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basant
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   Posted: 24/Oct/2007 at 8:39am |
Originally posted by smartcat
Royal Sundaram has given me a 50% discount in the insurance quote - no claims in the previous year. Such massive discounts are prevalant because car insurance sector has been deregularized. And the insurance players are falling over eachother to keep their marketshare.
If that little dent on the fender is bothering you, claim the insurance right away. Claims or no claim - you will anyway get a massively discounted quote. |
This is a great pointer to what the insurance writers are having to go through. Makes much more sense in investing in companies that distribute such policies rather then write insurance at abysmally low rates to gain market share
Just trying to get some stock market sense out of the conversation.
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kulman
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Posted: 24/Oct/2007 at 8:48am |
Buffet mentions many times that GEICO's moat is it's low cost insurance.
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kulman
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Posted: 24/Oct/2007 at 9:11am |
The life and general insurance units, to be called Future Generali India Life Insurance Company and Future Generali India Insurance Company, respectively, will each have a paid-up equity of Rs 115 crore, said Kishore Biyani, chief executive of Future Group.
The insurance products will be sold in the company’s malls, department stores and supermarkets, as well as Future Money outlets, which deal in consumer loans, Biyani said.
The company will also use traditional distribution channels like insurance agencies and bancassuarance.
Former Securities and Exchange Board of India (Sebi) chairman G N Bajpai will head the joint venture firm.
Future Generali also plans to get into health and travel insurance in the next 1-2 years.
Meanwhile, Generali admits that it might take a while to break even. “There are always losses incurred during the initial years of operation.
However, we plan to break even in the next 7-8 years — this again depends on various parameters like how well the business grows here,” said Kim Chai Ooi, country manager & chief executive officer of Future Generali.
“We don’t care if it takes time, but we do want to be at the top in 5-10 years”, Balbinot added.
Source: http://www.dnaindia.com/report.asp?newsid=1129708
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smartcat
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Posted: 25/Oct/2007 at 12:25pm |
| Makes much more sense in investing in companies that distribute such policies rather then write insurance at abysmally low rates to gain market share |
Automobile insurance is not such a great business to be in - with hormone loaded 18 year olds driving like Maikalaal Shoemakers.
The real money is in Life Insurance business.
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kulman
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Posted: 25/Oct/2007 at 10:41am |
Global reinsurance major Swiss Re has forecast India and China to be hotbeds of bancassurance among the emerging economies.
The business, where banks tie up with insurance forms for selling the latter’s products, is expected to account for 13% and 5% of life and non-life insurance business respectively in the next five years, a Swiss Re report said.
Industry analysts feel the dynamics of bancassurance in India will change when banks are allowed to be corporate agents for more than one insurance company.
“Mature markets like Australia, Hong Kong and Singapore will continue to see banks taking a more aggressive stance to sell insurance in order to supplement their fee-based income. Surveys show consumers are more open to the idea of buying insurance from banks in most markets. Banks are finely segmenting their client base to push different insurance products”, the Swiss Re report said.
According to the report, while bancassurance has been gaining popularity, it has also faced obstacles. Regulators are concerned that liberalisation will exacerbate market polarisation, for example, when large banks partner with only large insurers.
At the same time, there are fears about upsetting existing channels, the time needed to train bank staff and mis-selling.
Edited by kulman - 25/Oct/2007 at 10:45am
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basant
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Posted: 25/Oct/2007 at 11:31am |
Originally posted by kulman
Global reinsurance major Swiss Re has forecast India and China to be hotbeds of bancassurance among the emerging economies.
The business, where banks tie up with insurance forms for selling the latter’s products, is expected to account for 13% and 5% of life and non-life insurance business respectively in the next five years, a Swiss Re report said.
Industry analysts feel the dynamics of bancassurance in India will change when banks are allowed to be corporate agents for more than one insurance company.
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Is this not why buying distributors of insurance (Private Banks with higher non interest income) such a great thing?
Edited by basant - 25/Oct/2007 at 11:32am
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kulman
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Posted: 26/Oct/2007 at 12:00pm |
It is..........having said that, does it warrant caution on account of whims & fancies of Govt policy/regulations?
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basant
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Posted: 26/Oct/2007 at 12:06pm |
I am catiously optimistic (bullish).
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