SPOTLIGHT

Munich Re -- Kamatla Sheeba

The Munchener Rueckversicherungs Gesellschaft (Munich Re) is one of the largest reinsurers in the world and the second largest primary insurer in Germany. Carl Thieme founded Munich Re in 1880; and soon it expanded across many foreign countries. In 1886, Munich Re established general agency in Paris and opened representative offices in St. Petersburg (Russia), Copenhagen (Denmark) and Stockholm (Sweden). In 1899, it opened a branch in the US.

© 2008 The Icfai University Press. All Rights Reserved

COVER STORY

Crop Insurance in India : Quantitative Dimensions -- Varsha Varde

National Crop Insurance Scheme is an area-based multi-peril scheme in vogue since Rabi 1999-00. This article analyzes the state-wise data over the last 15 seasons and evaluates its performance in terms of its outreach and business accomplishments. It concludes that in the absence of aggressive promotional efforts, outreach in the terminal year of the XI plan (2011-12) may not cross 250 lakh farmers. Area covered may not exceed 400 lakh hectare.

© 2008 The Icfai University Press. All Rights Reserved

REGULATION

Change of Guard at Irda -- GV Rao

The recent change of guard in the mid-June 2008 at the IRDA, coming at a time, when both the insurance markets are bracing with tough and unprecedented challenges, has made the immediate tasks of the incoming chairman, even more onerous, offering him little time to settle down. J Hari Narayan, the new Chief of IRDA has come to grips with the issues facing the IRDA very quickly, and has even laid out his agenda in inimitable terms. This article analyzes the challenges involved in the fulfillment of each item on his agenda.

© 2008 The Icfai University Press. All Rights Reserved

RISK AND INSURANCE

Insuring the Bottom of the Pyramid -- Sneha Shukla

Rural insurance can play a significant role in providing access to credit that enhances income-earning opportunities, and deliver savings that build up resources for utilization in case of emergencies. This article while discussing the norms on rural insurance, tries to identify various rural insurance needs like policyholders' preferences and ability to make premium payments taking into account the operational changes as well. It also touches upon the various proactive initiatives taken by the private players, namely tailor-made low-cost term insurance products; creation of new distribution links and tie-ups to tap this potential rural market.

© 2008 The Icfai University Press. All Rights Reserved

BUSINESS ENVIRONMENT

Insurance Industry : The Need for Acord -- S Jayaprakash

ACORD is emerging as a very good standard for the insurance industry. It is estimated that around $200-300 mn is invested in ACORD transformations in US alone per annum. Though India is yet to pick up the wave, this article is an attempt to make the readers aware about the benefits of ACORD in the current scenario and the steps required to make it a success.

© 2008 The Icfai University Press. All Rights Reserved

BUSINESS ENVIRONMENT

The War for Market Share : A View from India -- Jimmy John

It is a slugfest in the life industry, just seven years since the industry was opened up to private players. Jimmy John the Indian correspondent of Asia Insurance Review traces the developments in the world's 17th largest life market.

© 2008 Asia Insurance Review (www.asiainsurancereview.com). This article was first published in the July 2008 issue of Asia Insurance Review. Reprinted with permission.

BUSINESS ENVIRONMENT

Turning Up the Heat -- Rodney Taylor

Few industries have as much at stake from climate change as the insurance industry. It is time for the industry to be proactive, lead by example and establish sound underwriting practices.

© 2008 Risk and Insurance Management Society, Inc. All Rights Reserved. This article was first published in the July 2008 issue of Risk Management Magazine. Reprinted with permission.

LIABILITY INSURANCE

Couriers' Legal Liability Insurance -- HK Moria

Courier companies have become a significant part of the growing services sector in the Indian economy by clinching a sizable share of the goods and mail delivery business. In fact, these companies have been dragged to various consumer forums or courts for various kinds of defaults in their services and in many such cases punishments were given to them. To take care of such financial losses, the general insurance sector devised the Couriers' Legal Liability Policy that also helped in granting transit insurance cover for articles booked through couriers.

© 2008 The Icfai University Press. All Rights Reserved

NON-LIFE INSURANCE

Insurance Solutions for Mega Projects -- B Venkata Ramana

Triggered by the economic reforms in developing countries, particularly in the Afro-Asian region, there has been tremendous increase in the infrastructure projects, more specifically the greenfield and brownfield projects—in private-public partnership. Looking at the magnitude of long-term financial and legal commitments entwining such mega ventures, it is worth endeavoring to design suitable `All-in-One' type of special package insurance arrangement to make planning and execution of such projects considerably safe and secure, financially and operationally.

© 2008 The Icfai University Press. All Rights Reserved

NON-LIFE INSURANCE

When Does Business Interruption Insurance Coverage Stop? -- Jay M Levin

Most commercial property insurance policies provide for both property damage and time-element coverage. In return for the premium, the insurer agrees to pay not only the cost to repair or replace covered property damaged or destroyed by a covered peril, but also agrees to pay for loss of business income for a period of time, usually from the date of the loss until the time the property damage can be repaired with due diligence.

© 2008 International Risk Management Institute, Inc. (www.IRMI.com). This article was first published in the June 2008 issue of IRMI.com. Reprinted with permission of the publisher from the Expert Commentary Section of www.IRMI.com

BUSINESS STRATEGY

Financial Modeling for Today's Demands Brian Heale and Francois Morin The gains from next-generation financial modeling go beyond regulatory compliance, promising improved risk management, greater efficiency and increased profits.

© 2008 Towers Perrin. This article was first published in the February issue of Towers Perrin Emphasis magazine. Reprinted with permission in its entirety.

HEALTH INSURANCE

Medical Insurance : A Primer -- M Bashyakar and Mohandas J Menon

The article illustrates the real-life experience of an Indian employee who has taken a medical insurance policy. He was not able to get his claim settled due to his lack of awareness of the many conditions imposed by the policy. Therefore, there is a need to highlight different medical insurance policies, their advantages, disadvantages, etc.

© 2008 The Icfai University Press. All Rights Reserved