NEWSLETTER- JULY, 2019
Krishna Joshi, Krishna Financial Corporation
Founder & Director - Krishna Financial Corporation In | Expertise in Child Future Planning I Retirement Planning| Financial Planner - Helping people make Smart Investment decisions| CFP
MESSAGE FROM CEO'S DESK
Dear Client,
The ladder of success is best climbed by stepping on the rungs of opportunity." ...Ayn Rand
This time we intentionally delayed the newsletter by a few days as we were eagerly waiting for the full-fledged budget for 2019
Finally, the budget is out and it looks like a populist budget aimed at appeasing the common man.
Let's take a look at the impact of budget 2019 on the insurance sector. In her maiden budget, Finance Minister Nirmala Sitharaman has proposed 100 percent foreign direct investment (FDI) in insurance intermediaries like insurance brokers. insurance repositories, surveyors and loss assessors third-party administrators (TPA) and web aggregators from the current limit of 49 percent.
Finance minister also announced that the government was also looking into the possibility of hiking the FDI limit in the insurance companies. However, there was no clear mention of how much increase the government would consider in the coming days
As you might already know the FDI cap in the insurance sector has been increased to 49 percent from 26 percent in the year 2015.
You know what it means is that competition will increase in this sector tremendously with new foreign partners bringing huge capital for marketing and branding.
An Assocham report had said that the Indian insurance industry is expected to grow to USD 280 billion by 2019-20
LIC's financial results for 2018-19 are out and according to it, LIC has registered a 6.08 percent increase in its total premium income to 333718540 Crore in 2018-19 against 331785099 Crore in 2017-18.
Its first-year premium grew by a similar 5.68 percent increase to 14219169 Crore, Its gross total income grew 7.10 percent to 56078439 Crore.
Total assets of the insurer grew 9.38 percent to 7311184728 Crore.
The overall growth of LIC in 2018-19, however, looks muted compared to the industry growth of at least 10 percent.
My heart grieves for all those who lost their loved ones in last week's rain mayhem. Just 2 days of rain and 31 precious lives lost. Death can come in any form without any excuse and yet people have a lot of excuses for life insurance.
Isn't it surprising
All The Best
Regards
Krishna Joshi,