Private Insurers Likely to Benefit from Composite Licence Amendment
The amendment, part of the proposed Insurance (Amendment) Act, 2024, allows private insurers to operate across life, health, and general insurance under a single licence. However, PSU insurers would require additional amendments to the Life Insurance Corporation Act, 1956, and the General Insurance Business (Nationalisation) Act, 1972, to access the same benefits.
Experts warn this could hinder PSU insurers in competing with their private counterparts, who already dominate the domestic market. The amendment also includes provisions for increasing FDI to 100% and reducing capital requirements. Stakeholders have raised concerns over the inequitable playing field created by the proposed changes.
IRDAI to Limit Insurers' Reliance on Parent Banks
The Insurance Regulatory and Development Authority of India (IRDAI) plans to curb life insurers' heavy reliance on parent banks for selling policies, aiming to promote balanced growth across multiple distribution channels. Bancassurance, a partnership between banks and insurers, has faced criticism for mis-selling and forced policy purchases.
IRDAI has formed a task force to review the current framework and will issue a draft seeking stakeholder feedback. While officials acknowledge bancassurance's efficiency, they emphasize the need for diversification to ensure long-term industry stability. Critics argue that overregulation could stifle sector growth. Both the Finance Minister and IRDAI chairman have stressed the need to restore customer trust while urging banks to focus on core banking services.
IRDAI's Bancassurance Cap Risks Sector Growth: Report
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"United India Insurance has undertaken significant innovative transformations and is strategically positioning itself to better address the evolving needs of its customers and maintain a competitive edge in the market."
Q: Could you start by giving us a brief overview of United India Insurance Company's performance over the past year?
The Role of AI and Big Data in Transforming Life Insurance Underwriting
The life insurance industry is undergoing a significant transformation, driven by the adoption of Artificial Intelligence (AI) and Big Data. Traditional underwriting methods relied heavily on lengthy paperwork, manual risk assessments, and standardized criteria, which often led to inefficiencies, delays, and conservative risk evaluations.
Unlocking the Implication of Warranty
It is heartening to note that the regulator in India (IRDAI) recently formed a high-power panel to suggest measures for insurance reforms. It is expected to examine various areas of the Insurance Act 1938 and recommend suitable and adequate amendments in keeping with the changing business trends and requirements of the customers.
The future of work: Model of the Talent Life Cycle (TLC)
Its time that organizations understand that the perfect candidate with the perfect set of skills will be scarcely available in a highly competitive labor market. Hence we have to focus on our existing employees and identify opportunities to train or refocus their skills into new positions.
Life Insurance News
SBI Life Insurance Company added 1.76% after the company reported 71.19% increase in net profit to Rs 550.82 crore despite a 52.21% fall in total income to Rs 18,542.16 crore in Q3 FY25 over Q3 FY24.
Smart Pension Plan for Smart People
LIC Smart Pension Plan is a single premium, instant annuity plan that provides lifelong financial security through guaranteed pension payments. Ideal for retirees and professionals looking for a stable retirement income, the scheme offers flexible payout options, death benefits, credit facilities and tax benefits.
Al-Powered Investigation: The missing link in India's fight against insurance fraud
Every year, insurers lose 8-10% of their revenue to fraud, but they manage to thoroughly investigate only about 1% of fraudulent claims. This ongoing issue continues because of significant gaps in the current fraud detection and investigation practices.
Health Insurance News
Despite a steep increase in premium for health insurance policies in the last one year, there has not been any decline in renewals and the demand for new policies, say experts.
Insurance Regulator Update
The first phase of Bima Sugam - an ambitious project of the insurance regulator to create an Amazon-like one-stop digital platform for buying, selling, and servicing insurance policies - is expected to be rolled out in the mid of this year instead of April announced earlier, a source privy to the development said.
Mahakumbh at the Parliament! Union Finance Budget 2025
The telecommunications industry is undergoing rapid transformation, driven by technological advancements and evolving consumer demands. As the industry adapts, a significant opportunity lies in partnering with Insurtech companies to offer innovative insurance products.
