Weekly Insurance Round-up Tuesday, June 28, 2022
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We're back with the next edition of Beshak's Weekly News Round-up - an analysis of all Insurance News & Updates, straight from our research desk! Don't forget to share your feedback with us, and give us a thumbs up if you find this helpful!
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- The Securities and Exchange Board of India (SEBI) has prohibited Asset Management Companies (AMCs) to provide life insurance products bundled with mutual funds.
- In a letter dated 17th June 2022, SEBI requested that the Association of Mutual Funds in India (Amfi) notify all AMCs that no existing or future schemes shall have bundled products.
- Mutual funds provide free life insurance coverage when you start SIP investments under SIP insurance plans.
- Mutual fund institutions provide insurance benefits at no additional cost. And, most SIP insurance products offer life coverage of up to 100 to 120 times the SIP investment, subject to a ceiling of ₹50 lakhs.
- Industry experts suggest that one must keep their investment and insurance requirements separate, as these bundled options can stop at any time.
- IRDAI is considering extending the testing of products under the regulatory sandbox mechanism for up to three years.
- This decision, along with other initiatives, is taken in an attempt to reach more and more people and thus, increase insurance penetration in the country.
- The term "Regulatory Sandbox" typically refers to live testing of new products or services in a controlled environment where the regulator may or may not allow certain relaxations for the limited purpose of testing.
- The present testing period is restricted to six months, but IRDAI is considering extending it to three years.
- The IRDAI is also looking at the possibility of allowing smaller players into the insurance sector. The IRDAI chairman stated that these businesses will need to have a technological backbone, and insurtech is available to enable them cater to those areas of the country that are yet unserved.
Source: The Economic Times
- BigHaat, an Agri Digital platform, and Mahindra insurance broker, a subsidiary of Mahindra & Mahindra Financial Services (Mahindra Finance) have come together to offer health and motor insurance policies.
- With this partnership, both Mahindra insurance and BigHaat aim in promoting the government’s goal of higher insurance penetration in rural India.
- Customers will be able to purchase health insurance policies through the BigHaat website and mobile app.
- The health insurance policy will offer:
- Sum insured of up to 5 Lakhs.
- Hospital cash allowance of ₹10,000 for 15 days. (will be launched as part of the insurance policy in a year)
- The policy can be taken in various combinations and can include self, spouse, Children, and parents.
- This collaboration will provide financial solutions to India's informal Agri workforce.
- BigHaat is a farmer-centric Agri Digital platform that provides farmers with complete tailored technical support, accessibility, and a wide range of high-quality inputs.
Source: The Economic Times
- SahiPay is offering easy access to insurance and banking products in the semi-urban and rural parts of the country.
- To raise awareness and enhance penetration in rural India, it has started offering a variety of low-cost health and non-life insurance options, including vehicle and personal accident insurance.
- Through its 2500+ devoted insurance brokers, SahiPay has processed over 27,000 policies in less than 7 months.
- SahiPay has also partnered with SBI Insurance to offer simple and affordable insurance products in rural India. In a short amount of time, the SahiPay and SBI partnership has insured over 10,000 unique customers across 22 states.
- SahiPay is a high-tech smart and secure digital platform launched by Manipal Business Solutions. In addition to insurance, it also provides doorstep banking and a variety of value-added services that are digitally empowering citizens in India.
Source: Financial Express
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