Japan's Insurance Industry

During the heydays of the 80's and the first half of 90's, like rest of its economy, Japan's insurance industry was growing as a juggernaut. The sheer volume of premium income and asset formation, sometimes comparable with even the mightiest U.S.A. and the limitation of domestic investment opportunity, led Japanese insurance firms to look outwards for investment. The industry's position as a major international investor beginning in the 1980's brought it under the scanner of analysts around the world.

The global insurance giants tried to set a foothold in the market, eyeing the gargantuan size of the market. But the restrictive nature of Japanese insurance laws led to intense, sometimes acrimonious, negotiations between Washington and Tokyo in the mid-1990s. The bilateral and multilateral agreements that resulted coincided with Japan's Big Bang financial reforms and deregulation.

Building on the outcome of the 1994 US-Japan insurance talks, a series of liberalization and deregulation measures has since been implemented. But the deregulation process was very slow, and more often than not, very selective in protecting the domestic companies interest and market share. Although the Japanese economy was comparable with its counterpart in USA in size, the very basis of efficient financial markets - the sound rules and regulations for a competitive economic environment - were conspicuously absent. And its institutional structure was different, too, from the rest of the developed countries.

The kieretsu structure - the corporate group with cross holdings in large number of companies in different industries - was a unique phenomenon in Japan. As a result, the necessary shareholder activism to force the companies to adopt optimal business strategy for the company was absent. Although initially touted as a model one in the days of Japan's prosperity, the vulnerability of this system became too evident when the bubble of the economic boom went burst in the nineties. Also working against Japan was its inability to keep pace with the software development elsewhere in the world. Software was the engine of growth in the world economy in the last decade, and countries lagging in this field faced the sagging economies of the nineties.

Japan, the world leader in the "brick and mortar" industries, surprisingly lagged far behind in the "New World" economy after the Internet revolution. Now Japan is calling the nineties a "lost decade" for its economy, which lost its sheen following 3 recessions in the last decade. Interest rates nose-dived to historic lows, to thwart the falling economy - in vain. For insurers, whose lifeline is the interest spread in their investment, this wreaked havoc. Quite a few large insurance companies went bankrupt in the face of "negative spread" and rising volume of non-performing assets. While Japanese insurers largely have escaped the scandals afflicting their brethren in the banking and securities industries, they are currently enduring unprecedented financial difficulties, including catastrophic bankruptcies.

Institutional Weaknesses

The Japanese market is a gigantic one, yet it is comprised of only a few companies. Unlike its USA counterpart, in which around two thousand companies are fiercely competing in the life segment, Japan's market is comprised of only twenty-nine companies classified as domestic and a handful of foreign entities. The same situation prevailed in the non-life sector with twenty-six domestic companies and thirty-one foreign firms offering their products. So, consumers have far fewer choices than their American counterparts in choosing their carrier. There is less variety also on the product side. Both the life and non-life insurers in Japan are characterized by "plain vanilla" offerings. This is more apparent in automobile insurance, where, until recently premiums were not permitted to reflect differential risk, such as, by gender, driving record etc. Drivers were classified in three age groups only for purposes of premium determination, whereas US rates long have reflected all these factors and others as well.

The demand varies for different types of products, too. Japanese insurance products are more savings-oriented. Similarly, although many Japanese life insurance companies offer a few limited kinds of variable life policies (in which benefits reflect the value of the underlying financial assets held by the insurance company, thereby exposing the insured to market risk), there are few takers for such policies. At ¥100=$1.00, Japanese variable life policies in force as of March 31, 1996 had a value of only $7.5 billion, representing a scant 0.08 percent of all life insurance. By contrast, American variable life policies in force as of 1995 were worth $2.7 trillion, roughly 5 percent of the total, with many options, such as variable universal life, available.

Japanese insurance companies in both parts of the industry have competed less than their American counterparts. In an environment where a few firms offer a limited number of products to a market in which new entry is closely regulated, implicit price coordination to restrain competition would be expected. However, factors peculiar to Japan further reduce rivalry.

A lack of both price competition and product differentiation implies that an insurance company can grab a firm's business and then keep it almost indefinitely. American analysts sometimes have noted that keiretsu (corporate group) ties are just such an excuse. A member of the Mitsubishi Group of companies, for example, ordinarily might shop around for the best deal on the hundreds or thousands of goods and services it buys. But in the case of non-life insurance, such comparative pricing would be futile, since all companies would offer much the same product at the same price. As a result, a Mitsubishi Group company, more often than not, gives business to Tokio Marine & Fire Insurance Co., Ltd., a member of the Mitsubishi keiretsu for decades.

On paper, life insurance premiums have been more flexible. However, the government's role looms large in this part of the industry as well - and in a way that affects the pricing of insurance products. The nation's postal system operates, in addition to its enormous savings system, the postal life insurance system popularly known as Kampo. Transactions for Kampo are conducted at the windows of thousands of post offices. As of March 1995, Kampo had 84.1 million policies outstanding, or roughly one per household, and nearly 10 percent of the life insurance market, as measured by policies in force.

Funds invested in Kampo mostly go into a huge fund called the Trust Fund, which, in turn, invests in several government financial institutions as well as numerous semipublic units that engage in a variety of activities associated with government, such as ports and highways. Although the Ministry of Posts and Telecommunications (MPT) has direct responsibility for Kampo, the Ministry of Finance runs the Trust Fund. Hence, theoretically MOF can exert influence over the returns Kampo is able to earn and, by extension, the premiums it is likely to charge.

Kampo has a number of characteristics that influence its interaction with the private sector. As a government-run institution, it inarguably is less efficient, raising its costs, rendering it noncompetitive, and implying a declining market share over time. However, since Kampo cannot fail, it has a high risk-tolerance that ultimately could be borne by taxpayers. This implies an expanding market share to the extent that this postal life insurance system is able to underprice its products. While the growth scenario presumably is what MPT prefers, MOF seemingly is just as interested in protecting the insurance companies under its wing from "excessive" competition.

The net effect of these conflicting incentives is that Kampo appears to restrain the premiums charged by insurers. If their prices go up excessively, then Kampo will capture additional share. In response, insurers may roll back premiums. Conversely, if returns on investments or greater efficiency reduce private-sector premiums relative to the underlying insurance, Kampo will lose market share unless it adjusts.

Japan's life insurance sector also lags behind its American counterpart in formulating inter-company cooperative approaches against the threats of anti-selection and fraudulent activities by individuals. Although the number of companies is far lower in Japan, distrust and disunity among them resulted in isolated approaches in dealing with these threats. In USA, the existence of sector sponsored entities like Medical Information Bureau (MIB) acts as a first line of defense against frauds and in turn saves the industry around $1 Billion a year in terms protective value and sentinel effect. Off late, major Japanese carriers are initiating approaches similar to formation of common data warehousing and data sharing.

Analysts often complain against insurance companies for their reluctance to adhere to prudent international norms regarding disclosure of their financial data to the investment community and their policyholders. This is particularly true because of the mutual characteristic of the companies as compared with their "public" counterpart in US. For example, Nissan Mutual Life Insurance Co., failed in 1997, generally reported net assets and profits in recent years, even though the company's president conceded after its failure that the firm had been insolvent for years.

Foreign Participation in Life Insurance

Since February 1973, when the American Life Insurance Company (ALICO) first went to Japan to participate in the market, fifteen foreign life insurance companies (with more than 50% foreign capital) are currently in business. However, companies like American Family Life (AFLAC) were initially permitted to operate only in the third sector, namely the Medical Supplement Area, like critical illness plans and cancer plans, which were not attractive to Japanese insurance companies. The mainstream life insurance business was kept out of reach of foreign carriers. However, the big turmoil in the industry in the late nineties left many of the domestic companies in deep financial trouble. In their scurry for protection, Japan allowed foreign companies to acquire the ailing ones and keep them afloat.

Foreign operators continue to enter the Japanese market. As one of the world's top two life insurance markets, Japan is considered to be as strategically important as North America and the European Union. Consolidation in the Japanese life market, facilitated by the collapse of domestic insurers and by ongoing deregulation, is providing global insurers with prime opportunities to expand their business in Japan. The total market share of foreign players is gradually increasing, with global insurers accounting for over 5% in terms of premium incomes at the end of fiscal 1999 and over 6% of individual business in force. These figures are roughly two times higher than those five years earlier.

In 2000, the AXA Group strengthened its base of operations in Japan through the acquisition of Nippon Dantai Life Insurance Co. Ltd, a second-tier domestic insurer with a weak financial profile. To this end, AXA formed the first holding company in the Japanese life sector. Aetna Life Insurance Co. followed suit, acquiring Heiwa Life Insurance Co., while Winterthur Group bought Nicos Life Insurance and Prudential UK bought Orico Life Insurance. Also newly active in the Japanese market are Hartford Life Insurance Co., a U.S.-based insurer well known for its variable insurance business, and France's Cardiff Vie Assurance.

In addition, Manulife Century, subsidiary of Manufacturers Life Insurance Company inherited the operations and assets of Daihyaku Mutual Life Insurance Co., which had failed in May 1999. In April 2001, AIG Life Insurance Co. assumed the operations of Chiyoda Life, and Prudential Life Insurance Co. Ltd. took over Kyoei Life. Both the Japanese companies filed for court protection last October.

The foreign entrants bring with them reputations as part of international insurance groups, supported by favorable global track records and strong financial capacity. They are also free of the negative spreads that have plagued Japanese insurers for a decade. Foreign players are better positioned to optimize business opportunities despite turmoil in the market. Although several large Japanese insurers still dominate the market in terms of share, the dynamics are changing as existing business blocks shift from the domestic insurers, including failed companies, to the newcomers in line with policyholders' flight to quality. The list of companies, with foreign participation, is the following:

INA Himawari Life
Prudential Life
Manulife Century Life

Skandia Life
GE Edison Life
Aoba Life

Aetna Heiwa Life
Nichidan Life
Zurich Life

ALICO Japan
American Family Life
AXA Nichidan Life

Prudential Life
ING Life
CARDIFF Assurance Vie

NICOS Life

Foreign insurers are expected to be able to prevail over their domestic rivals to some extent in terms of innovative products and distribution, where they can draw on broader experience in global insurance markets. One immediate challenge for the foreign insurers will be how to establish a large enough franchise in Japan so that they can leverage these competitive advantages.

What ails the life insurance industry?

Apart from its own operational inefficiency, Japan's life insurance sector is also a victim of government policies intended in part to rescue banks from financial distress. By keeping short-term interest rates low, the Bank of Japan encouraged in the mid-1990s a relatively wide spread between short-term rates and long-term rates. That benefited banks, which tend to pay short-term rates on their deposits and charge long-term rates on their loans.

The same policy, however, was detrimental to life insurance companies. Their customers had locked in relatively high rates on typically long-term investment-type insurance policies. The drop in interest rates generally meant that returns on insurers' assets fell. By late 1997 insurance company officials were reporting that guaranteed rates of return averaged 4 percent, while returns on a favored asset, long-term Japanese government bonds, hovered below 2 percent.

Insurance companies cannot make up for a negative spread even with increased volume. In FY 1996 they tried to get out of their dilemma by cutting yields on pension-type investments, only to witness a massive outflow of money under their management to competitors.

To add insult to injury, life insurance companies are shouldering part of the cost of cleaning up banks' non-performing asset mess. Beginning in 1990, the Finance Ministry permitted the issuance of subordinated debt made to order for banks. They can count any funds raised through such instruments as part of their capital, thereby making it easier than otherwise to meet capital/asset ratio requirements in place. This treatment arguably makes sense, inasmuch as holders of such debt, like equity holders, stand almost last in line in the event of bankruptcy.

Subordinated debt carries high rates of interest precisely because the risk of default is higher. In the early 1990s insurers, figuring bank defaults were next to impossible and tempted by the high returns available, lent large amounts to banks and other financial institutions on a subordinated basis. Smaller companies, perhaps out of eagerness to catch up with their larger counterparts, were especially big participants. Tokyo Mutual Life Insurance Co., which ranks 16th in Japan's life insurance industry on the basis of assets, had roughly 8 percent of its assets as subordinated debt as of March 31, 1997, while industry leader Nippon Life had only 3 percent.

The rest, of course, is history. Banks and securities companies, to which insurers also had lent, began to fail in the mid-1990s. The collapse of Sanyo Securities Co., Ltd. last fall was precipitated in part by the refusal of life insurance companies to roll over the brokerage firm's subordinated loans. Life insurers complained that they sometimes were not paid off even when the conditions of a bank failure implied that they should have been. For example, Meiji Life Insurance Co. reportedly had ¥35 billion ($291.7 million) outstanding in subordinated debt to Hokkaido Takushoku Bank, Ltd. when the bank collapsed in November. Even though the Hokkaido bank did have some good loans that were transferred to North Pacific Bank, Ltd., Meiji Life was not compensated from these assets. It apparently will have to write off the entire loan balance.

Subordinated debt is only part of the bad-debt story. Insurance companies had a role in nearly every large-scale, half-baked lending scheme that collapsed along with the bubble economy in the early 1990s. For example, they were lenders to jusen (housing finance companies) and had to share in the costly cleanup of that mess. Moreover, like banks, insurers counted on unrealized profits from their equity holdings to bail them out if they got into trouble. Smaller insurers of the bubble period bought such stock at relatively high prices, with the result that, at 1997's year-end depressed stock prices, all but two middle-tier (size rank 9 to 16) life insurance companies had unrealized net losses.

What Lies Ahead

Analysts have identified the following short-term challenges to the sector:

New market entrants;
Pressure on earnings;
Poor asset quality; and,
Capitalization.

The recent high-profile failures of several life insurance companies have turned up the pressure on life companies to address these challenges urgently and in recognizable ways.

The investment market has been even worse than expected. Interest rates have not risen from historically low levels. The Nikkei index has sagged since January 2001, and plummeted to 9 year low following recent terrorist attack on American soil. Unrealized gains used to provide some cushion for most insurers, but, depending on the insurers' reliance on unrealized gains, the volatility of retained earnings is now affecting capitalization levels and thus financial flexibility.

Table 1
Major Risks Facing Japanese Life Insurance Companies

Business risks
Financial risks

Weak Japanese economy
Strong earnings pressures

Lack of policyholder confidence, flight to quality
Low interest rates, exposure to domestic, overseas investment market fluctuations

Deregulation, mounting competition
Poor asset quality

Inadequate policyholders' safety net
Weakened capitalization

Accelerating consolidation within life sector, with other financial sectors
Limited financial flexibility

Most analysts probably would agree that Japan's life insurers face problems of both solvency and liquidity. Heavy contractual obligations to policyholders, shrinking returns on assets, and little or no cushion from unrealized gains on stock portfolios combine to make the continued viability of some companies far from certain. Many others, while obviously solvent, face the risk that they will have to pay off uneasy policyholders earlier than they had planned. Either solvency or liquidity concerns raise the question as to how insurers will manage their assets. Another factor that has to be considered is Japan's aging population. As Mr. Yasuo Satoh, Program Manager of insurance industry, finance sector, IBM Japan, points out, "The industry needs to change the business model. They have to concentrate on life benefits rather than death benefits and they have to emphasize on Medical Supplement and long term care sectors as the overall population is aging."

Japanese life insurers are actively pursuing greater segmentation, while seeking to establish unique strategies both in traditional life and non-life businesses. In late 2000, the sector witnessed the emergence of several business partnerships and cross-border alliances involving large domestic life insurers. Anticipating increased market consolidation, heated competition, and full liberalization of third-sector businesses, the companies are reviewing their involvement through subsidiaries in the non-life side of the business, which was first allowed in 1996.

Over the long term, Japanese insurers are likely to forge business alliances based on demutualization. Widespread consolidation in Japan's financial markets over the near term will bring about an overhaul of the life insurance sector as well. Although domestic life insurers announced various business strategies in the latter half of 2000 to respond to this sea change, the actual benefit of various planned alliances for each insurer remains uncertain. Further market consolidation should add value for policyholders, at least, making available a wider range of products and services. To succeed, life insurers will have to be more sensitive to diverse customers needs, while at the same time establishing new business models to secure their earning base. Long term prospects seem to be good considering the high saving rate of Japanese population. But in the short term, Japan is poised to see a few more insurers succumb before the sector tightens its bottom line with sweeping reforms and prudent investment and disclosure norms.

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Insurance Law - An Indian Perspective

INTRODUCTION

"Insurance should be bought to protect you against a calamity that would otherwise be financially devastating."

In simple terms, insurance allows someone who suffers a loss or accident to be compensated for the effects of their misfortune. It lets you protect yourself against everyday risks to your health, home and financial situation.

Insurance in India started without any regulation in the Nineteenth Century. It was a typical story of a colonial epoch: few British insurance companies dominating the market serving mostly large urban centers. After the independence, it took a theatrical turn. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then the general insurance business was nationalized in 1972. It was only in 1999 that the private insurance companies have been allowed back into the business of insurance with a maximum of 26% of foreign holding.

"The insurance industry is enormous and can be quite intimidating. Insurance is being sold for almost anything and everything you can imagine. Determining what's right for you can be a very daunting task."

Concepts of insurance have been extended beyond the coverage of tangible asset. Now the risk of losses due to sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages can also be covered.

But if a person thoughtfully invests in insurance for his property prior to any unexpected contingency then he will be suitably compensated for his loss as soon as the extent of damage is ascertained.

The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. The collective experience of the other countries in Asia has already deregulated their markets and has allowed foreign companies to participate. If the experience of the other countries is any guide, the dominance of the Life Insurance Corporation and the General Insurance Corporation is not going to disappear any time soon.
The aim of all insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is mainly of two types: life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance for employer's liability, and insurance of motor vehicles, livestock and crops.

LIFE INSURANCE IN INDIA

"Life insurance is the heartfelt love letter ever written.

It calms down the crying of a hungry baby at night. It relieves the heart of a bereaved widow.

It is the comforting whisper in the dark silent hours of the night."

Life insurance made its debut in India well over 100 years ago. Its salient features are not as widely understood in our country as they ought to be. There is no statutory definition of life insurance, but it has been defined as a contract of insurance whereby the insured agrees to pay certain sums called premiums, at specified time, and in consideration thereof the insurer agreed to pay certain sums of money on certain condition sand in specified way upon happening of a particular event contingent upon the duration of human life.

Life insurance is superior to other forms of savings!

"There is no death. Life Insurance exalts life and defeats death.

It is the premium we pay for the freedom of living after death."

Savings through life insurance guarantee full protection against risk of death of the saver. In life insurance, on death, the full sum assured is payable (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

The essential features of life insurance are a) it is a contract relating to human life, which b) provides for payment of lump-sum amount, and c) the amount is paid after the expiry of certain period or on the death of the assured. The very purpose and object of the assured in taking policies from life insurance companies is to safeguard the interest of his dependents viz., wife and children as the case may be, in the even of premature death of the assured as a result of the happening in any contingency. A life insurance policy is also generally accepted as security for even a commercial loan.

NON-LIFE INSURANCE

"Every asset has a value and the business of general insurance is related to the protection of economic value of assets."

Non-life insurance means insurance other than life insurance such as fire, marine, accident, medical, motor vehicle and household insurance. Assets would have been created through the efforts of owner, which can be in the form of building, vehicles, machinery and other tangible properties. Since tangible property has a physical shape and consistency, it is subject to many risks ranging from fire, allied perils to theft and robbery.
Few of the General Insurance policies are:

Property Insurance: The home is most valued possession. The policy is designed to cover the various risks under a single policy. It provides protection for property and interest of the insured and family.

Health Insurance: It provides cover, which takes care of medical expenses following hospitalization from sudden illness or accident.
Personal Accident Insurance: This insurance policy provides compensation for loss of life or injury (partial or permanent) caused by an accident. This includes reimbursement of cost of treatment and the use of hospital facilities for the treatment.

Travel Insurance: The policy covers the insured against various eventualities while traveling abroad. It covers the insured against personal accident, medical expenses and repatriation, loss of checked baggage, passport etc.

Liability Insurance: This policy indemnifies the Directors or Officers or other professionals against loss arising from claims made against them by reason of any wrongful Act in their Official capacity.

Motor Insurance: Motor Vehicles Act states that every motor vehicle plying on the road has to be insured, with at least Liability only policy. There are two types of policy one covering the act of liability, while other covers insurers all liability and damage caused to one's vehicles.

JOURNEY FROM AN INFANT TO ADOLESCENCE!

Historical Perspective

The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during 20's and 30's desecrated insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State lead planning and development.

The (non-life) insurance business continued to prosper with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies - National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).

The life insurance industry was nationalized under the Life Insurance Corporation (LIC) Act of India. In some ways, the LIC has become very flourishing. Regardless of being a monopoly, it has some 60-70 million policyholders. Given that the Indian middle-class is around 250-300 million, the LIC has managed to capture some 30 odd percent of it. Around 48% of the customers of the LIC are from rural and semi-urban areas. This probably would not have happened had the charter of the LIC not specifically set out the goal of serving the rural areas. A high saving rate in India is one of the exogenous factors that have helped the LIC to grow rapidly in recent years. Despite the saving rate being high in India (compared with other countries with a similar level of development), Indians display high degree of risk aversion. Thus, nearly half of the investments are in physical assets (like property and gold). Around twenty three percent are in (low yielding but safe) bank deposits. In addition, some 1.3 percent of the GDP are in life insurance related savings vehicles. This figure has doubled between 1985 and 1995.

A World viewpoint - Life Insurance in India

In many countries, insurance has been a form of savings. In many developed countries, a significant fraction of domestic saving is in the form of donation insurance plans. This is not surprising. The prominence of some developing countries is more surprising. For example, South Africa features at the number two spot. India is nestled between Chile and Italy. This is even more surprising given the levels of economic development in Chile and Italy. Thus, we can conclude that there is an insurance culture in India despite a low per capita income. This promises well for future growth. Specifically, when the income level improves, insurance (especially life) is likely to grow rapidly.

INSURANCE SECTOR REFORM:

Committee Reports: One Known, One Anonymous!

Although Indian markets were privatized and opened up to foreign companies in a number of sectors in 1991, insurance remained out of bounds on both counts. The government wanted to proceed with caution. With pressure from the opposition, the government (at the time, dominated by the Congress Party) decided to set up a committee headed by Mr. R. N. Malhotra (the then Governor of the Reserve Bank of India).

Malhotra Committee

Liberalization of the Indian insurance market was suggested in a report released in 1994 by the Malhotra Committee, indicating that the market should be opened to private-sector competition, and eventually, foreign private-sector competition. It also investigated the level of satisfaction of the customers of the LIC. Inquisitively, the level of customer satisfaction seemed to be high.

In 1993, Malhotra Committee - headed by former Finance Secretary and RBI Governor Mr. R. N. Malhotra - was formed to evaluate the Indian insurance industry and recommend its future course. The Malhotra committee was set up with the aim of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the needs of the economy keeping in mind the structural changes presently happening and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:

o Structure

Government bet in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.
Competition

Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.

o Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance - a part of the Finance Ministry- should be made Independent.

o Investments

Compulsory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time).

o Customer Service

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee accentuated that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new competitors could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores.

The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body - The Insurance Regulatory and Development Authority.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has meticulously stuck to its schedule of framing regulations and registering the private sector insurance companies.

Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken at the same time to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.

The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity lid for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001

Mukherjee Committee

Immediately after the publication of the Malhotra Committee Report, a new committee, Mukherjee Committee was set up to make concrete plans for the requirements of the newly formed insurance companies. Recommendations of the Mukherjee Committee were never disclosed to the public. But, from the information that filtered out it became clear that the committee recommended the inclusion of certain ratios in insurance company balance sheets to ensure transparency in accounting. But the Finance Minister objected to it and it was argued by him, probably on the advice of some of the potential competitors, that it could affect the prospects of a developing insurance company.

LAW COMMISSION OF INDIA ON REVISION OF THE INSURANCE ACT 1938 - 190th Law Commission Report

The Law Commission on 16th June 2003 released a Consultation Paper on the Revision of the Insurance Act, 1938. The previous exercise to amend the Insurance Act, 1938 was undertaken in 1999 at the time of enactment of the Insurance Regulatory Development Authority Act, 1999 (IRDA Act).

The Commission undertook the present exercise in the context of the changed policy that has permitted private insurance companies both in the life and non-life sectors. A need has been felt to toughen the regulatory mechanism even while streamlining the existing legislation with a view to removing portions that have become superfluous as a consequence of the recent changes.

Among the major areas of changes, the Consultation paper suggested the following:

a. merging of the provisions of the IRDA Act with the Insurance Act to avoid multiplicity of legislations;

b. deletion of redundant and transitory provisions in the Insurance Act, 1938;

c. Amendments reflect the changed policy of permitting private insurance companies and strengthening the regulatory mechanism;

d. Providing for stringent norms regarding maintenance of 'solvency margin' and investments by both public sector and private sector insurance companies;

e. Providing for a full-fledged grievance redressal mechanism that includes:

o The constitution of Grievance Redressal Authorities (GRAs) comprising one judicial and two technical members to deal with complaints/claims of policyholders against insurers (the GRAs are expected to replace the present system of insurer appointed Ombudsman);

o Appointment of adjudicating officers by the IRDA to determine and levy penalties on defaulting insurers, insurance intermediaries and insurance agents;

o Providing for an appeal against the decisions of the IRDA, GRAs and adjudicating officers to an Insurance Appellate Tribunal (IAT) comprising a judge (sitting or retired) of the Supreme Court/Chief Justice of a High Court as presiding officer and two other members having sufficient experience in insurance matters;

o Providing for a statutory appeal to the Supreme Court against the decisions of the IAT.

LIFE & NON-LIFE INSURANCE - Development and Growth!

The year 2006 turned out to be a momentous year for the insurance sector as regulator the Insurance Regulatory Development Authority Act, laid the foundation for free pricing general insurance from 2007, while many companies announced plans to attack into the sector.

Both domestic and foreign players robustly pursued their long-pending demand for increasing the FDI limit from 26 per cent to 49 per cent and toward the fag end of the year, the Government sent the Comprehensive Insurance Bill to Group of Ministers for consideration amid strong reservation from Left parties. The Bill is likely to be taken up in the Budget session of Parliament.

The infiltration rates of health and other non-life insurances in India are well below the international level. These facts indicate immense growth potential of the insurance sector. The hike in FDI limit to 49 per cent was proposed by the Government last year. This has not been operationalized as legislative changes are required for such hike. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have tipped into the Indian market and 21 private companies have been granted licenses.

The involvement of the private insurers in various industry segments has increased on account of both their capturing a part of the business which was earlier underwritten by the public sector insurers and also creating additional business boulevards. To this effect, the public sector insurers have been unable to draw upon their inherent strengths to capture additional premium. Of the growth in premium in 2004-05, 66.27 per cent has been captured by the private insurers despite having 20 per cent market share.

The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2004-05 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 per cent), respectively. In the year 2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34,898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.

The size of life insurance market increased on the strength of growth in the economy and concomitant increase in per capita income. This resulted in a favourable growth in total premium both for LIC (18.25 per cent) and to the new insurers (147.65 per cent) in 2004-05. The higher growth for the new insurers is to be viewed in the context of a low base in 2003- 04. However, the new insurers have improved their market share from 4.68 in 2003-04 to 9.33 in 2004-05.

The segment wise break up of fire, marine and miscellaneous segments in case of the public sector insurers was Rs.2411.38 crore, Rs.982.99 crore and Rs.10578.59 crore, i.e., a growth of (-)1.43 per cent, 1.81 per cent and 6.58 per cent. The public sector insurers reported growth in Motor and Health segments (9 and 24 per cent). These segments accounted for 45 and 10 per cent of the business underwritten by the public sector insurers. Fire and "Others" accounted for 17.26 and 11 per cent of the premium underwritten. Aviation, Liability, "Others" and Fire recorded negative growth of 29, 21, 3.58 and 1.43 per cent. In no other country that opened at the same time as India have foreign companies been able to grab a 22 per cent market share in the life segment and about 20 per cent in the general insurance segment. The share of foreign insurers in other competing Asian markets is not more than 5 to 10 per cent.

The life insurance sector grew new premium at a rate not seen before while the general insurance sector grew at a faster rate. Two new players entered into life insurance - Shriram Life and Bharti Axa Life - taking the total number of life players to 16. There was one new entrant to the non-life sector in the form of a standalone health insurance company - Star Health and Allied Insurance, taking the non-life players to 14.

A large number of companies, mostly nationalized banks (about 14) such as Bank of India and Punjab National Bank, have announced plans to enter the insurance sector and some of them have also formed joint ventures.

The proposed change in FDI cap is part of the comprehensive amendments to insurance laws - The Insurance Act of 1999, LIC Act, 1956 and IRDA Act, 1999. After the proposed amendments in the insurance laws LIC would be able to maintain reserves while insurance companies would be able to raise resources other than equity.

About 14 banks are in queue to enter insurance sector and the year 2006 saw several joint venture announcements while others scout partners. Bank of India has teamed up with Union Bank and Japanese insurance major Dai-ichi Mutual Life while PNB tied up with Vijaya Bank and Principal for foraying into life insurance. Allahabad Bank, Karnataka Bank, Indian Overseas Bank, Dabur Investment Corporation and Sompo Japan Insurance Inc have tied up for forming a non-life insurance company while Bank of Maharashtra has tied up with Shriram Group and South Africa's Sanlam group for non-life insurance venture.

CONCLUSION

It seems cynical that the LIC and the GIC will wither and die within the next decade or two. The IRDA has taken "at a snail's pace" approach. It has been very cautious in granting licenses. It has set up fairly strict standards for all aspects of the insurance business (with the probable exception of the disclosure requirements). The regulators always walk a fine line. Too many regulations kill the motivation of the newcomers; too relaxed regulations may induce failure and fraud that led to nationalization in the first place. India is not unique among the developing countries where the insurance business has been opened up to foreign competitors.

The insurance business is at a critical stage in India. Over the next couple of decades we are likely to witness high growth in the insurance sector for two reasons namely; financial deregulation always speeds up the development of the insurance sector and growth in per capita GDP also helps the insurance business to grow.

Source: http://ezinearticles.com

Health Insurance- Go for the Short-term Insurance

The cheapest option that is available for those who want to get health insurance is to get the insurance from insurance employees. There are two options to choose from. You can get individual or family insurance. The insurance companies both kinds of health insurances.

Give the first priority to your requirements. Always go for the reputed company as you will be sure that you have invested your money at the right place. To see which company is the best, do some searching or ask your relatives. 

Before you take any decision, there are few questions that can help you in making the right decision.

1.Decide what type of insurance you want, short term or long term?
2.Think about it that if you just want to get your basic needs covered up or want an insurance that gives you more services.
3.How much you want to invest or need to?

A thing to remember: health insurance for short term is better choice than having long term insurance. The insurance that covers basic needs are responsible for handling hospitalization for outpatient and inpatient surgeries. While the comprehensive coverage also cover up services like doctor visits, vision and dental ones. 

Always remember that a short term health insurance is a great choice for coverage. However, this is only good for a few months. Basic coverage handles hospitalization for inpatient and outpatient surgery while a more comprehensive coverage gives more services like doctor visits and even vision and dental services. Premiums give a lot of benefits, thus making it more expensive. On the other hand, deductibles are indeed affordable but there are disadvantages associated with this.

Set your priorities. Jot down the requirements, needs you want and according to that go for searching of the company. Don’t get hooked up with the very first company that comes your way. Before going for any one company compares the companies that meet your requirements. First your requirements have met, and then compare the companies according to the price. There can be a case like two companies giving the same coverage but at different rates. The companies have come online to interact with the customers. You can also talk to the agents to clear your queries. There are also comparing websites that allows you to compare the top rated companies. The comparison is done on the basis of requirements and rate. 

Source: Free Articles from ArticlesFactory.com

Insurance: Auto Insurance Centre

Are you looking for a great way to compare auto insurance companies and the rates available to you? Then you need to check out the Auto Insurance Center at free-article-info.com/auto-insurance/auto-insurance/index.php. There are wonderful articles to read as well regarding various auto insurance topics. Find out how to keep your auto insurance rates low and the consequences of driving without vehicle insurance.

Are you looking for a great way to compare auto insurance companies and the rates available to you? Then you need to check out the Auto Insurance Center at free-article-info.com/auto-insurance/auto-insurance/index.php. There are wonderful articles to read as well regarding various auto insurance topics. Find out how to keep your auto insurance rates low and the consequences of driving without vehicle insurance. 

The terminology surrounding auto insurance can be quite confusing at times. Auto Insurance Center offers a great section that explains all the terms in very simple language. This really helps to take the complexity out of deciphering the various terms involved with auto insurance quotes and policies. Hopefully, you will never be involved in an auto accident, but should it happen, do you know what to do? Go through the check list provided on the site to find out what items you need to carry in your vehicle for such incidents as well as the information you need to collect and share. Also find out the process for reporting the accident to the authorities and to your insurance agent. 

Auto Insurance Center allows you the convenience of entering all your information and then getting several great insurance quotes. This is the perfect way to find out who can offer you the very best deal on auto insurance without having to spend hours on the phone compiling the information yourself. They feature insurance quotes for every state so you are sure to find the valuable information you need.If you don’t find everything you need at Auto Insurance Center, you can contact them by phone or email. 

They offer a very friendly and knowledgeable customer service team that can assist you with any questions or concerns. In addition to auto insurance, you will find information on renters insurance, health insurance, and life insurance. The Auto Insurance Center offers consumers a great one stop resource for all of their auto insurance needs. The site offers quotes that allow you to compare prices, information on getting the best rates, and wonderful articles to help you stay on top of the events taking place in the world of auto insurance. 

All of this information is free to use, so take the confusion out of your auto insurance needs and start using Auto Insurance Center.

Source: Free Articles from ArticlesFactory.com

Everything to Know About Auto Insurance

To defend ourselves against unseen calamities and challenges we need insurance. Now days many kinds of insurance policies are available in the market including: life insurance, health insurance, home insurance, appliance protection insurance, and disaster insurance.

So insurance is the coverage that is offered to you by the insurance company or organization in return for premiums paid. For auto insurance, auto insurance companies cover your vehicle or group of vehicles against breakdowns and accidents. The insurance policy offered to you depends on many factors namely:

* The type of vehicle, its make, cost, and age.
* The habits and individual history.
* Viable statistics.
The general principal is that a young driver driving an attractive sports car will have to pay a higher premium as compared to a senior citizen driving a family car. Premiums are therefore based on risk factors.
All insurance companies have to offer different packages for auto insurance and, each scheme has its own advantages and disadvantages. In order to obtain the best auto insurance you need to:

* Actually know as to how auto insurance works and what all leading insurance companies are present in the market. There are basically four main kinds of auto insurance policies: Collision insurance; Comprehensive coverage; Uninsured or underinsured motorist coverage; and No Fault Automobile Insurance Policy. There are also policies offered by an auto insurance companies that cover: auto loans, vehicle towing expenses, car rental during car repairs and so on.

* You should do an online survey and evaluate the quotes from different auto insurance providers.
* Clearly specify the essential information so that the auto insurance provider is able to give you a competitive quote. Insurance brokers will need: your personal details, number of people who will drive the vehicle, age and make of vehicle, where you reside, how many times the vehicle will be driven, whether you hold any other insurance policies with  the same insurance company, and also if you are a member of bodies like the AAA and so on.
* You should always read the policy document in detail and ask for clarifications if there are any terms and conditions that you may have not understood.
* Always keep your self updated with tips and also by reading articles so that you can help yourself lower insurance costs and select the ideal auto insurance. The internet has an endless number of articles on insurance that can totally help you out with your queries.
The world of auto insurance has changed remarkably with the coming of internet and now customers can buy auto insurance online as literate shoppers.

Source: Free Articles from ArticlesFactory.com

Health Insurance and Its Need

There are so many kinds of insurance available in the market that it almost makes your head go round and round. There are so many kind of insurance like life insurance, homeowners insurance, disability insurance, car insurance, renters insurance,. Heck, the really careful can even purchase earthquake insurance (mainly sold in California).

But, talking about long term care insurance? Does it have value for money? And what is it anyhow? Isn’t it like that viable with the stoop in it that keeps receiving hurt?

Health Insurance

Extended health Care Insurance is more or less exactly what it sounds like a long period care insurance plan you purchase to help give for the cost of long-term concern further than a planned phase of time. Long term insurance covers care that is not usually covered by normal health insurance, Medicaid or Medicare. It is surplus to what you may believe you are already having.

Folks who need long tenure care are not unwell in the wide-ranging sense. They more often than not require special care in their every day activities, bathing, dressing, and eating, getting in and out of bed or a chair, daily hygiene, and possibly walking. And this possibly will not even be necessarily long term care in the customary sense. This possibly will be care necessary to get well or rehabilitate from a mishap or an operation. A long term care insurance policy takes care for these and many other things.

If one thinks that he/she is too young to think about long term care at the present, think again. It doesn’t distinguish based on age. You have merely to imagine of the Christopher Reeve (actor) to know that. Due to an accident he becomes paralyzed at the age of 42 and it took about 9 years for him to get cured. The author Stephen King due to a car accident took a very long time to get cured that nearly took his existence while he was a walker in his 50. And Michael J. Fox (actor) struggles till now with Parkinson’s disease which was diagnosed at age of 30. And it is a fact that, about 40% of those receiving long term care is between the ages 18 - 64.

Medicaid normally does not reimburse for long term care in a home setting so long term health care insurance is best option and certainly a little to imagine. If home care coverage is bought, long term care insurance will reimburse for it, from the first day it is needed. It will shell out for a live-in care giver or personal duty nurse up to 24 hours a day, 7 days a week. Assisted living is salaried for by long term care cover as is interval care, adult daycare and hospital care. Long term care insurance can also reimburse operating cost for caring for a person who suffers from Alzheimer or other forms of dementia.

So next time you go for a skydiving trip, or any other adventurous work take some long term health care insurance. By doing this you will be doing a favor to you and your family.

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What Can You Do with Wristbands Beyond Your Basic Expectations

Today, it is important to know so much about a particular product in order to be very certain of how good it is and will be for you. For instance; to learn more about wristbands - the benefits of wristbands; it is advisable to make sure you use the internet a lot. Yes, using the internet will help you have so many ideas as to why wristbands are considered one of the best tools where advertising and also product and event marketing is concerned. You will also learn about the various types of wristbands available and how to make the right purchases at the right time to prevent buying fake wristbands for your advertising purposes.

When you find the right website to learn more about wristbands - the benefits of wristbands, you will be amazed at the many benefits the use of wristbands can bring to you and your business. Wristbands can be used for so many activities and also purposes. For instance; when you want to learn more about wristbands - the benefits of wristbands, you will learn that religious silicone wristbands are used as a source of encouragement and also spiritual upliftment for religious men and women during their times of need and also hardships. Apart from that, wristbands can also be used as a means of preaching the gospel or advertising religious programs and events. For instance; there are so many wristbands that are sold by churches to help poor children and also some given out to people who donate blood for children and hospitals.

So, for a religious organization; there are so many options to go in for. Also, another benefit of wristbands has to do with sports. Today, there are so many sports personalities that can be seen day in and out with bracelets of one type or color to the other promoting one brand they represent or the other. All these are for the purposes of advertising those brands of even the athlete's events and programs.

There are mostly cheap sports wristbands that can be given out for free to people in and outside the community to create the awareness of music events, charity events, theatre, soccer games, yoga, volleyball tournaments, dance, tennis, football and so on. However; although cheap it will be best to make sure they are not too cheap to leave them getting ugly and losing text and logos on them in a few days.

There are also, cool wristbands that can be specially made for schools to help in noticing or identifying teachers, students and also seniors from juniors. This is done to ensure that just like every student has an ID card number, every student has a wristband. These wristbands will mostly have the name of student, class, course and also student id number. Wristbands can also serve the purpose of fundraising. This is because; they can be used to raise money for individuals and organizations for good initiatives. Most people prefer using rubber bracelets with silicone being tipped as the best amongst them all.

Source: ArticleTrader.com 

Recommendations for Small Enterprise who would like to Afford Health Plan for the Workforce

There are many difficulties need to be resolved by business people particularly when they still have a small enterprise. Typically, the thing is around the expense you have to spend every month or year. Evidently there are certain costs and some of them are thought to be high-cost. One example is, as a business owner you need to spend your dollars for health service among the employee benefits.

Typical action undertaken by companies is to apply health coverage program however the interest rates may be very high. Whilst it is not cheap but it really doesn't imply you should stop this particular service. The truth is, it is a must for small enterprise to allow health benefits on health insurance plan with regard to their workers. What you must do is obtaining better alternative allowing you to still allow the health coverage employing affordable one. You can carry tax-free benefit account program for your reference. So, you don't have to pay the premium insurance cost and just what for you to do is paying off the medical care cost right as untaxed benefit.

A very important thing with this plan for small company is always that the staff members can make use of the deposit on their personal account intended for their medical. Not merely for dental treatment, from the medical bills, and medical attention. Your family from the employees is also able to take advantage of the deposit if it really is following the regulations of CRA. Your staff is able to use the deposit readily and maximally before the limit within the account. Ultimately, it will become an even better and low priced alternative for small business.

Source: ArticleTrader.com 

Hints for Small Company who wants to Present Health Insurance plan for the Employees

There are several issues needs to be solved by small business owners especially if they still attempt a small company. Frequently, the issue is with regards to the expense they must spend month for month or year. It appears that there are a few costs as well as appear to be considered as expensive. By way of example, as the company leader you have to spend your hard earned money for health service as one of the employee benefits.

The everyday move undertaken by way of the business owners is using insurance coverage program although rate is rather high. While it is dear nevertheless it doesn't imply that you must stop this auto repair. Actually, it is a must for small company to supply health benefits on health protection because of their individuals. What you ought to do is finding better alternative so its possible to still provide health coverage but also in affordable one. You can actually acquire tax-free benefit account program when your reference. In this situation, you don't be forced the premium insurance cost and just what you ought to do is making payment on the healthcare cost immediately as untaxed benefit.

The best thing of this plan for small business is usually that the staff will use the deposit on personal account pertaining to their medical care. Quite a few for dental care, making medical bills, and therapy. The family belonging to the employees is in addition allowed to utilize deposit assuming that it's using the rules of CRA. The staff will use the deposit freely and maximally until the limit of your account. In the end, it might be an improved and low cost selection for small enterprises.

Source: ArticleTrader.com 

How to Maximize Your UK Pension Fund

As the awareness about QROPS is spreading, more and more UK expats are rushing to independent financial advisors to know more about how it can be used in their particular investment situation to maximize their pension earnings. 

UK pensioners are now more than willing to cash in on their UK pension fund via QROPS transfers to their preferred foreign destination. The conditions that they need to fulfil to qualify for qualifying recognized overseas pension schemes are not tough. They need to be a non UK resident for five or more tax years and their pension fund must be more than £10,000. They can qualify if they meet the above two conditions and also as long as they have not bought an annuity. Age, in this case does not matter.

Under HMRC QROPS rules, pensions may be transferred to a qualifying recognized overseas pension scheme. You must consult expert QROPS providers to know how the QROPS plan works in your chosen foreign destination. Some countries such as Guernsey, Isle of Man, Gibraltar and Malta do not have the facility to cash in on the pension plan. The rules regarding QROPS pensions are different for residents and expats.

New Zealand, Australia and many other countries offer residents the facility to cash in a pension fund and they are also recognized by HMRC. This is because they follow a separate set of rules. It is imperative that you satisfy the rule of staying for five years or more outside the UK. 

Unfortunately, some unregulated advisory firms mislead clients by allowing transfers to take place even when this critical qualifying condition is not met. In such cases, HRMC can impose a tax of 55 percent on the gross transfer value. It can come as a horrible surprise to those who have been wrongly advised.

That is why you must take the advice of qualified and experienced independent financial advisors who are well aware of the various clauses and conditions of the new QROPS rules. There are some areas of the law that are complex and can be tough to decipher for the common person. Experts can help you maximize your pension fund in the most convenient way possible.

Source: ArticleTrader.com