Insurance companies have always got special attention from Prime Minister Narendra Modi. When Modi came into power, he launched many low ticket insurance products such as PMJDY, PMJJY, PMJSY, etc. These products not only helped customers but empowered the sector. Considering the low penetration, there is more to be done, and insurers have its wish list. Insurers believe if Finance Minister helps them with these five things, life insurance will get more visibility. “Need to revise Section 80C”Currently, all the insurance policies are exempted from section 80C of the Income Tax Act. The section offers a tax deduction up to Rs 150,000 on various investments and payments, which insurers feel is too low and cluttered. Life Insurers claim that the major problem is that 80C is comprises of many other products, such as ELSS, PPF, NSC SSC, SSSC, etc. Hence policyholders don't get enough benefit. Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance, said, “In order to enable … [Read more...] about Life Insurance Companies: Top 5 expectations from Budget
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ET Intelligence Group: Life insurance companies, which have been raising exposure to guaranteed return products, could find their strategy turning riskier, warn experts. A majority of the leading insurers have increased the proportion of non-participating saving products with guaranteed returns as high as 6 per cent for long durations. This has allowed the companies to clock higher growth. But, if sustained, this strategy may turn sour in the longer term if interest rates continue to soften. The trend of offering guaranteed products has been visible across the sector. The rise of the guaranteed non-par products in case of HDFC Life has been the highest from 11 per cent of the total product mix in first half of FY19 to 58 per cent in the first half of FY20. For Max Life, it increased from 4 per cent to 22 per cent. For Birla Sunlife and Tata AIA, it has gone up to 42 per cent and 40 per cent, respectively. “Yes, there is a risk,” admits Anil Kumar Singh, chief actuarial … [Read more...] about ‘Life insurers’ raising exposure to guaranteed return plans a long-term risk’
Two years ago the first initial public offer (IPO) from an insurance company hit the market. Today there are six insurers— ICICI Prudential Life, SBI Life, HDFC Life, ICICI Lombard, New India Assurance and General Insurance Corporation of India (GIC)—that have a trading history of at least a year. Have they fared well enough to provide protection to your portfolio? Not really. Some companies like New India Assurance and GIC have seen their share prices fall significantly in the past year. However, the sector continues to find favour with analysts (see table). The bullishness is reflected in Bloomberg’s consensus target prices as well – the expected one year return now ranges between 8% and 48%. While the stock market performance of insurance firms has not been great during the past year, their financial situations have improved steadily and that explains why analysts are convinced about their long-term potential. The larger scenario continues to be encouraging, … [Read more...] about Insurance sector finds favour with analysts: Should you buy these stocks?
Backpacker Insurance: Planning to go on a leisurely vacation? Travelling around and making the most out of the holidays can be so much fun. However, the uncertainties of life can ruin the best of the plans. This is when you may need a backpacker insurance to cover up the possibility of a misadventure. Whether you’re exploring a new city, trekking on the mountains or swimming at the beach, the backpacker insurance will back you up financially in case of a rare untoward event.Companies offering Backpacker insurance policy: HDFC Ergo, IFFCO Tokio, and Future GeneraliCyber-security Insurance: The rapidly evolving technologies and increasing dependency on digitisation to manage businesses has undoubtedly boosted productivity and efficiency for companies and stakeholders alike. Transactions are possible by a click of a button today. However, the hackers have left no stone unturned to exploit the vulnerabilities of technology and milk money out of businesses and unsuspecting customers. … [Read more...] about Insurance policies that are probably unheard of
The Insurance Regulatory and Development Authority of India (IRDAI), on January 2, issued a circular mandating health and general insurance companies to offer a standardised product that will take care of the basic requirements of policyholders. According to IRDAI, the policy will be named as Arogya Sanjeevani Policy, succeeded by the name of the insurance company. The regulator said, no other name is allowed in any of the documents. Insurers will have to start offering the policy from April 1, 2020. “It is a welcome move to increase penetration in the lower-middle-income segment as this will come with a facility of paying a premium in instalments. Thus, making it an attractive avenue for people as it will not only be easy on their pocket but will also give them enhanced coverage. Moreover, since all the insurers have been directed to have the same coverage and exclusions, it will be simpler for the customer to understand,” said Gurdeep Singh Batra, Head – Retail … [Read more...] about 10 things to know about the standard health insurance policy an insurer has to offer