Reliance Life Insurance Co. Ltd, the fully-owned insurance firm of Reliance Capital Ltd. on March 14, 2011 signed an agreement to bring in the world’s sixth biggest life insurance firm Nippon Life Insurance Co. as its 26% equity partner for Rs. 3,062 crores. This is the largest foreign direct investment (FDI) in the Indian insurance space. Our compliments to both Nippon as well as Reliance Group.
We got queries from some of the members of IFI wishing to know how they will benefit from this deal.
What I feel is that benefit to the customer will be improvement in service level as Nippon is large Japanese Company and Japanese are known for efficient service to their customers.
As far as selling of shares at premium of 62 to 80% is concerned the benefit goes to Reliance Capital as for every 100 Rs invested by them in last 10 years in Reliance Life they are getting Rs 180 so the parent / holding company of Reliance Life Insurance i.e. Reliance capital is the beneficiary as they are improving their balance sheet and this is the reason that share price of this company has gone up.
It will not affect / improve bonus calculation of the company, which is passed on to policy holders.
Showing posts with label life Insurance firms. Show all posts
Showing posts with label life Insurance firms. Show all posts
Tuesday, March 15, 2011
Monday, March 15, 2010
Let us work for growth of Insurance Companies
Recent news item has criticized life Insurance firms having enrolled housewives, students, chemists, chartered accountants, tax planners, and even grocery stores to generate leads that may turn in to deals/ issue of policies.
Even websites can turn lead generators in a practice that industry officials say forms a part of new business model. A website shares data on its visitors with a private insurer which in turn puts his sales team on the job. The insurance company pays a one time fee only on conversion to business depending on the premium slab. We in IFI agree that the deal or case or proposal should be always closed by a qualified agent or an intermediary so that there is no misselling.
According to the Insurance Regulatory and Development Authority (IRDA), commission can be paid to only to licensed agents. We fully support IRDA viewpoint.
Insurance companies are looking for new ways to reach customers and it should be done/ encouraged as we have to reach the masses all over the country. Penetration has to increase. Let us work for it.
Even websites can turn lead generators in a practice that industry officials say forms a part of new business model. A website shares data on its visitors with a private insurer which in turn puts his sales team on the job. The insurance company pays a one time fee only on conversion to business depending on the premium slab. We in IFI agree that the deal or case or proposal should be always closed by a qualified agent or an intermediary so that there is no misselling.
According to the Insurance Regulatory and Development Authority (IRDA), commission can be paid to only to licensed agents. We fully support IRDA viewpoint.
Insurance companies are looking for new ways to reach customers and it should be done/ encouraged as we have to reach the masses all over the country. Penetration has to increase. Let us work for it.
Subscribe to:
Posts (Atom)
