There is a very interesting column done in the mint today on the insurance policies which die due to lapsation or the product cost is too high.
Insurance in India is still a huge commission based business what is interesting the lapsation ration is on the high-rise from the data collected.
In insurance, customers return this product by either letting their policy lapse or by voluntarily surrendering their policy. In case of the non-linked business (term, group, health and endowment plans) for Birla Sun Life Insurance Co. Ltd, the lapsation ratio was as high as 72% for FY11.
Lapsation ratio indicate the number of policies lapsed divided by the average number of policies
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For those who are not aware just to let you know Goldman Sachs conducted their first ever bord meeting in India against a deteriorating economic and political backdrop in the country, where business is slow, economic growth has cooled and regulation has become a minefield for foreign investors.
GAAR stands for General Anti-Avoidance Rules which was presented by Finance minister in this year finance bill acting as anti global investor and the FIIs are already pulling the plug on such investments which will affect the flow of money into the capital markets. View full article »