These 3 Insurance Cos Rejected Most Number of Claims

 

ICICI Lombard, Liberty Videocon and Oriental Insurance have rejected most claims out of the total number of claims available for processing, based on the latest data available for the the quarter ended September 2016. ICICI Lombard repudiated 7.78% claims, Liberty Videocon 6.20% and Oriental 4.26%, data by Insurance Brokers Association of India showed.

Claims Repudiation Ratio is calculated as total number of claims repudiated upon total claims available for processing.

“Insurers repudiate claims when they suspect frauds, therefore, takes time to investigate before closing,“ said a senior insurance executive of one of the three companies mentioned. “Other reasons are when the claim filed is not covered by the policy and lack of proper documents submitted.“ The number of claims available for processing is calculated by taking total number of claims outstanding at the begin ning of the quarter and total number of claims reported upon total number of claims booked during the quarter. Private sector Iffco Tokio has the best claims repudiation ratio of 0.05% as of September-end 2016. New India Assurance has the lowest percentage of claims repudiated among public sector firms at 1.22%, according to the data.

In terms of claims outstanding for the period, ICICI Lombard has the best ratio of 27.85%. Claims are rejected for many reasons such as suspicious fraud cases.

Source: Economic Times

Date: 29th  August 2017

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Office Desk Sensors Can Cause Employee Anxiety

Experts say HR should be ready to explain the necessity of such devices

Companies worldwide have attached special sensors beneath their employees’ desks to monitor office space usage and reduce real estate costs.

But mistrustful employees have balked at OccupEye, the small black monitoring devices under their workstations. Some have claimed invasion of privacy; others have wondered why their employers are watching them.

However, Neil Steele, OccupEye’s head of sales and marketing, told SHRM Online, “OccupEye is not about monitoring employees. OccupEye is about real estate.”

Here’s how it works:

Sensors are attached under desks to detect “the presence of a human being through a combination of body heat and motion,” Steele said. “None of the OccupEye suite of products identifies individuals.” The data from these workspace utilization devices is transmitted from the devices to the web and reported “to those [employees] occupying the space as well as building and facilities managers,” he said.

U.K.-based data management company Cad-Capture said its OccupEye technology has made companies more energy efficient and helped them save millions in real estate costs.

That hasn’t made people less leery of the devices.

 

[SHRM members-only toolkit: Managing Workplace Monitoring and Surveillance]

The Creep Factor

At Barclays Plc in London, “managers were peppered with queries when investment bank staff in London discovered” the OccupEye boxes stuck beneath their workstations, Bloomberg reported recently. Several anonymous Barclays employees told the news site the devices tracked how often employees were at their desks.

Lloyds Banking Group Plc in London uses similar devices.

“The sensors aren’t monitoring people or their productivity; they are assessing office space usage,” Barclays said in statement e-mailed to Bloomberg. “This sort of analysis helps us to reduce costs, for example, managing energy consumption or identifying opportunities to further adopt flexible work environments.”

Steele said OccupEye users “across six continents, including some of the largest and most prestigious in the world, have made tangible real-estate savings running into the hundreds of millions of dollars” by using the technology.

That hasn’t kept employees from being creeped out by the monitors, however. OccupEye’s boxes were removed the day they were installed at the London-based The Daily Telegraphafter employees balked at the “Big Brother-style surveillance.”

Said Steele: “The only negativity we ever experience is born from uninformed misperception; anyone willing to spend 30 minutes reading up on [this type of] sensor technology or industry-leading guidance on best practices around space utilization and smart building management would clearly have zero reason for concern.”

People Don’t Like Being Watched

Whether the devices are to analyze the use of office space, to increase energy efficiency or to monitor people’s whereabouts, “it all comes down to trust,” said Henry Albrecht, CEO of Limeade. Limeade is a corporate-wellness technology company in Bellevue, Wash. “If employees don’t feel trusted, they don’t feel valued and won’t be engaged at work. If you’re pushing … tools that make people feel like you’re always looking over their shoulders, you’re eroding trust, which ultimately isn’t good for your business.”

HR, experts say, should convey to employees exactly what the devices are monitoring.

“There is no physical way for the system to technically detect individual persons by identity,” Steele said. “OccupEye is all about promoting efficient and smart use of space. Organizations need to communicate this message clearly, and staff need to become educated on current best practices in property management.”

HR should consider the company’s culture, too.

“Company culture is going to be the primary driver of responses to this technology,” said Brian Petro, a lead JavaScript talent agent with AngularJobs.com in San Francisco. “Employees that have developed a sense of trust with their employer are open to trying new things.”

Source : SHRM

Date : 28-08-2017

Irda Wants Capital Commitment from Pros Seeking Insurance Licence

The Insurance Regulatory Development Authority of India is looking at capital commitment from professionals applying for general insurance licence to ensure that funds continue to flow for future growth, especially those backed by short-sighted private equity players.

“We want commitment for long-term investment from promoters getting in the insurance space,“ said an Irda official on condition of anonymity. “In case of individuals, we want to ensure that the net worth of the promoter is strong and capital is longterm and sticky.“ Irda is looking into applications from three individuals backed by large funds seeking to operate general insurance companies: Go Digit General Insurance by Kamesh Goyal, Acko General Insurance by Varun Dua and Aspire Health Insurance by Rajesh Relan.

“The regulator is going slow in giving out licence as it wants to see who will fund future capital call and ensuring stickiness of capital,“ said one of the applicant.“They are not keen on individuals becoming promoters, therefore asking huge capital commitment from individuals.“

Irda is focused on the ability of promoter to build a successful business depending on how well one understands that business and how much money can one bring in. Insurance companies need funding support more from domestic sources as foreign direct investment limit is capped at 49%.

Irda will take up the issue at its board meeting on Monday. The board will take up applications filed by professionals including Acko General Insurance which is founded by Varun Dua co-founder Coverfox, backed by Narayan Murthy’s Catamaran and other domestic, foreign venture capital.

Any one with more than 10% is given promoter status, as per Irda guidelines.

“As a promoter, one should demonstrate domain knowledge either by partnership or on their own,“ said another individual who is looking to apply backed by private equity.

Source : Economic Times

Date : 28-08-2017

HDFC Ergo merges L&T insurance biz

HDFC ERGO General Insurance ­ a joint venture between HDFC and German insurer Ergo has completed the merger of HDFC General Insurance (formerly L&T General Insurance) with itself.The merger has come into effect from August 16 following an approval by the National Company Law Tribunal and the insurance regulator.This is the first amalgamation in the non-life sector and consolidates HDFC Ergo’s position as the third-largest private insurer with a market share of over to 5.25% on endJune 2017. Last year HDFC Ergo had bought out L&T General Insurance which it operated as wholly owned subsidiary until the merger received all approvals.

The net worth of HDFC ERGO (stand-alone) as on March 31, 2017 stood at Rs 1,812 crore. However, the net worth of the merged entity as on March 31, 2017, is Rs 1,485 crore due to accumulated losses in the acquired entity (ie L&T General Insurance).

Life insurers’ new biz premium up 47% to Rs 20,428-cr in July

The new premium of life insurance companies increased by 47.4 per cent to Rs 20,427.68 crore in July, data from sector regulator Irdai shows.

Comparatively, all the 24 life insurers in the country had earned Rs 13,854.44 crore as insurance premium from new business in July 2016.

Country’s largest and the only public sector insurer LIC reported an increase of 51.4 per cent in premium during the month at Rs 16,254.91 crore as against Rs 10,737.92 crore in July 2016.

For the rest 23 private sector players, the total business premium last month increased 34 per cent to Rs 4,172.76 crore from Rs 3,116.52 crore, the Insurance Regulatory and Development Authority of India (Irdai) data showed.

While SBI Life’s premium income rose 25.3 per cent to Rs 847.91 crore, ICICI Prudential Life earned new premium income of Rs 759.08 crore, up 34.2 per cent from July 2016.

HDFC Standard Life reported an increase of 68.8 per cent at Rs 880.29 crore as against Rs 521.43 crore in the year-ago period.

Birla Sun Life witnessed a rise of 57.2 per cent at Rs 195.61 crore and Canara HSBC OBC Life stood at Rs 99.87 crore, up 75 per cent from the year-ago period.

Sahara Life’s premium income showed no value against Rs 2.27 crore in July 2016.

Cumulative premium collection by all insurers during April-July of 2017-18 rose 18 per cent to Rs 53,659.66 crore from Rs 45,247 crore in the same period last fiscal, according to the data.

 

 

 

Source:- The Asia Insurance Post.

Date:-15th August,2017

India:-Gen Re suggests how reinsurance mart can be further opened up

Global reinsurance major Gen Re, which has received a branch licence in India, has outlined regulatory hurdles that it considers can be removed for the market to grow.

Among them is the rule requiring INR1 billion (US$15.6 million) capital to start reinsurance branch operations. Dr Winfried Heinen, Chairman of the executive board of directors of Gen Re, holds the view that a branch should not have its own capital since it is part of a larger entity, reported The Hindu.

 

“To grow more in India, we have to bring in more capital — which we cannot use anywhere else, and that makes it more expensive to do business in India. This will be reflected in the prices we can offer to our clients, and probably this will again be reflected in the prices they offer to their clients. This inefficiency has a knock-on effect on the customers,” he added.

Speaking to The Indian Express, he said:“By law, we have to bring in US$15 million and then we have to increase the capital as the size of the business grows.”

“I think I am not speaking on behalf of Gen Re alone but for all international reinsurers. Reinsurers do like open competition. The more we diversify, the better we can use our capital,” he said.

Another hurdle cited by foreign players is that IRDAI also requires that state-run general insurer GIC Re be given the right of first refusal of any reinsurance business in the country.

“Clearly there is a consensus in the international reinsurance market that minimum protectionism and low legal hurdles will benefit the market,” Dr Heinen said.

He said that Gen Re will focus more on the bottom line than the topline. “The market conditions are very tough in the general reinsurance business. We will be interested in focusing on our bottom line and not so much of our top line,’’ he said. Prior to setting up its branch, Gen Re was in the Indian market for the past 15 years through various channels with a focus primarily on life and health sector.

Other foreign reinsurers operating in India are: Munich Re, Swiss Re, SCOR, Hannover Re, RGA Life Reinsurance Company of Canada, XL Catlin and Axa Re. In addition, Lloyd’s operates a branch too in the country.

Privately-held local reinsurer feels disadvantaged

Reinsurance regulations are also affecting India’s first private reinsurance company, ITI Reinsurance (ITI Re). Last month, ITI Re indicated that it was ready to surrender its licence, arguing that current reinsurance regulations are illogical and create an uneven playing field.

ITI Re, which received the IRDAI’s final approval for a reinsurance licence last December, has not started operations. It pointed out that under the rules, primary insurers in India are to reinsure with a domestic reinsurer which has a credit rating that signifies financial stability for the past three years.

“How can a new company like ours have a credit rating for three years,” said ITI Re’s COO Mr R Raghavan. He urged the IRDAI to remove the three-year credit rating criteria for new reinsurers to enable them to secure business from primary insurers. In a response this month, IRDAI sought clarification from ITI Re as to whether it is serious about running operations or wants to close shop, reported CNBC-TV18.

Evolving

Mr Venkatesh N. Chakravarty, Gen Re’s India CEO, said: “Indian reinsurance regulations are evolving. IRDAI has formed a committee to review the existing regulations. This is most welcome.”

India’s reinsurance regulators have commissioned a special report on the industry in India and the impact on the country of allowing foreign firms to open branches in India. The committee examining India’s regulatory framework for reinsurers Is expected to submit its report with recommendations for the Indian regulator by the end of this month

To Get Hiring Right, Startups Expand Background Checks

A recent survey by First Advantage finds as much as 87% of discrepancies at senior mgmt level

Startups are doing more background checks than before on their potential employees, as they are faced with the pressure to hire right.

As much as 87% of discrepancies found during a recent survey by background screening solutions firm First Advantage were at the level of senior management. Of these candidates, 42.3% were in the 22-30 age group, indicating that a significant chunk of them belonged to the startup ecosystem.

“We see more startups seeking background checks. Wrong hiring can sully the image of the startups, and cash-strapped startups can’t afford to hire the wrong person,“ First Advantage managing director Purushotam Savlani said.

Employees can easily go from being assets to liabilities, and pose a risk to the credibility established by the startup, especially those in the financial technology sector, he said.

Most of the background checks that the startups want to do are in skills, leadership styles, credentials and possible cases of sexual harassment against the potential employee.

Paytm has engaged a professional agency to validate the past employer credentials, educational qualification and criminal antecedents for all new employees. “Any reported noncompliance in background verification ensures strict action against the candidate, leading to revocation of the offer or termination of employment. Candidates are made aware of this procedure as a part of the selection experience,“ said Paytm associate vice president Manav Jain.

Customer-facing roles, in particu lar, are a key focus area when it comes to background checks during the hiring process.“These are the folks who are actually delivering to people’s houses, so safety is a key issue,“ said TN Hari, HR head at online grocery player BigBasket. “We ha ve two agencies to do background checks on these individuals for us,“ he added.

For senior management, informal reference checks are conducted to see where the potential hire stands on issues such as integrity, taking ownership, overall attitude, etc., said Hari.

At online furniture and home décor brand Urban Ladder, the company religiously does three things when hiring employees and senior management: mandatory reference checks through internal or external networks, a legal verification for customer-facing employees and putting them through a thorough training and induction process. “Background checks and verifications are essentially fencing mechanisms for an organisation,“ co-founder Rajiv Srivatsa said.

One of the reasons startups are seeking more background checks is that in such early-stage companies, there are fewer people overseeing payroll, checks and vendor lists, making it easier for an insider to siphon off money and get away with it.

“Running thorough background checks and reference checks help startups protect themselves from these types of bottom feeders, and is one of the reasons you should expect a background check before being hired with a developing entrepreneurial firm,“ said First Advantage’s Savlani.

At the top levels, ensuring the right hire becomes much more important. “The impact of senior management hires is massive in a company’s evolution. You need to have a thorough understanding of that person’s integrity and values. The more companies align on that right from the beginning, the better it is for all concerned,“ said Sandeep Murthy, a partner at venture capital firm Lightbox Ventures.

But while screening is important, so also is hiring someone who is the right cultural fit.

“We screen for aptitude, but hire for attitude,“ said Murthy. Vivek Prabhakar, CEO of Chumbak Design, said while senior hires are always carefully vetted, for him the more important aspect is the culture test to see whether the candidate is a good fit for the company.

“We don’t want people who engage in politics or disrupt the equilibrium of the organisation. What we are looking for are people who gel with the organisational culture; others are weeded out,“ Prabhakar said.

Source : The Economic Times

Date : 08-08-2017