My wife is working. Why do I need Life Insurance?


I was on a flight last week and the person sitting next to me was a very friendly guy. We instantly started chatting. He was telling about the passion that he and his teenage son had for high-end cars. His son wanted to buy BMW that they couldn’t afford at that time. But he said […]

IFRS 17/Ind AS 117 implementation: Understand your profit to drive your business


In my previous article, I mentioned about the massive shift the new standard is going to bring to the business. Why Life Insurance industry? The change of standard is not unique to insurance. It’s impacting other industries too. But there is not as much buzz there, as it is creating in insurance business, particularly life […]

IFRS17 / Ind AS117 Implementation: A massive shift in the way Life Insurance business is done


IFRS 17 Insurance

[hide]What is IRFS17/Ind AS117?[/hide] IRFS17/Ind AS117 is a new accounting standard applicable for insurance industry and will be implemented across the world. This is part of the global accounting standard IFRS applicable for all industries. What does the new standard mean? The objective of the new standard is to ensure that an entity provides relevant […]

In the world of Machine Learning, is Actuary Redundant ?


is actuary redundant

  The core activity of an Actuary is: 1. Number crunching 2. Assumption setting But this will no longer be the case, in the world of powerful processors and highly evolved machine learning algorithms powered by huge data. Number Crunching With more powerful machines and programming models, number crunching has become very easy. With the […]

Accidental Disability – A financial threat worse than death


Accidental Total Permanent Disability (ATPD) benefit

Most of the life insurance policyholders in India hold a savings plan with negligible protection component. Those who know the importance of protection, hold a significant life cover, mostly from a term policy, sometimes even a savings policy. But the other forms of protection, like cover for accidental disability, critical illness are often ignored. A […]

Life Insurance: Its high time industry launches a protection campaign


Hesitation to discuss death and the consequences In India, life insurance policy is mainly sold as a savings instrument. This is probably because an insurance sales person finds it difficult to meet a prospective customer and discuss about his/her death. There is a fear that the discussion on death will not be taken positively. Hence […]

Life Insurance – Is Agency channel viable? At least in the long run?


Is Agency Channel viable? For Life Insurance business, Agency channel is supposed to be the backbone. For decades, LIC of India is running on the strength of agency channel. However, for private life insurers, the channel is still not viable. The productivity is low and the expenses of recruitment, training and maintenance costs are high. […]

Life Insurance M&A – What value would you place on a third party distribution channel?


Valuation of a life insurance company is complicated. The business is of long term. The profits are realized gradually over the term of a life insurance policy. Placing a value on the same involves many assumptions. Assumptions about expected mortality, persistency, expenses, return on investment etc. The big assumption One of the most important assumptions […]

It sounds funny, but don’t chase either topline or bottomline in life insurance business


In any business, you either chase top-line or bottom-line. But in life insurance business, you shouldn’t chase both of them. Why shouldn’t you chase top-line? In life insurance, the definition of top-line itself can be misleading. For example, fund business. Fund management for gratuity or other retirement benefits can be huge in size. But what […]

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Choose right Health Insurance – best coverage is important, not lowest premium


We normally look for lowest premium while buying insurance, especially online. Even if we buy offline, many do a lot of online research before buying. And usually, lowest premium is the criterion. We are used to searching for lowest price while buying anything, not just insurance. Is this approach ok for buying Health Insurance? No. […]