IDBI Cap to begun funding pvt equity
New Delhi: IDBI's financial services subsidiary, IDBI Capital Services (ICSL), plans to enter into private equity funding with the initial capital size of Rs50 crore.
The fund would be used for the second stage investment with time horizon of about three years.

The company would invest into mid-sized companies and to those, which are in the second stage of expansion. The size of the investment would be decided on the specific attractiveness of the opportunity.

The PE foray is not launched as a separate fund but as an in-house activity with IDBI Cap. The company will take a decision to this effect by early next year.
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ICICI Lombard to increase distribution channels
New Delhi: ICICI Lombard plans to expand its distribution channels and focus on superior customer service to face competition in the free market scenario after detariffing from January 2007.

Insurance regulator IRDA has adopted a two phased approach to detariffing. Insurance companies will only be allowed pricing flexibility initially for the first fifteen months, after which policy terms will also be open to change.

Insurers are building robust and practical rating models to arrive at the correct premium with the available data and further changes in the models would be based on subsequent claims experience.

To retain customers in a competitive scenario, the insurance companies are focussing on superior customer service as a key differentiator.

There will be an increase in the use of virtual channels to reach out to and service customers to reduce operational costs and pass on these benefits to the end-customer.

The general insurance industry, consisting of 12-players, grew new premium by 22.8 per cent in the first half of this fiscal and introduction of free pricing is likely further accelerate the growth rate.
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