Life insurance penetration dipped in 2007: Economic Survey

September 10th, 2009 WASHINGTON - An extra 2.5 million people were nudged into poverty in the United States in 2008, bringing the poverty rate to an 11-year high as a deep recession began to take hold in the country, the US Census Bureau reported Thursday. The poverty rate climbed to 13.2 percent, or 39.8 million people, from 12.5 percent in 2007.

September 9th, 2009 Fed survey: most of US in economic healing modeWASHINGTON — A new government survey finds the vast majority of the country reporting economic activity is stabilizing or improving, as the worst recession since the 1930s appears to be over. The Federal Reserve's snapshot of economic conditions backs predictions by Fed Chairman Ben Bernanke and most other analysts that the economy has started to grow again in the current quarter.

July 21st, 2009 NEW DELHI - Despite achieving a healthy 16 percent annual growth rate, India's general insurance business accounts for just 0.6 percent of the gross domestic product (GDP), compared to the world average of 2.14 percent, says a report released here Tuesday. "The penetration of general insurance in India remains low on account of low consumer preference, largely untapped rural markets and constrained distribution channels," said the report jointly prepared by Crisil and the Associated Chambers of Commerce and Industry of India (Assocham).

July 2nd, 2009 NEW DELHI - The Economic Survey tabled in parliament Thursday has sought the integration of diamond processing sector with jewellery manufacturing so as to boost exports. "Forward integration of the diamond processing sector to jewellery manufacturing, where the value addition achieved is the highest, will help in boosting the export performance once the existing economic downturn passes by, the survey said.

July 2nd, 2009 NEW DELHI - There should be a single regulatory body for the transport sector including highways, railways, ports and airports to ensure better cohesion, the Economic Survey for 2008-09 tabled Thursday has suggested. According to the survey, there should be at least one member from each of these sub-sectors and the authority could have specialized groups of professionals in each sector.

July 2nd, 2009 NEW DELHI - The flow of credit to the farm sector increased to Rs.264,455 crore ($55 billion) last fiscal from Rs.254,657 crore in 2007-08, India's Economic Survey for 2008-09 released Thursday said. But agriculture growth fell sharply to 1.6 percent from 4.9 percent the year before.

July 2nd, 2009 NEW DELHI - Indian exports could continue to remain subdued this year amid a dismal outlook for the trade sector and world trade volume output set to decline by 11 percent, the Economic Survey for 2008-09 released by the government Thursday said. Citing recent International Monetary Fund (IMF) projections of a negative growth of 1.3 percent in world output and falling import demand from major trading partners, the survey said: "India's export of goods and services is expected to be impacted." India's merchandise exports registered a decline for the second straight month in May with the value of shipments 29.2 percent lower at $11.01 billion compared to the $15.55 billion earned the same month last year.

July 2nd, 2009 NEW DELHI - India's Economic Survey for 2008-09 released here Thursday has called for allowing private players - both domestic and foreign - to invest in the country's nuclear power sector. The survey, tabled in parliament by Finance Minister Pranab Mukherjee, however, said the foreign direct investment (FDI) cap should be fixed at 49 percent.

July 2nd, 2009 NEW DELHI - After the high growth cycle that followed the economic reforms of 1990s, India should now bring in sweeping changes in its investment climate for the next stage of growth, the Economic Survey for 2008-09 released here Thursday said. "The reforms of the 1990s created a competitive environment in which Indian entrepreneurship could flourish.

July 2nd, 2009 NEW DELHI - The Economic Survey for 2008-09 Finance Minister Pranab Mukherjee tabled in parliament Thursday has advocated sweeping policy changes like foreign investment in multi-brand retailing and higher foreign stake in insurance companies. The survey report card suggested the cap on foreign equity in insurance sector be raised to 49 percent from 26 percent currently.

July 2nd, 2009 NEW DELHI - Salient features of a wish list in the Economic Survey for 2008-09 released by Finance Minister Pranab Mukherjee in parliament Thursday: - Cut fuel, food and fertiliser subsidy leakages - Raise foreign investment cap in insurance to 49 percent - Allow 100 percent foreign investment in health, weather insurance - Raise foreign investment cap in defence production to 49 percent and in high tech defence to 100 percent - Raise Rs.25,000 crore from divestment every year - Sell 5-10 percent in profitable non-Navratnas - List unlisted state-owned firms, divest at least 10 percent equity - Auction loss-making state-owned firms - Rationalise dividend distribution tax to avoid double taxation - Review customs duty exemptions - Remove fringe benefit tax - Remove commodity and security transaction taxes - Limit subsidy on cooking gas to six-eight cylinders per household - Kerosene subsidy only for non-electrified, non-cylinder homes - Introduce new income tax code - Provide fertiliser subsidy directly to farmers - Target zero fiscal deficit - Eliminate inverted duty structure - Convert specific textile taxes to ad valorem - Lift price control on all drugs except essentials - Roll back excess liquidity once growth picks up - Decontrol sugar and insurance industries - Auction spectrum and make it freely tradable Taking stock of the country's economic condition, the survey said India could grow by around 7.75 percent in 2009-10 if the US economy "bottoms out" by September. Among other observations it made on the economy are: - Economic growth decelerates to 6.7 percent in 2008-09 - Per capita growth at 4.6 percent - Agricultural growth falls to 1.6 percent from 4.9 percent in 2007-08 - Manufacturing sector grows at 2.4 percent - Ratio of fixed investment to GDP increases to 32.2 percent - Fiscal deficit stands at 6.2 percent - Merchandise export grows at 3.6 percent in dollar terms - Overall import growth at 14.4 percent - Social, agriculture and infrastructure sectors need boost - Rural demand still strong.

June 17th, 2009 Survey: The old and poor sign up for broadbandNEW YORK — Some groups that have lagged in signing up for high-speed Internet service, like the elderly, the poor and rural residents, have started to gain on those who have had a head start, according to a new survey. Those conclusions come as the government is set to decide how to spend $7.2 billion in stimulus money on expanding the availability of broadband.

May 27th, 2009 NEW DELHI - Amity Global Business School, in collaboration with Max New York Life Insurance, Wednesday announced the launch of a post-graduate diploma in insurance and sales management. The programme offers professional training in specialised subjects such as insurance sales practices and management, insurance products, legal and regulatory aspects of life insurance as well as general and marketing management.

January 13th, 2009 KOLKATA - Future Generali, the joint venture with the Italian insurance giant Generali, is expecting to touch a premium income of about Rs.10 billion by 2010, a senior official said Wednesday. Future Generali is the insurance joint venture between Future Group of India and Italy-based Generali Group with a 74:26 stake.

January 1st, 2009 CHENNAI - India's insurance watchdog Friday offered life insurers, and more particularly the private life insurers, a mega New Year gift by easing solvency norms for the third time in recent days. Solvency margin is the excess of assets that a life insurer has to maintain over its liabilities.