BUSINESS
ENVIRONMENT
Second
Generation Insurance Reforms in Non-Life Sector : Blueprint for Higher Insurance
Penetration - - Arjun Bhaskaran
Increasing
the penetration of non-life insurance is required for supporting Gross Domestic
Product (GDP) growth and liberal markets. Detariffing will contribute in a big
way, but additional steps required would include elimination of Quasi Fiscal Activities
(QFAs) by PSU non-life insurers, listing of PSU insurers, migration to centralized
IT systems, implementation of Quality and Information Security, adoption of outsourcing
and diversification into offshore processing opportunities.
© 2006 IUP . All Rights Reserved
BUSINESS
ENVIRONMENT
Insurance
Tomorrow - - Samuel B Sekar
Tomorrow's
insurance industry will be a blend of opportunities and challenges, demanding
significant adjustments from the insurance players. The adjustments required from
them may be in the areas of global warming, terrorism, etc.
© 2006 IUP . All Rights Reserved
BUSINESS
ENVIRONMENT
Indian
Insurance Industry : The Road Ahead - - T S Rama Krishna Rao
1999-2000
was a landmark year in the history of Indian insurance industry. The year 2007
is going to be another watershed for the industry. Detariffication from January
1, 2007 will totaly change the complexion of the non-life industry. Financial
inclusion is being emphasized in various fora. The insurance industry will have
to play a vital role by providing health insurance and other insurance products
for the poor.
© 2006 IUP . All Rights Reserved
BUSINESS
ENVIRONMENT
Privatization
of Insurance Industry in India : The Growth - - Sabera
The
entry of private players helps in spreading and deepening the operations in the
Indian insurance sector which in turn results in restructuring and revitalizing
of public sector companies. The article looks at the business strategies of private
insurance companies and the future expectations of the insurance industry.
© 2006 IUP . All Rights Reserved
NON
-LIFE INSURANCE
Should
We Be Scared or Prepared? : The Toy We All Adore - - Praveen Gupta
All
businesses will face increasingly new threats from all kinds of unexpected fronts.
The most recent challenge to some of the leading automobile manufacturers, from
the US and Japan, comes in the form of a lawsuit in the state of California. It
holds them responsible for causing greenhouse effect. To what extent this will
remain restricted to the car manufacturers and what are the possibilities of motor
insurers getting dragged into the ring, needs to be seen.
© 2006 IUP . All Rights Reserved
NON
-LIFE INSURANCE
Automobile
Insurance Industry in India : Issues and Challenges - - Sankarshan Basu
The
unprecedented growth of the automobile market in India over the last decade has
increased the need for automobile insurance. However, the processes that govern
these products have not yet changed. This article looks at some of the key issues
facing the automobile insurance industry and the challenges ahead.
© 2006 IUP . All Rights Reserved
REGULATION
Market
Conduct and Insurance Regulations in India - - G V Rao
Irrespective
of the regulatory mechanism in place, unless there are stringent penal provisions
in force against the regulatory breaches by insurers, consumer interests are likely
to suffer. As the insurance contract is between a highly experienced insurance
professional and a general novice in insurance, the consumers require regulatory
protection. The Authority too is reluctant to intervene in disputes, lest it is
seen as bringing undue pressure to bear on the insurer. There is a need for this
logjam to be broken. It is for the Authority to decide how best it should discharge
this responsibility.
© 2006 IUP . All Rights Reserved
REGULATION
Grievance
Handling Mechanism and IRDA - - A V Narsimha Rao
IRDA
is established with a mission to promote orderly growth and protect the interests
of the policyholders. In spite of formulating various regulations and guidelines,
due to conflicting nature of interests of the parties, a number of disputes arise
and the policyholders suffer. IRDA has directed the insurance companies to have
an effective grievance settlement mechanism and also establish a grievance cell
at its office. A number of other alternative measures are available to the policyholder.
But, other avenues are cumbersome, time-consuming and expensive. In the present
emerging free and competitive market scenario, insurance companies should devise
a strong mechanism to handle the grievances of consumers with an appellate authority
to IRDA.
© 2006 IUP . All Rights Reserved
CATASTROPHE
RISK
Catastrophe
Models : The Road Ahead - - Jayshree Bose
With
catastrophe losses spiraling the world over, and with India possibly going in
for a liberalized era of detariffing, predictive catastrophe models are likely
to play an increasingly important role in the insurance industry. The article
is an insight into what difference they will make to the insurance industry in
future.
© 2006 IUP . All Rights Reserved
CATASTROPHE
RISK
Catastrophe:
Meaning, Analysis and Impact on Insurance - - R.Chandrasekaran
Catastrophe
(CAT) in the insurance parlance refers to the possibility of exposure to an accumulation
of losses from one event. In other words, a single event causing loss to more
than one risk at the same time is normally referred to as a catastrophic event.
It can be a natural event, like, earthquake, flood, volcanic eruption, wild fire,
hurricane, landslide, pandemic and winter storm or can be a man-made event like
the one that affected the twin towers at New York on 9/11, industrial contamination
and technological failure.
© 2006 IUP . All Rights Reserved
HEALTH
INSURANCE
Healthcare
versus Health Insurance - - U Jawaharlal
Providing proper healthcare to the entire population is a monumental task
in a vast country like India, with its massive population. The state should take
the lead in putting in place measures to achieve this. However, there should be
strong support in the form of coverage for a large chunk of the population as
also viable private health insurance, if India were to achieve "health for all".
© 2006 IUP . All Rights Reserved
INSURANCE
MARKETING
Distribution
Channels of LIC : Are They Effective? - - Rajesh C Jampala and Bh Venkateswara Rao
LIC,
the giant in the insurance industry, has relied heavily on its agency force to
market its plans for quite a long time. With the opening up of the insurance industry
in 1999, the Insurance Regulatory and Development Authority (IRDA) allowed insurance
companies to utilize alternative distributive channels such as corporate agents,
brokers, referrals, etc. The LIC has tied up with 31 banks and 100 brokers in
order to improve its business. But the contribution of the newly emerged channels
to the total new business of LIC is just 1.21% only in 2004-05. An attempt is
made to assess the contribution of different distribution channels to the overall
new business performance of the LIC.
© 2006 IUP . All Rights Reserved
LIFE
INSURANCE
ULIPs
: Longing for Long-term - - Amit Singh Sisodiya and Ankur Gupta
The
insurance regulator's latest guidelines would go a long way in correcting the
perception that ULIPs are vehicles for making quick gains. Until recently, Unit
Linked Insurance Plans (ULIPs), sold like hot cakes. Investors liked them as ULIPs
offered not just insurance cover but also provided tax relief as well as an opportunity
to earn market-linked returns. However, as the stock market boomed, the insurance
aspect took a back seat as ULIPs were increasingly being seen as more of a tool
to make short-term gains. No one cared as long as the stock prices continued their
uptrend.
© 2006 IUP . All Rights Reserved
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