Insurance Plans Reviews and Articles

Met Protect Online Insurance Product Launched by MetLife

Posted in life insurance by kishosingh on October 14, 2010

MetLife India, a private sector insurer launched a product – Met Protect. It is the first such life cover plan by the company to be available online.

MetLife said in a statement, “Met Protect would allow customers within the age group of 21-45 years to avail of life cover protection through the Internet.” It was published in ET.

So, Met Protect would be available for age group of 21-45 years. It will cover life protection through the internet.

An online news portal – economictimes.indiatimes.com about business and economy, quotes a statement of MetLife Managing Director Rajesh Relan, “By launching Met Protect, we are taking yet another step to reach our customers and empower them to self-design their protection plan with least effort and time.”

So, the company has tried to reach its customers and empower them with least effort and time – Met Protect.

Further he said, “This is part of our larger strategy towards increasing our distribution reach and enabling us to maximize the benefits in order to provide value to the customers.”

Met Protect will be a part of MetLife’s larger strategy to maximize the benefits in order to provide value to the customers.

The news portal writes about Met Protect and MetLife, “Met Protect would offer customers single and semi-annual premium payment option, the first of its kind amongst all the term products available online.

MetLife currently has over 55,000 financial advisers and bank assurance distribution channel offering products to 17 million customers.

MetLife India is a joint venture between the US-based MetLife International Holdings, The Jammu and Kashmir Bank, M Pallonji and other private investors.”

Met Protect of MetLife comes with single and semi-annual premium payment option. MetLife India is a joint venture between the US-based MetLife International Holdings.

MetLife has introduced Met Protect which is one of the best products of the company after 3 new products of Aviva Life Insurance.

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Life insurers may be allowed to invest in infra bonds

Posted in insurance by kishosingh on June 25, 2010

Recently, a news came from IRDA that Life insurers may be allowed to invest in long-term infrastructure bonds proposed by the India Infrastructure Finance Co. They can invest for refinancing greenfield infrastructure projects. It is the decision of IRDA and the group has decided to allow insurers to invest in India Infrastructure Debt Fund bonds.

About this economictimes.indiatimes.com quotes a statement of R K Nair, “We found the Deepak Parekh Committee recommendations favourable for insurers and have forwarded our views to the government. The Deepak Parekh committee has recommended that insurance companies can invest in the proposed India Infrastructure Debt Fund.”

Further the news portal writes, “Long-term financial instruments will help life insurance companies develop their annuity business. Insurers have so far remained away from investing in greenfield infrastructure projects.

These were considered risky. However, insurance being a long term business, insurers have been looking for long term investment avenues, but there are none available other than 10-year government securities. Insurers are also not too comfortable with investing directly in greenfield infrastructure projects since these have a high rate of failure.

Hence, a mechanism that could take away the risk of failure, could be very helpful for insurers and also cater to their long-term investment requirements. As of now, debt financing for infrastructure projects has been largely confined to commercial banks who are increasingly finding it difficult to provide long-term debt due to their asset-liability mismatch.”

Further the news portal publishes a report of planning commission, “The committee said Rs 20,000 crore could come from domestic insurance and pension funds, while foreign insurance and pension funds may provide another Rs 10,000 crore. Rest would come from other sectors.”

“The planning commission had decided to set up a committee to look into the viability and modalities of creating India Infrastructure Debt Fund under the chairmanship of Deepak Parekh.”

TATA to Buy AIG in life insurance JV

Posted in insurance by kishosingh on August 6, 2009

There is the biggest news in insurance sector. TATA is to buy AIG in life insurance JV. Tata has planned to buy out AIG which is US insurer from the life JV, TATA AIG Life insurance. We have already published an analysis of life insurance industry in the comparison of AIG. According to our analysis AIG is facing crisis in the USA. About the loss of AIG we write in our previous post, banking and insurance sector loss,

“AIG’s loss amounts to 92 per cent of the $67.4 billion that Americans spent at world’s largest retailer Wal-Mart Stores Inc. in the fourth quarter, which includes the holiday season. It would take a person spending $1 million per day, everyday, the next 169 years to spend as much money as AIG lost during the fourth quarter, which lasted just 92 days.”

About the deal ET writes,

“Initially, there were indications that AIG would sell its Asian life insurance business. Earlier this year, US’ Metlife, UK’s Prudential and French insurer Axa had shown interest in buying parts of AIG’s life insurance business. But this could have caused regulatory problems in India, as all three multinationals have a presence here through JVs.”

It means not only TATA but also there are many insurance companies who are trying to take a chance to buy some share of AIG.

There is another thing which has made TATA to buy AIG that is global economic slowdown. These days AIG is suffered from huge loss in the USA. You should know that the USA government has bought maximum shares of AIG to get from crisis but still the insurance company facing more problems to survive globally.

Another thing which is also most important, US government has decided to sell shares by its Asian business under AIA. You should know that AIA is an arm of AIG, a public offer.

TATA spokesperson doesn’t want to comment at all on this situation, “We do not wish to comment on such speculation.” It is the truth that AIG was able to infuse money into the Indian life insurance JV despite of, crisis.

AIG plans to invest in non-life business also that could be strong position for that company. TATA is still in confusion to choose it’s a reliable partner.