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SPOTLIGHT
United India Insurance Company Limited
-- Kamatla Sheeba
© 2009 IUP. All Rights Reserved.
COVER STORY
Reinsurance: The New Market Dynamics
-- Jayshree Bose
If other catastrophe insurance industry players have been coping with unnerving uncertainty for the past
two decades, for reinsurers, this period has been of extreme volatility and formidable challenges. From
low capacities, that led to credit default, loss of credibility and lowered ratings to excess capacities that resulted
in a prolonged spate of soft rates, poor corporate results—not to speak of growing competition from
alternative risk transfer mechanisms—reinsurers have undergone a 360-degree experience in change and evolution.
This article takes a look at the new reinsurance market dynamics and what the course of the much-debated
future of the sector is likely to be.
© 2009 IUP. All Rights Reserved.
BUSINESS ENVIRONMENT
Global Financial Crisis
Impact on Insurance and Reinsurance Industry
-- BV Ramana
The global financial crisis, which owed its origin to the subprime crisis, cannot be compared with
catastrophes like Tsunami as it is neither accidental nor fortuitous in nature. It is a man-made peril. Though the
insurance industry (barring AIG, the insurance giant) escaped largely unscathed from the first round effects of
the subprime disaster, the prolonged credit and liquidity crises, as well as the consequent recession in the
financial services sector, has had its direct and indirect impact on both primary and reinsurance markets the world over.
© 2009 IUP. All Rights Reserved.
BUSINESS ENVIRONMENT
The New Era of Megacatastrophes
-- Gary Kerney
Large catastrophes are more frequent and costly than ever. For insurers and reinsurers alike, the
implications will be severe. How can the industry adjust to this new reality?
© 2009 Risk and Insurance Management Society, Inc. All Rights Reserved. This article was first published in the April 2009 issue of Risk Management Magazine. Reprinted with permission.
BUSINESS ENVIRONMENT
The Future of Indian Insurance Sector
-- K Rajesh
India, the one plus billion population country, has the largest number of life insurance policies in force in
the world. The overall premium growth rate was around 11.96% annually, and together with banking
services, it contributed around 8% to the country's GDP for the past three years from 2005-2008. Even though
the world is reeling through recession, no one has doubts on the future of the insurance sector. This article
deals with the past, the present and the future of the life insurance industry in India.
© 2009 IUP. All Rights Reserved.
LIFE INSURANCE
Need for Old Age Security in India
-- R Venugopal
Since life expectancy is going up in India and by 2025, 13% of our population would be in the age bracket
60 and above, it is time we give a thought to some provisions for the senior citizens. Otherwise, this
sizable populace faces the risk of being considered a liability and a burden. As the New Pension Scheme is to
be extended to the general public, this is an opportunity to inculcate the habit of saving for pension among
the youngsters.
© 2009 IUP. All Rights Reserved.
LIFE INSURANCE
Understanding Child Insurance Plans
-- B Balaji Sathya Narayanan
Children's policies are becoming increasingly popular, especially when viewed in the context of the rising
cost of education. This article attempts to explain the rudiments of a child insurance plan in detail.
©2009 IUP . All Rights Reserved.
NON-LIFE INSURANCE
Detariffication, New Amendments and Non-Life Insurers
-- GV Rao
Detariffication has led to the financial weakening of all non-life insurers. With the stock market
performing poorly, their financial problems have worsened. Greed for premium volumes, indulgence in poor
corporate governance standards and unethical conduct in the past has piled on to make their financial agony even
more acute. This article contends that the proposed amendments to the Insurance Act by the government cater
to sectional interests and not to build a dynamic insurance market of the future.
© 2009 IUP. All Rights Reserved.
NON-LIFE INSURANCE
Crime Insurance: The Other Property Policy
-- William K Austin
Even in the best of times people steal. The economic climate of 2009 will certainly create the atmosphere
for many people to rationalize dishonest ways to make ends meet. Others will view their dishonest activities
as business as usual and continue to look for an easy buck the old-fashioned way— take it from someone else.
© 2008 International Risk Management Institute, Inc. (www.IRMI.com). This article was first published in the March 2009 issue
of IRMI.com. Reprinted with permission of the publisher from the Expert Commentary Section of www.IRMI.com
HEALTH INSURANCE
The Drivers of National Health Costs
-- Tony Batory
The present annual costs of universal health coverage are $300 bn approximately and will
progressively increase every year. The cost drivers are many and diverse. With proper direction, health plans can be
of immense help.
© 2008 American Academy of Actuaries. This article was first published in the Mar/Apr 2009 issue of the Contigencies Magazine. Reprinted with permission. |
