ICICI Lombard Begins Weak, Closes Strong on Listing Day

Shares of ICICI Lombard General Insurance Company , the country’s largest private non-life insurer, ended on a strong note after a weak debut on Wednesday . The stock ended at `680.10, about 2.9% above the initial public offer (IPO) price of `661 in a weak market. ICICI Lombard shares, which opened at `651 and fell to a low of `638.65 on the NSE, recovered as much as 8.7% to the day’s high of `694.

The `5,700-crore IPO of ICICI Lombard was subscribed 2.97 times.Analysts said the response was relatively moderate due to high valuations.


“We strongly believe that there is a very strong growth runway for that sector in general and within that ICICI Lombard stands in perfect space as being a market leader, not only across product categories but in terms of disclosure practices, reserving practices as well as claim settlement“ Debasish Purohit, head-financial institutions Group, BofA ML.


The total issue size is 8.62 crore shares -entirely an offer for sale by the insurer’s two main shareholders ICICI Bank and Canada’s Fairfax Financial Holdings. Bank of America Merrill Lynch, ICICI Securities and IIFL Holdings were the lead bankers. CLSA India, Edelweiss Financial Services and JM Financial also managed the issue.


Insurance market Lloyd’s of London pre-tax profit drops 16 per cent

LONDON: LLoyd’s of London reported a 16 percent fall in half-year pre-tax profit on Thursday, and faces a challenging end to 2017

given it is still to take into account the impact of hurricanes in the Caribbean and United States.
The unlisted company, which forms the world’s largest specialist insurance market, said it made 1.22 billion pounds ($1.63 billion) in profit before tax in the six months to the end of June, down from 1.46 billion pounds a year earlier. Its return on capital worsened to 8.9 pct from 11.7 pct.
Gross premiums rose to 18.9 billion pounds compared to 16.3 billion pounds last year, and its combined ratio –

a measure of profitability – improved to 96.9 pct from 98 pct in 2016 a year ago.
Combined ratio is a measure of underwriting profitability in which a level below 100 percent indicates a profit.
Lloyd’s of London Chief Executive Inga Beale said the results reflected the challenging conditions that have shaped the sector over recent years.
These include pressure on pricing from excess capital and low interest rates.
While the firm described the first six months of the year as a “relatively benign loss period”, it highlighted a series of powerful hurricanes that had recently ripped through the Caribbean and the U.S, causing catastrophic damage to property and infrastructure.


“The market is assessing claims and starting to make payments that will help local communities and get businesses back on their feet as quickly as possible,” Beale said. ($1 = 0.7482 pounds)


Building Your HR Resume While Building Your HR Career

here are essential building blocks within every great HR resume, as well as key actions you need to take to create one.

To be sure, every job seeker is unique and, therefore, so is every resume. There is no singletemplate, and it’s not a standard process. Rather, it’s customized to your personal experience, achievements, education, professional credentials and,most importantly, your current career objectives.

Think of your resume as a living document that will change in content, format and presentation over time as your career develops. Job requirements that were very important when you started your career might not be consequential enough toinclude 10 years later. You’ll constantly be adding new information and editing and/or deleting older information. Your resume will develop as your career progresses.

As you craft your HR resume, start by thinking strategically. A resume is not an autobiographical summary of your career. Rather, it is a document that markets your career, designed to showcase your qualifications and position you as a unique and memorable candidate.

Ask yourself what it is that makes you really good at what you do and then decide how you canhighlight that information to your best advantage when writing your resume.Yes, your responsibilities and general qualifications are important, but what matters most is how well you do those things, the impact you’ve had on organizations, the achievements you’ve delivered, your educational highlights, and any other details that will distinguish you from other candidates.

Getting Started 

Give your readers four important pieces of contact information at the top of your resume:

  • Name (including professional credentials such as SHRM-CP or MBA, if relevant).
  • Mobile phone number.
  • E-mail address.
  • LinkedIn profile URL.

Be certain that your e-mail address and LinkedIn profile are live links—someone can click on those from your resume and instantly e-mail you or read your profile.

Next, create a laser-focused summary. Your resume should deliver, instantly, who you are and what you want. You can most effectively do that with a headline such as:

HR Professional: Expertise in Recruitment, Staffing, Onboarding & Training

The above communicates that you have experience in those functions and that you’re targeting a job in which you will be essential. That headline clearly and concisely introduces you. Headlines are powerful ways to position yourself and your target job, and they make a great addition to every resume, no matter where you are in your career.

You can follow the headline with a short paragraph or two, a list of bullet points, or two columns of skills. This “Summary” section must include the information that makes you qualified, unique and memorable … your strategic qualities. The summary might include a distinguished credential, honor, presentation or other award that will serve to positively differentiate you within the pool of candidates, all of whom may have the same basic skills and qualifications that you possess. Focus on your key differentiators in the summary and throughout your resume.

Here’s a long-standing secret of professional resume writers: They always write the summary last. Why? Because it’s so much easier to do after you’ve written the “Education” and “Professional Experience” sections of your resume. How do you know what you want to showcase in the summary until you’ve written the content? You’ll be able to write your summary in half the time if you do it last.

Match Your Resume to Your Career Level 

Of course, the summary is the first section on your resume. But what comes next, education or professional experience? Follow these guidelines:

  • Graduating Students: Start with education and highlight your degree, major, minor/concentration (if relevant), academic honors, and college activities or leadership roles. You might also include four to six HR classes or a list of HR projects to strengthen this section. These additions are also a great way to capture keywords.
    If you’ve completed internships, you might include them with your education or, if appropriate, better showcase them in the “Professional Experience” section. You’ll have to decide based on your individual resume where the internships fit best so that you can get the most impact out of them.
  • Young Professionals: After you’ve worked for one to three years, you’ll want to move from a graduating student resume (where education comes first) into a professional resume (where professional experience is first).
    Chances are that you’ll also want to trim down the “extras” that you included in the Education section, like activities and coursework. Ask yourself if that information really matters three years post-graduation. Probably not, but it might in certain circumstances. What value does it deliver to your resume and the people who read it? Remember, everything in resume writing is customized to you, your career and your objectives.
  • Experienced Professionals: For these job seekers, there is never any question about where to position items on your resume. For 95 percent of those who have been in the workforce for a while, professional experience immediately follows the summary. 
    The only exception are individuals who recently earned graduate degrees and want to prominently position that information on their resumes. In that situation, you can put education first. My preference is to highlight the degree in the summary and leave education at the end of the resume so someone doesn’t glance and think “graduating student; limited experience.”

Use Job Descriptions to Explain Your Successes 

The responsibilities of each of your jobs (and internships, if you’re a graduating student or have limited experience) are vitally important to your resume and make up the “Professional Experience” section. Job descriptions communicate what you did in each position and are flush with keywords (essential words for resume-scanning systems, as you’ll read about below).

However, even more important than what you did is how well you did those jobs. Consider the difference in impact between these two sentences:

  • Assisted with implementation of new HRIS to automate company’s recruitment process.
  • Worked in partnership with technology teams to implement new HRIS and automate the company’s global recruitment process. Delivered project two months ahead of schedule and 15% under budget.

Here’s another example that focuses on the size and scope of responsibility versus just the function:

  • Trained all newly hired personnel in company HR policies, procedures and regulations.
  • Trained more than 200 newly hired personnel over a 3-year period in company policies, procedures and regulations.

Of course, not all job functions will have such achievements or particular details that you can add to enhance the impact of the content, but work hard to integrate that kind of information when and wherever possible. 

Pack It with Keywords 

Keywords are the foundation for resume-scanning software within applicant tracking systems (ATSs). If you’ve worked in any aspect of recruiting, you know that when anapplicant submits a resume in response to a job posting or forwards the resume to a recruiter, the resume will most likely  pass through the ATS. Make sure your resume has the right keywords to ensure that you’re selected as aqualified candidate. Fit in keywords from these categories:

  • Hard skills. These are your qualifications from work experience and education. They include: Human Resources, HR, Staffing, Recruitment, Onboarding, Compensation, Benefits, Training, Succession Planning, Employee Relations, Organizational Development, OD, Human Resource Information Systems/HRIS and Compliance.
    This category can also include technologies that you know beyond those that are specific to the HR profession.
    Note that this list includes the full names as well as commonly used acronyms such as HRIS. You never know which of these a company will use to search a resume so be certain to include both in your resume so you won’t be passed over.
  • Soft skills: These are general business skills that are essential to many HR jobs: Communications, Project Management, Organization, Leadership, Team Building, Conflict Resolution, Quality and Interpersonal Relationships.
  • Degrees, certifications and affiliations: Keyword scans will almost always look for college degrees (BS, BA, MBA). For professions such as HR, where there are well-recognized professional credentials, searches will also frequently include SHRM-CP, SHRM-SCP and other prominent designations that instantly add credibility to your resume. A scan might also search to see if you’re a member of any professional organizations.
  • Miscellaneous: Cities, states and ZIP codes are just a few of the oddball keywords that companies might use to search for candidates that meet their specific hiring requirements. Consider the company in Chicago that only wants to hire people within the local market. In that situation, a hiring manager will almost always use the state, cities and ZIP codes that are in the Chicago area to identify prime candidates in the company’s resume database.

The first three categories above are, by far, the most important and the ones that you can control. Be certain to integrate those keywords into the content of your resume in the “Summary” section, job descriptions, the “Education” section and more. They should naturally fit into the resume since these are the things you do, the skills you have and the knowledge you’ve amassed.

If you follow these recommendations, you’ll be able to write and format a great resume for yourself. Then, be certain to keep it current. Update it every six months or so, adding new jobs, achievements, qualifications, certifications, presentations and the like. You never know when that next great HR career opportunity might present itself, so be prepared!


Source:-Society for Human Management

Date:-26th September,2017

SBI Life IPO subscribed 0.09 times on first day

The initial public offering (IPO) of SBI Life Insurance, which began on Wednesday, was subscribed 0.09 times, with investors bidding for 83.67 lakh shares of the 8.82 crore shares on offer.

The IPO, through which the country’s largest private life insurer is looking to raise about Rs 8,400 crore, received bids for 13.27 lakh shares from qualified institutional buyers, of their quota of 2.12 crore shares. High-net-worth individuals bid for 2.03 lakh shares of the 1.59 crore shares reserved for them, bidding 0.01 times. Retail investors bid for nearly 0.16 times or 58.39 lakh shares of the 3.71 crore shares reserved. Employees who were reserved 20 lakh shares bid for 3.56 lakh shares. SBI shareholders who were reserved 1.2 crore shares bid for 6.40 lakh shares.

SBI Life on Tuesday raised Rs 2,226 cr from 69 anchor investors. SBI Life Insurance has set a price band of Rs 685-700 per share for its IPO, and when calculated at the upper band of the issue price, the company will be valued at around Rs 70,000 crore. SBI Life had a market share of 20% in new business premiums in last financial year among private life insurance companies. HDFCLife and ICICI Prudential Life Insurance had a market share of 17.2% and 15.5% respectively in new business premium for last fiscal. The company has proposed an offer for sale up to 12 crore equity shares of face value of Rs 10 each. The IPO comprises of an OFS up to 8 crore equity shares by promoter selling share holder State Bank of India and up to 4 crore equity shares by BNP Paribas Cardif.

The offer constitutes 12% of the post offer equity share capital, which will include 8% by The State Bank of India (SBI) and 4% by BNP Paribas Cardif. SBI will get Rs 5,600 crore selling 8 crore equity shares, while BNP Paribas Cardif will fetch Rs 2,800 crore for its 4 crore shares. For the shareholders of SBI, 10% of the issue is reserved and 20 lakh equity shares are reserved for the employees of SBI Life Insurance Company. Bids can be made for a minimum of 21 equity shares and multiples of 21 thereof. Established as a joint venture between the State Bank of India and BNP Paribas Cardif in 2001, SBI Life Insurance company is India’s largest private life insurer in terms of New Business Premium generated in each fiscal year since 2010. Currently, SBI holds 70.1% in SBI Life, while BNP Paribas Cardif has 26% and remaining 3.9% is owned by KKR and Temasek Holdings. So now 12% is being offloaded and after IPO, SBI and BNP Paribas Cardif will hold 62.1% and 22%, respectively.

Currently, SBI holds 70.1% in SBI Life, while BNP Paribas Cardif has 26% and remaining 3.9% is owned by KKR and Temasek Holdings. So now 12% is being offloaded and after IPO, SBI and BNP Paribas Cardif will hold 62.1% and 22%, respectively. In December last year, SBI Life had sold 3.9% of stake to KKR and Temasek Holdings for Rs 1,800 crore, pegging its value at Rs 46,000 crore. Embedded Value of SBI Life at the end of March 2016 was Rs 13,000 crore which has increased to over Rs 16,538 crore at the end of financial year 2016-17. Total assets under management of SBI Life stood at Rs 97,737 crore in last financial year, while company earned net profit of Rs 955 crore in FY2017, up from Rs861 crore in FY2016.

The size of the Indian life insurance industry is Rs 4.2 lakh crore on a total-premium basis as of fiscal 2017. In terms of total premium, the Indian life insurance industry is the 10th largest market in the world and the fifth largest in Asia. New premium constituted 42% of the total  premium as of fiscal 2017. The industry’s assets under management (AUM) grew  at a compound annual rate (CAGR) of 19% during fiscal 2001 to fiscal 2017 to Rs 30 lakh crore.
India’s life insurance penetration stood at 2.7% in 2016, compared with 4.4% in 2010. Among Asian countries, life insurance penetration in Thailand, Singapore and South Korea were at 3.7%, 5.5%, and 7.4%, respectively, in 2016. Hence this suggests the untapped potential of the Indian life insurance market.


Source : The Financial Express

Date : 21-09-2017

GIC Re moves up two slots in world reinsurance rankings

India’s national reinsurer General Insurance Corporation (GIC Re) has moved up two places in world reinsurance rankings following the implementation of the government’s new crop cover scheme. With premium income growing 87% in FY17, the corporation has been driving reinsurance growth in Asia despite China slowing down.

According to AM Best, a ratings agency which specialises in the insurance industry , GIC Re is now the twelfth-largest reinsurer in the world, up from 14th position last year. The corporation has overtaken two companies -US-based Transatlantic and Bermuda-headquartered Everest Re. To break into the global top 10, GIC will need to outgrow Partner Re and Korean Re, which are ranked 11 and 10 this year. These two companies have a top line that is 2.8% and 6.6% more than that of GIC Re.

Reinsurance companies take on the risks from insurance companies. Insurers share their business with reinsurers to reduce pressure on their capital and to hedge against extreme losses.

The Indian market saw quadrupling of agricultural insurance premium. This -together with growth in other segments such as motor and health, and market expansion in general apart from continued focus on geographical diversification through growth in international book -led to a robust 82% higher premium for GIC Re. This contributed to the improvement in ranking.

While India is a highgrowth market, GIC Re does face some challenges this year. According to the latest AM Best report, GIC is likely to continue to grow over the short term, though at a slower pace. This is because more foreign reinsurers have set shop.

Source : The Times Of India

Date : 20-09-2017

What’s Next For Corporate HR?

Human Resources (HR) has come a long way, since it first found its way into corporate consciousness in the early 1980s. Today, there are few companies left that do not have an explicit recruitment strategy, engage in talent management, have carefully thought-out incentive systems, and regularly run various leadership development initiatives.


But this — that pretty much everyone undertakes these processes — also means that they have commoditized. And with it, that they can no longer be a source of competitive advantage for a company. For that, there are further (and perhaps even tougher) nuts to crack.


As a professor of Strategic Management I see three key steps that form HR’s next frontier. The first one is that HR needs to become more strategic. What I mean with that is the following: When I ask a top manager about their HR strategy, I am typically shown a few PowerPoints with charts and frameworks. But when I ask the same manager about their company’s business strategy, usually a much more detailed expose follows: An explanation of a precise value proposition, exactly what customer profile they are aiming for and what the key internal processes are given the specific fit is between the two. Most companies have developed a much deeper and more detailed understanding of their product market strategy than of their labor market strategy.



But this isn’t always optimal. The first frontier for HR is to develop talent management strategies that are just as sophisticated and precise as their companies’ product-market strategies, in terms of their value proposition, employee profile and internal organisation. If done well, in some cases, such a sophisticated HR strategy might come to form the very heart of a company’s entire business model. For example, the strategy consulting company Eden McCallum offers a service that is not all that different from other, traditional consulting companies, but its talent management strategy — based on operating a pool of freelancers — is unique, giving it a competitive advantage in the labour market. More companies may find that real competitive advantage can be found in the market for employees rather than in their product markets.


The second frontier for HR is that it needs to move on from designing formal talent management systems towards the management of informal processes and mind-sets, because that’s where the real value lies. When Cisco, for example, reorganised from client- into technology groups, it found that its old informal employee networks, formed around customers, effectively complemented its efficiency-based technology groups. It obtained the necessary technological efficiencies through its formal, technology-oriented structure, yet maintained its famed customer focus and problem-solving skills through its informal networks. This created an efficient yet adaptable organisation. Deliberately managing such informal systems to complement the inevitable shortcomings of a firm’s formal structure, in my view, forms HR’s second, much-needed frontier. Managing the informal organisation is not an easy task, but it can create real, enduring value for a company.


Finally, all too often, I find that HR programs — and talent management in specific — are focused on individuals: recruiting, training and retaining superior employees. But genuine competitive advantage comes from superior organisations; not from superior people. For an HR strategy to deliver competitive advantage, it will need to shift from hiring and developing individuals to the management and creation of inter-personal processes.


Southwest Airlines’ founder Herb Kelleher understood this well. He grasped that in order to execute their low-cost strategy better than anyone else, the company did not need better people, but better internal processes, which fostered cooperation, informal coordination and a strong corporate culture among employees. Typically, Southwest’s recruitment strategy is not organised around the well-worn principle of “hiring the best and brightest from the country’s top schools” but focused on identifying otherwise perfectly normal people who can be socialized into their company’s particular culture and systems. It is such careful internal processes, diligently built over the course of many years, that eventually culminate into superior performance.


HR has professionalised enormously over the past few decades. The next frontier for HR is to move on from being a mere staff function to being at the heart of Corporate Strategy itself. Organisations are groups of people. Creating better and unique ways for those people to work together can add real, sustainable value to corporations. The three steps described above represent pivotal ways in which this can happen. Do them well and HR becomes the prime, long-term driver of a firm’s profitability.


Source- Forbes



Pay of HR heads rises as finance sector expands

HR honchos earning Rs 80 lakh to Rs 1.5 crore plus bonus and stock options

The expanding gamut of the financial services sector is leading to an increase in crorepati human resource professionals, with salaries of chief HR officers catching up with those of chief executive officers in finance and compliance functions.

The emergence of new segments like small finance banks and financial technology companies, and the expansion of non-banking finance corporations, with a flood of private equity money backing these businesses, are opening up highprofile opportunities for HR executives, driving big movements and payouts in this space.

According to industry experts and search firms, the salaries of chief human resources officers (CHROs) and HR heads in these segments could range from `80 lakh to `1.5 crore, excluding 2030% bonus and stock options.

Some of the recent top-level movements in HR include Agnel Victor, who joined as head HR at Avendus Capital in April 2016; Ladwa Srinivas, who moved to Reliance Nippon Life Insurance in May 2017 as CHRO; Sharad Vishvanath, who was appointed as group head, digital banking, analytics & HR at Au FINANCIERs (India) in April this year; Debraj Sinha, who joined Magma Fincorp as chief people officer in November; and Kavita Shrivastav, who moved to Piramal Finance as head HR in November.

“There is a growing trend of institutional capital backing domestic platforms that is creating new opportunities in financial services beyond traditional banking,“ said Vivek Kapadia, director at executive search firm Vito India. HR is no longer considered a support function and increasingly promoters and management are demanding seasoned HR professionals who act as key business drivers. “HR heads with strong HR transformation experience, ability to scale businesses with a focus on people and technology, and put in place a robust framework to enable some of these platforms to unlock value, are in high demand,“ said Kapadia.

Avendus Capital CEO Ranu Vohra said: “We wanted to take on board someone to head our HR function, someone who had the experience of growing and nurturing businesses, someone who could spot and groom talent, someone who could create a cultural synergy across our businesses.“

Last year, Avendus Capital, a provider of cross-border merger and acquisition, and financial advisory services, hired Agnel Victor to head HR function.The company, which has diversified into credit solution business after the US private equity firm KKR picked up a majority stake, has doubled headcount over the past year and a half to support its strategy of diversification and inorganic growth.

“He is a key member of our management team and partners closely with our business stakeholders on talent acquisition and retention strategy, culture building and creating an organisation that allows people to grow while enjoying what they do,“ said Vohra.

There is an increasing recognition among the investor community about the critical role HR heads play in an organisation’s strategy. “To bring in a lot more focus and accoun tability, PE funds tend to discuss upfront with (the promoters) where management teams need to be augmented … HR head is one such role with a 360-degree view on organisational goals and drive a human capital management strategy to drive it (the goal of the company),“ said Rupen Jhaveri, director, private equity, KKR India.

Experts said small finance banks were making a big difference to the sector. Some players have moved from being microfinance institutions to small finance banks.

“There is a need for human resource heads to understand the banking environment,“ said Rajiv Krishnan, managing director, Korn FerryHay Group. Earlier, the HR function of these companies was managing a large number of employees but now they need someone who has an understanding of the banking industry. “There is an explosion of demand and opportunities for HR people,“ he said.

“When the people strategy is aligned to overall business strategy, it helps build sustainable and scalable business. This coupled with a digitised work environment will help business achieve efficiency and enhanced customer experience and engagement. HR head and the senior management must work together to define and drive this agenda,“ said Khushru Jijina, managing director, Piramal Finance.

Source- The Economic Times



“ICICI Lombard General Insurance IPO opens this week: 4 things to know”

Chanda Kochhar, the CEO of ICICI bank says that ICICI Lombard General Insurance IPO provides an attractive opportunity for the investors.


ICICI Lombard General Insurance IPO will launch its Rs 5,700 crore IPO on September 15. This issue is one of the five mega insurance IPOs which will collectively raise up to Rs 40,000 crores. Highlighting the strengths of the company, Chanda Kochhar, the CEO of ICICI bank told ET Now on Friday, “This is the largest private sector non-life insurance company growing at a very robust space with a very sustainable model and has been generating, for the past two three years, a ROE of more than 15% and a very good track record. In that sense, this really becomes an attractive investment for the investors.” Here are four key details to watch out for in the ICICI Lombard General Insurance IPO.

IPO Details

The company looks to raise about Rs 5,700 crores at the higher end of the price band which is set between Rs 651-661 per share. The IPO will launch on September 15 and close on September 19.  The initial share sale will see stakeholders ICICI Bank Ltd and Fairfax Financial Holdings Ltd sell around 86.24 million shares. ICICI Bank looks to sell 31.76 million shares to get Rs 2,099.40 crore while Fairfax will look to raise Rs 3,601.50 crore by selling 54.48 million shares. The ICICI Lombard IPO will see a dilution of over 19% stake—7.15% of ICICI Bank and 12.27% of Fairfax.

About the company

ICICI Lombard GIC was founded in 2001 and is one of the leading private sector general insurance companies in India with a Gross Written Premium (GWP) of Rs 109.60 billion for the year ended March 31, 2017. It offers a range of insurance products such as motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels.

ICICI group earlier insurance IPOs

ICICI Lombard General Insurance is the second insurance company from the ICICI group to go in for an IPO. Last year, ICICI Prudential Life Insurance raised Rs 6,000 crore in an initial share sale, the first public offering by an Indian life insurance company.

Chanda Kochhar, Chairperson of ICICI Lombard’s expectation from the IPO

In conversation with ET Now, Chanda Kochhar, Chairperson ICICI Lombard GIC said, “I really cannot comment on the returns going forward but if you go by an example, last year we did an IPO of our life insurance company and if you see the track record there so far for those investors the group has delivered a 33% annualised return just in this last year.”

Source:  The Financial Express

Date: 11th September, 2017

“It Is Important For HR To Retain Talented Employees Than Hiring”

Leaders should be encouraged to look at their value proposition and should think about policies that would attract the kind of talent they would like to have working at their organization

The human resource community should engage in the conversation about policies, and how policies are enacted across an organization. Leaders should be encouraged to look at their value proposition and should think about policies that would attract the kind of talent they would like to have working at their organization.

Dr. Brad Shuck, Strategic & Academic partner, BI WORLDWIDE told BW Businessworld, “It is even more important for HR to retain those highly talented, smart, and engaged employees. Policies provide guidelines, and employees interact with those guidelines, so leaders need to think about how formal organizational polices and informal norms are experienced and how they shape the organization’s overall employee value proposition.”

Open dialogue and transparent communication and re-envisioning the value proposition of the organization are the important to keep employees’ morale high. Leaders who openly communicate keep the message of the organization in front of employees, which shapes the corporate narrative. This helps in driving meaning in work and organisational pride.

Digital disruption is double edged. Digital and technological advancements can streamline workflows, automate systems, and connect organisations and people like never before; and at the same time, it can be isolating.

Brad Shuck further added, “Talent acquisition and appreciation, or recognition, has changed over the years by recognizing that organisations need a multifaceted approach and strategy. External reward structures can be fruitful, but by themselves they will not motivate at optimal levels. “

Leaders should be open to listen to ideas to bring the change. In a new study, we found that employees who believed their leader was open to new ideas and listening to those ideas were also more likely to report higher levels of engagement, and also more likely to speak up and use their voice.

Shuck added, “Leaders who are generally known for being closed to new ideas, in both positive and negative environments, lose out on the benefit of high engagement, and also, they have employees who do not speak up in good and bad situations. Such environments are often experienced as closed and, psychologically unsafe. Psychologically unsafe work environments have a cascading set of associated problems and issues and have been documented to lead to disastrous consequences.”

Source: Business World

Date:11th September, 2017

Crop Insurance Scheme Set for Revamp

Government wants to increase competition among insurers to lower premiums for PM Fasal Bima Yojana & also widen its coverage

The government’s farm insurance scheme is in for a revamp just about one year after launch, with the focus now on increasing competition among insurers, lowering the average premium and widening the scope of cover to include losses due to natural disasters.

There is tremendous potential to improve the Pradhan Mantri Fasal Bima Yojana started last year and a high-level team has asked to make it more holistic in coverage and a win-win proposition for all parties, a senior government official working closely on revamping the scheme told ET.

“There is a need to make agriculture insurance more competitive. This can be done by increasing competition among insurance companies, which in turn will lower the premium charged and thus make it more attractive for farmers,“ the official said on condition of anonymity.

Under the existing scheme, farmers pay 1.5% to 2% as premium for most crops compared with the average of 11% charged by insurance companies, and the remainder is equally divided and paid by the Centre and the state.

The official said coverage under the insurance scheme may be widened to include damage and loss to housing and property in the event of a natural disaster. So far, such damage was covered by the National Disaster Response Fund.

The government estimates farmers have paid premium of `2,000 crore, while claims worth `8,000 crore have been paid and another `2,000 crore are in pipeline for settlement.

The scheme now covers 30% of the gross cropped area.

Prime Minister Narendra Modi had tasked think tank Niti Aayog with suggesting ways to improve the government’s flagship farm insurance scheme, which has faced criticism for tardy implementation and being skewed in favour of insurers.

The Niti Aayog, under member Ramesh Chand, has prepared a blueprint to make the scheme more robust and wide ranging.

Launched on August 5, 2016, the farm insurance scheme was the first of its kind in the country, aimed at providing farmers with an inexpensive option of sustaining cultivation even if yield is damaged.

The agriculture sector in the country is under pressure with rising input costs, failing crops and falling prices adding to the debt burden of farmers.

Many states have seen unrest by farmers, even leading to suicides, forcing state governments to waive loans, a measure that critics say is a stop-gap arrangement and not a solution.

Source: Economic Times

Date: 11th September 2017