Page 56 - Insurance Times March 2016 Sample

Operating Cash Flow Poll Will the Crop Insurance policy launched by the
Measures the funds generated from in- government, help the needy farmers in the
surance operations, which includes the Yes long run?
change in cash and invested assets at- No
tributed to underwriting activities, net Can’t say Results of Poll in our February 2016 Issue
investment income and federal income
taxes. This measure excludes stock- Do you think after the devastating flood affect-
holder dividends, capital contributions, ing South India, the insurers and regulatory
unrealized capital gains/losses and vari- bodies will come up with more products and
ous noninsurance related transactions services?
with affiliates. This test measures a
company's ability to meet current obli- You may send your views to : Yes 100
gations through the internal generation No 00
of funds from insurance operations. Poll Contest, The Insurance Times Can’t say 00
Negative balances might indicate unprof-
itable underwriting results or low yield- 25/1, Baranashi Ghosh Street, Kolkata - 700 007
ing assets. Phone : 2269 6035, 2218 4184, 40078428
Fax: 033-22736612, Email: insurance@bimabazaar.com
Overall Liquidity Ratio
Total admitted assets divided by total Technology to be revamped in the insurance industry
liabilities less conditional reserves. This
ratio indicates a company's ability to The insurance sector should gear to match the current requirements of e-
cover net liabilities with total assets. commerce and digital solutions, said T.S. Vijayan, Chairman IRDAI.
This ratio doesn't address the quality and
marketability of premium balances, af- Speaking at the formal launch of the e-Vahana Bima, electronic motor-insur-
filiated investments and other uninvested ance policies, Vijayan said there was need for better recourse to digital solu-
assets. tions available in insurance industry.

The success of low-cost (premium) life and accident insurance policies launched
by the Centre last year was an example of innovative schemes in insurance,
he said. The Common Service Centres (CSC), which are selling low-cost insur-
ance policies, and insurance repositories should be used more by the industry
and people, he added.

Under the e-Vahan Bima, electronic motor insurance policies are issued in
digital form with Quick Response (QR) code. As these policies can be stored
and accessed on smart phones, the process of verification will be easier for
commuters as well as the police.

GROSS DIRECT PREMIUM INCOME UNDERWRITTEN FOR AND UPTO THE

MONTH OF JANUARY, 2016 (Rs in crores) NON LIFE INSURERS

INSURERS JANUARY Growth of CUMULATIVE % of Growth
January 2015 UPTO Upto January 2016

over JANUARY over the period
January 2015 Upto January `2015

2015-16 2014-15 2015-16 2014-15

Private Sector 3754.92 3185.02 17.9% 32382.05 28815.37 12.4%

Public Sector 4162.46 3729.14 11.6% 39139.47 34951.91 12.0%

Stand-alone Health 485.11 380.68 27.4% 3131.19 2212.52 41.5%

Specialised 438.40 265.67 65.0% 4065.77 3216.20 26.4%

Grand Total 8840.89 7560.51 16.9% 78718.48 69196.00 13.8%

56 The Insurance Times, March 2016