GIC Re has proposed a dividend of Rs. 1002 crs for 2016- 17, a 17% increase off the previous year. GIC Re global premium grew 82% to 33585 crs. The premium was split between domestic and overseas business in the ratio of 69:31.
ICICI Prudential has taken over management of Sahara Life Insurance on direction of IRDAI. ICICI will provide service to the existing customers of Sahara Life. This is the first instance after the formation of IRDAI where the IRDAI took control of Insurer due to mismanagement. Coupled with the problems being faced by the Sahara Group the takeover of the company was imminent.
The stock market is at its highest level. This will be good news for the Insurance industry as their value of Investments in the Stock market will increase proportionately. LIC has significant exposure in the stock market and it needs to invest judiciously to take care of all eventualities.
The premium income of all 4 PSU general insurers has got a significant boost due to the Fasal Bima Yojana. However they must also be prepared to make suitable provision to take into account the possible losses which may dent their balance sheet.
Insurance Industry overall is ignoring the importance of development of salesforce and its workforce. Many companies are anyhow trying to get their advisors to pass the insurance exam. Though they may get the business initially but in the long term it may create problems and may increase mis-selling.
The excessive competitive rate in the general insurance industry is a matter of concern. IRDAI must bring out some sort of regulation to stem the unstructured discount in the general insurance sector.
