Page 278 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Unit 13: Mutual Funds and Insurance Services

Notes
Example:

 ICICI Prudential Life Insurance
 HDFC Standard Life
 SBI Life Insurance
 Birla Sunlife

 Bajaj Allianz
 Aviva
 Kotak Mahindra Insurance
 Tata AIG Life

 Reliance Life Insurance Company Limited
 ING Vysya Insurance
 Metlife India
 Max New York Life Insurance

 Shriram Life Insurance
 Bharti AXA Life Insurance Company Limited



Caselet IRDA's Guidelines on Outsourcing Get
Mixed Response from BPOs

Norms to make insurer responsible for outsourcing arrangement.

'Core' problems
Only 'non-core' functions like house keeping, data entry, etc., can be outsourced.
Most 'core' functions that cannot be outsourced in India are outsourced in the West.
One way out for insurers could be forming joint ventures with back office companies.
The Insurance Regulatory and Development Authority's (IRDA) recent norms on
outsourcing may prompt insurers to increase the quantum of back office work they give
out to third party vendors in the medium term.
However, it will deter Indian back office companies from moving up the value chain as
they remain stuck with low-end processing-related work, say industry watchers.

In its draft guidelines on outsourcing, IRDA had defined the processes that could be
outsourced and those that should be done in-house. Core functions such as product design,
claims, IT support and policy servicing were functions that could not be outsourced.
Non-core functions include house keeping, Web site management, internal audit, payroll
management, HR services, data entry, medical check-ups, tele-marketing and call centre
for outbound calling among others.

Contd...

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