Insurance Plans Reviews and Articles

Guarantee Builder Launched by Bharti AXA Life

Posted in life insurance by kishosingh on June 9, 2009

Private life insurance joint venture between Bharti Enterprises and AXA, Bharti AXA Life Insurance, launched an innovative premium guarantee product – Guarantee Builder.

Nitin Chopra who is the CEO of Bharti AXA Life said,

“This premium guarantee product addresses the needs of those traditional and new investors who are wary of market volatility – as is the case currently – but would still like to participate in the Indian growth story.”

Guarantee Builder would be a package for long-term customer to get benefit, as per the Chopra statement. Guarantee Builder will provide customers the benefit of increasing GMV (guaranteed maturity value). It is a first-of-its-kind benefit product to Indian customers.

Economic Times online news paper writes about the premium,

“GMV is the sum of the investment premiums payable over the term of the policy. Guarantee Builder provides customers the comfort of the GMV increasing by 1% each year till it reaches 115% of GMV at maturity.”

Guarantee Builder would be the new guarantee fund to Build & Protect. It will provide customers the option for the long-term to remain invested in equity up to 40%. It gives the flexible option to move out of the guarantee to switch out of Build & Protect Fund.

At the end of the 10th and 15th year a special addition of 2.5% of average policy fund value will be provided customers the benefit of wealth creation over the long-term. Guarantee Builder will provide death benefit of sum assured plus fund value. It would be with sum assured for ten times on the annual investment premium.

Latest news shows that Bharti AXA Life has also plan to invest Rs 100 crore into the life company in the July-September quarter.

Bharti AXA Life has many plan and investment option nearly to the new customers. The company is trying to invest almost all growing industries.

Life Insurance Industry Falling in Competition of General Insurance

Posted in life insurance by kishosingh on May 2, 2009

According to the recent news, life insurance premium collection has fallen about 11.6% in the fourth quarter. In the financial year 2009 (April – March) has brought down about 6% according to the Insurance Regulatory and Development Authority (IRDA).

North-zonal Manager, Sanjay Kumar Jha from Bajaj Allianz said to the Economic Times, “The stock market crash in the previous fiscal led to a drop in the demand for unit-linked insurance plans, pulling down sale of new policies.” About the new premium collection ET says, “New premium collection clocked Rs 34,814.55 crore in Q4 against Rs 39,413.16 crore in the corresponding period of the previous fiscal. For the full fiscal, it stood at Rs 87,107.62 crore compared to Rs 92,988.71 crore in the previous fiscal.”

About the down it is said that the market leader LIC (Life Insurance Corporation) has gone more down about 10% whose market share was 60% to 63%. The collection has declined during the year which had been sold this year.

It is being said that LIC’s policy Jeevan Aastha premium collection would have been worse also.

Another news according to IRDA data shows that general insurance sector is in growth from 9% to 12.6%. Among the 16th non-life insurance companies only Reliance has posted negative growth in the sector.

In the other hand Birla Sun Life Insurance Rs 10,000 crore marks in Assets under Management (AUM). According to the Vikram Kotak who is the Chief Investment Officer said to the ET, “it gives us great pleasure to cross the landmark of Rs 10,000 crore of AUM and in the process registering a strong growth of 41 per cent year-on-year.”

On the analysis of Insurance sector we can say that the sector differ company to company not from policy to policy because in the one hand LIC is going down in life insurance where on the other hand BSLI is going up. Like it, in the general insurance policy all the insurance companies going up where Reliance is going down.