IRDAI in the year 2011 introduced the Insurance Repository (IR) system to provide policyholders a facility to keep insurance policies in electronic form and to undertake changes, modifications, and revisions in the insurance policy with speed and accuracy to bring about efficiency, transparency, and cost reduction in the issuance and maintenance of insurance policies. Insurance…
The insurance industry of India has 57 insurance companies -24 are in the life insurance business, while 34 are non-life insurers. Among the life insurers, LIC is the sole public sector company. There are six public sector insurers in the non-life insurance segment. In addition to these, there is a sole national re-insurer namely General…
Insurance is a legal agreement between an insurer (insurance company) and an insured (individual/legal entity), in which an insured receives financial protection from an insurer for the losses he may suffer under specific circumstances. In insurance policy, there are three important terms viz. Premium, Sum insured, Sum assured. Premium: The insured needs to pay a…
Insurance penetration and density are two metrics, that so often used to assess the level of development of the insurance sector in a country. These metrics are normally expressed in terms of US$. Insurance Penetration: Insurance penetration is measured as the percentage of insurance premiums to the GDP of the country. For instance, if a…
Privatisation and foreign direct investment (FDI) have been seen by policymakers, in India and abroad as key components of India’s reform program. Indian Parliament on 22 March 2021 passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49%. With the Union Cabinet approving…
Insurance denotes protection from financial loss in which, one party (an insurance company) in exchange for the amount of premiums it collects agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or…
An annuity plan is an insurance contract between you (the annuitant) and an insurance company to provide you with a regular stream of 100% guaranteed pension for a lifetime after retirement. This helps you to secure your life goals and create a financial net for your family. The life insurance company invests your money and…
A retirement fund’s investments typically include a broad portfolio of stocks, bonds, mutual funds, and other assets. The primary goal is to gradually accumulate wealth; ensuring individuals have a sizeable nest egg to support a comfortable and financially secure retirement. Retirement mutual funds are focused funds for the golden years with a lock-in of at…
InvITs stands acronym for Infrastructure Investment Trusts. They are similar to REITs but invest in infrastructure projects like roadways, power plants, transmission lines, and other infrastructure. As per current SEBI Regulations InvITs can be divided into 5 key types depending on the types of infrastructure they own or operate: The business model of Infrastructure Investment…
REIT stands for “Real Estate Investment Trust”. These trusts were originally devised in the United States in 1960 under the Cigar Excise Tax Extension Act. The first REIT was listed on the New York Stock Exchange in 1965. REIT approach has flourished and served as the model for around 40 countries around the world. REITs…