PRIVATISATION OF INSURANCE BUSINESS AND FUTURE STRATEGIES FOR PROMOTION

REASONS FOR PRIVITIZATION OF INSURANCE SECTOR Attracting FDI Achieving improved efficiency Customer friendly business Meeting competition Creating employment opportunities Professionally qualified staff Higher penetration and density Increased number of insured

ENTREPRENEURIAL OPPORTUNITIES BROKERS IRDA’s Annual Report 2001-02 describes brokers as Insurance brokers, as professionals are expected to fill the void in providing for specific insurance needs of the clients by assessing the risk on behalf of the client , advise on mitigation of the specified risks, identifying the optimal Insurance Policy structure, bring together insured and the insurer.

DIRECT BROKER Insurance broker who for time being licensed by the authority to act as such for the remuneration carries out the function as specified under the regulation in the field of life insurance or general insurance or both on behalf of his clients

Functions of Direct Broker Obtaining direct information of clients business Underwriting information so that it can be explained to insurer Rendering advice on appropriate insurance cover and terms Maintain knowledge of available resources Submitting quotation received from insurer Acting promptly on instructions of the client Assisting clients in premium payments Providing services related to insurance consultancy and risk management Assisting in negotiating claims Maintaining proper record of claims

RE-INSURANCE BROKER Insurance Broker who for remuneration , arranges for direct insurers with insurance and reinsurance companies

Functions of Re-Insurance Broker Familiarizing himself with the client’s business Maintaining clear records of insurers business Rendering advise based on technical data on the reinsurance covers available MAINTAINING database of available reinsurance markets Rendering consultancy and risk management service for reinsurance Selecting and recommending reinsurer Negotiating with a reinsurer Act promptly on clients instructions Collecting and remitting premiums Assisting in negotiation and settlement

COMPOSITE BROKER Composite broker means an Insurance broker who for the time being licensed by the authority to act as such for a remuneration arranges insurance for his clients with Insurance companies and or reinsurance for his clients He can carry out any one or more of the functions mentioned in the Direct Broker and Re-Insurance broker

SURVEYOR AND LOSS ASSESOR Independent professionals appointed by an Insurance Company in order to assess the loss or damage, whether a claim notified under a policy issued by them. Must be duly licensed by IRDA Licenses are issued to only who are qualified in Insurance subject

THIRD PARTY ADMINISTRATORS New breed of intermediaries in the health insurance sector which facilitate the access of the policy holders to a network of hospitals and nursing homes They maintain the databases of policyholders and issue them identity cards with unique identification numbers and handle all post policy issue including claim settlement. TPA license is granted to companies registered under Companies act 1956 License is granted for a period of three years

CORPORATE AGENTS To facilitate Bancassurance in India

FUTURE STRATEGIES FOR PROMOTINF INSURANCE IN INDIA Looking ahead The Intermediaries Web site Marketing The Challenges IT in Insurance Rural Urban Mix Impending reforms

IMPACT OF GLOBALISATION ON INSURANCE SECTOR OPPORTUNITIES Ensure large flow of funds Change the image of India as highly Under- insured nation Insurance companies tend to be value pickers. They invest in stocks with relatively steady earnings. Growth in the number of new players, products and services