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