Page 22 - Insurance Times December 2022

Cover Story

Indian insurance

sector - Major

transformation

Deepak Godbole
ahead GIC Re and Former Secretary
Former General Manager,

General, III

Resiliency is characterized by the ability to put forth positive effort and being open to new learning.
Organisations or people, those who are proactive in adapting with the times, ready to embrace
change and effectively innovate do succeed in long run.

Insurance is important for sustained determine your success in life". A global pandemic, energy
shortage, rising inflation, growing geopolitical tensions are
economic growth- reshaping the world. A new era, drastically different from
The importance of insurance in economic activities has been historical perspective is set to unfold.
recognized for many years. Insurance is a way to protect
from financial losses. Life insurance protects potential future Though change disrupts, it is important to embrace change
earnings and livelihoods of individuals and non-life insurance so as to remain relevant. Businesses globally experience
safeguards by protecting assets and businesses. Insurance volatility, uncertainty, complexity and ambiguity, often
not only facilitates economic transactions through risk referred to as 'VUCA'. Resilience is necessary in managing
transfer and indemnification but also promotes financial change, dealing with the disruption and to continue to
intermediation. perform. Resiliency is characterized by the ability to put
forth positive effort and being open to new learning.
More specifically, insurance can have effects such as enabling Organisations or people, those who are proactive in adapting
efficient risk management, facilitating trade and commerce, with the times, ready to embrace change and effectively
encouraging loss mitigation, promoting financial stability, innovate do succeed in long run.
mobilizing savings and fostering efficient capital allocation.
In the times of growing natural and man-made/ induced Incremental, i.e. small or modular change takes place
catastrophes, insurance offers a substitute for State funding. slowly. Businesses have seen many such changes over years.
It is easier to adjust to the incremental change. But
There is nothing as permanent as Disruptive change is radical, powerful, does not allow time
to make adjustments and almost forces all players to follow
change- suit and accept it. Disruptive change brings in the possibility
Heraclitus, a Greek philosopher said "change is the only of upsetting traditional strong players which have been
constant in life" and, Benjamin Franklin, a well-known US operating on the strength of experience and legacy systems
personality said "the ability to adapt to the changes will at the core of their processes.

The Insurance Times December 2022 19