India's long-term growth story looks positive and is in its goldilocks situation. However, with most positives already factored in, the same level of returns or those better than the previous year looks difficult for life insurers, said Ajit Banerjee, Chief Investment Officer, Shriram Life Insurance. Here are the edited excerpts:
While health insurance premiums are on the rise for most general insurance companies, slower growth in segments like motor is holding back their overall performance, officials revealed. The industry is yet to publish detailed data for the entire year. Specialized insurance sectors, particularly Agriculture Insurance Company and ECGC, have contributed to the non-life industry's sluggish growth this year.
Watch Pankaj Pandey, CIO, SBI General talk about how, in a diverse market like India, insurers are managing the ever changing customer needs. Besides this, he also delves into whether insurance is transitioning from a push product to a pull product, especially with regards to the younger cohort.
The face value of trades of Separate Trading of Registered Interest and Principal Securities, or STRIPS, in the government bond market has risen to ₹2.32 lakh crore in the first ten months of the current financial year against ₹1.16 lakh crore the same time a year ago, Clearing Corporation of India (CCIL) data showed. For FY23, the face value of STRIPS trades was at ₹1.34 lakh crore.
The face value of trades of Separate Trading of Registered Interest and Principal Securities, or STRIPS, in the government bond market has risen to ₹2.32 lakh crore in the first ten months of the current financial year against ₹1.16 lakh crore the same time a year ago, Clearing Corporation of India (CCIL) data showed. For FY23, the face value of STRIPS trades was at ₹1.34 lakh crore.
In its board meeting, the insurance regulator, IRDAI has given a green light to a series of proposals including the Bima Sugam portal. Besides this, the insurance watchdog has also relaxed the proposed higher surrender value norms. The final surrender value guidelines are expected to be announced by next week.
Insurance penetration increased from 3.9 per cent in 2013-14 to 4 per cent in 2022-23 while insurance density rose from USD 52 in 2013-14 to USD 92 in 2022-23, he said. Insurance penetration and density are two metrics, among others, often used to assess the level of development of the insurance sector in a country.
Staring at a collective tax demand of ₹12,000 crore, the insurance sector was waiting for the GST Council meeting to get clarity over the issue. However, with no GST Council meeting in sight now before the formation of new government and the sector facing March 31 as a deadline to pay the tax, insurance companies are planning to file the writ petition against the tax demand before the end of this month.
The CVC said the existing instructions and guidelines as issued by the commission and DoPT are "strictly adhered to" by the disciplinary authorities and other authorities concerned. The chief vigilance officers (CVOs) of the respective organisations may bring these guidelines to the notice of the chief executive officer and all disciplinary authorities concerned, the order said.
Earlier, the IRDAI prescribed lock-ins based on the age of the insurer, with waivers granted only in extraneous situations. In certain cases, the regulator had waived the lock-in for DHFL General Insurance. In 2020, this company was acquired by Flipkart co-founder and former CEO Sachin Bansal from Kapil Wadhawan-led financial services group Wadhawan Group Capital (WGC) for ₹100 crore as a distressed sale due to the bankruptcy of DHFL.
Over the past one week, some companies acting as agents and marketing intermediaries of insurance companies have received notices under the Benami Transactions (Prohibition) Amendment Act, 2016, for allegedly routing funds to sidestep regulations.
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