Page 15 - Insurance Times May 2024

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LIC strongest insurance HDFC Life gets GST demand LIC and New India are the largest life
and general insurance companies in
brand globally: Report orders of Rs. 27 crore the country, respectively. Meanwhile,
LIC is termed as the strongest HDFC Life Insurance Company said it GIC Re is the sole Indian reinsurer.
insurance brand with a steady has received GST demand orders of The distress or failure of these D-SIIs
brand value of $9.8 billion, a brand over Rs 27 crore for alleged short would lead to a significant dislocation
strength index score of 88.3, and an payment of taxes.
associated AAA brand strength In two separate regulatory filings, the in the domestic financial system.
rating, notes a report by Brand insurer said it has received tax demand Therefore, the continued functioning of
Finance Insurance 100 2024. D-SIIs is critical for the uninterrupted
orders of over Rs 16.5 crore and Rs 10.5 availability of insurance services to the
According to the report, Cathay Life crore from authorities for alleged short national economy.
Insurance is the second strongest payment of GST and input tax credit
brand, with a 9 per cent increase in claim mismatch. The demand orders The perception and the perceived
brand value to $4.9 billion, followed include interest and penalty as well. expectation of government support by
by NRMA Insurance, which saw an these entities is likely to amplify risk-
82 per cent rise in brand value to The company said it will file appeals taking, reduce market discipline,
$1.3 billion. against the GST demand orders before create competitive distortions and
the Appellate Authority.
Meanwhile, Chinese insurance increase the possibility of distress in the
brands maintain dominance in the LIC, GIC Re, New India future.
global rankings of most valuable It is due to these considerations that
insurance brands, with Ping An retain 'D-SII' tag D-SIIs are subjected to additional
leading with a 4 per cent increase LIC, GIC Re and the New India Assurance
in brand value to $33.6 billion Company continue to be identified as regulatory measures to deal with
followed by China Life Insurance and Domestic Systemically Important systemic risks and moral hazard issues
CPIC retaining their third and fifth Insurers (D-SIIs) by the IRDAI. with an increased level of corporate
positions, respectively. governance and the need for these
"LIC, GIC Re, and New India continue insurers to identify all relevant risks and
Allianz from Germany and AXA from to be identified as Domestic
France are holding on to their second Systemically Important Insurers (D- promote a sound risk management
and fourth positions in the top 5 framework and culture.
rankings. SIIs), as in the 2022-23 list of D-SIIs,"
IRDAI said. Insurance sector received
Apart from NRMA Insurance from
Australia, another insurance D-SIIs are insurance companies which Rs. 54,000-crore FDI in last
company experiencing significant are perceived as 'too big or too
growth in brand value is Denmark's important to fail' (TBTF) based on their 9 years
Tryg, which saw a 66 per cent rise size, market importance, and domestic The government increased the
to $1.6 billion. and global interconnectedness. permissible FDI limit from 26% in 2014

14 May 2024 The Insurance Times