Page 9 - The Insurance Times September 2024

when a record- breaking spell of rains Govt may take offer-for-sale route to reduce stake
in December had submerged large
parts of the city for multiple days and in GIC Re
resulted in the death of at least 400 GIC Re, India's largest re-insurer, is preparing for a possible offer-for-sale
people. (OFS) by the Government, with the likelihood of a credit rating upgrade by
AM Best seen acting as a tailwind.
Will insurance companies Currently, the Government has 85.78 per cent stake in the company. For a
be phased out from company to be listed and continue to be listed, it must have a minimum
public shareholding of 25 per cent.
PMFBY
In a reply to a question on the possibility of the Government diluting its stake
The Centre may remove insurance
in GIC Re, Chairman & Managing Director Ramaswamy N, said: "We are
companies from the subsidised crop
ready, but it's not our call. There are two ways of doing it. We can issue
insurance scheme - PM Fasal Bima
more equity so that the Government's share comes down. But, currently,
Yojana - in the next few years and as- we don't need capital. From a solvency perspective, we are in a very good
sign the job to State governments af- position. So we will not be issuing equity."
ter infusion of technologies in crop-cut-
ting and satellite monitoring of sowing, "What will happen is the government will bring down its stake possibly via
harvesting starts showing results. OFS route...As a company, we are ready for the process."
"Though it is too early to say defini-
tively that insurance companies will be PhonePe Unveils Pre-Ap- users but also enable insurers to ex-
driven away, of late, there is a demand tend their services to more than 30
from the States that have started ques- proved Term Life Insurance million individuals who were previously
tioning the role of insurance compa- to Boost Financial Inclu- excluded from the benefits of term in-
nies in PMFBY. So, in the next phase, sion surance due to the lack of income
the States may be given the option to proof.
carry out PMFBY themselves by taking PhonePe, a leading digital payments PhonePe's initiative is expected to ex-
the responsibility," an official source platform, has introduced a revolution- pand its reach significantly, with the
ary 'pre-approved term life insurance'
said. goal of making this feature available to
feature on its platform. Announced on
Already Andhra Pradesh, Maharashtra Friday, this new initiative aims to break 50 million users by the end of the year.
and Odisha are implementing universal down traditional barriers to insurance The company is focused on providing
coverage - covering all landowning farm- by eliminating the need for income seamless access to term insurance
ers - by paying even the farmers' share proof during policy purchase, thereby products on its platform, empowering
of premium (either completely or charg- making insurance more accessible and millions of users to secure life insurance
ing a token Rs. 1 to farmers) under affordable for millions of Indians. without the hurdles of traditional docu-
PMFBY, sources said. Many other States The launch represents a significant mentation.
are also considering universalisation of step towards financial inclusion in In- "We are thrilled to launch the 'pre-
crop insurance, the sources said. Bihar, dia. By waiving the requirement for approved sum assured (PASA)' feature
West Bengal and Gujarat too have their income verification, PhonePe is broad- on our platform, which marks a new
own crop insurance schemes that cover ening the reach of insurance products era of financial inclusion," said Vishal
all the farmers. to a wider audience, particularly those Gupta, CEO of PhonePe Insurance

Last week, Agriculture Secretary in underserved sectors. This includes Broking Services. "Our goal is to bring
Devesh Chaturvedi said at a confer- merchants, gig workers, self-employed previously underserved customers into
ence that with the launch of Yes Tech, individuals, and others who typically do the fold of term life insurance by mak-
a tool developed to avoid manual in- not have formal income documenta- ing these products more accessible
tervention in the crop-cutting experi- tion. and affordable across various socio-
ments and to assess crop yields, the To bring this innovative feature to life, economic strata."
crop damage will be accurately esti- PhonePe has partnered with leading Gupta emphasized that PhonePe's mis-
mated and, according, farmers will be insurance providers. These partner- sion is to drive insurance adoption
duly compensated. ships not only simplify the process for across India by simplifying the insur-

The Insurance Times September 2024 9