LIC of India wins Web18 Genius award for the Best Insurance Site

In a glittering evening full of entertainment, information and recognition, the first Genius of the Web awards organized by Web 18, a part of media group Network 18, were announced on October 18th, at ITC Grand Central, Parel.

Amont the various categories Lic of India was given the award for "Best Insurance Site".

The evening saw the best of players from the world of dotcom come together to appreciate and acknowledge the outstanding achievements in the online space. The event attracted good attention and was attended with strong participation including people from influential companies of the online world like Mr. Shailesh Rao, MD, Google India, Mr. Anupam Mittal, Chairman People Group, Mr. Sanjeev Bhikchandani, CEO, Info Egde, Mr. Ajit Balakrishnan, Chariman & CEO, Rediff, Mr. Neeraj Roy, CEO, Hungama to name a few.

With the sea of thinkers from the futuristic industry coming in, the ballroom was filled with varied conversations on brilliant ideas and global perspectives. The evening further progressed to an inspiring discussion on “Web 2.0 – Bubble or Boom” by an eminent panel consisting of Avnish Bajaj, co-founder and Managing Director of Matrix Partners India, Vishnu Induri from Axill Affiliated Networks and ShaileshRao from Google India.

During the evening, Singer Mansi Scott entertained the audience with her heart rendering performance, making sure audience did not miss their dose of entertainment.

The awards announcement was in last segment of the evening which was awaited by everyone.The announcement brought mixed reactions from audience across the room, those who win cheered in pleasure and those who couldn’t make it to the top, emoted the promise to come back to win the title next year.

The winners were

• Special User’s Choice Award - Yahoo India
• Best Email Service Provider (Consumer) – Gmail
• Best Social Networking Site – Orkut
• Best Airlines – Jet Airways
• Best Banking – ICICI Bank
• Best Brokers – ICICI Direct
• Best Business ISP – Bharti Airtel
• Best Consumer ISP Broadband – Bharti Airtel
• Best Education – Education Times
• Best Email Service Provider Business – Indiatimes
• Best E-Commerce Site (Online Gaming) – Yahoo India
• Best E-Commerce Site (Matrimonial) – Shaadi.com
• Best Hotels Site - Taj Hotels
• Best Insurance Site - LIC India
• Best Government and PSU Site - IRCTC India
• Best Mutual Funds Site - Reliance Mutual
• Best Trade Site in the country - eBay
• Best Utility Site - Rel.co.in
  

Latest Issue of Microfinance Insights Focuses on Innovations in Financial Services Delivery and MicroInsurance

Mumbai: Intellecap recently released the fourth issue of Microfinance Insights, its quarterly thematic magazine. The focus of the fourth volume is on innovations in the area of delivery of financial services.

Making financial services more accessible and their delivery more efficient, while diversifying the traditional areas of financial support, has been on the mind of the industry for some time now. Drawing from the experiences of various microfinance institutions, research bodies, and sector experts, the Issue looks at how best industry knowledge and practice can be leveraged to add value and diversify delivery mechanisms for those at the bottom of the pyramid (BOP).

The cover story tracks evolution in businesses and presents an interesting ‘wave theory’ of innovation in microfinance. Articles recognizing the power of social networks cite examples from ITC, a corporate firm which innovates and downscales to tap the potential of BOP market, an MFI Spandana and an NGO Swayam Shikshan Prayog that have succeeded in mobilizing the rural poor to establish successful business partnerships with multinational firms. A feature on an innovative lending model that supports grassroots businesses covers an initiative that makes farm mechanization affordable through combining the delivery of low-cost implements. Another feature explores community-based interventions in microinsurance delivery. The issue also covers two fast emerging areas in microfinance technology innovations, namely that of peer-to-peer online lending platforms and alternative/micro exchanges. Additional features in the fourth issue of Microfinance Insights include a book review, news, resources and a compilation of microfinance market indicators.

Every quarter, Microfinance Insights attempts to effectively gauge the trends in the industry. Previous volumes have touched upon the issue of Governance in microfinance institutions (Vol.1), urban microfinance (Vol.2), and the role of capital markets in microfinance (Vol.3). The next issue due in December 2007 will focus on microinsurance and will have David Dror (Hon. Professor of health insurance, Erasmus University Rotterdam) as its Guest Editor. Published from India, the focus of the magazine is emphatically global and this is reflected through an increasing number of articles focusing on global activities.

For further details please visit www.microfinanceinsights.com.

Sting operation unveils Insurance fraud

Beaumont, USA: KFDM news reported, The Beaumont police has arrested a 26 year old motel general manager for attempting to bribe and fraud a insurance company.

The man is supposed to be from India and is in the U.S. on a green card. He was arrested on Thursday, Oct 11 on accusation of Insurance Fraud, a 2nd Degree Felony.

Detectives say the man is part owner and general manager of the Travelodge at I-10 and College in Beaumont. Police say he was attempting to bribe an insurance adjuster for Nationwide Insurance Mutual Insurance company .

Investigators say the man is accused of offering the adjuster $20,000 cash in exchange for a $125,000 insurance claim check on a loss of $18,000 from Hurricane Humberto.

Detectives, in cooperation with Nationwide Insurance and the National Insurance Crime Bureau, organized an operation in which the exchange would be made using an undercover officer. The officer met with the man and received $20,000 cash. The man was arrested and taken to the Jefferson County Correctional Center.

S&P gives better outlook to Chinese insurers than India

New Delhi (PTI): Global rating agency Standard and Poors has given a better outlook to Chinese insurance industry than India as it feels the Communist nation is ahead in terms of regulatory reforms and opening of the sector.

“Two major Chinese state-owned insurers have listed offshore and onshore, while India’s national insurers are still wholly government owned,” S&P said in its Asia-Pacific Insurance Outlook.

These factors support the outlook on China’s insurance sector as the system would benefit from being more open and shareholder focused, it said, while giving a ‘stable’ outlook to Indian industry against ‘positive’ to Chinese firms.

On a more specific evaluation, the rating agency said the freedom to general insurers to fix tariffs from 1 January in India may not improve underwriting performance.

S&P also said less capitalization of state-owned Life Insurance Corporation, the country’s biggest insurer, comes in the way of potential growth in life insurance sector. Besides LIC, the other four non-life major insurers in India are also fully owned by the government.

The rating agency also said though the stable outlook on India’s life insurance sector reflected strong potential growth, it was offset by weak capitalization of LIC. While there is a requirement of a minimum paid-up capital of Rs100 crore for private players, LIC is capitalised with a paid up capital of only Rs5 crore. “Most of the private life insurers are much better capitalised than LIC,” the report said.

S&P said most of the life insurers in India made losses during 2005-06 due to their start-up status. Although private life insurers in India have been thriving for the past five years, overall industry risks remain high.

However, in general insurance, state-owned companies have satisfactory capitalization, the report said. The non-life insurance sector has experienced poor underwriting performance, with losses over a number of years. Underwriting is a promise by insurers to take risks of losses at an agreed premium.

India’s general insurers’ profitability was supported by investment income and gains, which is not a healthy trend for the sector’s long-term development and has hindered development of companies’ underwriting risk control.

Underwriting performance of India’s non-life insurance industry may not improve quickly under a detariffed regime implemented in early 2007. Poor underwriting and relatively low levels of sophistication have produced a high industry-risk level for India, the report said.

Health insurance for Below Poverty Line unorganised sector workers

New Delhi,(PTI): In keeping with the promise made by Prime Minister Manmohan Singh in his Independence Day address, the Government will launch on October 2^nd a Health Insurance Scheme "Aam Aadmi Bima Yojana" for 40 crore unorganised sector workers.

In the first phase, the health insurance cover will benefit workers and families living Below Poverty Line in the unorganised sector and States have already been asked to formulate projects, a Labour Ministry official said.

Under the scheme, the launch of which was approved by the Union Cabinet earlier this month, it shall be the responsibility of the implementing agencies to verify the eligibility of the unorganised sector workers and his family members who are proposed to benefited.

The beneficiaries under the "Aam Aadmi Bima Yojana" will be issued smart cards with social security number for the purpose of identification.

The scheme envisages life and disability cover to all rural landless households in the country. The insurance cover will be for Rs.75,000 on death due to accident and permanent disability due to accident.

In case of partial disability due to accident, the insurance cover would be Rs.37,500 and upon death of a member, prior to terminal date, Rs.30,000 is the insurance amount.

The premium to be charged under the scheme will be Rs.200 per year per member of which the Centre is likely to bear 75 per cent of the cost, 25 per cent more than what was planned earlier. The Finance Minister has already committed Rs.1,000 crore for the scheme in the Budget. The remaining amount will be given by State Governments, he said.

ICICI Prudential Life partners with Dignity Foundation to launch ActivAge

October 1 every year is observed as World Elders day. Old age is often described as second childhood, when people crave for attention and help. But whether they get those benefits or are well off, depends lot more upon circumstances.

To cheer up on this day, we have some initiatives taken jointly by ICICI Prudential Life Insurance, one of India’s leading life insurers and Dignity Foundation, an established organization dedicated to the cause of productive ageing. They have come together to lauch ActivAge a platform that will work towards promoting and facilitating the concept of productive ageing amongst the senior citizens in India. It entails a comprehensive engagement program for the fifty-plus segment, involving them in activities that will help them lead a holistic post-retirement life.

Speaking at the launch, Ms. Shikha Sharma, Managing Director and CEO, ICICI Prudential Life Insurance said, “While financial independence is a key determinant for a satisfying life post-retirement, it isn’t the only factor that promises quality life at that stage. While our strengths lie in providing financial solutions in the retirement space, Dignity Foundation provides a platform for senior citizens to explore exciting opportunities to keep them engaged. Through ActivAge, we will enable senior citizens to lead a more active, wholesome life and age productively.”

Dr. Sheilu Sreenivasan, Founder President, Dignity Foundation, said: “It is our privilege to partner with ICICI Prudential Life Insurance and further champion the cause of active ageing. ActivAge will provide senior citizens a larger forum to engage themselves in productive activities, which will help senior citizens lead a more fulfilling life after their working years. The activities have been designed to bring more senior citizens together on a regular basis. Through ActivAge we hope to build a larger community of active senior citizens, who in-turn will help change the meaning of post-retirement life in India.”

ActivAge programs include Chai Masti, involving Dignitarians in various mind-stimulating activities, Intergenerational Mela seeking to increase interaction between grandparents and their grandchildren, Suraksha Bandhan, an activity that encourages school children to bond with their grandparents and Voice of Dignity, a newsletter which would articulate their concerns and learning on various issues. All these activities will be held in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Visakhapatnam and Jamshedpur.


Second Careers

ICICI Prudential Life and Dignity Foundation under the aegis of ActivAge will launch a website on second careers. This is a first of its kind initiative that will offer a unique opportunity for Dignitarians to pursue careers post their retirement. The website has been created keeping in mind that many retirees seek either part-time or full time opportunities in the corporate sector, as they are still active and can contribute to the various functions within a company. The second careers website is the first step towards providing avenues in this direction, to senior citizens.

ICICI Prudential Life Insurance will provide a web interface, where Dignitarians can upload their resumes. These resumes can be accessed by both ICICI Prudential Life and other prospective employers who will offer the unique opportunity for Dignitarians to explore second careers.

Volunteer Programs

Employees of ICICI Prudential Life will also participate in volunteer programs and productively share their time and learnings with Dignitarians in an interactive way. Volunteer programs designed for ActivAge include Dignity Companionship program - engaging in activities like reading or playing cards, scrabble, Dignity Dementia Day Care Centre, involving in creative pursuits like dance and singing and Dignity Home Computer Training - imparting computer training, surfing the net or access email services.

The immediate beneficiaries of ActivAge will be the over 50,000 members of Dignity Foundation across India. However, senior citizens from across the country can become members of Dignity Foundation and benefit from ActivAge programs.

Elder Population (Below extract referred from Kerala Online)

The rise in the proportion of the ageing population represents one of the most significant demographic shifts in history. In 1950, there were 205 million people who were over 60; in 2000, there were 606 million; and by 2050, there will be two billion. The number of the elderly trebled over the last 50 years and an encore is expected in the next 50 years. As a proportion of the total world population, the number of the elderly will double in the next 50 years.

This demographic change is fast turning the hair of policy-makers prematurely grey throughout the world, especially in developing countries, where the growth of the aged population is happening at a more rapid pace.


In India, the elderly population has grown manifold. While only 19 million people were 60-plus in 1947, today the figure has risen to nearly 80 million, an increase of 285 per cent in the last five decades. The figure is expected to double in the next 25 years. Nearly 90 per cent of the elderly have no form of official social security, and over 40 per cent live below the poverty line. Close to 75 per cent are from the rural areas and over 73 per cent are illiterate. Some 55 per cent of the women over 60 years (over 20 million) are widows.

If achieving longevity was the triumph of the 20th century, care of the elderly will be the challenge of the 21st century. While research on ageing is well-developed and documented in developed countries, it hardly happens in countries such as India. According to Dhar Chakraborti (The Greying of India, Sage Publications, 2004), this is primarily because of the belief that the family support system is and will continue to be an adequate insurance against all problems related to old age.

The full article from Kerala Online based on Elder population can be read here.

Sam Ghosh: Large potential in Middle East region for Insurance services

Bloomberg: Allianz SE, Europe's biggest insurer, named Sam Ghosh chief executive officer for the Middle East region, where the company sees ``growth potential'' for all its businesses.

Ghosh, who is Allianz's country manager in India, will take up the position on Oct. 1 and the regional headquarters will be in Bahrain, the Munich-based company said in an e-mailed statement today.

``We see large potential for profitable growth in the region,'' Ghosh said in the statement. Demand for insurance and financial services is growing in the Middle East, he said.

Note: Indian Insurance brokers and agents who have access to Indian population in the Middle East can make note of the fact.