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5 things only smart people know about insurance

3 November 2016 By admin Leave a Comment

Did you know that about 70% of Indians are under-insured ?

Granted, the intricacies of insurance can be hard to understand, but that doesn’t mean it’s not worth the effort. For those of us who spend time to study the various terms and conditions, it is not hard to find the best deal and the most suitable policy to protect us and our loved ones. You just need to be smart about it!

Here are 5 things only smart people know about insurance:

1. Free Look Period

Thought you’re stuck with an insurance policy once you’ve bought it? Think again.

According to the IRDAI, there is a Free Look Period for all life insurance policies, and all health insurance policies that last longer than 3 years² . During this period, which usually lasts for 15 days, you can review the policy terms and conditions, and in case you any of them are not agreeable to you, you can hand the policy back and get a refund. The only ..

2. No Claim Bonus

Didn’t make an insurance claim and thought you’ve lost money on your premium? When it comes to car and health insurance, that isn’t true.

If you go an entire year without making a car insurance claim, you are rewarded for safe driving with a No Claim Bonus of up to 20%³ when you renew your premium. Every year, this percentage increases, and if you go 5 years without making a claim, your premium can reduce by 50%! This benefit is also available ..

See full story at economictimes.indiatimes.com

Could social media bump up insurance?

27 October 2016 By admin Leave a Comment

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Could that Instagram image of you bungy jumping in your 20s result in having to pay higher insurance costs in the future? One insurance expert thinks so.

Michael Naylor, a senior lecturer in finance and insurance at Massey University, says people should expect insurers to mine their social media accounts in the future to determine how much they will charge for insurance premiums and if they will pay out on claims.

“People have to be aware everything they do on social media can be effectively public.

“You can set privacy settings, but of course they can be hacked.”

He says New Zealand insurers are not set up to deal with social media at the moment but they will be.

“Some in the US are already doing it.”

Naylor says the cost of paying a person to do the research has made it prohibitive up until recently but apps that can identify a person from an image by using social media are making it cheaper and more likely.

He predicts it will be one to three years away in New Zealand and says it may not come from existing insurers but new entrants to the market who will use personal data to cut insurance premiums for less risky customers.

That could leave old-style insurers with more risky customers and the prospect of rising premiums to cover their costs.

He says the change could have implications for people who seek adventure when younger and record it all on their social media pages.

“Of course the internet doesn’t die.”

They may have to prove they no longer undertake those activities to get insurance in the future or sign exclusion agreements meaning they won’t be covered for certain activities, says Naylor.

Insurers are already warning home-owners to be careful about what they post on Facebook about going away on holiday because it could be in breach of their duty of care policy provisions for house and contents insurance.

Vero, one of the country’s largest insurers recently posted a blog, giving people tips on how to avoid making this social media faux par.

Jimmy Higgins, Vero’s head of claims says it is not telling people to stop posting their holiday snaps online but to be careful about revealing too much detail and casting that information too widely.

We are not saying don’t show those family photos of you on holiday – it is just one of those things to be cautious of.

Jimmy Higgins

It might not be your Facebook friends that act on the information but a friend of a friend, he warns.

Higgins says people can protect themselves by not being specific about the dates they are away and making sure they don’t identify where they live.

By Tamsyn Parker

See full story at m.nzherald.co.nz

The new, scary face of auto insurance

13 September 2016 By admin Leave a Comment

auto insurance

Technology in the mobility space has made travel safer, faster and more convenient. The results have been incredible: The Insurance Information Institute found a 33 percent decrease in automobile deaths in the past three years. The same survey found that nine models registered zero fatalities per vehicle per million. Mobility has also become more accessible with ride-hailing apps like Uber and Lyft delivering more than one million rides a day in more than 60 countries.

Despite the upside, there are consequences to innovation. On May 7th of this year, a Tesla owner died while using the Autopilot feature. His vehicle crashed into a truck after his Tesla failed to differentiate the white color of the truck against the backdrop of the sky. This event may change the narrative and public appeal for autonomous driving. It puts into perspective how close the future actually is and whether or not society will fully embrace it.

Autonomous driving promises to decrease the automobile death toll. Last year there were 35,000 automotive-related deaths, accounting for .01 percent of the U.S. population. While it may not seem like a high number, those deaths are the result of people, not an algorithm that holds a passenger’s life within its source code. This brings us to question the liability programmers and the code they write be given the power to determine life and death for consumers who buy their cars. And ultimately, who is liable in the case of an accident or even death?

The next critical step is the proliferation of autonomous driving and the task of safely embedding its utility within the framework of our society. With these issues in mind, private companies and governmental agencies are taking appropriate steps to address them. Google has been testing and building a fleet of self-driving cars that have completed 1.5 million miles of road tests.

In 2014, the U.S. Department of Transportation approved vehicle-to-vehicle technology that enabled vehicles to “talk” to one another and can help prevent human errors that often lead to collision. And this March, General Motors acquired a startup called Cruise Automation for $1 billion. GM was already on pace to launch a highway-oriented, smart cruise control system in its Cadillac CT6 line. Technological and governmental infrastructure for autonomous vehicles is well on its way to maturity.

By Kevin Wang

See full story at techcrunch.com

7 surprising things that impact how much you pay for car insurance

8 September 2016 By admin Leave a Comment

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When searching for an auto insurance policy, there are things we expect will impact our rates: demographic details like age, home address, even credit score. But in the world of car insurance, there are still surprises, believe it or not. Below, you’ll find the top seven most surprising things that can impact your car insurance rates, taken straight from a comprehensive research report on the state of the auto insurance industry compiled by The Zebra.

1. Your history of car insurance — or lack thereof — can mean big-dollar differences on your rate

If you’ve had a long history of insurance coverage, and if you’ve chosen policies with better coverage, you’ll pay less for your auto insurance. For example, in the case that you cause a collision that results in injury to another person, but you have higher coverage limits, that leads insurance companies to believe that you’re a more responsible person than someone else with a history of choosing the lowest possible coverage.

So what level of coverage do you need in order to see savings? The Zebra’s research shows that people with a five-year history of carrying $100,000 of bodily injury coverage per person and $300,000 per collision (often designated as “BI 100/300” in insurance documents) can expect to pay an average of $184 less a year for the same new insurance policy as someone with no history of insurance coverage.

Further, if you have any lapse in auto insurance coverage (even a few days), that can also cost you big time, as it indicates high-risk behavior to insurers.

Note: The only exception is for residents of California, which is the only state that doesn’t consider insurance history when determining average annual auto insurance premiums.

2. Insurance companies care why you drive

Do you drive solely to get to and from work? Do you use your car for business or to haul stuff around your farm? When you apply for your car insurance policy, the agent will ask how you use your vehicle, and your answer could have a big impact on your insurance rate. The Zebra found that prices can vary up to 18% depending on how a person uses their vehicle, even when every other detail stays the same.

People who use their vehicles on a farm will pay the least, while those who use their cars for business will pay the most for car insurance — up to $227 more each year. You can’t lie about what you use your car for, lest you risk a canceled policy, but you can make sure you tell the agent how you use your car when shopping for a policy to ensure you get the best rate (especially if you’re insuring a farm vehicle!).

By Julia

See full story at www.marketwatch.com

How To Do This One Important Thing Very Few Singaporeans Are Doing For Their Insurance Policies

30 August 2016 By admin Leave a Comment

Insurance Policies

In theory, your insurance agent is supposed to check on you every six months. Unless you have an agent like mine. “Why, is she careless?” Nah. She stopped calling because I used every meeting to describe diseases I think I have. They typically feature words like “oozing” and “pustule”, and I have pictures from medical books. That I show her over lunch. But anyway, it’s a good idea to set up your own insurance reviews and actually figure out where you’re at. Here’s how:

Step 1: Set a Review Date

Set a review date for your insurance policies. This is usually done every three to five years. Any earlier, and you might not want to switch policies anyway (you might forfeit some returns).

Most insurance agents call every six months anyway, which makes them a perfect reminder system. When you talk to yours, make it a habit to end with this question:

“By the way, when was the last time we looked over my payouts, coverage, etc.?”

If it’s been five years or more, consider making an appointment. You’ll want them to walk you through the benefits, returns, conditions, etc. again. Because in a short while, you’ll be shopping around and seeing how it compares to current policies.

Step 2: Understand How Much Your Policy Costs

Quick, without checking: How much in commissions (approximately) are you paying the agent? How about the insurance company itself?

You can find these in the benefits illustration. That’s the reel of numbers the insurance agent gave you, donkey’s years ago when she cornered you in Burger King. There are five main columns to look at:

Annualised Premium – How much you pay in premiums every year.

Total Premiums – The total you’ve paid so far, in premiums

Total Distribution Cost – Most of this money is given to the agent, as commissions.

Non-Guaranteed Surrender Value – This is the big payout you’ll get, when you surrender the policy. It’s guesswork, as the term “non-guaranteed” implies. You may be getting a lot less than what’s stated here.

By Ryan Ong

See full story at blog.moneysmart.sg

Singapore Insurance Market – Boom or Bubble about to Burst?

9 August 2016 By admin Leave a Comment

singapore insurance

The LIA of Singapore recently released its industry performance for 2015 with 14 per cent increase in new business and almost $3 billion in new business premium. With a bumper crop of insurers vying for a slice of this pie, what does the future hold for insurance in Singapore? Are we in a market boom or is this a bubble that is about to burst?

Rapidly changing regulatory landscape
The introduction of the Financial Advisory Industry Review (FAIR) 3 years ago sought to raise industry standards and bring about more transparency in terms of the products and sales process. While this was on the whole, welcomed in the industry – which viewed increased regulations as a step in the right direction – it also led to an exodus in sales talent, especially in the Banking segment where sales commissions were most drastically cut.

Changing business model – direct purchase
One of the key recommendations from the Monetary Authority of Singapore (MAS) was the introduction of direct purchasing for insurance products. While the majority of insurance professionals we spoke to felt that Singapore is not ready for such a model, a number of companies have expressed interest in creating a direct purchase model for the life segment to both combat rising operating costs and bypass the problem of attracting and retaining talent.

High net worth landscape – demand for specialists
The demand for specialist talent in the high net worth segment continues, especially in the sales segment, albeit at a slower pace. While employers remain open to strong specialist profiles, the increasingly uncertain market also means tighter recruitment criteria such as:

1. Stable profiles – movements within 1 – 1.5 years are usually scrutinised and some employers have been known to request for proof of job performance / track records.
2. Strong track record – this relates both in terms of sales performance but also career progression that makes sense. For instance, opportunist candidates who make the leap for a small increment in pay will find the current market challenging.

By Cherylene Wee

See full story at www.morganmckinley.com.sg

Advantage & Disadvantage of Insurance

2 August 2016 By Digital Curator Leave a Comment

advantage & disadvantage of insurance As a small-business owner, you must assess the risks of your particular enterprise to determine the advantages and disadvantages of commercial insurance. If you’re a sole proprietor, you might be fine simply setting up an automatic savings plan as a cushion against unforeseen expense; however, if you’re the owner of a larger business, you may need commercial insurance to protect against greater risk. The type of business you have also factors in; doctors, for example, are exposed to greater risks than realtors.

Types of Commercial Insurance

In America, all small businesses that employ workers are required by law to have some insurance coverage, such as workers’ compensation, unemployment insurance, and in some states, disability insurance. If your business uses a car or truck, your state may also require you to purchase commercial auto insurance. However, there are many additional types of insurance beyond this basic minimum. General liability insurance is a broad umbrella policy that covers a business against injuries, accidents and claims of negligence.

Expense

Although business insurance may offer you a hedge against disaster and help you sleep more soundly, it rarely comes cheap. The expense of business insurance is its main disadvantage for small-business owners, who seldom have a lot of cash to devote to “what ifs.” You should shop around to get the best possible commercial insurance rates, but be careful to check out an unfamiliar company to be sure it’s reputable. You may also choose a policy with a higher deductible to cut your monthly payments, but if you do, prudence demands that you set the deductible amount aside in case you suddenly have to come up with it. You must also weigh the coverage a cheaper policy affords. In some cases, the skimpy coverage may not justify the expense.

By: Mary Strain, Demand Media

See full story at smallbusiness.chron.com

Life Insurance – Is It Really Necessary for Singapore Workers?

26 July 2016 By Digital Curator Leave a Comment

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Employees love to be taken care of – in fact, research suggests that workers’ benefits can be traced all the way back to the Golden Age of Piracy, where Caribbean pirates who fell injured in their dangerous trade would be compensated with shares of silver and gold pooled from their fellow uninjured buccaneers.

Closer to home, some companies may have their own form of booty in place – by providing some sort of financial compensation to an employee (or his/her beneficiaries) who is afflicted with critical illness or even death – the company usually offers this magnanimous health benefit straight from the company’s bowl of goodwill.

The Upside….
Most employers should consider providing insurance coverage for her employees to remain competitive with their rivals for the most talented employees. In addition, employers themselves also stand to gain from the advantage of less expensive health insurance when you consider the lower rate of premiums that come with purchasing insurance for a large group.

This gesture also suggests that the company cares for her employees’ welfare. In fact, some group insurance plans may offer supplementary riders – in effect, a form of preventative care to keep employees healthy and working. Without preventative care, employers might wind up having more employees out of the office than in it – and for long periods of time.

By: Deanna Bonaparte

See full story at community.jobscentral.com.sg

A suboptimal form of insurance

5 July 2016 By admin Leave a Comment

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Insurance regulator Irda wants promoters of insurance companies to maintain their shareholding at 50% even after listing. This is acceptable as a temporary step, not for all time to come. Insurance guzzles capital. The policyholders’ premium payments lie on the books of insurers, and prudential norms call for insurance companies to increase capital as premium collections go up.

A consequence of making the promoter always own 50% of the equity is to either restrict the growth of the company or allow only very large players to remain in insurance. This is not in the public interest. Wider ownership, a culture of active shareholder democracy and sound regulation to ensure that the insurer honours its commitment to the consumer are the long-term solutions.

However, post listing, when the cycle turns and capital requirement stabilises, promoters should have the choice to exit by selling their stakes. At present, no Indian insurance company is listed. ICICI Prudential Life Insurance has announced plans to launch an initial public offering (IPO) and get listed. HDFC Life will get listed when its proposed merger with Max Financial Services takes place. The government has also proposed the listing of four wholly-owned PSU general insurance companies. In developed markets, too, few large insurers are listed, but the trend is to move away from mutual ownership and towards listing.

See full story at blogs.economictimes.indiatimes.com

Being ‘too educated’ about insurance could lead to ‘overconsumption’: Experts

31 May 2016 By Digital Curator Leave a Comment

According to health experts, such cases do happen in the private healthcare sector. “Insurance sometimes creates the so-called moral hazard of overconsumption,” said healthcare economist, Lee Kuan Yew School of Public Policy’s Associate Professor Phua Kai Hong.

“That is a worldwide phenomenon and I don’t think Singapore is any different. So the moment you bring in private insurance to complement or supplement, you have to be very clear about what the rules are.”

Dr Sabnis added: “There will be a few guys who will definitely bend the rules, you can’t prevent that. Private hospitals, if I may say, also look at what value the person will bring per day.”

Insurers have noticed the trend and they say overconsumption of health insurance could make premiums rise more quickly than they already have due to medical inflation.

Said Mr Seah: “Maybe a ‘commonsensical’ approach to this would be: ‘If I have to pay out of my pocket, instead of through insurance, would I still need that treatment, and secondly, would I still be looking for that specialist treatment?'”

The key in this entire equation, the LIA said, is “sustainability”, which is why it wants to collaborate with the Government and healthcare providers, such as doctors and healthcare institutions, on how best to achieve this. It will also have to convince consumers who are, after all, paying customers.

“We have been paying insurance premiums,” said “Andrew”. “All these years when nothing happens, we don’t claim. And when the time comes, we want to be compensated properly. We feel that since we’ve been paying the premiums, then make use of it.”

If overconsumption becomes a bigger problem, there are concerns that insurers may lobby for Medisave limits to be raised so people can cope with rising premiums. Healthcare economists added that would eat into a fund meant for pressing medical expenses and there have to be tighter regulations to clamp down on excessive claims.

By John Leong

See full story at www.channelnewsasia.com

Insurance Agency Singapore | Commercial Insurance and Personal Insurance