Slow Down effect-I

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Private Insurers who are already facing tough times with mounting losses even after 8 years in the Indian insurance industry are now facing one more rival apart from LIC of India, don’t worry no other big corporate house has decided to enter this field but it is the current market environment which is forcing most of the private insurers to look back at their expansion plans which are till now in a full swing.

Largest private life insurer ICICI Prudential Life insurance has decided to go slow on new branches and agent recruitment.

Till 2007-08 company has over 2.78 lakh agents and nearly 1050 branches.

ICICI prudential is not the only one, the story is even true for second largest private Life insurer Bajaj Allianz Life, who is also focusing on controlling the costs and is not expanding their branch network.

One plan which is responsible for nearly 100% growth of all the private life insurer that is ULIP is gradually loosing its charm as stock market is now near to 8000 down almost 12000 points from its January pick.

Global slow down will certainly make the availability of the capital tough for the insurers and due to this they have to answer question from their share holders.

One other important factor playing out here is dependency on their Global partner

Currently Global partner is responsible to provide nearly 26% investments, but current market condition will even force them to cut down on any investment.

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