Tag: Covid claims

Bharti AXA Life new business premium up 33% in H1

Banking & Finance

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Bharti AXA Life Insurance, a private life insurer, on Monday said that the company’s weighted new business premium grew 33 per cent in the first half this fiscal to ₹285 crore (₹214 crore).

The company recorded 8 per cent growth in its renewal premium to ₹645 crore (₹594 crore).

Total premium income grew moderately to ₹1,024 crore in the April-September 2021 period from ₹912 crore in the first six months of the last financial year.

The company recorded growth of 53 per cent in weighted new business premium in the month of September 2021 and outperformed the private sector by 1.5X.

Parag Raja, Managing Director and Chief Executive Officer, Bharti AXA Life Insurance, said in a statement, “We have registered steady performance on many parameters and achieved one of the highest industry growth for our new business premium collection in the first six months of the current financial year. Further, our asset under management saw a strong growth of 28 per cent and has doubled over the past three years”.

Surge in business

The improvement in the Covid pandemic situation since August 2021, buoyant consumer sentiment towards the need for life insurance and the company’s investments in digital platforms to enhance customer experience and facilitate seamless services along with the suite of customer-centric products gives “us confidence about achieving our business targets and growth in the coming months.”

The 13th month persistency ratio for Bharti AXA Life insurance improved to 64.4 per cent in H1-FY22, up from 60.7 per cent for the same period last year.

The Company’s solvency ratio stood at 188 per cent on September 30, 2021, well above the regulatory requirement of 150 per cent. The company recorded a surge of 28 per cent in its asset under management at ₹10,256 crore as on September 30, 2021 against ₹7,987 crore in the corresponding period of the last fiscal.

The company has disbursed ₹106 crore in Covid related claims for the first half of the financial year 2022.

Bharti AXA Life Insurance has 254 branches and33,266 advisors as on September 30, 2021.

“We have already witnessed a strong start with our new bancassurance partners — Fincare Small Finance Bank, Shivalik Bank and Utkarsh Small Finance Bank, and are actively pursuing opportunities for strategic tie-ups and alliances to ensure sustained business growth over the next few years,” Raja said.

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HDFC Life expects muted third wave, says reserves should suffice for future claims, BFSI News, ET BFSI

Personal Finance

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HDFC Life Insurance‘s reserves will be sufficient for future claims as the intensity of any subsequent COVID wave will be muted, said Vibha Padalkar, managing director and chief executive officer of HDFC Life Insurance, at the quarterly results‘ press conference.

The insurer is bullish on the impact of COVID, as the number of vaccinations have the crossed 1-billion mark. ” In addition, the recent macroeconomic data augurs well for the economy and is indicative of swifter recovery trends. Consumer sentiment remains buoyant and we are optimistic about sustained increase in business in the coming few months,” the company said in a filing.

The life insurer on Friday announced a 15.9% fall in its consolidated net profit to Rs 274.16 crore in Jul-Sep, as against Rs 326.09 crore a year ago.

Padalkar is optimistic about the second half of FY22, citing new bancassurance partnerships and agency channels. On the acquisition of Exide Life Insurance Co, Padalkar expects HDFC Life to receive the approval from the regulator by late third quarter or early fourth quarter.

Total income of the insurer in the second quarter, however, rose to Rs 20,478 crore against Rs 16,426 crore a year ago, while the net premium income increased by 52% to Rs 11,445 crore from Rs 10,056 crore, the insurer said in a regulatory filing.

“Value of new business (VNB) recorded a robust 30% growth to Rs 1,086 crore over last year. Our profit after tax stands at Rs 577 crore for H1, 26% lower than H1 FY21, on the back of higher claims reserving warranted by the second wave of the pandemic,” said Padalkar.

The insurer settled around two lakh claims in the first half of the fiscal. Gross and net claims amounted to Rs 3,640 crore and Rs 2,466 crore, respectively, against an anticipated net claims of Rs 1,690 crore, the management said in a post-earnings call. The excess Rs 776 crore was paid out of reserves, which stood at Rs 204 crore as on 30 September.

The company’s overall experience has been in line with their projections, and an Excess Mortality Reserve (EMR) of Rs 204 crore is being carried into the second half of FY22, the company said in a filing. Its solvency ratio was at 190% compared with 203% a year ago, while its 13th month persistency was at 84.8% against 83.9% around the same period last fiscal.



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Insurers have settled about 6 out of 10 Covid claims so far

Banking & Finance

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The settlement of Covid-related health insurance claims is hovering around 60 per cent of the total claims made so far.

According to the latest industry data, as on July 19, 2021, total reported claims stood at ₹27,640 crore, of which, only claims worth ₹16,396 crore have been settled.

On an average, the settled amount ranges between 55 per cent and 65 per cent of the claim .

In the first wave of the pandemic (up to February 22, 2021), insurers reported claims worth ₹13,736 crore, of which ₹7,125 was settled. In the second wave – from February 23 to July 19 – general and standalone health insurers received claims worth ₹13,905 crore, of which ₹9,271 crore has been settled.

When contacted, the chief of a private general insurer said: “Settlement of Covid claims has been a challenge as most customers tend to claim much higher than what they are eligible for under various schemes.

“In some cases, claims are not supported by valid documents. In very few cases, we have detected fake documents, including Covid certificates.”

Intensity of second wave

The intensity of the second wave of the pandemic is also testified by the number of claims.

“The number of claims we received during the few months of the second wave are higher than the claims reported during the entire first wave of Covid-19,” said Sanjay Datta, Chief – Underwriting & Claims, ICICI Lombard said.

According to TA Ramalingam, Chief Technical Officer, Bajaj Allianz General Insurance, Covid claims constituted 45 per cent of the overall health claims during the first quarter of the current fiscal compared to 7 per cent in the same period last year.

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Covid claims: Kotak Life Insurance expects ₹275-cr loss in June quarter

Banking & Finance

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Private sector lender Kotak Mahindra Bank has said its life insurance subsidiary expects to incur a loss of up to ₹275 crore in the quarter ended June 30, 2021 due to increased Covid claims.

“Due to increased claims and higher mortality related provisioning arising on account of the second wave, the company expects to incur a loss for the quarter ended June 2021 in the estimated range of ₹225-275 crore,” Kotak Mahindra Bank said in a regulatory filing about Kotak Life Insurance.

“The second wave of Covid-19 has led to an unprecedented increase in fatalities in the country and consequently death claims reported to the company from May,” Kotak Life Insurance said, adding that the issue was discussed at its board meeting on June 16.

The provisioning going forward will depend on the trends in mortality, the private sector insurer said, adding that it continues to have a strong capital and solvency position.

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