Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: 4.3
Article rating: No rating
Article rating: 2.0
Article rating: 1.5
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Digitisation picks up pace in insurance

Author: IANS/Monday, June 11, 2018/Categories: Insurance

Digitisation picks up pace in insurance

Chennai - Insurance repositories are seeing increased business volume in the past six months but there is a long way to go, said a top official of CAMS Insurance Repository Services.

"The business volumes have increased in the last six months owing to IRDAI's (Insurance Regulatory and Development Authority of India) decision asking the life insurers to digitise all policies received in digital format," its CEO S.V. Ramanan told IANS.

Noting that about 2.5 crore life insurance policies (1.5 crore by Life Insurance Corporation of India and one crore by private life insurers) and about 12 crore health and motor policies are sold by non-life insurers in India annually, he said that there is a long way to go for the repositories as only 12 lakh life insurance policies are in digital format till date. 

But the good news is that the business is slowly growing, he added.

"While average cost for a life insurer for maintaining a policy in a repository is about Rs 40 per year, it is Rs 10 per year for a non-life insurer in respect of health and motor insurance policies," Ramanan said.

Totally there are four insurance repositories in the country viz NSDL, CDSL, CAMS and Karvy.

Simply put, insurance repositories keep the policies in digital or demat form like company shares.

As per the regulatory norms, the digital record keeper should be a third party.

Ramanan said a life insurer spends around Rs 150 per policy on its maintenance in traditional/paper format and opting for digital format is a major cost saver for them.

Queried about the insurance repositories charging about Rs 40 per life insurance policy per year, he said if the volumes pick up, then the overall cost may come down.

However, adoption by life and non-life insurers of having their policies in digital platform is not great as they feel it has dual costs -- maintaining policies in paper as well as digital formats.

Ramanan said pure record keeping may not get the insurance repositories money and hence, CAMS provides other services like tele-marketing, agency administration, issue of policies and their administration and claims processing for an additional fee.

Print Rate this article:
5.0

Number of views (143)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free