|
SPECIEAL ISSUE
COVER STORY
The Indian Insurance Industry : Inching Forward
-- TS Rama Krishna Rao and Samuel Babu S
The latest round of reforms in the insurance industry creates the potential for
further growth in the industry. It will totally transform the industry. Tomorrow's
insurance industry will be a blend of opportunities and challenges.
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
REINSURANCE
The Changing Reinsurance Scenario
-- GV Rao
With international insurers/reinsurers under severe financial pressure,
consequent on the continuing turmoil in the global financial markets, with their share
prices plunging by big margins, and with additional capital, if required, proving
more expensive to raise, the international insurance/reinsurance scene has undergone
a dramatic change for the worse. What does all this mean to the Indian non-life
insurers? They are certainly in for a lot of tough negotiation to strike reasonable
bargains next year with their reinsurers. They may ultimately be compelled to pay
higher prices for buying reinsurance. Are they ready to deal with the demands to be
made on them?
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
TERRORISM RISK
Terrorism Risk Insurance : Managing the Threat of Terrorism
-- Ritu Sinha
The September 11, 2001 terrorist attack resulted in an estimated insured loss
of $35.9 bn. Prior to this event, commercial insurance policies included
terrorism coverage as part of the package and it was available free of charge. But the
aftermath of 9/11 significantly changed the approach of insurance industry towards
terrorist risk insurance. This article discusses the need for terrorism risk insurance and
the challenges posed by the burgeoning threat of terrorism. The response of global
players to terrorism insurance market and how private insurance players failed to
provide insurance against terrorism and the need for government intervention is also discussed.
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
ART
- Jayshree Bose
Building Up a Private Catastrophe Insurance Market Through Captives
TRIA as Enabler
How can reliance on the government actually help build a private market for
insurance? This article provides an insight into how the federal terrorism backstop provided
by TRIA can enable captive insurance companies, particularly the USA-domiciled
ones to become even more resourceful than they are now, and help realize the objective
of building up an independent private market for catastrophe-linked insurance.
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
BUSINESS STRATEGY
An Analytical Interpretation of
"Insurance is the Subject Matter of Solicitation"
-- Rajasekhar Mallela,
Venkata Madhukar Kanagala
and Purnananda Kumar Divakaruni
As per IRDA's regulation, every insurance advertisement should print the statement
_ "Insurance is the subject matter of solicitation."
In the absence of any authentic interpretation of this statement, people tend to believe the most prevalent view
to be correct. This article attempts to give an apt interpretation based on relevant regulations
and guidelines. It also mentions prevalent misinterpretations in the industry, and
analyzes why they are inappropriate. Finally, the
article elaborates on the need for this disclosure in
advertisements and the purpose it serves to customers.
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
RISK AND INSURANCE
Credit Default Swaps
: In Troubled Waters
-- Y Bala Bharathi
Credit default swaps, arcane financial instruments invented by Wall Street
about a decade ago, became the world's largest unregulated casino. It is widely dubbed
as the culprit of the credit crisis, wreaking havoc across the globe.
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
RISK AND INSURANCE
Management of Individual Risks
-- Lp Gupta
Management of personal risks by individuals and their family members is an
area which needs greater attention for individual financial management.
Identification of risks related to life, health, house,
valuables and motor vehicle, and their effective management can best be done by choosing the suitable insurance plans from life
and non-life insurance companies.
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
HEALTH INSURANCE
Empowering Health Insurance Through Empirical Studies
-- S Jayaprakash
India unlike other developed countries has neither good medical infrastructure
nor a database to study the patterns of morbidity. Health
insurance is expected to be the next big wave in insurance. A new approach is suggested to deal with
health insurance through an integrated approach with behavioral economics.
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
CASE STUDY
Cost of Risk Allocation : A Survey of Practices and Attitudes
-- J Tim Query
Cost-benefit analysis is a significant component of the global risk management
process. This study examines the challenges that risk managers face in developing cost of
risk allocation systems through a formal survey of the US-based companies, most of
which have international operations. Survey results show that
85% of risk managers are involved in allocating financial risks, and opposing goals such as stability
vs. responsiveness and simplicity vs. equity that are influential in corporate cost allocation
decision-making.
© 2009 IUP. All Rights Reserved.
SPECIEAL ISSUE
LIFE INSURANCE
Life Insurance and the Inherent Security Content
-- G Gopalakrishna
Since time immemorial human beings have always been in search of security.
The urge for protection led to the concept of insurance. Life insurance policies are
an instrument of social security for the welfare of an individual and their
families. Insurance is as vital as the basic necessities of life like food, clothing and shelter.
© 2009 IUP. All Rights Reserved.
INTERVIEW
Interview with Chairman J Hari Narayan,
Chairman IRDA, Hyderabad.
What is your outlook for the Indian insurance industry? Will the next couple of years mark India's entry into the big league of global insurers? Do you foresee any significant change in the reinsurance industry in the country?
INTERVIEW
Interview with CEO,
Kamesh Goyal, CEO,
Bajaj Allianz, Pune.
The world looks at India as a land of opportunities because of its demographic dividend. Will this help the demand side pull for life insurance business?
© 2009 IUP. All Rights Reserved. |
