Listing an Option for IDBI-Fed Life for Bank Exit

IDBI-Federal Life Insurance is considering all options including a public listing to help the largest shareholder IDBI Bank reduce or sell off its 48% stake in the private sector life insurer, Federal Bank CEO and board member of the insurance company Shyam Srinivasan said.

“IDBI will no longer be there (in the company) or will they remain an investor or a distributor, which is unclear,” Srinivasan said in an interview. “It is their choice. They can still retain a 10% investment. Their intention is to reduce stake. Listing is also an option. A conversation has reopened and it will all be clear in the next three months.”

Federal along with Belgium-based insurance company Ageas hold 26% in the company. In January, LIC completed its acquisition of IDBI Bank and regulations do not allow a bank to own two insurancecompanies or vice versa. In a release on Sunday, IDBI said it will leverage business synergies with its now owner LIC through its collective network of branches, offices and workforce by selling LIC policies and management of premium receipts of LIC through its branches. The bank’s board has approved the appointment of LIC as a corporate agent.

Srinivasan said the bank is open to either remaining as a shareholder or selling stake if a buyer emerges. “There is value in the company. We are doing very well with IDBI Federal, this year, it will grow at 40% over the previous year. In the last three quarters, we have done more than we did in the 12 months of the previous year in distribution and assets under management, so that momentum is strong and will continue,” Srinivasan said.

Source:- The Economic Times

Date:- 13th March,2019

MARSH increases stake in MARSH India to 49%

Alex Moczarski, Chairman of Marsh & McLennan Companies International and chairman of the board of Marsh India, said: “As companies in India look to expand both domestically and into international markets, they need the very best risk and insurance advice to help them navigate an increasingly complex global risk landscape. We are committed to working closely with our colleagues in India as they continue to bring the very best global expertise to local clients.”

Marsh, a global leader in insurance broking and innovative risk management solutions and a wholly-owned subsidiary of Marsh & McLennan Companies, today announced that it has increased its shareholding in Marsh India from 26% to 49%, the maximum permitted under laws governing foreign direct investment in India-based insurance broking firms. The transaction was approved by the Indian insurance regulator, the Insurance Regulatory and Development Authority (IRDAI).

Marsh India is a joint venture between Marsh International Holdings Inc. and its India-based partners, which include the Rampart Trust

Alex Moczarski, Chairman of Marsh & McLennan Companies International and chairman of the board of Marsh India, said: “As companies in India look to expand both domestically and into international markets, they need the very best risk and insurance advice to help them navigate an increasingly complex global risk landscape. We are committed to working closely with our colleagues in India as they continue to bring the very best global expertise to local clients.”

“For more than 15 years, Marsh India has been dedicated to putting clients first, promoting international best practices and maintaining a commitment to the highest levels of integrity,” added Keki Dadiseth, Senior Advisor, Marsh & McLennan Companies India.

“With this additional support, Marsh India will be able to further build on its strong reputation for client service.”

Sanjay Kedia, Country Head and CEO of Marsh India, said: “Marsh’s decision to increase its stake in the joint venture reflects its long term commitment to supporting clients in India as we develop plans to accelerate the expansion of our operations and build a stronger network across the country.”

Marsh India was one of the first foreign insurance brokers to be registered as composite broker with the IRDAI. With 17 branches across India, it employs more than 600 professionals, servicing close to 4,500 clients across all sectors of the economy.

Source:- The Asia Insurance Post

Date:-12th March,2019


“This is how insurance is changing for gig workers and freelancers”

The gig economy is becoming a core element of the labor market, pushed to the fore by platforms like Uber and Airbnb. Gig economy workers are freelancers, such as journalists who don’t work for one publication directly, freelance developers, drivers on platforms like Uber and Grab, and consumers who rent out their apartments via Airbnb or other home-sharing sites.

Gig economy workers are not employed by these platforms, and therefore typically don’t receive conventional employee perks, such as insurance or retirement options. This has created a lucrative opportunity to provide tailored insurance policies for the gig economy.

A number of insurtech startups – including UK-based Dinghy, which focuses on liability insurance, and US-based Slice, which provides on-demand insurance for a range of areas – have moved to capitalize on this new segment of the labor market. These companies have been busy finding new ways to personalize insurance products by incorporating emerging technologies, including AI and chatbots, to target the gig economy.

In this report, Business Insider Intelligence examines how insurtechs have begun addressing the gig economy, the kinds of policies they are offering, and how incumbents can tap the market themselves. We have opted to focus on three areas of insurance particularly relevant to the gig economy: vehicle insurance, home insurance, and equipment and liability insurance.

While every consumer needs health insurance, there are already a number of insurtechs and incumbent insurers that offer policies for individuals. However, when it comes to insuring work equipment or other utilities for freelancers, it’s much more difficult to find suitable coverage. As such, this is the gap in the market where we see the most opportunity to deploy new products.

The companies mentioned in this report are: Airbnb, Deliveroo, Dinghy, Grab, Progressive, Slice,Uber, Urban Jungle, and Zego.

Source: Business Insider

Date: 11th March, 2019

Motor Vehicle Insurance : Bharti AXA introduces smart e-Survey for quicker claims settlement

Bharti AXA General Insurance, a private general insurer, is leveraging technology to ensure convenience and speedier vehicle insurance claims settlement for its customers. It has now introduced a tech application ‘Smart eSurvey’ that allows customers and partner garages to raise instant vehicle insurance claims and get quicker claims settlement.

The general insurer is aiming to process 20-25 per cent of its total vehicle insurance claims in the first year through Smart eSurvey, which is a live streaming solution for processing motor insurance claims. Smart eSurvey is an additional service to facilitate faster claims approval and settlement, based on policy terms and conditions.

Under this offering, Bharti AXA General Insurance provides its customers the option of on-the-spot video inspection and virtual survey of their damaged vehicles through the Smart e-Survey App and browser-based web link.

“The Smart eSurvey App empowers customers and our partner garages to connect with us and raise motor insurance claims survey request instantly and seamlessly. It helps vehicle owners receive speedy claims settlement. Our novel initiative has made the entire motor insurance claims process effortless and more transparent,” Sanjeev Srinivasan, Managing Director and Chief Executive Officer, Bharti AXA General Insurance, said.

Using Smart e-Survey, customers and the company’s partner garages can initiate claim intimation by simply tapping on their smart phones. In any unfortunate incident, when the insured vehicle is damaged, customers and the garages can make a video call to show the impact of the damage.

The virtual survey can be completed in just a few minutes and claims processing would be initiated without the surveyor’s visit, provided the customer is found eligible for his claim.

“Video calling facility and virtual surveys eliminate the need for physical inspection of damaged vehicles. It further eliminates the customary process of physically submitting claim documents to the insurer, thus reducing waiting time drastically and helping in simplifying the entire claims process,’’ Srinivasan said.

Smart eSurvey, available on Google Play Store and also as a browser-based web link, helps improve transparency during the claims settlement process and provides vehicle owners clarity on coverage, deductions and entitlements during the claims process.

Bharti AXA General Insurance, a joint venture between Bharti Enterprises and French insurance major AXA, is introducing the digital solution with its partners across the country, following a successful pilot of the Smart eSurvey App with 15 motor repairers.

It may be recalled that Bharti AXA General Insurance had recorded a maiden profit of Rs 3.3 crore in the first six months of the current fiscal. The general insurer had recorded a 32 per cent increase in gross written premium in the April-December 2018 period to Rs 1,665 crore (Rs 1,262 crore).  

Source: Business Line

Date: 4th March 2019

Now, an insurance cover to protect contents of your bank locker

Now, an insurance cover to protect contents of your bank locker

The policy offers seven options of sum insured ranging from Rs 3 lakh to Rs 40 lakh and above

Any theft or break-ins into a bank branch would mean that your jewellery and other valuables in the locker are at risk. To protect against that, non-life insurance company IFFCO Tokio General Insurance has launched a bank locker protector policy.

This is the first such cover in the industry specifically for bank lockers. At present, a list of home insurance covers offer protection for contents of the bank locker as well. However, these have sub-limits of around Rs 1-2 lakh. This means that claims only up to that amount will be payable.

Bankers also take liability policies that cover any potential thefts that may occur in the bank, including loss of cash and contents. But since locker contents are not declared to bank officials by individuals prior to being deposited, it is difficult to fix a liability on the jewellery or precious items kept in the lockers.

IFFCO Tokio General’s offers a cover against various risks including fire, earthquake, burglary, infidelity by a bank staff or any act of terrorism. Apart from jewellery and valuables, one can also insure important documents kept in a locker as an add-on cover. The policy can be sold both as a retail and a group policy for banks.

Warendra Sinha, MD and CEO, IFFCO Tokio General Insurance, said, “In view of the demand from several of our customers, we have launched this innovative standalone product for people, who do not want to club the items in the bank locker along with any other conventional insurance product.”

The process to buy is simple and easy as it just needs a self-declaration up to a specified limit. Valuation report from government approved valuers is required only where value of an individual item is more than Rs 10 lakh and where the total sum insured exceeds Rs 40 lakh for an individual.

For filing a claim, they only require basic documents like the claim form along with supporting documents such as invoices and proof.

The policy offers seven options of sum insured ranging from Rs 3 lakh to Rs 40 lakh and above. The premium rate is affordable, with a cover of Rs 3 lakh available at Rs 300.

IFFCO-Tokio General Insurance is a 51:49 joint venture between the Indian Farmers Fertiliser Co-operative (IFFCO) and Japan’s Tokio Marine Group.


Source : Money Control

Date : 01-03-2019