Consequences of Growth at Freedom AV Life Insurance

2021 ◽  
pp. 251660422110639
Author(s):  
Manoj Pareek
Keyword(s):  
Life Insurance ◽  
Financial Services ◽  
Ethical Issues ◽  
Action Plan ◽  
Private Life ◽  
Board Members ◽  
Financial Products ◽  
Life Insurers ◽  
Unethical Practices ◽  
Customer Services

The case deals with ethical issues in marketing in a larger context encountered while managing channels. Freedom AV Life Insurance, established in 2002, was a laggard in terms of revenue generation among private life insurers in the country. A new CEO, Ramesh Ramachandran, was hired to improve revenues, which drastically improved post his joining and upon on him hiring a new sales head. However, customer grievances multiplied, and Rajesh Bhardwaj, the customer services head, was questioned by the CEO and was asked to submit an action plan to stem the rising complaints. Bhardwaj felt this was the result of mis-selling by agents and the salesforce of the company. Bhardwaj proposed a solution by emailing the sales head. Just as he had finished writing the mail, he was surprised to find a new mail from the CEO asking him to prepare a presentation before the company’s board of directors in two days. At the end of the case, Bhardwaj becomes engulfed with self-doubt and anxiety on what to present before the board members. The case deals with ethical issues in marketing financial products like life insurance and looks at solutions to the practice of mis-selling financial services. Students would attempt to find answers to the question of whether they can achieve sales goals without resorting to unethical practices.

scholarly journals Growth of Indian Life Insurance Density and Penetration

2017 ◽  
Vol 16 (1) ◽  
pp. 1-20
Author(s):  
R Sivarama Prasad ◽  
R S NSharma
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Private Life ◽  
Insurance Sector ◽  
Life Insurers ◽  
Life Insurance Industry ◽  
Insurance Density ◽  
The Government ◽  
Set Up ◽  
Indian Insurance

The Government of India nationalized insurance industry in 1956 on 19th Januaryleading to the amalgamation of154 Indian, 16 non-Indian Insurers and 75 provident societies, in total 245 Indian and foreign insurers, to form the Life Insurance Corporation of India. The Life Insurance Corporation of India, a public sector corporation, enjoyeda monopoly in the business for four decades until the entry of private life insurers with foreign joint ventures having 26% Foreign Direct Investment(FDI).As per one of the major recommendations of Sri R N Malhotra committee, on 19th April 2000, Insurance Regulatory and Development Authority was set up by the Government of India through the passing of an act of the Parliament. The IRDA aimed to promote insurance and protect the insured. Since its formation, the IRDA has been proving itself successful in promoting orderly growth and development in Indian Insurance sector. This study is an attempt to study life insurance density and penetration in Indian life Insurance industry toassess the growth in theexpansion of life insurance business in India. An analysisis made, and some conclusions are drawn with the help of growth percentages and trend calculations

Evaluating the Efficiency of Indian Life Insurance Sector

2020 ◽  
pp. 72-80
Keyword(s):  
Life Insurance ◽  
Secondary Data ◽  
Private Life ◽  
Annual Reports ◽  
Insurance Companies ◽  
Operating Characteristics ◽  
Entire Study ◽  
Insurance Sector ◽  
Life Insurers ◽  
Using Data

ABSTRACT The purpose of study was to investigate the technical efficiency of Indian life insurance companies using data envelopment analysis (DEA) to find the reasons for inefficiency. It aimed to analyze the efficiency of all the 24 life insurance companies operating in India for the period 2013-2017 using DEA based on secondary data collected from the Insurance Regulatory and Development Authority Annual Reports. Findings indicated that the state life insurer, that is, Life Insurance Corporation (LIC) was efficient throughout the entire study period. The private life insurance companies exhibited variations in their performance levels as they were comparatively new in the life insurance sector and of different sizes. Some private life insurers operated efficiently, while some private life insurers were less productive using excessive capital; on the other hand, few life insurers grew fast using technology. The methodology employed in this study estimates relative efficiencies without assuming any functional form; as a result, the proper comparison of input utilized with the output produced was not possible. The study brought into light the operating characteristics and efficiencies of all the Indian life insurance companies during the period 2013-2017 and therefore holds important insights for policy makers and practitioners as well as for the decision makers.

scholarly journals ROLE OF TALENT MANAGEMENT PRACTICES ON EMPLOYEE RETENTION: A CORRELATION STUDY WITH SPECIAL FOCUS ON SELECTED INDIAN LIFE INSURANCE COMPANIES

2020 ◽  
pp. 61-66
Author(s):  
Dr. Babita Yadav
Keyword(s):  
Sample Size ◽  
Organizational Performance ◽  
Life Insurance ◽  
Employee Retention ◽  
Management Practices ◽  
Talent Management ◽  
Private Life ◽  
Insurance Companies ◽  
Life Insurers ◽  
The Right

Employee retention and talent management have been a critical issue for many national and global level organizations. People are the most valuable asset and their development in terms of skills, knowledge and abilities gives strength to an organization to achieve desired outcomes. Talent management practices aimed at getting the right person in the right job and to get the best out of their right people. The study aims to understand the role and relation of various talent management practices on employee retention in Life Insurance sector. The nature of study is descriptive type and depends on both primary and secondary data. The total sample size was 100 comprising of all levels of employees and selected through non-probability purposive sampling method. The data collected from primary data were analyzed using descriptive statistic and correlation method. The main finding of the study indicate that there is a positive relationship among various dimensions of talent management practices such as training & development, rewards & compensation, performance management on employee retention. The present study cannot be generalized because the sample size is inadequate and confined to only four private life insurers. The study concludes that by effective talent management practices, the top management of private insurance companies can improve retention rate of employees and thus enhances overall organizational performance. Therefore, the top level managers can adopt various talent management strategies in reducing attrition and thereby improving employee retention and organizational performance. KEYWORDS: Talent management practices, Employee retention, Private Life Insurers and Organizational performance.

Analysis of Cost Efficiency of Indian Life Insurers: A comparison of Quantity vs Value based DEA Approach

2019 ◽  
Vol 14 (1) ◽  
Author(s):  
Subir Sen
Keyword(s):  
Life Insurance ◽  
Cost Efficiency ◽  
Insurance Industry ◽  
Estimation Method ◽  
Private Life ◽  
The Public ◽  
Advantages And Disadvantages ◽  
Life Insurers ◽  
The Difference ◽  
Using Data

Abstract In the context of measuring economic performance, efficiency and productivity of Indian life insurance firms, there are studies using the Data Envelopment Analysis (DEA) methodology. In this paper, the difference between the quantity based approach and value based approach is highlighted and elaborated using data of Indian life insurers operational over the period 2005–06 to 2015–16. There are both advantages and disadvantages of using DEA, as highlighted in the theoretical literature. In particular, the efficiency estimates are heavily influenced by the selection of inputs and outputs. This study provides an insight on technical efficiency and innovates in terms of data use and is the first study on the Indian insurance industry to compute cost and allocative efficiencies. Four hypotheses were tested in the study. First, there were initially improvements in efficiency but in recent years, clearly there is stagnation. Second, the results support views of Tone and Sahoo (2005)  and Sen (2010), that the public life insurer, the Life Insurance Corporation of India is cost inefficient. The private life insurers need to reallocate resources to improve overall efficiency. LICI was found to be technically efficient but remained cost inefficient. Third, the traditional Farrell based cost efficiency estimates are significantly different from Tone (2002) alternative approach. Therefore, choice of estimation method is important. Fourth, non-discretionary factors such as age, premium growth and size of the insurers along with regulations pertaining to solvency affect cost efficiency. Key financial ratios such as expense ratio, commission ratio, conservation ratio and persistency ratio, and retention ratio are used to statistically establish their relationship with the different efficiency estimates. Results also show that entry of a new insurer may negatively affect cost efficiency of an existing insurer but foreign equity could positively improve cost efficiency.

A Comparative Study of Public & Private Life Insurance

2011 ◽  
Vol 3 (1) ◽  
pp. 93-94
Author(s):  
Vikas Sharma ◽  
◽  
Dr. Sudhinder Singh Chowhan
Keyword(s):  
Comparative Study ◽  
Life Insurance ◽  
Private Life

STATE REGULATION OF THE FINANCIAL SERVICES MARKET IN UKRAINE

2018 ◽  
Vol 1 (11) ◽  
pp. 30-47
Author(s):  
Lyudmila Nikolayevna Akimova ◽  
Alla Vasilievna Lysachok
Keyword(s):  
Life Insurance ◽  
Financial Services ◽  
Credit Unions ◽  
State Regulation ◽  
The State ◽  
Existing Problems ◽  
Insurance Contracts ◽  
State Pension

The essence of such concepts is “financial service”, “financial ser- vices market”, and “participants of the financial services market”; determined the purpose of state regulation of the financial services market; forms of state regu- lation of the financial services market; financial services that are present in the financial services market; the structure of state regulation bodies of the financial services market in Ukraine is given; The role of state bodies in the regulation of the financial services market was studied; to characterize the regulatory le- gal regulation of the financial services market in Ukraine; the main problems of functioning of the domestic market of financial services are revealed; ways to solve existing problems. It is grounded that the state regulation of financial ser- vices markets consists in the state’s implementation of a set of measures aimed at regulating and overseeing financial services markets to protect the interests of financial services consumers and preventing crisis phenomena. It is concluded that the financial services market is an important element of the development of the economy as a whole, in particular, it concerns not only the state but also society. We must understand that when this market is settled, that is, all bodies that carry out state regulation are competent in their powers, only then will we make informed, effective decisions about the normal and effective functioning of the RFP. It is important that the data of the subjects of control do not overlap, their activities should be fixed at the legislative level. It is also worth bearing in mind that appropriate conditions must be created to create compensatory mecha- nisms in the financial services markets by developing a system for guarante- eing deposits and providing for payments under long-term life insurance contracts, non-state pension provisions, deposits with deposit accounts to credit unions, etс.

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Joy Chakraborty ◽  
Partha Pratim Sengupta
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurers ◽  
Company Limited

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

scholarly journals Applications of Clustering with Mixed Type Data in Life Insurance

Risks ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 47
Author(s):  
Shuang Yin ◽  
Guojun Gan ◽  
Emiliano A. Valdez ◽  
Jeyaraj Vadiveloo
Keyword(s):  
Life Insurance ◽  
Clustering Algorithm ◽  
Early Stage ◽  
Financial Statements ◽  
Life Insurers ◽  
Insurance Portfolio ◽  
Policy Information ◽  
Spatial Attributes ◽  
Type Data ◽  
Significant Mortality

Death benefits are generally the largest cash flow items that affect the financial statements of life insurers; some may still not have a systematic process to track and monitor death claims. In this article, we explore data clustering to examine and understand how actual death claims differ from what is expected—an early stage of developing a monitoring system crucial for risk management. We extended the k-prototype clustering algorithm to draw inferences from a life insurance dataset using only the insured’s characteristics and policy information without regard to known mortality. This clustering has the feature of efficiently handling categorical, numerical, and spatial attributes. Using gap statistics, the optimal clusters obtained from the algorithm are then used to compare actual to expected death claims experience of the life insurance portfolio. Our empirical data contained observations of approximately 1.14 million policies with a total insured amount of over 650 billion dollars. For this portfolio, the algorithm produced three natural clusters, with each cluster having lower actual to expected death claims but with differing variability. The analytical results provide management a process to identify policyholders’ attributes that dominate significant mortality deviations, and thereby enhance decision making for taking necessary actions.

Economies of scale in European life insurance

2018 ◽  
Vol 19 (2) ◽  
pp. 190-207 ◽  
Author(s):  
Udo Klotzki ◽  
Alexander Bohnert ◽  
Nadine Gatzert ◽  
Ulrike Vogelgesang
Keyword(s):  
Life Insurance ◽  
Fixed Effects ◽  
Economies Of Scale ◽  
Insurance Markets ◽  
Fixed Effects Model ◽  
Content Type ◽  
Administrative Costs ◽  
Life Insurers ◽  
Acquisition Costs ◽  
The Uk

Purpose Due to the continuing low interest rate environment as well as the increase in acquisition costs, price transparency, cost transparency and competition with banks, the cost of life insurance becomes increasingly important for customers, insurers and shareholders. Against this background, the purpose of this paper is to study the development of insurers’ economies of scale in regard to administrative costs for four of the largest European life insurance markets. Design/methodology/approach The analysis on economies of scale is based on a comprehensive set of 477 life insurers in Germany, Italy, Spain and the UK, yearly data between 2000 and 2014, and regression calculations that are based on 4,855 observations. Findings The results show that economies of scale exist for all considered markets and for most of the considered years. However, the extent of economies of scale varies considerably across countries. Originality/value Overall, the existing academic literature on costs and corresponding economies of scale in life insurance primarily deals with analyses of total costs instead of administrative costs, a single year or a single market. This paper contributes to the existing literature by conducting an analysis of recent market dynamics and economies of scale in regard to administrative costs for the period from 2000 and 2014 for four of the largest European life insurance markets for which the respective data were available (Germany, Italy, Spain and the UK) and 477 life insurers in total. This is done by means of a log-log transformation of premiums and costs and a fixed effects model based on these transformed figures for 4,855 observations. In addition, for each market, the authors analyze the development of administrative costs for a total of 477 insurers.

The Appointed Actuary.

1987 ◽  
Vol 41 ◽  
pp. 559-629
Author(s):  
Edward A. Johnston
Keyword(s):  
Life Insurance ◽  
Financial Services ◽  
Self Regulation ◽  
Professional Role ◽  
The Self ◽  
Insurance Companies ◽  
Prudential Supervision ◽  
Government Supervision ◽  
The Uk

1.1 A paper about the Appointed Actuary is essentially a paper about prudential supervision of life insurance companies. The system which has operated in the UK since the mid-1970's is only partly one of Government supervision. Through the professional role of the Appointed Actuary, it also contains elements of a system of self-regulation with the Institute and Faculty of Actuaries standing in place of SRO's. Unlike the self-regulatory arrangements of the Financial Services Act. though, this second part of the system has grown up by custom and practice and in certain respects it is not codified. However it enables the Insurance Companies Act to be operated successfully.

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