...3rd Prize Winner – Shri Raghav Jain, Birla Institute of Management Technology Mis-selling in Insurance and how to prevent it 1. Mis-selling at a glance By definition, mis-selling means selling a product by giving a wrong picture of a product, it may include, giving wrong information, giving unrealistic information, not giving full information about the product. You must have heard an insured, saying – but this was not I asked for. And, your agent accusing, but then I did mentioned all the details upfront, didn’t I? Insurance is a business of selling commitments and here is a case where this was broken. Unfortunately the product was mis-sold. Mis-selling is not unique to insurance and happens in various lines of businesses (loans, credit cards, investment products, pharmacy, hospitality etc.), but Insurance being an intangible service – the principle of Caveat emptor prevails in insurance. Often, the intermediary does not fully explain the policy details to the customer. Or the buyer (insured) is in a hurry and doesn't care to check the fine print. There have been cases reported where the agent deliberately misguided the buyer. Discussing an example of mis-selling: A person aged 54, having a handsome amount of savings with him and having no dependents (no kids and wife has passed away a few years ago), has no need of a term insurance (death benefit) but the agent may sell him this policy. A common practice that is seen in this regard is where the agent sells the...
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...Solution Architecture IRDA Business Analytics Project Nov 2010 Solution Architecture Document - IRDA Business Analytics Project Table of Contents List of Abbreviations Used with Their Definition .......................................................................................... 5 List of Terms Used with Their Definition ...................................................................................................... 9 1. 1.1 1.2 2. 3. 4. 5. 5.1 5.2 6. 7. 7.1 7.2 7.3 7.4 7.5 8. 9. 9.1 9.2 10. 10.1 Executive Summary ......................................................................................................................... 14 Introduction ................................................................................................................................ 14 Solution Architecture .................................................................................................................. 14 Objectives of the Business Analytics Solution ................................................................................ 17 Key Business Drivers ....................................................................................................................... 17 Solution Themes ............................................................................................................................. 18 Present IT Infrastructure at IRDA ..............................................................................................
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...Head Department of Economics Mahatma Phule A. S. C. College, Panvel, Dist. - Raigad Insurance sector in India is one of the growing sectors of the economy. India’s growing consumer class, rising insurance awareness, increasing domestic savings and investments are among the most critical factors that have positively driven the market penetration of the insurance product among its consumer segments. Both the life and non-life insurance in India, which were nationalized in the 1950s and 1960s respectively, which were liberalized in 1990s. Since the formation of IRDA and the opening of the insurance sector to private players in 2000, the Indian insurance sector has witnessed rapid growth. The opening up of the insurance sector has led to rapid growth of the sector. The total premium of the insurance industry has increased at a CAGR of 24.6 percent to reach INR 2,523.9 billion in 2009 KEYWORDS : Life Insurance, LIC, IRDA, Private Insurance Companies Introduction: The economic reforms initiated in the early 90s paved the way for the growth and opening up of the financial sector, which led to a sustained period of economic growth. The insurance industry was opened up for private players in 2000, and has seen tremendous growth over the past decade with the entry of global insurance majors. India is fast emerging as one of the world’s most dynamic insurance markets with significant untapped potential. The insurance sector plays a critical role in a country’s economic development....
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...3rd Prize Winner – Shri Raghav Jain, Birla Institute of Management Technology Mis-selling in Insurance and how to prevent it 1. Mis-selling at a glance By definition, mis-selling means selling a product by giving a wrong picture of a product, it may include, giving wrong information, giving unrealistic information, not giving full information about the product. You must have heard an insured, saying – but this was not I asked for. And, your agent accusing, but then I did mentioned all the details upfront, didn’t I? Insurance is a business of selling commitments and here is a case where this was broken. Unfortunately the product was mis-sold. Mis-selling is not unique to insurance and happens in various lines of businesses (loans, credit cards, investment products, pharmacy, hospitality etc.), but Insurance being an intangible service – the principle of Caveat emptor prevails in insurance. Often, the intermediary does not fully explain the policy details to the customer. Or the buyer (insured) is in a hurry and doesn't care to check the fine print. There have been cases reported where the agent deliberately misguided the buyer. Discussing an example of mis-selling: A person aged 54, having a handsome amount of savings with him and having no dependents (no kids and wife has passed away a few years ago), has no need of a term insurance (death benefit) but the agent may sell him this policy. A common practice that is seen in this regard is where the agent sells the policy promising...
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...1. HDFC Standard life insurance company ltd. HDFC Standard Life insurance company ltd is one of India's driving private life coverage organizations, which offers a scope of individual and group insurance solution arrangement. It is a joint venture between housing development finance corporation limited (HDFC Ltd). It is one of the India’s leading housing finance institution and the standard life assurance company, a leading provider of financial service from the united kingdom. IRDA (Insurance Regulatory and Development Authority) The Government of India has enacted the Right to Information Act, 2005which has come into effect from October 13, 2005. The Right to Information under this Act is meant to give to the citizens of India access to information under control of...
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...3rd Prize Winner – Shri Raghav Jain, Birla Institute of Management Technology Mis-selling in Insurance and how to prevent it 1. Mis-selling at a glance By definition, mis-selling means selling a product by giving a wrong picture of a product, it may include, giving wrong information, giving unrealistic information, not giving full information about the product. You must have heard an insured, saying – but this was not I asked for. And, your agent accusing, but then I did mentioned all the details upfront, didn’t I? Insurance is a business of selling commitments and here is a case where this was broken. Unfortunately the product was mis-sold. Mis-selling is not unique to insurance and happens in various lines of businesses (loans, credit cards, investment products, pharmacy, hospitality etc.), but Insurance being an intangible service – the principle of Caveat emptor prevails in insurance. Often, the intermediary does not fully explain the policy details to the customer. Or the buyer (insured) is in a hurry and doesn't care to check the fine print. There have been cases reported where the agent deliberately misguided the buyer. Discussing an example of mis-selling: A person aged 54, having a handsome amount of savings with him and having no dependents (no kids and wife has passed away a few years ago), has no need of a term insurance (death benefit) but the agent may sell him this policy. A common practice that is seen in this regard is where the agent sells the policy promising...
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...other computer on that same network. Wireless networks that use client/servers have an access point. An access point is a wired controller that receives and transmits data to the wireless adapters installed in each of the computers. There are four main types of wireless technologies which include but not limited too are Bluetooth, IrDA, HomeRF, and Wi-Fi (wireless Fidelity). Bluetooth wireless technology allows users to enable links between their mobile computers, mobile phones, portable handheld devices, and Internet connectivity, which require no wires to be involved or that is needed. It is mostly used for devices such as cell phones, PDAs, wireless headsets, computer hardware, headphones, MP3 players, etc. Bluetooth technology is supported by application and product development in a broad range of market subdivisions, which include software developers, peripheral and camera manufacturers, silicon vendors and many more. The second type of wireless technology out there is IrDA, which is an acronym, which stands for the Infrared Data Association. IrDA uses a series of infrared data pulses to transfer data from one device to another. Since IrDA uses infrared light, the communicating devices must be in direct line of sight with one...
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...originality and in-depth analysis of the subject. Ms. Asnani will receive a cash prize of S$5,000 and she will also make a presentation of the winning essay at the 5th India Rendezvous in Mumbai on 20th January 2012. The “Energise Insurance in India” essay competition drew entries from some of the best insurance writers in India and was judged by a distinguished panel of top industry professionals and chaired by Mr Yogesh Lohiya, Chairman and Managing Director of GIC Re. Others in the judging panel included: Mr Jan Mumenthaler, Head-Insurance Services Group, Business Risk Department, IFC; Ms Joan Fitzpatrick, CEO, ANZIIF; Mr Michael J Morrissey, President & CEO, IIS; Mr Dezider Stefunko, Chief, Insurance Unit, UNCTAD; Mr Jawaharlal Upamaka, Editor, IRDA Journal; Mr A K Roy, General Manager, GIC Re; Mr K Raghunath, Vice President, Reinsurance, Bharti AXA General Insurance Co; and Mr G V Rao, Chairman & CEO, GVR Risk Management Associates. More details at www.asiainsurancereview.com For enquiries, please contact: Asia Insurance Review Ms Ann Tay, DID +65 6224 5583 or email: ann@asiainsurancereview.com OR Mr Jimmy John, DID +91 98302 46752 or email: jimmy@asiainsurancereview.com An Indian Solvency II? Word count : 4552 Megha Asnani Business Analyst Accenture Service Pvt. Ltd. Pune Mobile – 9923205400 megha.asnani@gmail.com megha.asnani@accenture.com Years in Insurance – 4.5 Years Page 1 of 18 An Indian Solvency II?...
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...RISK MANAGEMENT AND INSURANCE BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE PILANI PROJECT REPORT ON Insurance Regulations in India SUBMITTED TO Dr.UDAYAN CHANDA & Dr.IMLAK SHAIKH I/C RISK MANAGEMENT AND INSURANCE, DEPT OF MANAGEMENT, BITS PILANI. BY Group-I | Aditya Sharma | 2013H149253P | DarvinXeona | 2013H149266P | DibyaRanjanMaharana | 2013H149239P | Ravali Bhogaraju | 2013H149287P | What is insurance? Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party ON happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large number of people exposed to similar risks makes contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. An insurer is a company...
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...THE UNIVERSITY OF NOTTINGHAM Centre for Risk & Insurance Studies Privatization of the Insurance Market in India: From the British Raj to Monopoly Raj to Swaraj Tapen Sinha CRIS Discussion Paper Series – 2002.X Privatization of the Insurance Market in India: From the British Raj to Monopoly Raj to Swaraj by Tapen Sinha, Ph.D. ING Comercial America Chair Professor Instituto Tecnológico Autónomo de México Mexico City, Mexico and Professor, School of Business University of Nottingham, UK tapen@itam.mx, tapen@nottingham.ac.uk Abstract We examine the institution of insurance in India. Over the past century, Indian insurance industry has gone through big changes. It started as a fully private system with no restriction on foreign participation. After the independence, the industry went to the other extreme. It became a state-owned monopoly. In 1991, when rapid changes took place in many parts of the Indian economy, nothing happened to the institutional structure of insurance: it remained a monopoly. Only in 1999, a new legislation came into effect signaling a change in the insurance industry structure. We examine what might happen in the future when the domestic private insurance companies are allowed to compete with some foreign participation. Because of the time dependence of insurance contracts, it is highly unlikely that these erstwhile monopolies are going to disappear. Acknowledgement: I would like to thank Rebecca Benedict and Samik Dasgupta for their input in...
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...Underwriting in Health Insurance Module 5- Submission 10/22/2014 Health Insurance Management Group 3 Underwriting in Health Insurance Table of Contents Brief History of underwriting .................................................................................................................... 2 Definition of underwriting ......................................................................................................................... 2 What does underwriting entails? ............................................................................................................... 2 Underwriting in health insurance .............................................................................................................. 2 Underwriter and its qualities ..................................................................................................................... 3 The sources of information ....................................................................................................................... 3 Underwriting Process ................................................................................................................................. 4 The challenges faced in underwriting ....................................................................................................... 5 Importance of Underwriting ...................................................................................................................... 6 Examples...
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...Scenario”, in Hyderabad on 24th January, 2012. The Burgeoning Indian Health Insurance Industry: ……...Yet miles to go!!! Introduction Health insurance has become one of the fastest growing segments in the non-life insurance industry in India in the recent years, experiencing a robust sixty per cent remarkable growth during 2007 – 08 over the past year. From a modest premium volume of Rs. 675 crore in 2001- 02 the health insurance premium has grown to Rs. 7803 crores in year 2009-2010, and is poised to grow at a compound annual growth rate (CAGR) of 25 to 30 per cent to reach a market size of around Rs 28,000 crore by financial year (FY) 2015 as per IRDA estimates. This segment is also emerging as an increasingly significant line of business for life insurance companies too, after the Regulator IRDA has granted permission to the life insurance companies also, to sell health insurance policies. Increasing awareness for the need for health insurance, rising health care costs and the recent detariffication of the general insurance industry from January 2007, thereby, emphasizing more...
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...Each state has its own licensing requirements for agents and brokers but the Graham-Leach-Bliley Act (GLB) required more uniform laws in order to allow the agents and brokers to work in different states. General requirements to be licensed include that the individual concerned be above 18 years old. He must not be convicted and he must have passed an authorized examination. In addition, any life insurance agents who sell variable annuities or variable life insurance must also be licensed by the Securities and Exchange Commission, because these products involve investments of securities. An individual agent is one who has undergone requisite training, passed an examination and been duly licensed by IRDA to sell insurance policies to the public...
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...network where it is convenient without the use of physical cabling. Some of the more common wireless technologies used by individuals and organizations alike are; Bluetooth, IRDA, Home RF SWAP, and Wi-Fi. Bluetooth technology is a secure, low cost, low power wireless technology that is a globally accepted technological innovation used on a variety of devices including mobile phones, computers, and home entertainment equipment. Two Bluetooth enabled devices can connect through a process called pairing. Bluetooth enabled devices connect wirelessly through a short range, ad-hoc network called a Piconet ("Bluetooth Baiscs", 2011). This technology has an average range of approximately 10 meters; this range can extend to 100 meters, depending on the strength of the signal. Businesses can use Bluetooth enabled devices to pair with each other when in range, such connecting a laptop to a printer or transferring data from PDA to PC. IRDA (Infrared Data Association) uses infrared data pulses to transfer data from one device to another. IRDA requires a direct line of sight transmission from one device to the other, any obstructions such as walls will block the transmission. Common uses for infrared transmission would be communicating data from a PDA or Smartphone to a computer and vice-versa. IRDA is low cost, low power consumption, short range implementation that provides efficient, reliable data transfer. The approximate range of the infrared signal is 5 meters (16...
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...INCREASING INSURANCE PENETRATION IN INDIA Insurance penetration is the ratio of the percentage of total insurance premiums to gross domestic product. It tells us the level to which a market is being tapped. Thus insurance penetration is a tool to understand and identify the reasons of the success or failure and the degree of presence of insurance in the economy of a country. Indian insurance is a flourishing industry, with several national and international players competing and growing at rapid rates. Thanks to reforms and the easing of policy regulations, the Indian insurance sector been allowed to flourish, with a period 2010-2015 projected to be the ‘Golden Age’ for the Indian insurance industry. With a huge population base and large untapped market, insurance industry is a big opportunity area in India for national as well as foreign investors. India is the fifth largest life insurance market in the emerging insurance economies globally and is growing at 32-34% annually. This impressive growth in the market has been driven by liberalization, with new players significantly enhancing product awareness and promoting consumer education and information. Indian Insurance Market – History Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata...
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