Page 12 - Life Insurance Today January-June 2020

Appropriate standards / benchmarks have to be developed processes and systems and increases transparency, be
based on various general factors mentioned herein above wasted. It is several such small incremental improvements
(and there could be many more). By their very nature the in retrospect, represent / constitute the achievement of
standards cannot be static, hence a mechanism has to be some thing which once was deemed unachievable /
in place to regularly keep the developed bench marks impossible. Irrespective of the outcome, some churning of
updated. ideas is always a welcome sign of life. Let us try to live.
Some action points :
Elements of operational items for which standards are
1. Start to disclose readily available real term service
needed have to be constantly monitored. Un-monitored
measures / parameters (To begin with number and type
standards are no standards. The goals an organisation
wishes to pursue may be the prerogative of each of customers, or sum insured) and simultaneously start
organisation. When we are talking of the standards or developing mechanisms to extract as many such
benchmarks we do not mean to interfere with additional parameters measures as possible over a
organisational prerogatives. But we are talking about some specified period and make their disclosure a routine
guide posts meant for higher purpose having community affair.
interest at core and for enhancing readers understanding. 2. Review the manner and format of reporting to increase
the intelligibility and transparency. Inter-sector
In each one of the above areas, “how much is too much ?” comparison of key factors should also be the focus of
is question whose answer, can never have consensus. The such revision. appropriate comparison. Report on
issue is of quality over quantity. Very often deluge of performance, and Report on state of affairs / status
information (repeated presentation of the same set) should focus on exceptions /deviations and exclude the
confuses the reader and puts him off. Most of it is routine routine.
stuff. The significant one, if any, either remains hidden or 3. A broader institutional frame work (may be Institute
gets crowded out by the routine. Therefore the manner and of Chartered Accountants of India, has to work towards
method of presentation is extremely important and needs, evolving practices which can facilitate inter-sector
not only be thoroughly thought out but also regular follow comparisons. Simultaneously organisations have to
up for incremental improvements. Standards / benchmarks ensure the necessary flexibility in their systems, so that
should help in identifying the significant ones by easily it becomes easier to adapt to changes.
locating deviations / exceptions, to make them the focus of
reporting. 4. Performance analysis, and review by an independent,
authoritative body other than regular overseeing
authorities. Such a body should have right kind of
To sum up, the hustle and bustle of day to day corporate
life focused more on the immediate needs, has no scope people.
for looking back, nor does it leave any scope for finer 5. A body representing the industry has to examine and
aspects of commoner's interest. Yet, self interest calls for work on the theme of evolving benchmarks / standards
some real introspection at regular intervals. No opportunity, / norms against the backdrop of which the performance
how so ever small, which enhances the simplification of needs to be reviewed. T

LIC invests Rs. 46,850 cr in equities during Apr-Jan
LIC has infused Rs 46,850.33 crore in equities in the first 10 months of FY20, according to official data. In the April-
January period of FY19, LIC has invested Rs 59,115.67 crore. According to LIC, its profit in the first 10 months of FY20
from investments in equities increased by 42.36% to Rs 23,273.85 crore, from Rs 16,348.81 crore a year ago.
During the same period, domestic institutional investors (DIIs) inclusive of mutual funds and insurance firms had in-
vested Rs 56,827.37 crore in the stock markets.
According to the press release, LIC breached the Rs 1.5 trillion mark in new business premium for the first time ever
in the 10-month period in order to maintain its dominant position in the industry, growing 17.48% year-on-year in
terms of first-year premium to Rs 45,199 crore.

12 January - June 2020 Life Insurance Today