Page 44 - Insurance Times September 2023

models and analytics. These tools utilize cutting-edge data, decades. Projections for the market's expansion vary among
machine learning, and AI to provide forward-looking climate different entities. Barclays envisions an impressive $250
risk forecasts, aiding in risk assessment and decision-making. billion annually by 2030, marking a staggering 125-fold
increase from its 2022 size. Credit Suisse and Morgan Stanley
Loss Adjustors: Loss adjustors ascertain claim estimate a substantial $100 billion per year by 2030,
circumstances, assess damages, and evaluate policy indicating a fifty-fold rise. The Integrity Council for the
coverage for claims. They also encourage environmentally Voluntary Carbon Market (ICVCM) and McKinsey &
sustainable repairs and reinstatementsthrough the claims Company predict a market size of $50 billion annually by
process. As low-carbon technologies emerge, their role 2030, magnifying its current scope by twenty-five times.
involves investigating, predicting claim frequencies, and
adapting skills accordingly. Joining this consensus, Shell also anticipates a $50 billion
yearly market by 2030, echoing the potential for significant
Legal Firms: Amid increasing climate-related regulations and growth. Bloomberg, under favourable conditions, speculates
potential litigation risks, legal firms offer critical guidance. that the market could even soar to an impressive $1 trillion
They address liability concerns under financial regulations, annually by 2037, underscoring the transformative impact
corporate and environmental laws, and help identify growth of supportive factors. Looking ahead, Morgan Stanley
opportunities tied to evolving legislative landscapes, ensuring foresees the market reaching a notable $250 billion per year
clients navigate complex legal challenges effectively. by 2050, reflecting a continued upward trajectory.

Forecasting the Future of the Voluntary The future holds immense potential for Carbon Emission
Insurance. As governments tighten regulations and global
Carbon Market: climate agreements gain traction, the demand for these
As the world anticipates a more sustainable future, experts policies is set to rise. Insurers can harness their expertise to
and financial institutions are looking ahead to the potential refine coverage models, creating tailored solutions that
growth of the voluntary carbon market in the coming accommodate various sectors and industries.

NHRC wants IRDAI to ensure insurers offer hassle-free health

products to the disabled

The National Human Rights Commission (NHRC) has urged the insurance regulator Idrai to make insurance companies
follow the spirit of the law of the land to ensure that the disabled get hasslefree health insurance by designing special
products for them. A panel meeting of the representatives of the NHRC, Irdai, the National Centre for Promotion of
Employment for Disabled People and some key finance ministry officials here called for rationalising and
institutionalising insurance for the disabled.
Disability advocacy groups have long been pushing for comprehensive health coverage for the disabled. Following
the December 2022 guidelines issued by the Delhi High Court, Irdai, in February 2023, mandated insurers to offer
annual health coverage to disabled, HIV-positive, and mentally disabled people.

The regulator had also instructed insurers to devise inclusive insurance products aligned with the essential
recommendations for the disabled. However, insurers are limiting the coverage to those with benchmark disabilities
in contravention of the legal framework. Even their websites, apps, and claims processes do not adhere to the
accessibility standards mandated by the RPWD Act of 2016.
According to disability advocacy groups, the main issue is insurance policies not adequately covering the expenses
for assistive technologies, such as purchasing, maintaining, repairing, or replacing them.

Addressing the meeting, DM Mulay, a member of the NHRC said there is consensus among participants on designing
special insurance products for the disabled so that the country is on par with the developed countries which have
standardised insurance modules, as well as for creating a mechanism for addressing concerns and grievances of the
disabled.

The Insurance Times September 2023 39