4 Key Insurance News: TATA AIA, LIC Of India, Covrzy And ICICI Lombard’s Big Moves
The insurance industry continues to evolve with dynamic shifts and strategic advancements. Leading companies are making notable strides, from securing global rankings to forming strategic partnerships and introducing innovative products. These developments reflect the industry’s commitment to enhancing customer experience, expanding market reach, and leveraging technology to meet changing demands.
1 . Key Insurance News: TATA AIA Grabs A Seat In The Global TOP 10 Ranking With 2,584 MDRT Qualified Advisors
Tata AIA Life Insurance, a leader in India’s life insurance industry, proudly announces it has reached a significant milestone by attaining the #6 spot in the prestigious Global Million Dollar Round Table (MDRT) rankings for 2024.
Who Is MDRT In the Insurance Sector And Why Was It Formed?
Established in 1927, the Million Dollar Round Table (MDRT) is a trade association dedicated to assisting insurance brokers and financial advisors in developing exemplary business practices.
The group originated when 32 accomplished life insurance agents convened at the Peabody Hotel in Memphis, Tennessee, USA, during the National Association of Life Underwriters’ (NALU) annual meeting.
Their gathering aimed to enhance technical knowledge, boost sales skills, and uphold ethical standards within the industry by adopting the NALU code of ethics. The meeting in 1927 resulted forming of the organisation.
What Is A MDRT Ranking In The Insurance Sector?
MDRT membership is recognized all over the world as a high standard of excellence in the life insurance and financial services industry. MDRT members show exceptional professional skills, strong ethics, and give excellent customer service.
Criteria Of MDRT Ranking In The Insurance Sector
MDRT ranking is primarily based on “PERSISTENCY RATIO”. The ratio depicts the % of consumers who retain their trust and confidence in the same insurer by renewing the policies through the same registered advisors cum insurance agents of the insurer. The higher the ratio, the better the ranking.
The company is ranked No. 1 in four out of five persistency cohorts, a testament to its strong customer retention.
The list below shows the MDRT Advisor list of rankholders from India in 2024 where TATA AIA is leading with 2584 registered MDRT– qualified Life Insurance advisors, holding 6th position globally.
| RANK | NAME OF THE COMPANY | OPERATE IN MARKET | NUMBER OF MEMBERS |
| 6 | TATA AIA Life | India | 2 5 8 4 |
| 24 | HDFC Bank Limited | – Do – | 9 8 4 |
| 34 | LIC Of India | – Do – | 6 6 0 |
| 48 | MAX Life Insurance Co Limited | – Do – | 4 4 6 |
| 60 | IndiaFirst Life Insurance Co. Limited | – Do – | 3 5 5 |
| 87 | HDFC Life Insurance Co. Limited | – Do – | 1 9 1 |
| 95 | SBI Life Insurance Company Limited | – Do – | 1 6 1 |
MDRT ADVISOR RANKHOLDERS FROM INDIA – 2024
SOURCE:- https://www.mdrt.org/about-MDRT/for-companies/top-100-companies-global/
Among these, 1,238 are qualified Women MDRT Advisors, positioning the company as #1 in India and #7 globally for female MDRT members.
SOURCE :-https://www.mdrt.org/pt-ao/about-MDRT/for-companies/top-25-companies-by-female-members/
Why Does The Global Ranking Matter In The Insurance Industry?
Life insurance solutions are long-term commitments, making it crucial for consumers to receive advice with a long-term perspective . A higher number of MDRT advisors gives a life insurer a distinct advantage, as expertly tailored financial advice during product sales leads to satisfied and loyal customers who renew their policies year after year.
It’s no surprise that Tata AIA has thrived with a substantial number of employees and MDRT-dedicated agents towards client servicing and maintaining its leadership in persistence. Now this #6 th global ranking validates the high quality and skill of TATA AIA advisors which in turn will increase their business nationally as well as internationally.
2 . Key Insurance News : LIC Forms Strategic Alliance With IDFC First Bank Under “Corporate Agency Arrangement”
LIC of India has increased its stake in IDFC First Bank from 0.20% to 2.68% via private placement on June 4, 2024.
A tie-up arrangement was signed between LIC India and the tech-savvy IDFC First Bank on July 16, 2024, to sell life insurance products to more than one (1) crore customers of the bank.
As the nation’s premier insurer, LIC offers a comprehensive range of products, including Annuity, ULIP, Savings, and Term Insurance, catering to all segments of society.
On this occasion, LIC’s MD, R Doraiswamy, stated that this collaboration will give IDFC First Bank’s digitally savvy customers access to LIC’s extensive selection of appealing products.
Benefits Of Strategic Partnership In Insurance
This corporate agency agreement has given edge to both parties – LIC Of India and IDFC First Bank. Let’s discuss it below.
How Will LIC Of India Gain?
Leveraging the combined strength of LIC’s extensive network of over 3,600 branches and Satellite Offices, along with IDFC First Bank’s 1,000+ branches, this collaboration will significantly enhance life insurance penetration across the country and will try to reach the goal of providing life insurance protection to all by 2047.
The digital onboarding process is already underway and, once completed, customers will be able to purchase LIC policies directly through the Bank’s website.
How Will IDFC First Bank Gain?
In its ongoing commitment to boosting bancassurance, the participating bank, with more than 95 per cent of transactions conducted online, will offer its tech-savvy customers a seamless, end-to-end solution for their diverse life insurance needs.
3 . Key Insurance News : Covrzy Grabs Insurance Broking License From IRDAI
The Bengaluru-based Insurtech startup Covrzy has achieved a breakthrough by obtaining a direct broking (general) license from the Insurance Regulatory and Development Authority of India – IRDAI.
With its digital-first approach, Covrzy is dedicated to providing a seamless, customer-friendly insurance purchasing experience, particularly for startups, SMEs, and MSMEs in India.
It offers comprehensive support for insurance and claims, democratizing insurance distribution in the country. Collaborating with leading insurers such as ICICI Lombard, Bajaj Allianz, and IFFCO Tokio, Covrzy offers a range of products, including commercial general liability, fire and theft insurance, product liability, cyber insurance, and asset insurance.
Long Term Goal Of Covrzy From Insurance Broking License
With just 1% of Indian MSMEs currently insured, Covrzy is set to bridge this gap through its comprehensive platform.
The startup aims to boost insurance coverage among MSMEs, targeting to serve over Ten Thousand (10,000) customers within the next twelve (12) to eighteen (18) months and extend its reach to one (1) million businesses in the years ahead.
4 . Key Insurance News : ICICI Lombard Presents “ELEVATE” – An AI-Enabled Health Insurance Product
ICICI Lombard, a leading private general insurer in India, is thrilled to unveil its groundbreaking health insurance product, ‘Elevate’.
Elevate is set to redefine health insurance with features like ‘Infinite Care’ and ‘Power Booster‘ which set a new health insurance standard delivering unmatched peace of mind to insured persons in an ever-evolving world. Utilising the power of AI, ‘Elevate’ provides tailored coverage recommendations based on individual customer inputs, ensuring each policy is perfectly aligned with unique needs.
This innovative product boasts 15 built-in covers and a host of personalization options, including protection for 20 critical illnesses, personal accidents, maternity and newborn care, accommodation and travel benefits, preventive care, inflation protection, air ambulance, personalized home care, and more.
Salient Features
- Infinite Sum Insured : Addresses coverage limitations by ensuring policyholders never exhaust their coverage limit.
- Infinite Claim Amount : Provides comprehensive financial protection with no limit on one-time claims throughout the policy’s lifetime.
- Power Booster Add-on : Offers a 100% cumulative bonus each year, regardless of claims, for an unlimited period.
- Reset Benefit : Allows for unlimited coverage resets, ensuring ongoing protection no matter the number of claims.
- Infinite Assurance : This add-on provides coverage for pre-existing conditions such as asthma, diabetes, hypertension, hyperlipidemia, and obesity starting from the 30th day, significantly reducing the typical industry waiting period of 3 years.
Frequently Asked Questions (FAQ)
Q1. What stands for MDRT Globally?
Ans . Million Dollar Round Table as the name says is a premier association of Financial Professionals.
It is a prestigious, independent global organization comprising top-tier life insurance and financial services experts from over 700 companies across 80 countries and territories like The United States , China, Japan, Malaysia, Singapore, Mexico, etc.
Q2. What types of products are being dealt with by MDRI?
Ans. It focuses on fostering ethical and effective strategies to boost client engagement with financial products, particularly risk-based products such as life insurance, disability insurance, and long-term care.
Q3. What is Bancassurance ?
Ans . A partnership between a bank and an insurance company to sell insurance products to a bank’s customers. Very popular in Asia, Australia, Europe and Latin America. Bancassurance can take the form of BIM (Banking insurance model) or HIM ( Hybrid insurance model – A mix of banking and traditional insurance models).
Q4. Who is the Founder of Covrzy?
Ans . A new Insurtech start-up founded in 2023 by two (2) co-founders namely –
1 . Ankit Kamra [CEO – Chief Executive Officer]
2 . Veera Thota [CTO – Chief Technology Officer]
Q5. What is an “INSURTECH” ?
Ans. Insurtech, short for “Insurance Technology,” refers to the innovative use of technology to make insurance more efficient, transparent, and tailored to individual needs, often through startups and tech-driven companies in the insurance sector.
It involves leveraging digital tools, platforms, and solutions to improve various aspects of insurance, like Customer Experience, Claims Processing, Risk Assessment, Product Development, and Fraud Detection.
Q6 . Define SMEs and MSMEs
Ans . As the name says, SME stands for “Small and Medium Enterprise” and MSME stands for “ Micro,Small and Medium Enterprise “. They are backbone to economy as they help to create jobs, boost exports and contribute in economic development of the country.
SME is a fundamental term whose Indian version is MSME . The difference between SME and MSME was abolished by MSMED [ Micro,Small and Medium Enterprise Development ] Act 2006 as amended in 2020.
The micro,small and medium enterprises engaged in manufacturing and or service sectors are defined in terms of two (2) criterias as A . Investment in Plant and Machinery or Equipment B . Annual Turnover.
Q7. What stands for ICICI Lombard?
Ans. ICICI Lombard General Insurance Company Limited is a prominent general insurance provider in India with headquarters in Mumbai, Maharashtra – India.
Founded in 2001, ICICI Lombard is a joint venture between ICICI Bank, India’s second-largest bank, and Fairfax Financial Holdings Limited, a financial services company based in Toronto.
Q8. What assurance products are being sold by ICICI Lombard?
Ans. It offers a diverse range of insurance products including Car Insurance, Health Insurance, International Travel Insurance, Overseas Student Travel Insurance, Two Wheeler Insurance, Home Insurance, and Weather Insurance.
Q9. What is “Add-On” in an insurance policy?
Ans. An add-on in insurance is an additional coverage option that enhances or extends the benefits of a basic insurance policy, providing extra protection or features beyond the standard policy terms.
Q10. What is Hyperlipidemia?
Ans. Increased level of fat deposition in blood leading to heart attack,stroke and artery related disease which is life threatening too.
