers have come in from Europe and that has also led to a decline,“ he added.
At IIM Bangalore, international offers have dropped from a high of 41 last year to 25 this time. In one of the prominent IIMs, Bank of America did not hire for their global postings this year. Two international firmsKadence International and NMC Healthcare that recruited nine students last year didn’t participate this year, said another IIM placement team member. They informed the campus that they did not have suitable requirements.
“The global economy is yet to pick up and those that hired last year would have realised that the market has not grown as fast as they had expected, so there is no aggressive hiring from India this time,“ said Rohin Kapoor, senior manager, Deloitte India who tracks the education sector.
Also, with India growing at 7.5% , opportunities to scale up or join startups is more in the domestic market. And given the competitive salaries offered, students will let go of global posts, added Kapoor.
At IIM Kozhikode, international offers have gone down from 25 to 15.AF Mathew, chairperson -placements said that there were firms which had decided not to recruit. “A couple of others showed interest but by the time they came, everybody on campus was already placed.“
“Global teams prefer to hire locally or have a job transfer from India than come to college campus for that one odd student,“ a placement team member of IIM Indore said. “Getting visa clearances and costs incurred are not worth all the trouble.“ The college managed to get five international offers, the same as last year.
Others including IIM Lucknow, XLRI, IIM Indore and MDI have managed to maintain status quo.Companies that have offered international placements in top B schools of India include Aditya Birla Group, Godrej Industries and Allied Companies, Avnash Group & Dott Test for roles in general management, HR and operations.
IIM Calcutta is on its final leg of placements and IIM Ahmedabad has just started. Offers for foreign posts are likely to be lower here too.

Source : The Economics Times
Date : 18th Feb 2015