The life insurance industry, which planned to increase its share of nonparticipating (non-par) products in the overall product mix, after its declining share in FY24, is likely to change its strategy to reduce the impact of the revised surrender value norms.
A change in surrender value norms is likely to dampen the growth of non-par products and boost product designing and innovation in the life insurance industry. Non-par product offers guaranteed benefits to a customer according to predetermined choices.
"The industry can reduce the impact of revised surrender value norms using multiple ways. As a result of the norms, the share of non-par products is likely to reduce or result in more production of combo products. The changes can also boost product innovation in the industry," said an insurance official.
In FY24, the product mix of life insurance companies had shifted towards unit linked insurance plans (Ulips) due to buoyant equity markets. This shift affected the value of new business (VNB) margin of the life insurers due to lower product margin of the segment.
This story is from the June 24, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 24, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Scrapping NEET-UG not rational, Centre tells SC
The Centre on Friday told the Supreme Court that scrapping the National Eligibility-cumEntrance Test-Undergraduate (NEET-UG)-2024 examination would not be a rational step in the absence of proof of largescale breach of confidentiality of the exam.
Lone Fox in the twilight
For readers and non-readers alike, Ruskin Bond has been a beacon of Indian literature for children, especially in the short-story genre.
Veg thali price up 10% in June on costlier veggies
The average cost of a vegetarian thali in India rose by 10 per cent in June due to an increase in prices of onion, potato, and tomato, a report by Crisil said on Friday.
Stay calm, sleep well: PM to Paris-bound athletes
Neeraj Chopra shared his fitness concerns, P V Sindhu talked about the significance of selfbelief and Nikhat Zareen could barely hide her excitement about being a first-time Olympian during a light-hearted interaction with Prime Minister Narendra Modi, who advised the Paris-bound group to stay calm and sleep well for best results.
Content marketing before its time
The 1976 film Manthan, based on the origin of the Gujarat Co-operative Milk Federation Marketing (GCMMF-Amul Dairy), was recently in the news.
Cashless denied? Swipe card, go for secured loans
A recent survey by Policybazaar.com found that many people with health insurance policies face challenges when denied the cashless facility and forced to make upfront payments at hospitals.
Muted Q1 performance for listed media majors
Polls, cricket, lack of big-budget movies hit broadcasters' showing
Earnings upgrade, valuation uptick for consumer majors
Analysts are turning their attention to the fast-moving consumer goods (FMCG) sector for several reasons.
HDFC Bank shares drop 5% on weak 01
HDFC Bank shares plunged 4.55 per cent on Friday to close at 1,648.10 on the BSE, after the bank reported a sequential decline in both advances and deposits for the quarter ending June 2024 (Q1FY25).
Sensex, Nifty log fifth straight weekly advance
But sharp losses in HDFC Bank drag benchmark indices lower on Friday
