- Global re-insurance rates increased by 20 to 50% due to rising claims
Mumbai: Due to the epidemic of Chinese virus COVID-19, which has affected millions of people across the world including India, there has been a sharp increase in insurance claims, due to which the reinsurance rates globally are 20 to 50. % has increased. This has also affected the life insurance industry of India and here also the term insurance premium rates can increase by 20 to 25%. Aegis Life Insurance Company (Ages Federal Life Insurance) Managing Director and CEO Vignesh Shahane (Vighnesh Shahane) says that despite the increase in rates, term insurance plans in India are still very cheap.
Health and life insurance awareness has increased rapidly after the COVID crisis. Aegis Life Insurance with over one million customers, promoted by Europe’s insurance conglomerate Aegis and Federal Bank of India, is registering a high growth of 40%. With regard to the changing nature of the insurance industry, insurance rates and the growth of the company, insurance giant Vignesh Shahane Commercial Editor Vishnu Bhardwaj There was a detailed discussion with Here are its highlights:
What are the major changes in the insurance industry over the years?
It is such that in the last two years after the COVID epidemic, the awareness among people towards health and life insurance has increased a lot. Earlier life insurance had to be sold by explaining to people, but now people have come to know its importance and are coming forward and taking insurance on their own. COVID was bed news, but it has accelerated the growth of the insurance industry. During this all expenses were reduced. With ‘India’, the insurance industry also became increasingly digital. Along with this, the insurance regulator ‘IRDA’ (IRDA) also took many commendable important steps. Indian economy also progressed again on the path of progress. For all these reasons the demand for insurance is increasing. However, insurance claims are also increasing.
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How much increase is being seen in insurance claim and term insurance rates?
Death insurance claims have increased by 3 to 4 times in the COVID period. Now claims are also increasing due to non-covid i.e. other serious diseases and road accidents. Due to which the cost of insurance companies has increased and the re-insurance rates have gone up by 20 to 50% globally. Still, Indian insurance companies are increasing their rates by 20 to 25% only while bearing some cost and even after this increase, term insurance plans in India are still very cheap.
Which type of insurance plan is in high demand at present?
It is such that people are now concerned about their health and life. In this era of uncertainty, people want better and fixed income for the future i.e. even for retirement. Therefore, along with health and term insurance, the demand for Unit Linked Plans (ULIPs) and Guaranteed Income Plans is the highest. The attractiveness of ULIPs has increased due to the boom in the stock market. One of the great features of ULIP products from investment point of view is that they give the insured the option to switch between equity largecap, midcap funds or bond funds without any tax and switching charges, thereby earning better returns on his investment. . ULIPs and guaranteed income plans used to sell 20% to 20% of the total insurance sales pre-Covid, whereas now both are selling at the same rate i.e. 45-45%.
How much growth is Aegis Life expecting this year and what are the new plans to launch?
We have been registering a growth rate of 35-40 per cent over the last two years from the industry growth rate of 15-20 per cent and we are expecting 50 to 60 per cent growth this year. We are getting the benefit of our new promoter Federal Bank’s network of over 1800 branches spread across the country. Simultaneously, we are expanding the branches of Aegis Life from 64 to 100. To strengthen the agent network, the number of agents is doubling, which is currently 12,000. We will be launching a new online term plan and a deferred annuity plan soon.
