BHARTI AXA GENERAL, COFACE SIGN PACT FOR TRADE CREDIT INSURANCE

Thesynergyonline Insurance Bureau

NEW DELHI, JULY 28 :
BHARTI AXA General Insurance and Coface South Asia Pacific today signed an agreement to build and provide Trade Credit Insurance to customers in India.

The alliance will leverage the combined technical and product expertise of the two companies to develop solutions that suit the business environment in India. Coface will also provide reinsurance support, risk evaluation and underwriting expertise as a part of the agreement.

Credit Insurance is a financial risk management tool which covers the losses sustained by a firm because of the non-payment of a trade debt. The product enables companies to extend better credit terms to customers and increase exports to them. Amongst other covers it also protects against the risk of payment default which may affect profitability of businesses.

Under the product developed by Bharti AXA GI and Coface India, coverage is provided up to 90 percent of the invoice value and covers loss due to insolvency of a buyer, non-payment or protracted default by a private buyer, political risks such as war or riots, government measures that prevent performance of contractual obligations and cancellation of import license, amongst others.

On the alliance, Dr. Amarnath Ananthanarayanan, Managing Director & Chief Executive Officer, Bharti AXA General Insurance said, “We are glad to partner with Coface to provide credit insurance to our customers. Our product is specially designed to provide comprehensive protection against the risk of payment default for companies that are selling their goods or services on credit to both domestic and overseas buyers. It has always been our aim to provide the best services and solutions to our customers and we believe that with our joint expertise we can truly redefine the market with our innovative insurance solutions.”

Mr. Jean-Claude Speitel, Regional Managing Director of Coface South Asia Pacific comments that “Coface has a historic relationship with the AXA Group dating back to the time when they held substantial shares of Coface and we have on-going partnerships in the field of Trade Credit Insurance in Asia. In light of the above; we are pleased to be able to expand our relationship with Bharti-AXA in India by providing them technical support in the field of Trade Credit Insurance”.

He further mentioned that, “Coface has been present in India since 2000 and we have since seen a steady growth in the interest in Trade Credit Insurance and Credit Management Services which seemed to have increased during the Global Credit crisis in 2009. Bharti AXA and Coface will jointly offer Indian Companies world class services in the field of Trade Credit Insurance, enabling them to “Trade Safely” and expand their domestic and export sales.” (editor@thesynergyonline.com)

HDFC STANDARD LIFE UNVEILS PROTECTION PLAN WITH PREMIUM GUARANTEE

Thesynergyonline Insurance Bureau

NEW DELHI, JULY 02 :
HDFC Standard Life, India's private life insurance today announced the launch of HDFC Premium Guarantee Plan, a life insurance plan in its portfolio. HDFC Premium Guarantee plan comes with twin advantages of protection and payback of all premiums (paid throughout the term) at the end of the policy term.

Mr. Paresh Parasnis Executive Director and COO, HDFC Standard Life said on the occasion, "HDFC Premium Guarantee Plan is a very simple life insurance plan that addresses the needs of those individuals who are looking for a pure protection plan as well as enjoying the benefit of getting back their money paid by way of premium. "

"The affordability component makes it a potent product across all demographics. The product has been designed keeping in mind the customers who are not comfortable investing in a market-linked life insurance plan and are looking for a low premium paying protection product. The innate nature of the policy includes a premium payback to the customer at the end of the term, which makes it a win-win proposition for him," he added.

HDFC STANDARD LIFE BEST INSURANCE COMPANY TO WORK FOR IN INDIA

Thesynergyonline Insurance Bureau

NEW DELHI, JUNE 30 :
HDFC Standard Life, private life insurance major , has been adjudged one of the Best Companies to Work for in India in 2010.

The company participated in the Great Places to Work® study for the first time and ranked first in the insurance category. It ranked 34th on Top 50 Best Companies to Work for in India, 2010 list. The company was also awarded for its unique employee initiative - Mission -in-Genius national quiz.

On this success, Mr. Rajendra Ghag, Executive Vice President, Human Resources and Administration, "HDFC Standard Life said, "It is an immense honour to be featured in the Best Companies to Work list. We are extremely proud that we are ranked 1st in the insurance vertical. This appreciation is a testimony of our commitment to the growth and development of our employees through effective engagement and recognition initiatives."

The Best Companies to Work in India is a study conducted by the Great Place to Work® Institute, India in partnership with The Economic Times. The 2010 edition is the seventh study in India, which received overwhelming response from more than 400 companies, making it the largest such study in India. And only 50 companies made it to the Best Companies to Work list!

The study has shown that HDFC Standard Life conscientiously develops employee talent programmes to keep engaging and motivating its employees. The company provides some unique platforms such as 'Mission in Genius' national quiz. The management is accessible to all at all times and sincerely seeks feedback from its employees through programmes such as 'Sparsh', the study said. (editor@thesynergyonline.com)

OVER 50% OF INDIANS PLAN TO INCREASE SAVINGS , SAYS HSBC INSURANCE SURVEY

Thesynergyonline Inmsurance Bureau

NEW DELHI, APRIL 15 :
OVER 50 per cent of Indian respondents plan to increase savings in the next six months, according to the recent HSBC Asian Insurance Monitor. At least a quarter of respondents in Asia intend to save more in the next six months: Taiwan (28 percent), Korea (31 percent), Singapore (37 percent), mainland China (42 percent), Malaysia (49 percent) with Hong Kong respondents (67 percent) being the highest proportion in the region.

In India, 51 percent of the respondents said that saving regularly through a monthly installment plan is the priority savings strategy in the next six months, while in Hong Kong it was 17 percent 37 per cent in mainland China; 36 per cent in Malaysia; 35 per cent in Singapore and Korea and 26 per cent in Taiwan.

Close to half (43 percent) of Indian respondents are likely to buy products that offer capital protection, 42 per cent are interested in products that allow for monthly payments and 40 per cent plan to buy products that provide retirement income.

However, across the region, the main barrier to long-term savings continues to be lack of confidence in the markets: 68 percent in India consider lack of confidence in the market as the biggest risk to saving for the long term in 2010 with similar numbers in Taiwan (65 percent), Korea (65 percent), Singapore (61 percent), and mainland China (61 percent).

Over 58 percent Indians feel vulnerable with insufficient savings, of which 11 per cent saying they have no savings. Across the region, Mainland Chinese (69 percent) rank highest with insufficient savings followed by Taiwanese (64 percent), and Koreans (64 percent). In Hong Kong, 24 per cent say they have no savings, the biggest proportion in the region.

The HSBC Asian Insurance Monitor surveyed 3,563 individuals in seven countries and territories, the largest of its kind in Asia's key markets.

David Fried, Group General Manager and Group Head of Insurance, HSBC Holdings plc said: "India, traditionally has had a strong savings culture, with Indians savings a third of their monthly income in various financial instruments. This stood the economy in good stead during the recent financial crisis."

Indians are saving around a third (34%) of their monthly income in financial services - pensions, savings in banks, insurance and investments in stocks and mutual funds. Across the region, Asians are allocating between a quarter (Malaysia, 25%) to close to half (mainland China, 45%) of their monthly income for financial services.

When asked about saving goals, financial security in retirement is top of mind for 56 per cent of Indian respondents, similar to Koreans (57 percent), Taiwan (47 percent) and Hong Kong (47 percent). It was more important In Malaysia (79 percent), Singapore (69 percent). Sixty-five per cent of mainland Chinese save mainly to provide their families with a more comfortable life.

Among people's financial uncertainties in the next year, medical expenses emerged as the biggest threat for mainland China (76 percent), Singapore (69 percent), India (64 percent), Hong Kong (61 percent), Taiwan (59 percent) and Malaysia (50 percent); except in Korea where retirement shortfall (61 percent) was the biggest worry. In India, 39 per cent were also worried about not having sufficient funds for their children's education.

Mr. Fried added: "Our survey shows that Indians will continue to rely heavily on savings to meet retirement goals and to build up emergency funds. People are feeling the pressure to save more in an era where people are living longer, supporting extended families and coping with escalating medical costs."

Over a third (38 percent in India say their family will need to use savings for daily and medical expenses in the event of critical illness, death or accident, with an equal number (34%) relying on personal medical/ critical illness insurance and company medical/ critical illness insurance.

Mr. Fried said: "In India, people are keen to save more and seek a disciplined way of saving. We challenge people's current view of savings to be more than just keeping cash in their accounts. Savings redefined is about making your excess cash work smarter for you to get closer to achieving your financial goals. There is renewed appetite for investment-linked products that provide growth opportunities and demand for retirement savings plans that allow customers to invest monthly. While people think additional life or medical protection is unaffordable, the reality is for a minimal amount per month, one can top up a basic medical insurance plan with a critical illness rider that buys peace of mind and mitigates the risk that your hard-earned savings are depleted by high medical costs." (editor@thesynergyonline.com)

GENERAL INSURANCE PREMIUMS LIKELY TO BE RS.1 LAKH CRORE IN NEXT 5 YEARS

Thesynergyonline Insurance Bureau

NEW DELHI, MARCH 25 :
THE Associated Chambers of Commerce and Industry of India (ASSOCHAM) has projected that premium from General Insurance will rise to levels of close to Rs.1 lakh crore in next 5 years since awakening is increasing in masses to insure themselves against possible causalities.

In its assessment which was released here today, the Chamber has stated that insurance premium collection currently is estimated close to Rs.35,000 crore and it's growth prospects would rise in future at speedier pace.

The assessment titled Way Forward for Insurance Industry points out premium of general insurance grew at CAGR of over 15% between 2000 until 2009. In 2000, gross premiums of general insurance was estimated around less than Rs.10,000 crore. This amount went up to close to Rs.35,000 crore by 2009 with larger penetration levels. However, this remained confined to large towns, metros and other cities.

Releasing its findings, Mr. D S Rawat, Secretary General ASSOCHAM said that over 60% of population, largely in rural part of the country has yet to be tapped by insurance industry. Since awakening levels are rising and rural incomes are surfacing because of social schemes of the government, a large chunk of rural population is getting inclined for insurance. It is one reason which will drive growth for insurance
premium and reach projected levels of Rs.1 lakh crore by 2015, said Mr. Rawat. High growth in automobile sector, huge strives in healthcare will also open up health insurance potentials substantially, she added.

It says that size of general insurance industry and insurance penetration in economies of scale is much larger as compared to India and even China. The general insurance size in United States is currently
US$ 488 billion as compared to US$ 10.5 billion of Switzerland, US$ 74 billion of France, US$ 77 of Germany, US$ 70 billion of Japan, US$ 14.2 billion of Brazil, USS$ 14.1 billion of Russia, US$ 2.6 billion of Thailand, US$ 26.3 billion of China. In India, its size as per latest estimates is US$ 6.2 billion.

As far as the penetration level of general insurance in India is concerned, it is 0.60 percent of its GDP against the world average of 2.14 percent In United States, it is 3.94 percent of its GDP. While in Switzerland, France, Germany, Japan, Brazil, Russia, Thailand and China, the percentage of
penetration is respectively 2.4 percent, 2.34 percent, 1.99 percent, 1.46 percent, 1.10 percent, 1.10 percent, 1.08 percent, 0.81 percent of their GDP.

India's ranking based on penetration levels world over is 136 as compared to 106 of China, 87 of Thailand, 86 of Russia, 85 of Brazil, 61 of Japan, 36 of Germany, 25 of France, 20 of Switzerland and 9 of United States of America.

The reason as to why great potential of general insurance premium lies ahead in India is because of its rural sector in which large number of micro financing institutions will explore possibilities for wider coverage of general insurance. Secondly, the government initiatives on mass insurance will also gradually widen to cover large parts of countryside for general insurance including India's urban pockets.

According to ASSOCHAM estimates, general insurance growth will largely come from retail and rural sectors. The constraints that general insurance is facing currently including lack of awareness which constricts risk exposure and the polices offered under current circumstances are complex in nature for which procedures are difficult and cumbersome and distribution strategies are not only inappropriate but totally inadequate.

Gradually, confidence and trust on insurance will increase to widen the premium for general insurance as institutions have started mass campaign and even curriculum of schools are providing for increased tilt for insurance in all parts of the country.

The Paper suggests need for innovative low cost distribution and servicing strategies to develop wider base for general insurance. In future, non-banking financial companies will also tie up with entire banking infrastructure to better utilize distribution of insurance
products. (editor@thesynergyonline.com)