Free Essay

Asia Insurance

In: Business and Management

Submitted By nahian22
Words 3629
Pages 15
Table of content:

Cover page:……………………………………………………………..………………………………………………………i
Letter of Submittal:……………………………………………………………..…………………………………....ii
Acknowledgement:………………………………………………………………………………………………………iii
Executive Summary:…………………………………………………………………………………………………..iv

01. Introduction: 2 01.1 Objectives: 3 01.2 Limitation: 3 01.3 Methodology: 3
02. Company overview: 4 02.1 Company information: 4 02.2 Provided services: 5
03. Analysis: 6 03.1 Ratio analysis: 6 03.2 Scope of the study: 7 03.3Limitation: 7 03.4 Analyzed Report: 7 03.5 Profit Analysis: 12
04. Findings: 17
05. Recommendations 18
06. Conclusion: 18
07. Reference: 19

01. Introduction:

The paper investigates the financial data and analyze the position oh the selected company. The business of insurance is gradually expanding in this country. It is not a new idea or proposition for4 the people of Bangladesh. About a century back, during the British ruled in then India, some insurance company started to transact insurance business.
With the emergence of the people’s republic of Bangladesh the government nationalized the insurance industry in 1972. Until 1984 insurance activities were absolutely the domain of the two nationalized insurance corporations. However because of public demand and of necessity insurance companies in the private sector were aloud under the authority of “the insurance Ordinance 1984.”

01.1 Objectives:

We are the student of BBA program. Practical knowledge for this course is an important part. And to acquire practical knowledge in insurance industry we have influenced to do the report. There are some other objectives we got preparing the report. These are: 1. To know insurance company more closely. 2. To know how company make ratio analysis. 3. To understand how ratio can analyzed. 4. To know the exact position of the company by ratio and trend analysis.

01.2 Limitation:

During collecting the data of this report we have faced some limitations whish have made some lacings of the report. These are ▪ The web page does not contain much information. ▪ Their employees have not enough time to provide us enough information. ▪ They are not willing to provide all the relevant information. ▪ We have not got enough time for preparing the report.

01.3 Methodology:

We collected the data form both of the following sources: 1. Primary data(direct contact to the employees) 2. Second data (internet, newspaper, group discussion)
The analysis draws on a combination of internet browsing, interview of employees and documented literature on insurance industries in Bangladesh. Most of the data have been collected from the web address of the Asia Insurance Limited.

02. Company overview:

02.1 Company information:

Date of Incorporation: 30th April 2000
Date of Commencement of Business: 30th April 2000
Date of Registration to Carry on General Insurance Business: 30th May 2000
Registered & Head Office: T.K Bhaban (7th Floor), 13 Karwan Bazar, Dhaka-1215, Bangladesh.
Authorized Share Capital: Tk. 30,00,00,000/- CR which is dividend into Tk. 30,00,000/- shares of Tk.100/- each.
Approved Paid-up Capital: Tk.15,00,00,000/- which is divided into 15,00,000 shares of Tk. 100/- each
Present Paid-up Capital: Tk. 6,00,00,000/- which is divided into 6,00,000 shares of Tk. 100/- each, ownership of the Sponsor Shareholders.
Chairman: Mr. Yussuf Abdullah Harun, FCA
Vice-Chairman: Mr. Mohammed Jamal Ullah
Chairman (Executive Committee): Mr. Abul Bashar Choudhury
Managing Director: Mr. Md. Ezhar Hossain,ABIA
Company Secretary: Mr. Md. Atique Ullah Majumder, LL.B. (Hons.) LL. M.
Auditor: M/S. Pinaki & Company. Chartered Accountants 2/4 (2nd Floor), Nawab Habubullah Road, Shahbag, Dhaka-1000.

02.2 Provided services:

Services provided by the company are being listed bellow:
[pic] Fire Insurance
[pic] Fire Insurance (including Allied Perils)
[pic] Industrial All Risks (IAR)
[pic] Marine Cargo Insurance
[pic] Marine Cargo Insurance transit by Steamer or Powered Vessel
[pic] Marine Cargo Insurance transit by Rail/Lorry/Truck
[pic] Marine Cargo Insurance transit by Inland Rail or Road Conveyance
[pic] Marine Cargo Insurance transit by Inland Cargoes (water borne)
[pic] Marine Cargo Insurance transit by Air Cargo
[pic] Marine Hull Insurance (TLO)
[pic] Engineering Insurance
[pic] Machinery Insurance (Machinery Breakdown)
[pic] Deterioration of Stock (DOS)
[pic] Boiler and Pressure Vessel (BPV)
[pic] Electronic Equipment Insurance (EEI)
[pic] Erection All Risks (EAR)
[pic] Contractor’s All Risks (CAR)
[pic] Motor Insurance
[pic] Motor Insurances for Commercial Vehicle
[pic] Motor Insurances for Private Vehicle
[pic] Motor Insurances for Motor Cycle/ Scooter
[pic] Miscellaneous
[pic] Burglary & House Breaking Insurance
[pic] Cash in Safe
[pic] Cash in Transit
[pic] Cash on Counter
[pic] Cash in Premises
[pic] People Personal Accident (PPA)
[pic] Workmen's Compensation
[pic] Business Interruption
[pic] Overseas Med claim and Holiday Insurance including Study and Employment

Services to the customers:
Best services to the customers are always been first priority of Asia Insurance Limited Our future depends on it. We respect our customer's needs and prompt services are the key policy of our business. We always remain stand by at the crisis of our clients. We provide services to our clients by issuing policy, cover note, certificates and Money receipt; to guide customers on claim procedures; to provide complete product information to the customers for their better understanding and to make recommendations to customers in order to make an affordable choice.

03. Analysis:

03.1 Ratio analysis:

It expresses the relationship among selected items of financial statement data. A ratio expresses the mathematical relationship between one quantity and another. The relationship is expressed in terms of a percentage, a rate, or a simple proportion. Several types of ratio we can find in rational analysis. Here we focus on some important analysis.

03.2 Scope of the study:

The research has been based on ratio ands its trend analysis on the financial state analysis of Asia Insurance LTD. A one of the leading Asia Insurance Limited is a leading general Insurance company in private sector of Bangladesh.

03.3Limitation:

While preparing ratio analysis, following limitations are faced:

1. In the short run the ups and downs are more seems to rather than in the long run. 2. These Short data did not support MINITAB software which is the specific software for preparing Trend analysis. 3. Forecasting is not possible for lacking of use MINITAB. 4. Some terms we did not understand for that we know all the ratio analysis formula but did not identify the exact terms.

03.4 Analyzed Report:

ASIA INSURANCE LIMITED
Statement of Ratio Analysis
(The ratio of Asia Insurance Limited shown below based on its Audited d Financial Statements for the year period ended May31, 2008 and year ended December 31, 2007, 2006, 2005, and 2004)
|Year |No.1 Current |No.2 |No.3 |No.4 |No.5 |
| |Ratio |Quick |Account Receivable |Asset |Gross Margin Ratio |
| | |Ratio |Ratio |Turnover | |
| | | | |Ratio | |
| |Current Asset/ |Current |Gross Premium/ |Gross Premium/ |Operating |
| |Current |Asset-Inventory/ |Receivable |Total Asset |Profit/Gross |
| |Liabilities |Current liabilities| | |Premium |
|2004 |1.05 |0.99 |0.73 |0.28 |0.12 |
|2005 |1.22 |1.22 |0.8 |0.31 |0.12 |
|2006 |1.09 |1.08 |1.18 |0.36 |0.11 |
|2007 |1.11 |1.11 |1.77 |0.46 |0.06 |
|2008 |1.35 |1.35 |0.72 |0.2 |0.48 |
|Year |No.6 |No.7 |No.8 |No.9 |No.10 |
| |Operating Income |Net Income |Return on Asset |Return |Earnings Per Share |
| |Ratio |Ratio |Ratio |on Equity |Ratio |
| |Operating |Profit after |Profit After |Profit After |Profit After Tax/No|
| |Profit/Total |Tax/Total |Tax/Total Asset |Tax/Share Holders |of Shares |
| |Operating Revenue |Operating | |Equity | |
| | |Revenue | | | |
|2004 |23.78 |27.46 |3.77 |14.79 |20.22 |
|2005 |19.27 |22.24 |4.16 |16.83 |25.32 |
|2006 |18.89 |19.85 |4.18 |16.16 |26.84 |
|2007 |9.59 |18.66 |5.4 |20.42 |38.78 |
|2008 |61.69 |43.68 |6.72 |21.55 |52.16 |

1. Current ratio: [pic]

The current ratio is a widely used measure for evaluating a company’s liquidity and short term debt-paying ability. The ratio is computing by current assets by current liabilities. Here we show the 2008, 2007, 2006, 2005 and 2004 current ratios for Asia Insurance Limited. In 2004 the ratio is 1.05 means that for every dollar of current liabilities, Asia has 1.05 of current assets. Asia Insurance’s current ratio has increased gradually by 1.22, 1.09, 1.11, and 1.35 according to year 2005, 2006, 2007 and 2008 with one year fluctuation in 2005.

2. Quick/ Acid test ratio: [pic]
It measures of a company’s immediate liquidity. The more the quick ratio, company can do better to operate their company well. The quick ratio of Asia Insurance Ltd is increasing to these previous years. From 2006 to 2008 the ratio (1.08, 1.11, 1.35) has follow a trend but in 2004 to 2005 these rate (0.99, 1.22) has fluctuated.

3. Account Receivable ratio:

[pic]
This ratio used to assess the liquidity of the receivables. It measures the number of times, on average; the company collects receivables during the period. The turn over improved in 2007 compared to others year 2004(0.73), 2005(0.8), 2006(1.18), 2008 (0.72). The year 2008 this rate is rapidly decreased.
4. Asset turnover ratio:

[pic]
It means how efficiently a company uses its assets to generate b sales. The ratio is computed by gross premium by total assets. If we compare it with the years then we see that from 2004 to 2007 it has gradually increased by 0.28, 0.31, 0.36, and 0.46. But in 2008 this rate has fallen.

5. Gross margin ratio:

[pic]
We can calculate this ratio by operating profit by gross premium. This ratio has totally fluctuated from 2004 to 2008. According to the year 2004, 2005, 2006, 2007, 2008 the ratio has 0.12, 0.12, 0.11, 0.06, and 0.48.

6. Operating Income Ratio:

[pic]
The formula of calculating this ratio is operating profit by total operating revenue. In 2008 this ratio has climbed in the pick point or we got the highest ratio 61.69. In 2007 the ratio is lowest (9.59) than others.
7. Net income ratio:

[pic]
Calculating this ratio divide by profit after tax by total operating total operating revenue. This rate also was pick point in 2008 (43.68). From 2004 to 2007, it has been decreased slowly. The rate was 27.46, 22.24, 19.85, and 18.66 respectively.
8. Return on assets ratio:

[pic]

An overall measure of profitability is return on assets. We compute this ratio by dividing net income by average assets. Asia Insurance’s return on assets improved from 2004 to 2008.Its return of 6.72 % was satisfactory in 2008 compared to others years 3.77%, 4.16%, 4.18%, 5.4% and 6.72% respectively.

9. Return on equity ratio:

[pic]

Another widely used profitability ratio is return on common stockholders’ equity. It measures probability from the common stockholders’ view point. The ratio shows how many dollars of net income of the company earned for each dollar invested by the owners. The common stockholders’ equity ratio rate at the beginning 14.79% and in the last year 2008 this rate is high at 21.55%.
10. Earnings per share ratio:

[pic]

It measures of the net income earned on each share of common stock. A Measure of the net income earned on a per share basis provides a useful perspective for determining profitability. This ratio in 2004 has 20.22% that increasing gradually 1n 2005 to 2008 by 25.32%, 26.84%, 38.78%, and 52.16% respectively. It indicate that the situation of that company improving day by day.

If we see the total picture of these ratio than it can be said that the performance of Asia Insurance Limited is satisfactory, but for becoming AAA grade Insurance Company in our company it must increase it’s earning per share with developing others ratio compared to industrial average.

03.5 Profit Analysis:

The profit statement of Asia Insurance Limited is given bellow: ASIA INSURANCE LIMITED
Profit Statement
(The profit of Asia Insurance Limited shown below based on its Audited d Financial Statements for the year period ended May31, 2008 and year ended December 31, 2007, 2006, 2005, and 2004)

|Profit or loss account | | | | | |
| |2008 |2007 |2006 |2005 |2004 |2003 |
| |Jan-May |Jan- Dec |Jan-Dec |Jan-Dec |Jan-Dec |Jan-Dec |
|Expenses of management | 4,289,338.00 | 5,917,852.00 | 6,863,161.00 | 5,784,067.00 | 3,678,791.00 | 2,698,943.00 |
|(not applicable to any particular fund | | | | | | |
|or account | | | | | | |
|Promotional expenses | 851,415.00 | 347,944.00 | 1,106,178.00 | 915,961.00 | 391,905.00 | 571,465.00 |
|Legal and other expenses | 95,000.00 | 23,000.00 | 1,733,240.00 | 1,247,120.00 | 318,910.00 | 286,500.00 |
|Derectors remunaration | 90,000.00 | 197,500.00 | 201,250.00 | 175,000.00 | 372,250.00 | 212,000.00 |
|Audit fees | 280,317.00 | 100,000.00 | 100,000.00 | 100,000.00 | 150,000.00 | 50,000.00 |
|Meeting expenses | 181,124.00 | 112,292.00 | 157,460.00 | 59,363.00 | 112,419.00 | 26,182.00 |
|Subscription | 131,000.00 | 215,000.00 | 214,000.00 | 756,339.00 | 275,289.00 | 190,000.00 |
|Lease rental instrument | 831,630.00 | 1,703,585.00 | | | | 143,150.00 |
|Losson sale of assets | | | | | 533,191.00 | |
|Advertisement and publicity | 56,410.00 | 189,730.00 | 531,157.00 | 153,771.00 | | |
|Dividend tax | | | | 600,000.00 | | |
|Employes contribution PF | 272,469.00 | 751,656.00 | 458,982.00 | | | |
|Depreciation | 1,499,973.00 | 2,277,145.00 | 2,360,894.00 | 1,776,513.00 | 1,524,827.00 | 1,219,646.00 |
|Profit for the year | 50,416,220.00 | 32,102,390.00 | 22,690,914.00 | 20,365,925.00 | 17,151,542.00 | 15,841,750.00 |
|transferred to profit and losss | | | | | | |
|appropriation account | | | | | | |
|Total | 54,705,558.00 | 38,020,242.00 | 29,554,075.00 | 26,149,992.00 | 20,830,333.00 | 18,540,693.00 |

Profit of the Asia insurance limited from the year 2003 to 2008 has been analyzed horizontally to understand easily:

| | |Horizontal Analysis | | | |
|2004 |2003 |Increa or | |2005 |2004 |Increa or | |
|Jan-Dec |Jan-Dec |decrease | |Jan-Dec |Jan-Dec |decrease | |
| | |during 2005 (on| | | |during 2005 (on| |
| | |the basis of | | | |the basis of | |
| | |previous year) | | | |previous year) | |
| | |Amount |Percent | | |Amount |Percent |
| 3,678,791.00 | 2,698,943.00 |979,848 |36% | 5,784,067.00 | 3,678,791.00 |2,105,276 |57% |
| 391,905.00 | 571,465.00 |-179,560 |-31% | 915,961.00 | 391,905.00 |524,056 |134% |
| 318,910.00 | 286,500.00 |32,410 |11% | 1,247,120.00 | 318,910.00 |928,210 |291% |
| 372,250.00 | 212,000.00 |160,250 |76% | 175,000.00 | 372,250.00 |-197,250 |-53% |
| 150,000.00 | 50,000.00 |100,000 |200% | 100,000.00 | 150,000.00 |-50,000 |-33% |
| 112,419.00 | 26,182.00 |86,237 |329% | 59,363.00 | 112,419.00 |-53,056 |-47% |
| 275,289.00 | 190,000.00 |85,289 |45% | 756,339.00 | 275,289.00 |481,050 |175% |
| | 143,150.00 |-143,150 |-100% | | |0 | |
| 533,191.00 | |533,191 | | | 533,191.00 |-533,191 |-100% |
| | |0 | | 153,771.00 | |153,771 | |
| | |0 | | 600,000.00 | |600,000 | |
| | |0 | | | |0 | |
| 1,524,827.00 | 1,219,646.00 |305,181 |25% | 1,776,513.00 | 1,524,827.00 |251,686 |17% |
| 17,151,542.00 | 15,841,750.00 |1,309,792 |8% | 20,365,925.00 | 17,151,542.00 |3,214,383 |19% |
| 20,830,333.00 | 18,540,693.00 |2,289,640 |12% | 26,149,992.00 | 20,830,333.00 |5,319,659 |26% |

| |2005 |Increa or | |2007 |2006 |Increa or | |
| |Jan-Dec |decrease | |Jan- Dec |Jan-Dec |decrease | |
| | |during 2005 (on| | | |during 2005 (on| |
| | |the basis of | | | |the basis of | |
| | |previous year) | | | |previous year) | |
| | | | | | | | |
|2006 | | | | | | | |
|Jan-Dec | | | | | | | |
| | |Amount |Percent | | |Amount |Percent |
| 6,863,161.00 | 5,784,067.00 |1,079,094 |19% | 5,917,852.00 | 6,863,161.00 |-945,309 |-14% |
| 1,106,178.00 | 915,961.00 |190,217 |21% | 347,944.00 | 1,106,178.00 |-758,234 |-69% |
| 1,733,240.00 | 1,247,120.00 |486,120 |39% | 23,000.00 | 1,733,240.00 |-1,710,240 |-99% |
| 201,250.00 | 175,000.00 |26,250 |15% | 197,500.00 | 201,250.00 |-3,750 |-2% |
| 100,000.00 | 100,000.00 |0 |0% | 100,000.00 | 100,000.00 |0 |0% |
| 157,460.00 | 59,363.00 |98,097 |165% | 112,292.00 | 157,460.00 |-45,168 |-29% |
| 214,000.00 | 756,339.00 |-542,339 |-72% | 215,000.00 | 214,000.00 |1,000 |0% |
| | |0 | | 1,703,585.00 | |1,703,585 | |
| | |0 | | | |0 | |
| 531,157.00 | 153,771.00 |377,386 |245% | 189,730.00 | 531,157.00 |-341,427 |-64% |
| | 600,000.00 |-600,000 |-100% | | |0 | |
| 458,982.00 | |458,982 | | 751,656.00 | 458,982.00 |292,674 |64% |
| 2,360,894.00 | 1,776,513.00 |584,381 |33% | 2,277,145.00 | 2,360,894.00 |-83,749 |-4% |
| 22,690,914.00 | 20,365,925.00 |2,324,989 |11% | 32,102,390.00 | 22,690,914.00 |9,411,476 |41% |
| 29,554,075.00 | 26,149,992.00 |3,404,083 |13% | 38,020,242.00 | 29,554,075.00 |8,466,167 |29% |

|2008 |2007 |Increa or decrease | |
|Jan-May |Jan- Dec |during 2005 (on the basis of| |
| | |previous year) | |
| | |Amount |Percent |
| 4,289,338.00 | 5,917,852.00 |-1,628,514 |-28% |
| 851,415.00 | 347,944.00 |503,471 |145% |
| 95,000.00 | 23,000.00 |72,000 |313% |
| 90,000.00 | 197,500.00 |-107,500 |-54% |
| 280,317.00 | 100,000.00 |180,317 |180% |
| 181,124.00 | 112,292.00 |68,832 |61% |
| 131,000.00 | 215,000.00 |-84,000 |-39% |
| 831,630.00 | 1,703,585.00 |-871,955 |-51% |
| | |0 | |
| 56,410.00 | 189,730.00 |-133,320 |-70% |
| | |0 | |
| 272,469.00 | 751,656.00 |-479,187 |-64% |
| 1,499,973.00 | 2,277,145.00 |-777,172 |-34% |
| 50,416,220.00 | 32,102,390.00 |18,313,830 |57% |
| 54,705,558.00 | 38,020,242.00 |16,685,316 |44% |

04. Findings:

After investigating all relevant issues and analyzing our findings are:

1. Increasing current gradually by 1.22, 1.09, 1.11, and 1.35 respectively the year of 2005, 2006, 2007 and 2008 with one year fluctuation in 2005. 2. From 2006 to 2008 the acid test ratio (1.08, 1.11, 1.35) has follow a trend but in 2004 to 2005 these rate (0.99, 1.22) has fluctuated. 3. The turn over improved in 2007 compared to others year 2004(0.73), 2005(0.8), 2006(1.18), 2008 (0.72). The year 2008 this rate is rapidly decreased. 4. From 2004 to 2007 asset turnover ratio has gradually increased by 0.28, 0.31, 0.36, and 0.46. But in 2008 this rate has fallen. 5. Gross margin ratio has totally fluctuated from 2004 to 2008. In 2008 this ratio has climbed in the pick point or we got the highest ratio 61.69. In 2007 the ratio is lowest (9.59) than others. 6. In 2008 operating income ratio has climbed in the pick point or we got the highest ratio 61.69. In 2007 the ratio is lowest (9.59) than others. 7. From 2004 to 2007, net income ratio has been decreased slowly. The rate was 27.46, 22.24, 19.85, and 18.66 respectively. 8. Earnings per share ratio in 2004 has 20.22% that increasing gradually. 1n 2005 to 2008 by 25.32%, 26.84%, 38.78%, and 52.16% respectively. 9. Though the year we consider only five so when we draw the graphs then it seems differentiated from the rational analysis explanation. 10. We find the horizontal and vertical analysis of financial statement.

05. Recommendations

We can derive the recommendation after investigating all relevant issues and analyzing the findings:

As we have seen that the ratios do not follow any trend thus it is very tough for the investors to determine future. Now what we think is the company should give more emphasize on a gently rising trend of the ratios or fall whenever it need. More over the company should publish its own future plan about those ratios.

06. Conclusion:

To sum up the whole discussion it can be terminated that, Asia Insurance Limited is proud to be a company that helps people in time of trouble. A company that can and pull all steps when needed. Like the country we are young and have blended our youthful vigor with specialized knowledge and experience. Our Board of Directors includes veterans of insurance, trade & industry, doctors, chartered accountant, business professionals. Our management team comprises of qualified professionals trained from UK, Switzerland, Germany and many other advanced countries.

Asia Insurance Limited transacts a wide range of General Insurance business in Bangladesh including Health Plan Scheme and has gradually developed goodwill and expertise in the field with sound and stable financial position.

07. Reference:

1. www.asiainsu\asiainsu.htm 2. Prothom Alo/daily news paper. 3. " Asia Insurance unveils novel project", The Economic Times, October 21, 2008. 4. http://www. asiainsu.com/viewpaper/1694994.html 5. http://www. asiainsu.com/viewpaper/1683250.html…...

Similar Documents

Premium Essay

Insurance

...EXAMINATION IN INVESTMENT-LINKED LIFE INSURANCE PREFACE This course contains the study materials for the Certificate Examination in InvestmentLinked Life Insurance. The book may look ominously thick but please bear in mind that the market out there, both, the product producers and clients market has undergone tremendous changes in the last 15 years. The sudden deluge of information found here as compared to the earlier version is to provide a slightly higher level of understanding amongst agents, so that they can be better prepared when facing a client. The objective of this course is to provide basic fundamental knowledge of how investment-linked life insurance works and how to market it to the public. This course also introduces the agent to the world of Investment-Li n k e d L i f e Insurance sales and it is also hoped that the agents will not stop with this course but empower themselves with higher qualifications in the coming future. The Chapters in this course are designed in such a way, that a new person will get a clear picture of what Investment-Linked Life Insurance is all about and also sets a template for them to follow to a higher level in the future. It is hoped that the agents will utilise this course effectively and carry out their sales activities with stronger conviction and heightened confidence. CERTIFICATE EXAMINATION IN INVESTMENT-LINKED LIFE INSURANCE CEILLI CERTIFICATE EXAMINATION IN INVESTMENT-LINKED LIFE INSURANCE 1st Edition 1998......

Words: 44960 - Pages: 180

Premium Essay

Insurance

...[93] INDIAN LIFE INSURANCE INDUSTRY – THE CHANGING TRENDS Dr. Arnika Srivastava, Assistant Professor Faculty of Commerce, Sunbeam College for Women, Varanasi, India Dr. Sarika Tripathi, Assistant Professor Faculty of Commerce Sunbeam College for Women, Varanasi, India Dr. Amit Kumar, Assistant Professor Faculty of Commerce Sunbeam College for Women, Varanasi, India ABSTRACT Insurance industry contributes to the financial sector of an economy and also provides an important social security net in developing countries. The growth of the insurance sector in India has been phenomenal. The insurance industry has undergone a massive change over the last few years and the metamorphosis has been noteworthy. There are numerous private and government insurance companies in India that have become synonymous with the term insurance over the years. Offering a diversified product portfolio and excellent services the many insurance companies in India have managed to make their way into almost every Indian household. Keywords: Life Insurance, Substandard, Competitiveness, GDP, Indigenous, Aggressive Marketing, ULIP, Penetration, Pushed Insurer, Gross Premium. -Journal of Arts, Science & Commerce ■ E-ISSN2229-4686■ISSN2231-4172 International Refereed Research Journal ■ www..researchersworld..com ■ Vol.– III, Issue 2(3), April 2012 [94] INTRODUCTION: According to Mr J. Hari Narayan, Chairman of insurance watchdog IRDA, Indian insurance industry in set......

Words: 2795 - Pages: 12

Premium Essay

Insurance

...Baby Boomers and Long-Term Care Insurance As this generation of baby boomers ages they are faced with a glaring need to continue planning their future. Not only have advances in the medical field increased life expectancy. They also have prolonged the chances of living with a debilitating illness. Also the recent economic downfall affected the ability of children come to the aid of their parents when they are in need of home health or assisted living. A way for these aging baby boomers to plan their future is by purchasing Long-Term Care insurance, which will allow them to protect their assets. Even in this debilitated economy the cost of care in nursing homes in Florida is roughly $77,000 a year and its expected to increase to about $125,000 in the next 10 years. While the cost of home health is current about $45,000 and its expected to increase to about $72,000 in the next 10 years. As care becomes substantially more expensive, it is clear that one the benefits of Long-Term Care is to cover these costs in order to avoid being a financial burden to your children in the future. Long-Term Care insurance can protects you from having to rely on loved ones for care, while saving your loved ones the emotional and financial hardship that comes with being a caregiver. Not only does this type of insurance protect your family, it helps the insured preserve their independence. Another reason to strongly consider purchasing a Long-Term Care policy is that Medicare will not......

Words: 364 - Pages: 2

Free Essay

Insurance

...3. What should I do if I receive a cancellation or non-renewal notice from my insurance company?  First, contact your insurance producer (agent) or company for specific details. Pennsylvania law allows companies to cancel or non-renew policies for certain reasons. If you still are not satisfied with your company’s explanation, submit a statement detailing the reasons you disagree with the action to the Pennsylvania Insurance Department. In order to preserve your appeal rights, the statement must be received by the Insurance Department within 30 days of the company’s mailing of the notice. 4. What is a surcharge?  A surcharge is an additional premium charge, for a limited number of years, that is applied to your insurance policy if you are involved in certain moving violations, suspensions or accidents. Surcharge information is specified in your policy package of endorsements. 5. What protection do I have against unreasonable surcharges or policy terminations?  Motorists in Pennsylvania may not be surcharged or have their policy non-renewed if the claim(s) resulting from the accident(s) in the preceding three years do not add up to more than the current threshold amount after payment of any deductible, or if the insurance company is reimbursed for at least 60 percent of the total amount of the paid claim.  6. Can I exclude my spouse or teenager from my insurance policy to lower my premium or avoid being canceled?  Yes. The FIRST NAMED insured may exclude any family......

Words: 271 - Pages: 2

Premium Essay

Asia

...eliminating waste found in Toyota’s Japanese, North American and European facilities. What other risk factors are present with the management of a regionally constructed and globally linked production structure? First, all production does not have to rely on components sourced, which is expensive. Second, operating in emerging economies can also bring associated risks, particularly with regard to disruption of the supply chain. Moreover, Toyota’s in East Asia has emerged from the necessity of dealing with the complex nature of the regional division of labor and of a need for better coordination of supply chains and parts complementation under AFTA. 3. Given Toyota’s close coordination of the value chain, in particular its relations with component suppliers, and commitment to localization, is this a model that other automakers can emulate? I think other automakers can draw on this successful case. There are many developing countries can be component suppliers of the world, especially in South America, Africa and South Asia. Once the company gets suppliers, it can promote their cars not only in its own country but also in the other places of the world. The whole world gets closer than before, and more and more people speak the same language- English. Committing to localization is not tough nowadays....

Words: 367 - Pages: 2

Free Essay

Insurance

...About Zurich Being part of Zurich Insurance Group, Zurich Insurance (Hong Kong) offers a full range of flexible general insurance and life insurance products for individuals as well as corporate customers, catering to their insurance, protection and investment needs. Our presence in Hong Kong dates back to 1961. We are one of the top 10 insurers in Hong Kong. Zurich Insurance Group is a leading multi-line insurance provider with a global network of subsidiary and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. With over 60,000 employees serving customers in more than 170 countries, our ambition is to become the best global insurer as measured by our shareholders, customers and employees. Travelplus Insurance Plan Zurich Insurance Company Ltd ZXS/001/ENG/09/2013 (a company incorporated in Switzerland) 25-26/F, One Island East, 18 Westlands Road, Island East, Hong Kong Telephone: +852 2968 2288 Fax: +852 2968 0639 Website: www.zurich.com.hk Travelplus Insurance Plan Travelplus Insurance Plan offers comprehensive coverage for you and your family members or friends to enjoy the wonderful trip without any hassle. Table of Benefits Coverage Maximum benefits per insured person (HKD) Gold plan Silver plan Bronze plan Medical cover • Medical expenses, including follow-up medical treatment • Overseas hospital daily cash benefit 1,000...

Words: 4083 - Pages: 17

Free Essay

Insurance

...For Immediate Release India Insurance Industry Essay Writing Competition Winner Announced Ms Megha Asnani, Business Analyst with Accenture Service Private Limited was declared winner of the 2nd India Insurance Industry Essay Writing Competition organised by Asia Insurance Review in conjunction with the India Rendezvous. Ms Asnani’s essay on the topic: ‘An Indian Solvency II?’ stood out for its originality and in-depth analysis of the subject. Ms. Asnani will receive a cash prize of S$5,000 and she will also make a presentation of the winning essay at the 5th India Rendezvous in Mumbai on 20th January 2012. The “Energise Insurance in India” essay competition drew entries from some of the best insurance writers in India and was judged by a distinguished panel of top industry professionals and chaired by Mr Yogesh Lohiya, Chairman and Managing Director of GIC Re. Others in the judging panel included: Mr Jan Mumenthaler, Head-Insurance Services Group, Business Risk Department, IFC; Ms Joan Fitzpatrick, CEO, ANZIIF; Mr Michael J Morrissey, President & CEO, IIS; Mr Dezider Stefunko, Chief, Insurance Unit, UNCTAD; Mr Jawaharlal Upamaka, Editor, IRDA Journal; Mr A K Roy, General Manager, GIC Re; Mr K Raghunath, Vice President, Reinsurance, Bharti AXA General Insurance Co; and Mr G V Rao, Chairman & CEO, GVR Risk Management Associates. More details at www.asiainsurancereview.com For enquiries, please contact: Asia Insurance Review Ms Ann Tay, DID +65 6224 5583 or email:......

Words: 5100 - Pages: 21

Premium Essay

Bancassurance in Asia

...Bancassurance in Asia APRIA Annual Conference, Seoul 24 July 10:20 – 11:50 am Clarence Wong, Swiss ReinsuranceCompany, Hong Kong Summary Bancassurance has seen rapid development in Asia over the past decade, mainly driven by deregulation in many key markets. It was virtually non-existent in 2000, but has risen in importance since to account for a significant share of distribution. The main business model has also diversified from simple distribution agreement to joint ventures and integrated financial services provisions. There is no doubt that bancassurance has been a great success in Asia over the past decade. However, from the perspective of an industry practitioner, I would like to draw on three important yet inter-related issues regarding the future of bancassurance. First, the economics of bancassurance to insurance companies.Second, the prospects of non-life distribution through banks.Third, the role bancassurance in closing the region's protection gap. Let me cover the first issue. In many markets, particularly emerging Asian markets like China and India, insurers have successfully leveraged of bancassurance to maintain or expand their market share in the early phase of market liberalization and deregulation. It is, on the other hand, well-known that insurers complaint all the time about the high distribution commission associated with bank channels. There are other constraints like higher lapse ratio and difficulties in selling complicated (higher-margin)......

Words: 3423 - Pages: 14

Premium Essay

Insurance

...Executive summary The life insurance industry in India is achieving a growth rate of about 4% annually. It is considered to be one of the fastest growing sectors. The changing socioeconomic demographics and consumer behavior along with increased frequency of natural calamities and disasters have been the main reasons for the growth of this Industry. Its assets as on 31.03.08 were valued at $185 billion with a total of 250 million policies sold and an employee turnover of 113000 and about 1.2 million agents. There are currently 22 life insurance companies with LIC being the only public company having a market share of almost 50%. ICICI comes in second with 10% followed by HDFC at 6%, SBI at 5%, Bajaj at 4%, Reliance at 4%, Birla at 4%, Max 3%, Tata 3%, Kotak 2%, Met 1% and the rest taking up 10% of the market share. As of 2006 FDI norms the foreign participation of Indian insurance companies is restricted to 26%. All the life insurance companies of India have to comply with the strict regulation laid out by the ‘IRDA’ which is the insurance regulatory board in India set up in 2000. The majority of the population in India is yet to be tapped leaving a huge growth potential for this industry. The insurance industry in India is both service based as well as product based. Risk management and product development are the main highlights of R&D in this industry. The life insurance industry is re shapping the retail distribution channel. The life insurers engage with......

Words: 10894 - Pages: 44

Premium Essay

Insurance

...Section 4 quiz Which of the following describes prior approval as a type of rating law? The insurer files policy rate information with the Department of Insurance. After filing, the insurer delivers evidence that the rates proposed are reasonable and fair. Then the insurer waits (30-60 days) for approval. A subsequent violation of a cease and desist would result in: license suspension Which one of the following is not one of the three principal parts to the privacy requirement of the Gramm-Leach-Bliley Act? Credit Reporting Which of the following is a responsibility of the Commissioner? To enforce the law of insurance. Which of the following statements about insolvency is TRUE? An insurer cannot escape the condition of insolvency by being able to provide for its liabilities and reinsurance of all outstanding risks. Rates shall remain in effect if they are: all of the following Which of the following is a penalty for violating the Insurance Information and Privacy Protection Act? $50,000 fine for violations committed with regularity showing they are a general business practice Who administers the California Administrative Code of Regulations? Commissioner Which of the following is NOT a type of rating law? Legal Competition What is the role of the Commissioner and the Department of Insurance in relation to consumers? The Commissioner and the DOI are responsible for regulating the conduct of agents and insurers. Which court case......

Words: 741 - Pages: 3

Premium Essay

Insurance

...The Insurance Market in Bangladesh now consists of two state-owned corporations, forty three and seventeen private sector general & life insurance companies respectively, a total of 62 insurance companies. Thus the insurance sector in Bangladesh has grown up substantially and deepened remarkably with number of companies in both life and general segments. With the expansion of size of the insurance market, the volume of assets of the industry has also increased substantially. PROFILE OF SADHARAN BIMA CORPORATION Sadharan Bima Corporation is only state-owned General Insurance Corporation operating under the direct control and supervision of the Ministry of Finance, Government of the People’s Republic of Bangladesh. Following characteristics of SBC proves its financial soundness :- Government owned enterprise - Financial Soundness due to huge assets owned by SBC - Only re-insurer in Bangladesh - Wide net-work of offices - Public trust - Huge trained & skilled manpower - Large investable fund - Huge Real Estate Assets in Dhaka, Chittagong, Khulna, Rajshahi, Bogra & Sylhet. SBC TOWER – the only multistoried car parking building in the heart of the capital city of Bangladesh SBC is the sponsor shareholder of Investment Corporation of Bangladesh, Industrial Development and Leasing Company, National Tea Company Limited, National Housing Finance and Investment Ltd, Aramit Ltd, Central Depository BD Ltd.etc. The main pillar of the SBC is insurance as well as......

Words: 1135 - Pages: 5

Premium Essay

Insurance

... [pic] Assignment on : Delta life insurance company Prepared for : Sarah Chowdhury Lecturer Faculty of School of Business Prepared by : Nayma Yashfi (09.01.02.002) Jannatul Ferdaush (09.01.02.037) Humayra Rashid (09.01.02.003) Md. Shamiul Islam (09.01.02.041) Afeef Mahmud (09.01.02.020) Md. Rabiul Ahmed (09.01.02.049) Fariha Tabassum (09.01.02.022) Kazi Tarikul Islam (09.01.02.026) Md.Kamrul Islam (09.01.02.034) Nafisa Tabassum (09.01.02.036) Table of content |Back ground of the insurance company | |Contingency | |Specific policy taken for that particular policy | |Key factors of that particular policy | |Various packages of that particular policy | |Limitation of the sum amount of the insurance for that particular policy | |Duration of insurance policy ......

Words: 3980 - Pages: 16

Premium Essay

Insurance

...Internship Report “The Insurance Act 2010 for Non-life Insurance; Problems & Prospects of Peoples Insurance Company Limited” Submitted To: Sharmin Shabnam Rahman Lecturer BRAC Business School, BRAC University Prepared & Submitted By: Name Shamima Aktar Student ID 08104057 Date of Submission: May 20 , 2012 “The Insurance Act 2010 for Non-life Insurance; Problems & Prospects of Peoples Insurance Company Limited” ii Letter of Transmittal May 20, 2012 Sharmin Shabnam Rahman Lecturer, BRAC Business School, BRAC University Subject: Submission of Internship Report (BUS-400). Dear Madam, With due respect, I would like to inform you that, I have completed my internship at Peoples Insurance Company Limited. Throughout the internship period, I have found the company getting ready to adopt with changes brought by the Insurance Act 2010. Hence, I chose ―The Insurance Act 2010 for non-life insurance; the Problems & Prospects of Peoples Insurance Company Limited‖ as the topic of my internship report. In order to prepare the report, I have collected required information through qualitative research and finally completed the report which is now ready to submit. It was really enjoyable to work on the report as it has provided me with an opportunity to know about realistic fact of the influence of Insurance Act 2010 on the overall operation of PICL. I have learned a lot about the non-life insurance industry after preparing this term paper and......

Words: 16835 - Pages: 68

Premium Essay

Asia

...Porter Five Forces of Air Asia Porter’s Five Forces Threat of new Entrants Threat of new entry is moderate, because it requires high capital to support and government barrier is high such as the air service agreement can build barriers to those new entrants. The degree of barriers to entry depends on the strength of:- • Customers have a little bit of brand loyalty. If customers of AirAsia do not have brand loyalty, then the threat of new entrants will be very high. But the higher numbers of competitors in the industry also will decrease AirAsia’s customer loyalty. Due to most of the travelers prefer low cost. New competitors which want to come in the industry need to spend a little to compete with AirAsia. • Higher Capital Requirement The airline industry needs large volume of start-up capital. The cost of setting up of offices, buying or leasing air craft, hiring pilots and others staffs like air stewardess and etc incur a high start-up cost. So that, the threat if AirAsia is low. • Offered different product AirAsia offer different product to compare with other competitors in Asia, for example, Bangkok Airways, Tiger Airways, and Air Philippines. • Government Legislation Air Asia very difficult gets a new route from government because Malaysian Airlines System (MAS) has been protected by Malaysia government on the route to Sydney and Seoul Incheon. Therefore, it will affect the time line set by AirAsia and the most important is also influence their profit.......

Words: 335 - Pages: 2

Premium Essay

Insurance

...the convenience of cashless arrangement when seeking treatment with MedPlus if your hospitalisation and surgical expenses have been pre-authorised. This will save you from the hassle of settling medical bills and filing claims. * For eligible treatment at MedPlus where you have not sought written pre-authorisation, co-insurance of your chosen benefit level will apply which means you will share a percentage of the costs. MedPlus Service Provider^ n about 500 medical specialists in Hong Kong n 11 private hospitals in Hong Kong ^ Subject to change from time to time without prior notice Flexibility of cover You are also free to receive treatment at any medical specialists or hospitals in Hong Kong and Asia4 subject to co-insurance of your chosen benefit level. After the deductible (if any) has been exhausted, we will reimburse you the eligible cost incurred: Superior Benefit Level Reimbursement Percentage Standard Benefit Level 95% (i.e. 5% co-insurance) 80% (i.e. 20% co-insurance) For treatment outside Asia, we will only cover immediate treatment required due to emergency and it will be subject to co-insurance of the relevant benefit level. 3 deductible options to suit your budget Under MediPartner, there are 3 annual deductible amount options available for selection: Zero HKD15,000 HKD30,000 Deductible is the amount you agree to bear each policy year before this Plan will pay any medical claims. If you are......

Words: 4086 - Pages: 17