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Tag: digitalization

  • The Indian Life Insurance Market is Growing with Increasing Premiums and Policy Numbers

    The Indian Life Insurance Market is Growing with Increasing Premiums and Policy Numbers

    India’s life insurance market has witnessed substantial growth over the past decade. The rise in disposable incomes, increased awareness about financial security, and favorable government regulations have contributed significantly to this expansion. 

    A life insurance policy is now considered an essential financial instrument that provides financial protection to individuals and their families. Additionally, the rise of digitalization and innovative insurance products has made purchasing a policy easier than ever. The market’s growth is evident from the rising premiums collected by insurance companies and the increasing number of policies sold each year.

    Growth of the Indian Life Insurance Market

    The Indian life insurance market is one of the largest in the world. As per the Insurance Regulatory and Development Authority of India (IRDAI), the sector has been expanding at a compound annual growth rate (CAGR) of approximately 10% over the last few years. Several factors contribute to this surge, including higher financial literacy, changing demographics, and improved accessibility of insurance services.

    One of the primary indicators of market growth is the increase in total premiums collected. According to industry reports, total life insurance premiums in India have been rising consistently. The premiums are broadly categorized into new business premiums (NBP) and renewal premiums. The NBP refers to the first-year premium collected from new policyholders, while renewal premiums are those collected from existing policyholders when they continue their policies. In recent years, both categories have witnessed significant growth.

    Key Factors Driving Market Growth

    1. Rising Awareness and Financial Literacy

    With financial awareness increasing across urban and rural India, more individuals recognize the importance of having a life insurance policy. The efforts of government programs, insurance companies, and financial institutions in educating people about financial planning have resulted in higher insurance penetration.

    2. Economic Growth and Higher Disposable Income

    India’s growing economy has led to higher disposable incomes among middle-class families, enabling them to allocate funds towards financial security. As people become more affluent, they are more likely to invest in life insurance to safeguard their future.

    3. Government Initiatives and Regulations

    The Indian government has introduced various schemes and regulations to promote insurance adoption. Programs such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) have helped increase insurance coverage among the economically weaker sections of society. Additionally, tax incentives on life insurance premiums under Section 80C of the Income Tax Act encourage more individuals to invest in insurance policies.

    4. Digital Transformation and InsurTech Innovations

    The digital revolution has played a crucial role in transforming the life insurance sector. InsurTech companies have leveraged artificial intelligence, big data, and blockchain technology to enhance customer experience. The ability to purchase, renew, and manage a life insurance policy online has attracted tech-savvy consumers. Digital distribution channels, mobile apps, and chatbot-driven assistance have simplified the insurance-buying process.

    5. Customized Insurance Products

    Life insurance companies have diversified their product offerings to cater to different customer needs. Traditional endowment plans, unit-linked insurance plans (ULIPs), and term insurance policies have been customized with flexible premium payment options, additional riders, and higher sum assured benefits. Term insurance, in particular, has gained immense popularity due to its affordability and high coverage benefits.

    The Role of Term Insurance in Market Growth

    Term insurance is one of the most preferred types of life insurance policies due to its cost-effectiveness and extensive coverage. Unlike traditional insurance policies, term insurance offers pure life cover without any investment component. This makes it an attractive choice for individuals seeking financial security for their families at a lower cost.

    Benefits of Term Insurance:

    . Affordability: Term insurance policies provide high coverage at relatively low premiums.

    . Financial Protection: In case of the policyholder’s demise, the sum assured is paid to the nominee, ensuring financial stability.

    . Tax Benefits: Premiums paid for term insurance are eligible for tax deductions under Section 80C.

    . Flexibility: Many insurers offer the option to enhance coverage through riders like critical illness cover, accidental death benefits, and waiver of premium.

    With increasing financial awareness, more individuals are opting for term insurance as a crucial part of their financial planning. The convenience of buying term insurance online has further contributed to its growing demand.

    Challenges Faced by the Life Insurance Market

    Despite the impressive growth of India’s life insurance market, certain challenges remain:

    1. Low Penetration in Rural Areas: Although awareness is increasing, insurance penetration in rural areas is still low due to lack of accessibility and affordability.

    2. Mis-selling and Complexity of Products: Many policyholders struggle with understanding complex insurance terms, leading to mis-selling or underinsurance.

    3. Claims Settlement Issues: Some insurers face criticism for delays or rejections in claim settlements, affecting trust in the industry.

    4. Market Competition: The presence of numerous players in the market leads to intense competition, making it difficult for smaller insurers to sustain growth.

    The Future of the Indian Life Insurance Market

    The future of India’s life insurance market looks promising, driven by continued economic development, technological advancements, and customer-centric innovations. Several trends are expected to shape the industry in the coming years:

    1. Expansion of Digital Distribution Channels: With increasing internet penetration and smartphone usage, more insurers will focus on digital platforms to reach a broader audience.

    2. AI and Data Analytics Integration: AI-driven underwriting processes and predictive analytics will help insurers provide personalized insurance solutions.

    3. Increased Focus on Health and Wellness: Insurers are likely to introduce policies that incorporate wellness programs, rewarding customers for healthy lifestyles.

    4. Microinsurance and Inclusive Policies: Companies will continue to develop low-cost microinsurance policies to cater to rural populations and low-income groups.

    5. Regulatory Developments: IRDAI is expected to introduce new regulations to enhance transparency, customer protection, and ease of policy acquisition.

    Conclusion

    India’s life insurance market is on a steady growth trajectory, fueled by increasing premiums and policy numbers. Factors such as rising financial awareness, digital transformation, government initiatives, and customized insurance products have contributed to this expansion. Term insurance, in particular, has emerged as a preferred choice for individuals seeking cost-effective and high-coverage policies. However, challenges such as low rural penetration and claims settlement issues need to be addressed to sustain long-term growth. With continued innovation and regulatory support, the Indian life insurance sector is set to flourish, providing financial security to millions of individuals and families.

  • Print media will reach only 75 % of its pre-pandemic revenue this fiscal, says report

    Print media will reach only 75 % of its pre-pandemic revenue this fiscal, says report

    New Delhi: Despite 35 per cent on-year growth this fiscal on a low base, the country’s print media sector will reach only three-fourths of its fiscal 2020 revenue, according to a new CRISIL report.

    While the cost of newsprint continues to remain high, there is a good probability that profitability will revive to 9-10 per cent driven by sharp cost rationalisation measures and digitalisation of content, shows the report. The analysis assumes the impact of the second wave to continue to subside, as is seen currently.

    According to CRISIL, the credit profiles of large print media companies will be resilient, cushioned by healthy liquidity and strong balance sheets, while for the remaining ones, liquidity management will be crucial, shows an analysis of CRISIL-rated companies that account for roughly 40 per cent of the sector’s revenue.

    The sector’s revenue of Rs 31,000 crore in fiscal 2020, split 70:30 between advertisement (ad) and subscription revenue, had declined 40 per cent last fiscal amid the first wave. However, it is expected to reach to Rs 24,000-25,000 crore this fiscal, notwithstanding the second wave.

    “The second wave has impacted ad revenues in the last quarter, as it correlates strongly with economic activity,” CRISIL Ratings, director Nitesh Jain said, “We expect ad revenues to recover from the current quarter as economic activity revives. But it would still reach only 75 per cent of the pre-pandemic level this fiscal, as seen during January-March 2021, before the second wave took hold.

    As for subscription revenue, the sector is witnessing a structural change with a shift in consumer preference towards digital news, from physical newspapers. This is more prominent for English newspapers, which have a higher share in metros and Tier-1 cities, where digital adoption is also higher. These companies are, therefore, focusing on monetisation of content by putting premium news behind paywalls and pushing digital subscription along with print subscription. Non-English newspapers, on the other hand, had relatively resilient subscription revenue even in the first wave because of their strong roots in the hinterland.

    “We believe, unlike western countries, print media will remain popular in India. Besides low cover price and the convenience of home delivery, it benefits from the ability to provide original and credible content, and people’s habit of reading physical newspapers,” stated the report, according to which, the overall sector’s subscription revenue loss this fiscal should be restricted to 12-15 per cent of the pre-pandemic level.

    That said, printing physical copies of a newspaper requires newsprint – a key raw material that accounts for 30-35 per cent of the total cost for print media companies. Over the past six months, newsprint prices have risen 20-30 per cent

    The run-up in cost notwithstanding, the operating margin is expected to reach 9-10 per cent this fiscal, or 100-200 basis points lower than the pre-pandemic low of fiscal 2020. This is because of sharp cost rationalisation measures undertaken by the companies, such as reduction in pagination, employee cost and other expenses.

    Last fiscal, retailers strengthened their balance sheets through equity infusions of Rs 2,000 crore, which reduced overall debt for CRISIL-rated apparel retailers by 30 per cent.

    CRISIL Ratings associate director, Rakshit Kachhal said, “Credit profiles of large print media companies will continue to be supported by ample liquidity and sustained strong balance sheets, with most being net-debt free. However, for the smaller ones, whose interest cover has declined to 1.6 times as on 31 March from 2.1 times a year ago, ability to manage liquidity amid the second wave and rising newsprint prices will still be crucial.”

  • Second digital India summit to be launched by Times Network

    Second digital India summit to be launched by Times Network

    MUMBAI: In a bid to help speed up the transition to a vibrantly Digital India, Times Networkannounced the launch of the Second Digital India Summit (SDIS). The Network claims that the summit will lead the country on the path to digitalization by providing the leaders and digital evangelists a platform to ideate on important areas and issues, and also by recognizing and honouring individuals, businesses and organizations that are harnessing the power of information, communication and technology and digital tools.

    SDIS will be telecast on Times Now and ET Now. The summit will get under way on 22 March 2016, with a day-long event in New Delhi, which will begin with a keynote address from the union minister of communications and information technology, Ravi Shankar. The session will be addressed by Dell’s Asia Pacific and Japan president Amit Midha and Dell emerging markets chairman.

    Times Network managing director and CEO M K Anand said, “India is surging ahead on the path of progress, powered by young, creative, digitally-savvy people and a strong government emphasis on the best use of information, communication and technology to usher in digitization across cities and platforms. As the nation’s most influential network with the biggest English and business news channels that inform and empower viewers, Times Network is proud to announce the second digital India summit. Our goal is to contribute to transforming India into a global economic superpower over the next decade, and we are confident that the second digital India summit will create a significant positive impact.”

    The day will conclude with the Digital India Summit awards being given out to those leaders whose efforts and initiatives have contributed the most to the Digital India Summit’s primary objectives to help India on the path to transform business processes, improve delivery of public services and thereby to create a positive impact on society. SDIS works to identify and honour the top individual torchbearers harnessing the power of ICT and digital.

    To promote SDIS, Times Network says that it will run and exhaustive high-decibel call-for-entries campaign to invite participation from businesses and organizations that are harnessing the power of technology and transforming businesses and lives of people. The entire process, from call for entries to the selection and short listing process, through an eminent jury meet, and finally, the winners’ announcement and felicitation on the awards night, will flow across a month.

    The awards are divided into two parts, Good For India and Good For Organizations.

    While the Good For India awards recognize the initiatives taken by stakeholders towards the accomplishment of the digital India dream, on other hand the Good for Organizations awards will recognize organizations that have made the first move towards digital India by using ICT in integrating people, processes and data to achieve business transformation and growth.

    Good for India has seven categories – e-governance solutions, e-education learning solutions, e- healthcare delivery solutions, skills and employment solutions, energy solutions, environmental solutions and agricultural solutions. Good for organizations has four categories under digital enterprise which are manufacturing, services, digital start-up innovators and digital social innovation.

    Supporting the event are the lead and award partner Huwaei, lead partners GTL Infrastructure and Union Bank of India, knowledge partner MAIT and Tech 4 good partner NASSCOM foundation.

  • Second digital India summit to be launched by Times Network

    Second digital India summit to be launched by Times Network

    MUMBAI: In a bid to help speed up the transition to a vibrantly Digital India, Times Networkannounced the launch of the Second Digital India Summit (SDIS). The Network claims that the summit will lead the country on the path to digitalization by providing the leaders and digital evangelists a platform to ideate on important areas and issues, and also by recognizing and honouring individuals, businesses and organizations that are harnessing the power of information, communication and technology and digital tools.

    SDIS will be telecast on Times Now and ET Now. The summit will get under way on 22 March 2016, with a day-long event in New Delhi, which will begin with a keynote address from the union minister of communications and information technology, Ravi Shankar. The session will be addressed by Dell’s Asia Pacific and Japan president Amit Midha and Dell emerging markets chairman.

    Times Network managing director and CEO M K Anand said, “India is surging ahead on the path of progress, powered by young, creative, digitally-savvy people and a strong government emphasis on the best use of information, communication and technology to usher in digitization across cities and platforms. As the nation’s most influential network with the biggest English and business news channels that inform and empower viewers, Times Network is proud to announce the second digital India summit. Our goal is to contribute to transforming India into a global economic superpower over the next decade, and we are confident that the second digital India summit will create a significant positive impact.”

    The day will conclude with the Digital India Summit awards being given out to those leaders whose efforts and initiatives have contributed the most to the Digital India Summit’s primary objectives to help India on the path to transform business processes, improve delivery of public services and thereby to create a positive impact on society. SDIS works to identify and honour the top individual torchbearers harnessing the power of ICT and digital.

    To promote SDIS, Times Network says that it will run and exhaustive high-decibel call-for-entries campaign to invite participation from businesses and organizations that are harnessing the power of technology and transforming businesses and lives of people. The entire process, from call for entries to the selection and short listing process, through an eminent jury meet, and finally, the winners’ announcement and felicitation on the awards night, will flow across a month.

    The awards are divided into two parts, Good For India and Good For Organizations.

    While the Good For India awards recognize the initiatives taken by stakeholders towards the accomplishment of the digital India dream, on other hand the Good for Organizations awards will recognize organizations that have made the first move towards digital India by using ICT in integrating people, processes and data to achieve business transformation and growth.

    Good for India has seven categories – e-governance solutions, e-education learning solutions, e- healthcare delivery solutions, skills and employment solutions, energy solutions, environmental solutions and agricultural solutions. Good for organizations has four categories under digital enterprise which are manufacturing, services, digital start-up innovators and digital social innovation.

    Supporting the event are the lead and award partner Huwaei, lead partners GTL Infrastructure and Union Bank of India, knowledge partner MAIT and Tech 4 good partner NASSCOM foundation.

  • Zee News Ltd Q4 revenue up 47 % at Rs 690 million

    MUMBAI: Zee News Limited (ZNL) has posted a standalone fourth quarter revenue of Rs 690.3 million, representing a 47 per cent growth as compared to the proforma numbers for the corresponding quarter last fiscal.

    The operating profit for the quarter stood at Rs 8.5 million, after expensing of initial investments in new businesses, amounting to Rs 154 million. The corresponding quarter last fiscal, as per proforma numbers, showed a loss of Rs 44 million.

    Profit before tax for the quarter ended 31 March 2007 was Rs 21.2 million while net profit was Rs 13.1 million, the company stated in a release.

    Consolidated operating revenues for the fourth quarter stood at Rs 710.6 million while consolidated operating loss was Rs 9.2 million.

    For the fiscal ended 31 March 2007, ZNL’s revenues grew 41.5 per cent to Rs 2.36 billion.

    Commenting on the results Zee Group chairman Subhash Chandra said, “ZNL has shown robust advertising and subscription growths of 37 per cent and 45 per cent respectively during the quarter While the existing businesses of the company have sustained the growth momentum, the new businesses are also showing encouraging viewership trends. This should stand us in good stead for the future. Digitalization should also enable our channels to garner good subscription revenues in future.”

    Added Zee News Ltd CEO Harish Doraiswamy, “We are pleased to report that excluding new business losses, our operating margins have improved from 18 per cent last year to 30 per cent this year.”

    Ad revenue grows 37 per cent

    ZNL’s advertising revenues increased to Rs 467.2 million, a 37 per cent growth as compared to the corresponding fourth quarter proforma numbers of last fiscal. “This growth in advertising revenues was a result of better yield and inventory utilization,” the company said.

    Subscription revenues grew 45 per cent at Rs 146.8 million. “Direct-to-home (DTH) services contributed significantly to the growth in subscription revenues,” Zee News said.

  • DD to be available now in Canada, US

    DD to be available now in Canada, US

    NEW DELHI: Finally pubcaster Doordarshan will be available in the US and Canada.

    Prasar Bharati, which manages DD, has said that it has entered into agreements for the distribution of DD India channel in Canada and the US.

    Briefing fellow parliamentarians, information and broadcasting minister Priya Ranjan Dasmunsi said earlier in the week that a similar distribution agreement for the UK is under finalization.

    In the UK, DD is negotiating to be on the News Corp-controlled BSkyB’s pay platform.

    DD India carries news bulletins, features on topical events, entertainment programmes, feature films, music and dance shows, including children programmes in some regional languages.

    Dasmunsi said that the content medley of DD India is expected to serve the interests and needs of the Indian diaspora.

    A study on the reach and impact of DD India channel in Middle-East countries is also on the anvil.

    DD, AIR INITIATIVES ON REVENUE EARNINGS

    All India Radio (AIR) is charging tower rentals (including maintenance charges) for the infrastructures being offered to private broadcasters during Phase-II FM service as part of revenue generating prospects.

    The rentals for category A+, A, B, C and D cities are Rs. 1.3 million, Rs 0.8 million, Rs 0.4 million, Rs. 0.3 million and Rs. 0.18 million respectively.

    According to the I&B minister, Doordarshan has also decided to charge a carriage fee amounting to Rs. 10 million per annum from private channels that are interested in becoming part of the bouquet of channels carried on its DD Direct Plus subscription free DTH service.

    What’s more, AIR has introduced on line computerized booking system (Central Window Booking) at its Central Sales Unit, Mumbai, which has been linked to all its 15 Commercial Broadcasting Service (CBS) centres for all advertisers and clients.

    The minister said AIR is constantly devising new programming formats to suit local audiences. Local variation components of Vividh Bharati stations on AM frequencies are being increased to augment listenership and attract more
    advertisers.

    AIR has also introduced 1:1 bonus scheme for spot booking to attract more advertisers.

    For the fiscal ended 31 March 2006, AIR generated revenues of over Rs 1oo crore.

    Doordarshan too has taken various steps with a view to increase revenues, including opening marketing divisions in Mumbai, Chennai, Hyderabad, Delhi, Kolkata and Bangalore and setting up of Development Communication Division
    for securing business and catering to the publicity requirements of various government agencies and public sector undertakings.

    Cable operators have now been given the option to download signals either in analog or digital mode to improve the transmission quality as digitalization increases.

    DD’s commercial rate card is being constantly reviewed and revised to bring it in tune with market practices and the amount of bank guarantee to be submitted by accredited agencies increased from Rs 300,000 to Rs. 25 lakhs.

    Dasmunsi also said that an empowered committee, comprising Prasar Bharati CEO and other senior members of the board have been constituted for quick decisions in commercial matters and payment behaviour is regularly
    monitored.

    For FY06 DD’s total revenue earnings were over Rs. 10 billion.

  • Ficci bats for TV industry, seeks convergence norms review

    Ficci bats for TV industry, seeks convergence norms review

    NEW DELHI: Rationalisation of FDI caps in television distribution and news and non-news content, easing of policies and regulation for uplinking of channels and framing of cross-media ownership rules are some key elements that Federation of Indian Chambers of Commerce and Industry (Ficci) has suggested to give a fillip to the Indian TV industry.

    According to a Ficci submission to the government-sponsored think-tank on economic policies, Planning Commission, for inclusion in the 11th Plan Approach Paper, the TV sector currently lacks a consistent and uniform media policy for foreign investment. Some of the inconsistencies include different investment caps in foreign direct investment (FDI) in various segments.

    For instance, in television distribution (DTH) 49 per cent foreign investment is allowed with strategic FDI capped at 20 per cent. In cable, 49 per cent foreign investment is allowed, while in news content (TV and print) 26 FDI is allowed. In radio, 20 per cent foreign investment is permitted presently.

    Ficci has pointed out that convergence of technologies, services and markets is the emerging paradigm around which the communication industry is centered. Advancement of technology has blurred the line between telecom, broadcasting services and networks and under such a scenario there are urgent needs to review policies governing this sector.

    For example, Ficci has said, any regulation change must take into account emerging techs like IPTV, broadband and spectrum allocation for both broadcasting and telecom services.

    “It should be the aim of regulation to facilitate fair competition between players, competing platforms and multiple technologies in the carriage segment letting the markets decide the technology and platforms of choice,” Ficci said in a statement, adding similar suggestions have been made by broadcast and telecom regulator too.

    Ficci has noted that the content side is independent of carriage and should be largely self-regulated.

    In its submission to the Planning Commission, Ficci has suggested conversion to digitalization should be mandatory with clear time frame defined for transition to digital.

    Fiscal incentives such as waiver of service and entertainment tax and income tax holiday could be provided to operators for transition to a digital regime.

    At the same time, Ficci has criticized price regulation for digital cable providers, plugging for its discontinuation.

    Pointing out that presently India does not have a national digital policy or plan, Ficci has said existing regulatory and policy framework for the cable industry is quite inadequate in dealing with issues like digitalization, which will increase consumer choice and help in overcoming bandwidth limitations.

    Interestingly, the apex chamber of commerce has said that licensing process should be made stringent to filter out non serious players through insistence on companies’ net worth, proper declaration of subscriber base and area of operation.

    It has been pointed out that the government should look at establishing India as an uplinking (of satellite channels) hub by easing the existing policies/regulations for uplinking of channels and setting up teleports/hubs.

    A liberal FDI regime, which allows greater control over uplinking infrastructure, could attract foreign players to India, Ficci has said, pointing out that Singapore allows 100 per cent foreign ownership of uplink infrastructure of licensee companies, apart from having a tax-friendly environment.

    Surprisingly in a muted tone, Ficci has brought up the issue of cross-media ownership, which is rocking the media industry presently.

    Considering no public draft has been evolved as yet relating to cross-media ownership, absence of any draft rules or an established time frame for evolution of such rules hampers long-term investment strategy of a potential foreign investor, Ficci has noted.