Page 56 - Insurance Times July 2016

Poll Will IRDAI be able to keep track of the Online
Insurance Product Sells and Services in the
Yes
No long run?
Can’t say
Results of Poll in our June 2016 Issue

Do you think insurers should solely
depend on the Banks for selling their

policies?

Premium Balances You may send your views to : Yes 60
No 40
Premiums and agents' balances in Poll Contest, The Insurance Times Can’t say 00
course of collection; premiums, agents'
balances and installments booked but 25/1, Baranashi Ghosh Street, Kolkata - 700 007
deferred and not yet due; bills receivable, Phone : 2269 6035, 2218 4184, 4007 8428
taken for premiums and accrued retro- Email: insurance.kolkata@gmail.com
spective premiums.
3 foreign re-insurers set to get IRDAI approval
Premium Earned
The Insurance Regulatory and Development Authority of India (IRDAI) is likely
The amount of the premium that has been to accord final approval to three foreign re-insurers to set up branches in India
paid for in advance that has been for starting direct operations by the end of June.
"earned" by virtue of the fact that time has
passed without claim. A three-year Four foreign re-reinsurance players - Germany's Munich Re and Hannover Re,
policy that has been paid in advance and Switzerland's Swiss Re and France's SCOR - have already got the preliminary
is one year old would have only partly approval, called R1 in the insurance parlance.
earned the premium.
This time around, "the final approval may be granted to a few - most likely to
Pretax Operating Income three", said an insider in the domestic regulator.

Pretax operating earnings before any The final approvals will formally open up the Indian market for major foreign
capital gains generated from underwrit- re-insurers to carry out direct business. Foreign re-insurers have so far been
ing, investment and other miscellaneous operating in India through offshore sites.
operating sources.
IRDAI, after opening the door for all foreign re-insurers, except Lloyd's, for
Pretax Return on Revenue registration and setting up branches in the country last October, also paved
way for Lloyd's entry into the country in a separate regulatory guideline in
A measure of a company's operating prof- November.
itability and is calculated by dividing
pretax operating earnings by net premi-
ums earned.

GROSS DIRECT PREMIUM INCOME UNDERWRITTEN FOR AND UPTO THE

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

Growth of % of Growth

INSURERS MAY May 2016 CUMULATIVE Upto May 2016

over UPTO MAY over the period

May 2015 Upto May 2015

2016-17 2015-16 2016-17 2015-16

Private Sector 3510.24 2876.82 22.0% 8119.85 6949.80 16.8%

Public Sector 4250.99 3627.59 17.2% 9735.44 8567.09 13.6%

Stand-alone Health 328.27 250.04 31.3% 646.64 499.34 29.5%

Specialised 177.95 169.59 5.0% 294.08 312.09 -5.8%

Grand Total 8267.45 6923.96 19.4% 18796.01 16328.32 15.1%

56 The Insurance Times, July 2016