Expert Zone

The future of inflation

November 13, 2014

(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

Why traditional insurance plans will beat ULIPs during the tax-saving season

By Deepak Yohannan
November 12, 2014

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Most ULIPs (unit-linked insurance plans) are far better compared to traditional insurance plans. They are more flexible, more transparent and have the potential to generate bigger returns. But insurance sales do not necessarily follow simple logic. There are a variety of reasons why traditional plans are likely to fare better.

Targeting inflation at 4 percent

October 13, 2014

Finance Minister Arun Jaitley seems to have finally taken the responsibility of targeting inflation as it is a sensitive political issue and could not be left to the discretion of the Reserve Bank of India (RBI). With CPI as the anchor, the target will be 4 percent measured annually (+/-2 percent).

Third party premium for motor insurance increased

By Deepak Yohannan
April 16, 2014

(Any opinions expressed here are those of the author and not of Thomson Reuters)

It is compulsory for every vehicle in India to have a third party insurance, which covers risks involving damage or loss to others caused by the vehicle you drive.

How much inflation is good for growth

March 22, 2014

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The RBI has left it to the government to decide the inflation target since it considers it politically sensitive. The central bank will accordingly modulate its monetary policy to ensure that the government’s target is not exceeded.

Health insurance sector poised for more growth

By Deepak Yohannan
March 21, 2014

(Any opinions expressed here are those of the author and not of Thomson Reuters)

With the arrival of Cigna TTK, there are now five standalone health insurers offering products and services in India. Religare Health is also a recent entrant that started operations only last year.

Tough to get the math right in 2014/15 interim budget

February 19, 2014

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Finance Minister P. Chidambaram went more by economic considerations than political ones in manoeuvring his pre-election budget, the focus being on fiscal consolidation with an eye on rating agencies.

As liquidity dries, time for fundamentals

By Mukesh Agarwal
February 1, 2014

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The focus is back where it should be for equity investors – fundamentals.

In the past few years,  markets around the world have swayed to the wave of liquidity unleashed by central banks in a bid to get their economies back on track. The U.S. Federal Reserve, for one, was buying as much as $85 billion of bonds a month since September 2012. But that tap is beginning to taper with the Fed reducing purchases by $10 billion in January and another $10 billion in February.

Time for a relook at FDI in insurance intermediaries

By Deepak Yohannan
January 24, 2014

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Insurance companies in India have an FDI limit of 26 percent, which may be revised upwards in the coming months. The industry requires funds to grow and the revision can be an enabler, but the process may take some time as it requires legislative approval and there seems to be some opposition to the move.

Was the repo rate hike necessary?

September 21, 2013

The decision of the U.S. Federal Reserve to delay tapering its bond purchases cheered markets, and more so in India because they were convinced of a second bonanza from the RBI. But new Governor Raghuram Rajan gave the markets a jolt by turning hawkish and increasing the repo rate.