Weekly Insurance Round-up Tuesday, December 7, 2021
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- As per the ICRA report released on 29th November 2021, the new business premium (the premium acquired from new policies for a particular year) of domestic life insurance companies is likely to grow by 14% in the current fiscal year.
- The report is as per the performance of 16 life insurers in India, which includes 1 public sector insurer and 15 private-sector insurers.
- The total sum assured for LIC increased by 7.5% year on year and for the private sector, it increased by 1% year on year.
- While this increase is due to the shift in product mix towards protection products, the growth of protection products is expected to slow as the reinsurer rate might increase.
- The agency is also expecting the profitability of the private players to be low in FY2022 owing to the high claims in the first quarter.
- ICRA Limited is an Indian independent and professional investment information and credit rating agency that was established in 1991. It was formerly known as Investment Information and Credit Rating Agency of India Limited.
Source: Economic Times
- As per the data shared by Finance Minister Nirmala Sitharaman to the Lok Sabha, the motor insurance compensation paid to claimants has decreased by 36% (over ₹90 Cr. in 2019-20 to over ₹57 Cr. in 2020-21).
- As per the information provided, a total of 3,78,343 motor accident claims were settled in 2020-21, which is the lowest since 2021. There is also a 23% decrease in third-party insurance claims settlement in four years.
- As per the data released by Lok Sabha, claims intimated by some insurers in 2020-21 are as below:
|Insurers||Motor TP Claims booked/intimated in 2020-21 (In Numbers)|
|National Insurance Company||1,05,338|
|New India Assurance||59,267|
|United Insurance Company||48,093|
|Oriental Insurance Company||45,079|
|Reliance General Insurance||9,407|
- As per the data, the insurance companies that paid the maximum compensations in 2020-21 are:
Compensation paid in 2020-21 (In ₹)
|Reliance general insurance||5,31,28,212|
|National insurance company||4,81,67,969|
|The New India Assurance Company||2,85,87,469|
- The Motor Vehicles Act, 1988 was amended by the Motor Vehicles (Amendment) Act, 2019, to increase the compensation for hit-and-run accidents where -
- Compensation in case of severe injury was increased to ₹50,000 from ₹12,500.
- Compensation in case of death was increased to ₹2,00,000 from ₹25,000.
- Nivesh, a wealth tech entrant, has entered the insurance space with Samavesh, a platform for life, health, and general insurance products.
- A wealth tech unites wealth and technology to provide digital solutions to enhance personal wealth management, investment, and asset management industry.
- Nivesh obtained an insurance broking license from IRDAI through Samavesh Insurance Brokers Private Ltd. which is a fully owned subsidiary of Nivesh.
- With the license, Nivesh will be able to sell all kinds of insurance products from all the insurers.
- The company will cater to both urban and rural customers with Samavesh. It will help customers to select an apt insurance plan post comparing quotes of various insurers.
- Nivesh is a digital-first platform that helps independent mutual funds distributors to grow their assets under management.
- Samavesh Insurance Brokers Private Ltd., located in East Delhi, is an unlisted private company incorporated on 29th September 2020.
Source: Economic Times
- Ola’s Parent company ANI technologies invested ₹786.14 Cr. in Ola Financial Services, which was launched in 2015.
- Ola will use these funds to expand its insurance business globally. They will also launch custom country-specific policies to support Ola’s mobility business in new countries.
- Ola Financial services, aka Ola Money, offers P2P payments for more than 300 brands all over India. (Peer-to-peer transactions are electronic money transfers made from one individual to another through an intermediary, typically referred to as a P2P payment application.)
- Ola also offers credit cards, mobile recharge, postpaid bill payments, and on-ride insurance to Ola users and has sold over 675 mn policies.
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