Weekly Roundup – January 14

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CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

GSecs

According to most recent World Bank reports, rapid economic progress is on the cards for the Asian countries of India, Cambodia, Laos and Myanmar.

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GST council to hold ninth meeting on Monday, January 16, to discuss and settle down on differences persisting over certain key issues.

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Government of India affirms of its respect for the autonomy and independence of the central bank of India, in a recent statement released by the Finance ministry of India.

RBI

Institute for Development and Research in Banking Technology (IDRBT), the research wing of RBI, explores the workings behind deployment of blockchain technology in banking in India.

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In a strategic move that seeks to boost the municipal bonds market, SEBI allows municipalities with surplus in their books to issue bonds dubbed ‘muni bonds’.

International Advisory Board recommends study of fee-based model for robo-based investment advisory to SEBI.

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Mutual funds can now be promoted through celebrity endorsements, says SEBI. Industry participants believe that the move will serve to boost penetration of mutual funds in the country.

Sources confirm that 2016 saw the highest number of demat accounts opened since 2008; increased investor awareness and rise in demand for mutual fund products cited as factors for the increased level of participation.

rubber stamp with inscription INSURANCE

In the wake of an evolving insurance market ecosystem, IRDAI institutes panel to review norms pertaining to life insurance products.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 15 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

Yearly Roundup – 2016

CAMS brings you a glimpse into the key events that occurred in year 2016 in the BFSI sector, both in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

GSecs

Early into 2016, Chinese economy displays signs of toppling markets across the world and sending currencies of emerging markets to their weakest levels in two decades.

In a dramatic turn of events , UK chooses to leave the EU in June 2016. Dubbed Brexit, the decision causes ripple effects that affect global proceedings politically and economically.

Falling in line with the anticipation of market experts around the world, the Federal Reserve hikes interest rates seeking to address issues related to labor market and inflation.

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Government of India decides to merge railway budget into the main budget, indicating a strategic departure from the 92 year old practice instituted by the British. Also, budget will be presented on first working day of February, starting next year.

India’s move to demonetize Rs500 and Rs1000 notes urges consumers to go the cashless and tax compliant way.

In a move to promote and boost cashless, digital payments in the country, Niti Aayog launches ‘Lucky Grahak Yojna’ and ‘Digi Dhan Yojna’ for consumers and merchants.

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In a landmark shift of stances, Indian government seeks to implement GST in 2017. GST council led by Union Finance Minister Arun Jaitley state finance ministers meets seven times to discuss amendments to be effected to GST.

RBI

Urjit Patel assumes office as the newly appointed chief of RBI in September 2016; GoI sets up Monetary Policy Committee to manage affairs concerning policy interest rates.

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SEBI introduces several reforms in the past year, including relaxation of norms for start-up funding.

SEBI sources confirm registration of over 1700 fresh FPIs in the April-October quarter of the current financial year, accounting for an inflow of around Rs 2800 crore in equities alone.

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Mutual fund folios reach 44 lakh mark in the eight months spanning April to November 2016 alone, with considerable amount of inflow coming from B15 regions of the country.

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IRDAI mandates specific set of insurance policies to be issued in digitized, electronic form, from October 1, 2016.

The Indian Insurance industry records notable growth in year 2016, thanks to the several initiatives undertaken at the behest of the Central Government.

About CAMS

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

Weekend Roundup – December 24

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 CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

Mutual Fund SIP

Revised estimates indicate US economy had grown by a substantial 3.5% in the third quarter of the current fiscal year.

For the fourth consecutive time in the last few weeks, Indian government bonds record gain.

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Considerable progress made at the GST council meeting held on December 22, 2016, in structuring the draft based on which the laws pertaining are to be drawn.

RBI

Central bank in possession of sufficient currency reserves to last until end of year, affirms Finance Minister, Mr. Arun Jaitley.

RBI sets up the seventeenth banking Ombudsman centre in the country. Uttarakhand and seven districts of western Uttar Pradesh to fall under the jurisdiction of the new centre.

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SEBI reinstates its inclination to go green by ushering in policy for electronic issuance of debt security papers. 

Investment advisors entitled to charge fees subject to ceiling as indicated by board, but shall not charge it as a variable pay, clarifies market regulator SEBI.

MF

Mutual fund folios reach 44 lakh mark in the eight months spanning April to November 2016, with considerable amount of inflow coming from B15 regions of the country.

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IRDAI  report points at a steady comeback and growth for the Indian insurance industry as measured in 2015-16, after several years of declining sales.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit http://www.camsonline.com

CAMSRep organizes exclusive event for User group

The CAMS group of companies have always prided themselves on developing solutions and services that match customer expectations and user suggestions. Interactive sessions that bring together the various perspectives of users and their expectations play a crucial role in such developments that continue to serve the organizations’ zeal for sustained innovation.

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CAMSRep CEO, Mr. S. V. Ramanan, seen moderating a high energy discussion at the CRUG event.

In keeping with this spirit of robust user engagement, CAMSRep, one of the major insurance repositories in India, hosted its first ever CAMSRep User Group event on the 8th December 2016 at Chennai.

The event themed ‘Ideate, innovate and implement’, was attended by key officials from leading organizations in the Indian insurance sector, representing –

    • Bajaj Allianz Life Insurance
    • Birla Sun life
    • HDFC Life Insurance
    • ICICI Prudential Life
    • Kotak Life
    • SBI Life

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Moderated by the energetic Mr.S .V Ramanan,CEO, CAMSRep, the session was an engaging event that brought to the fore some of the key issues of prevalence in the Indian insurance industry.

Discussions at the event focused on the role of insurance repositories into reaching out to potential consumers in the under-penetrated Indian market. Besides touching upon a joint representation to be presented to the IRDAI, the delegates discussed on the ways to approach and address the issues concerning unclaimed policies.

The distinguished guests also contemplated over the need to render insurance repositories mandatory.

About CAMSRep

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CAMS Insurance Repository Services Ltd (CAMSRep), a subsidiary of CAMS, is one of the major Insurance Repositories in India Licensed by Insurance Regulatory and Development Authority of India (IRDAI). CAMSRep, as an Insurance Repository opens unique eInsurance Accounts (eIA) for policy holders,which in essence are convenient, safe and relatively risk-free electronic policies. CAMSRep also acts as a single point of service for all ePolicies held by a policy holder. Apart from repository services, CAMSRep also provides outsourcing services to multiple Insurance Companies in accordance with IRDAI regulations.

Digitalisation drive could improve insurance penetration

e-Insurance

If one were to measure the degree of penetration of insurance industry in the India, it would be found that there is scope for a lot more to be done. However, now there is scope for hope in this regard, with the Government of India promoting digitalisation in financial transactions with commitment and intensity.

A recent article published in Financial Express, authored by Mr. Kamalji Sahay, Director, CAMSRep, covers the many possibilities that digitalisation of economy would offer to the advantage of the insurance industry.

Excerpts from the article:

Prime Minister Narendra Modi has been vigorously pursuing the agenda of converting the country’s socio-economic landscape into a digital highway for faster and more inclusive growth. The mission is to map every Indian to a network to enable them to access all kinds of services, benefits and information without hassle and without discrimination. The current drive to move all financial transactions between any two entities or among several entities to the digital platform is a very determined effort to achieve this objective.

While Aadhaar provides a reliable identity to about 90% citizens, the stress on opening bank accounts such as a zero balance account under the Jan Dhan Yojana is targeted to make every entity KYC compliant and armed with a digital identity acquired through the bank account number or the registered mobile phone number.

In the marketing of life insurance, obtaining KYC data and processing the first premium payment have always been very challenging. During consideration of the insurance proposal, verification of several facts, right from age proof to income detail or records of previous policies, are required for evaluating the life before the risk is underwritten.

After completion of the proposal, the policy bond is printed with information on name, address, sum at risk, premium mode and amount and other conditions so that it establishes a legally valid contract between the insured and the insurer. Payment of subsequent premium with the contracted frequency and of any policy proceeds to the policyholder or the claimants has to be hassle free so that the insurer is able to honour its commitment in letter and spirit.

Lack of efficiency in this regard is the most important impediment in achieving higher insurance penetration. When an intermediary asks the potential customer for submitting KYC details, his first reaction is to either postpone buying of insurance or ask the salesman to come later. It’s worse when demands for documents even after depositing the money keep coming to the prospective policyholder. And in utter annoyance, he just refuses to talk to the sales person, depriving himself of a much-needed financial security cover. For people living in remote areas or those belonging to the disadvantaged sections of society, these issues have been a major deterrent in securing life insurance cover. The effect is visible in the low penetration of life insurance.

Aadhaar, which has been recognised by the Irdai as a valid KYC document, issue of guidelines regarding e-insurance account and insurance repositories by the regulator, opening of bank accounts by almost every eligible Indian have suddenly solved many of these latent issues. All these requirements can be complied with through networking with Aadhaar and banks. Even premium and claim payment can be smoothly transacted to minimise lapsation of policies and hassle-free credit of the insurance proceeds to the insured’s or claimant’s account .

Apart from such procedural advantages, digitalisation will enable insurers to identify prospective customers. Repositories can encourage people to go for more insurance. The environment would provide incentive to insurers to operate in villages. People in remote areas may also find it convenient to buy and maintain a few life insurance policies. The new landscape throws up opportunities for insurers to rethink their strategies and deepen their grip on the market. Those insurers who would take time to realise what has happened lately, may face the danger of being left behind in India’s quest for raising insurance penetration to the best global standard.

Article source: http://www.financialexpress.com/money/pm-narendra-modis-digitalisation-drive-can-improve-insurance-penetration-heres-how/479908/

About CAMSRep

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CAMS Insurance Repository Services Ltd (CAMSRep), a subsidiary ofCAMS, is one of the major Insurance Repositories in India Licensed by Insurance Regulatory and Development Authority of India (IRDAI). CAMSRep, as an Insurance Repository opens unique eInsurance Accounts (eIA) for policy holders,which in essence are convenient, safe and relatively risk-free electronic policies. CAMSRep also acts as a single point of service for all ePolicies held by a policy holder. Apart from repository services, CAMSRep also provides outsourcing services to multiple Insurance Companies in accordance with IRDAI regulations. To know more about CAMSRep, please visit https://www.camsrepository.com/.

 

 

CAMSRep CEO reiterates the growing relevance of digital insurance at the Economic Times Insurance Summit – 2016

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The last few years have witnessed the Insurance sector in India undergoing a dynamic phase of transformative growth, with IRDAI introducing several developmental reforms such as those concerning e-insurance. The stage has arrived, where the growing relevance of the Insurance industry to the economic growth of the country could not be understated anymore.

In such relevant times, the Economic Times group’s ET Edge had organized the dynamic 3rd annual edition of the Economic Times Insurance Summit, on 9th December 2016 at Mumbai, bringing together industry veterans, thought leaders and prominent officeholders from across the Indian Insurance sector.

Among the prime highlights of the summit was a strategically themed panel discussion titled “InsurTech: The fusion of Insurance & Technology, road to Innovation”. The panelists brought forth their thoughts, ideas and perceptions on the role and impact of technology in redefining the insurance landscape in terms of profit, acquisition and progress.

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In this line of discussion, Mr. Ramanan, CEO, CAMSRep highlighted how pertinent, right from sales to claims, it has been to have reinvented insurance in a digital avatar. He also reiterated how relevant e-insurance is an era where the digital natives in India are growing to account for a considerable section of the consumer segment.

He touched upon how other countries in the world that have successfully collaborated technologies such as GPS with digital insurance in effecting instant settlements against insurance claims in motor insurance, Mr. Ramanan and expressed his conviction that India as a nation at the threshold of being transformed into a cashless economy is surely and progressively moving towards such a phase of growth in terms of the insurance industry.

Click here to watch the entire panel discussion.

Other eminent speakers at the conclave included-

Mr. G. Srinivasan, CMD, New India Assurance

Mr. Joydeep Kumar Roy, Partner & Leader – Insurance, PWC

Ms. Kalpana Sampath, MD, Swiss Re Services India

Ms. R. M. Vishakha, MD & CEO, Indiafirst Life Insurance

Mr. Arijit Basu, MD & CEO, SBI Life Insurance

Mr. Anuj Mathur, CEO, Canara HSBC OBC Life Insurance

Mr. Anuj Gulati, MD & CEO, Religare Health Insurance

Mr. Shashwat Sharma, Partner – Management Consulting, KPMG

About CAMSRep

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CAMS Insurance Repository Services Ltd (CAMSRep), a subsidiary of CAMS, is one of the major Insurance Repositories in India Licensed by Insurance Regulatory and Development Authority of India (IRDAI). CAMSRep, as an Insurance Repository opens unique eInsurance Accounts (eIA) for policy holders,which in essence are convenient, safe and relatively risk-free electronic policies. CAMSRep also acts as a single point of service for all ePolicies held by a policy holder. Apart from repository services, CAMSRep also provides outsourcing services to multiple Insurance Companies in accordance with IRDAI regulations.

Weekly Roundup – December 3

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CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

OECD takes an optimistic stance with respect to the US economy; the organization affirms that a thriving US economy would also accelerate growth at a global level.

Mutual Fund SIP

Experts at Goldman Sachs stand by their opinion that rise in oil prices would trigger better growth prospects for the world economy.

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Hon’ble Finance Minister of India stays positive about launching GST on schedule; also affirms that cash crunch is expected to settle down by end of 2016.

RBI

RBI revises the ceiling of market stabilization scheme bonds to INR 6 Trillion, corresponding to rising liquidity in the country’s banking sector.

Central Ministry confirms that India’s Central Bank is all set to specify limits pertaining to cash withdrawals from banks and ATMs.

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SEBI decrees stock exchanges to provide services for direct connectivity to mediate co-location facility of bourses. A quarterly report of compliance needs to be submitted by each exchange to SEBI with respect to the same.

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SEBI in conjunction with IOSCO might soon open up facilities for selling Indian Mutual funds in the rest of Asia.

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IRDAI authorizes insurers to join the Joint Lender’s Forum (JLF); governed by guidelines decreed by the RBI, JLF address issues pertaining to stressed accounts.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit http://www.camsonline.com