News Briefs

IRA to finalise Insurance Agents Regulation soon

Royal & SunAlliance to focus on health insurance

Risk Management joint venture between Alpic and Allianz

GE Capital keen on JV with SBI

According to the chairman of GE Capital Mr Gary C Wendt, the company is interested in an insurance joint venture with State Bank of India. “We will definitely be interested for a tie-up with the State Bank of India once the government opens up the insurance sector. The understanding between the two is already there and as a result things would be much easier,” Mr Gary has reportedly stated. The statement assumes significance as GE Capital and SBI have already floated two JVs in the credit card business and reportedly SBI is also scouting for a suitable partner in its insurance venture.

Hinduja group to enter insurance

The UK-based Hinduja Group has firmed up plans to enter the insurance sector. Reports suggest that the group has identified an Indian partner, but unwilling to divulge details. It is understood that though the group would enter the sector through IndusInd, whether it will be in life or general sector is yet unknown. Expressing confidence that opening up of the insurance sector would result in huge inflow of funds into the country, Group Chairman Mr. S. P. Hinduja said that NRI investments will also help India to mobilise long term funds for infrastructure development. He also said that as both the Hinduja and IndusInd were separate entities, the structure of the insurance company will be based on the policy guidelines of the government.

IRA to finalise Insurance Agents Regulation soon

The Insurance Regulatory Authority has celled a meeting of top officials of LIC and insurance agents to give final shape to the Agents Regulation, 1998 - a new set of regulations for insurance agents. The IRA chairman sought to allay the fears of some of the agents that they would be disqualified despite putting in creditable performance, by promising them that adequate time till April 2000 will be given to them to attain eligibility norms for being insurance agents. The IRA chairman said that in a service oriented business like insurance people favoured personal selling. Contrary to belief, insurance agents will have a bright future in India when the sector was opened up, Mr Rangachary added.

Royal & SunAlliance to focus on health insurance

Health insurance will be the major focus area for Royal & SunAlliance, says R&SA CEO, Antony Jacob. Though the group will concentrate on various products in general insurance, health insurance will be a priority, he says. While saying that there was significant demand for health insurance in India, Mr Jacob opined that there were chances of the health insurance market doubling or trebling in the next two years depending upn the products being offered by the insurance companies. He, however, said that he would be happier if the government permitted a higher stake in the ventures and not just 26%. He was hopeful that private companies would be able to underwrite insurance business in India by the end of 1999.

Risk Management joint venture between Alpic and Allianz

Allianz Alpic Industrial Risk Management Services has been set up as a JV by Alpic Finance and Allianz AG of Germany. The company will offer risk analysis, disaster management services, insurance portfolio analysis and accident investigation services. According to Mr Ravi Kumar, chairman of Alpic, the company has an existing relationship with Allianz to set up business in the areas of health, life and general insurance once the sector is opened up. The present risk management services company would only cement the relationship between the two, he said. Says Micheal Diekmann, CEO-Asia Pacific of Allianz, “We have many MNC clients with operations in India. A direct presence in India will help us in advising these clients better on the risks involved in a venture. Interaction with our local experts will result in customised products for the Indian market.” However, he expressed disappointment that only 26% foreign equity has been allowed in private ventures. According to him, an ideal JV should be a 50:50 partnership.