Insurance & Technology’s Top 10 Stories of 2012

Insurance and Technology has put together ten interesting insurance and technology related articles, dealt at a global level.

"Mobility and consumerization initiatives were popular themes in I&T’s most-read stories this year. But technologists also flocked to stories about the workplace, including communication tips, innovation examples and salary outlook." - Insurance and Technology

Top 10 stories of 2012:

1. 4 Critical Questions about Mobile IT Security Strategy
2. Employment Outlook Continues to Improve for Insurance Technology Sector
3. Steps to Customer-Friendly Online Insurance Quotes
4. What Insurers Need to Know About the Next Generation of Tablets
5. 5 Communication Tips for Insurance CIOs
6. Prepare for Deep Auto Insurance Premium Drop Scenario, Celent Report Advises
7. Changing Times: How Insurance CIOs Can Strengthen Their Strategic Influence
8. 5 Mobile Insurance Apps That Help Policyholders Inventory Possessions
9. 8 Ways Insurance CIOs Can Maximize Success
10. Great American, GuideOne Win Innovation Awards from SMA

 Happy reading! Wish you a brilliant 2013!

Allstate to open tech centre in Bangalore, India

Allstate Corp, the second largest insurer in United States will inaugurate its first technology and operations centre in Bangalore on Wednesday

With the opening of its India tech centre, Allstate will join the league of the world's largest corporations such as GE, Microsoft, Volvo and Barclays who have technology and RandD centres based here.
Allstate is already served from India through its vendors such as Infosys, Syntel and Wipro.

Read more

Indian insurers to up IT spending in 2011: Gartner

As per Gartner, the market analyst firm, Indian insurers are expected to spend $1.8bn on IT products and services this fiscal, an increase of 11.7% over last year. Insurers in India had spent $1.6bn on such services in 2010-11.

This clearly indicates that Indian insurers are finally opening up to technology and adopting it more openly in an effort to drive efficiency across the insurance business value chain. Evolving regulatory changes, volatile economic conditions and catastrophic events are compelling insurers to streamline and apply more thought to their business processes.

Health Insurance Portability in India finally sees daylight

The scheme was proposed to come into force from July 1 earlier, but was deferred for three months due to certain outstanding issues with insurance companies.

Health portability will allow consumers to change their service provider without losing the basic coverage of health insurance. As per portability rules, consumers will get credit for the time already spent for covering the pre-existing disease along with bonus accrued to him from his past insurer.

However, health insurance portability will be limited to non-life insurers, which will allow policy switch with respect to all individual policies, including family floater policies.

Even individual members, including the family members covered under group health insurance policy of a non-life insurer, will be able to migrate from a group health policy to an individual policy or a family floater with the same insurer.

India's Formula1 Grand Prix gets $100mn insurance cover

JPSI (Jaypee Sports International Ltd), the organiser and sponsorer of India's first Formula1 Grand Prix to be held at Buddh International Circuit in Greater Noida, has sought an insurance cover of $100mn (around Rs 490 cr) for the event.

The cover includes two policies:

1. $15mn event cancellation policy - covering for loss of revenue on account of cancellation of the event due to reasons beyond the control of the organisers. Expected to be underwritten by HDFC Ergo.
2. $85mn terrorism and third party liability cover - Apart from any terrorist activity, it covers third-party liability risks like personal accident covers for ground crews, instruments of the organisers and property damages. To be provided by Reliance General Insurance Company.

Approximately 70% of the risk has been reinsured to global reinsurance majors. The General Insurance Corporation of India (GIC Re) was ceded 10% of the risk. 20% of the risk to be retained by the insurers.

Total premiums expected to be in the region of Rs 7-10 crore

Event date: October 28-30, includes three practice & one qualifying sessions and final race
Laps: 60

Indian Insurance - One of the fastest growing insurance markets

Here's interesting growth facts of Indian insurance market as per The Associated Chambers of Commerce and Industry of India (ASSOCHAM):

1. Annual gross written premiums (GWP) of Rs. 2.7 lakh crore set to grow by 13-14% to reach Rs. 5.17 lakh crore by 2015
2. Strong underlying demand tailwinds would catapult premium income of Indian insurance industry to Rs 18 lakh crore by 2020
3. Indian insurance to contribute 10% of total global premium growth by 2020 being one of the few markets to grow at double digit rates
4. Growth of life insurance sector in India during 2000 and 2010:
• New Business Premiums: Grew by 28%
• Annual Premium Equivalent (APE): Grew by 27%
• Gross Written Premiums: Grew by 25%
5. An interesting observation made by secretary general DS Rawat highlighted the level of protection (measured by sum assured to GDP) at about 55%. This is quite low compared to the benchmarks in developed markets of 150-250%

MetLife India and Punjab National Bank join hands in a strategic insurance deal

MetLife and Punjab National Bank (PNB) have entered into a strategic business partnership to distribute life insurance products of MetLife. PNB has acquired a 30% stake in MetLife India's operations and a 10 year agreement to distribute its products through it's channels.

Final approval by the Govt. and financial regulators is awaited, post which MetLife would be known as PNB-MetLife India Insurance Company.

Read more on this here, Annuity News Journal