Business
Insurance costs under lens: RBI flags high-cost distribution driving premium growth, warns of medium-term pressure – The Times of India
The Reserve Bank of India has flagged emerging structural pressures in the insurance sector, warning that premium growth is increasingly being driven by high-cost, distribution-led strategies rather than improvements in operating efficiency, even as the sector remains stable in the near term, according to its latest Financial Stability Report.“While posing no near-term systemic risks, the surface-level stability masks emerging structural pressures that could weigh on medium-term sustainability and coverage expansion,” the RBI said in the report.“A primary pressure is the persistence of a high expense structure, particularly the acquisition costs. Premium growth has been increasingly driven by high-cost distribution-led strategies rather than operating efficiency,” the central bank noted.In the life insurance segment, the RBI said frontloaded acquisition costs have limited the extent to which scale efficiencies are passed on to policyholders. It added that the expected benefits from digitisation have not yet fully materialised.“From a financial stability perspective, continuously elevated expenses could weaken profitability buffers and amplify cyclical vulnerabilities,” the report said.The RBI said a reorientation towards cost rationalisation, better alignment of intermediary incentives with policy persistency and value, and wider adoption of technology-enabled low-cost distribution models are essential to improve the sector’s long-term resilience.Supported by regulatory initiatives such as the risk-based capital framework, enhanced disclosures and strengthened market conduct standards, a sustained moderation in expense intensity would improve consumer value and help the sector transition from a ‘high-cost, low-inclusion’ model to an ‘affordable-cost, broad inclusion and high quality’ equilibrium, it added.According to the report, total premium income rose to Rs 11.9 lakh crore in 2024-25 from Rs 8.3 lakh crore in 2020-21, reflecting continued expansion of the insurance market.“However, total insurance premium masks a significant growth moderation, as the growth rates for both life and non-life sectors have slowed sharply,” the RBI said.At a sectoral level, the life insurance segment continues to exhibit high concentration risk, while the non-life sector has seen a structural shift, with health insurance emerging as the leading segment. Product concentration across both segments indicates limited diversification, the report noted.Total assets under management of the insurance sector stood at Rs 74.4 lakh crore as on March 31, 2025, with life insurers accounting for 91 per cent of total investments, underscoring the sector’s growing role as a major institutional investor.The RBI also highlighted a divergence in cost efficiency between public and private insurers.“Public life insurers show a strong focus on expense management and potentially lower acquisition costs underlined by a flat commission structure despite growing premiums. In contrast, private life insurers show a steep increase in commission pay-outs, particularly surging from 2022-23 onwards, indicating business acquisition at higher marginal cost,” it said.In the non-life segment, public insurers maintain a stable but high expense base, with commission costs remaining low and flat. Private non-life insurers, however, show a sharper escalation in commission expenses, pointing to a high-cost distribution-led growth strategy that could impact underwriting margins, the RBI said.The report also noted that insurance density rose steadily from $78 in 2020-21 to $97 in 2024-25, indicating higher per-capita spending on insurance. At the same time, a decline in insurance penetration suggests that GDP growth has outpaced the rise in premiums.
Business
Stock market today: Nifty50 opens below 22,800, Sensex tumbles over 800 points as oil prices stay above $110 – The Times of India
Stock market today: Dalal Street opened in red on Tuesday, with benchmark indices slipping 0.9% as oil prices continued to rise and US President Donald Trump’s deadline for Iran nears. While Nifty50 began the day below 22,800, Sensex fell over 800 points in early trade to touch 73,282.41. As of 9:20 am, Nifty50 was trading at 22,765.45, down 202.80 or 0.88%. BSE Sensex made slight recovery, down 694.03 points or 0.94% to 73,412.82.This fall comes after a sharp rebound in the previous session, when both Sensex and Nifty recovered strongly, erasing early losses triggered by rising crude oil prices as tensions continued to intensify in the Middle East. Traders attributed the rise to intense buying in banking and IT stocks, along with a strengthening rupee, that lifted investor’s confidence.During the volatile session on Monday, the 30-share BSE Sensex surged 787.30 points, or 1.07%, to settle at 74,106.85. During intraday trade, it had jumped 887.91 points, or 1.21%, to touch 74,207.46. Market breadth remained firmly positive, with 3,207 stocks advancing, 1,147 declining and 190 remaining unchanged on the BSE.The 50-share NSE Nifty also ended higher, rising 255.15 points, or 1.12%, to close at 22,968.25. Rupee, however, stayed firm on Tuesday, opening at 93.0025 per US dollar, rising 0.06% from its previous close of 93.06 against the greenback.In global markets, oil prices climbed while equities showed a mixed trend as investors assessed Donald Trump’s latest deadline for Iran to reopen the strategic Strait of Hormuz or face being “decimated”.West Texas Intermediate rose 2.6% to $115.34 per barrel, and Brent North Sea crude gained 1.3% to $111.24 per barrel. Across Asia, Tokyo’s Nikkei 225 slipped 0.2% to 53,323.41 in early trade, while Shanghai’s Composite index rose 0.5% to 3,899.09. Hong Kong’s Hang Seng Index remained closed for a holiday.In currency markets, euro weakened to $1.1530 from $1.1543 on Monday, while the pound dipped to $1.3216 from $1.3236. The dollar strengthened against the yen to 159.86 from 159.68. The euro also edged lower against the pound to 87.25 pence from 87.27 pence. In the US, the Dow Jones Industrial Average ended 0.4% higher at 46,669.88, while London markets were closed for a holiday.
Business
Greggs launches chicken version of sausage and vegan rolls in ‘iconic trilogy’
Greggs is launching a chicken version of its customer favourite sausage and vegan rolls in a permanent addition to its menu.
The Chicken Roll – described by the high street baker as “seasoned chicken wrapped in layers of crisp, golden, glazed puff pastry” contains 305 calories and will cost £1.35 when it goes on sale on Thursday.
It follows the Sausage Roll and the pork free Vegan Roll.
To celebrate the final launch of the “trilogy”, Greggs is allowing customers the chance to be among the first to taste the new roll with a 20-minute slot between 3.30pm and 9pm on Wednesday (April 8) at a pop-up location at 15 Bateman Street, in London’s Soho.
Places will be given on a first-come first-served basis but, in a nod to the trilogy theme, guests must arrive as part of a trio of friends or family.
Visitors will be able to pair their three complimentary rolls with a free chicken-themed cocktail or mocktail.
A Greggs spokeswoman said: “They say the best things come in threes, and our iconic roll trilogy is no exception.
“We can’t wait for our customers to experience the Chicken Roll as the ultimate headline act of our flaky franchise.”
Over the past year, Greggs has come under pressure from cautious shoppers affected by the rising cost of living, higher tax and labour costs, and the growing use of weight-loss treatments.
Last month, the Newcastle-based firm reported that statutory pre-tax profits fell by 17.9% to £167.4 million for the year to December 27, compared with a year earlier.
It also told shareholders that total sales grew by 6.8% to £2.15 billion over the year, with like-for-like growth buoyed by its continued store opening programme.
Greggs said it had 121 net store openings in 2025, expanding its shop estate to 2,739 locations by the end of the year.
It is targeting around 120 further openings this year as it highlighted ambitions to grow to “significantly more than 3,000 UK shops over longer term”.
Business
Wellness brand announces new product range for those on weight-loss jabs
Applied Nutrition is significantly expanding its product range to cater to customers using weight loss drugs, following a substantial increase in demand over the past year.
The health and wellness brand said it has identified a key business opportunity stemming from the sharp rise in Britons using GLP-1 treatments, such as Mounjaro and Wegovy.
The London-listed company, which already offers GLP-1-friendly high-protein ready meals launched in late 2025, confirmed that new products specifically designed for this market will be introduced later this year.
“The GLP-1 user is a growing customer. We see this as a consumer at the start of their weight loss journey who is now looking at how the medication can help them,” Thomas Ryder, founder and chief executive of the Liverpool-based firm, said.
“There is an opportunity, as those customers often need supplements and need smaller portions. I think this is a catalyst for the health and wellness space if we have that consumer in mind.
“We do have a number of products we will bring to market in this area because we do see that area growing.”
At least 1.6 million Britons have used weight loss jabs in the past year, according to research by University College London.
Applied Nutrition has reported strong growth, driven by targeting new customer opportunities and diversifying its sales channels, including expansion into UK retail stores.
In March, the company announced robust financial results, with pre-tax profits soaring by 77.1% to £20.9 million for the six months ending 31 January, compared to the previous year.
Sales also saw a significant uplift, rising by 56.5 per cent to £74.5 million over the same half-year period.
However, the firm cautioned that sales volumes in the Middle East are expected to be affected by the ongoing conflict in the region.
Applied Nutrition said it still expects to meet revenue targets for the year of around £140 million.
The company added: “Importantly, we have managed similar disruption in the past, supported by the agility of our operations.
“In this instance, we are working closely with customers to adapt our routes into the region and logistics arrangements to safeguard continued supply to those customers.”
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