Page 40 - Insurance Times April 2022

Y Increases the stability of business operations while also management professionals are also in high demand and are
decreasing legal liability. required in every small to big organization.

Y Provides protection from events that are detrimental It is unfair to say their job is simple because there are some
to both the company and the environment. risks which cannot be calculated or interpreted by them, so
Y Protects all involved people and assets from potential their focus and concentration is necessary in this field of
harm. work. But once they have managed the risks which have
taken place or interpreted the likelihood of future risks, both
Y Helps establish the organization's insurance needs in
order to save cash on unnecessary premiums. the organization and its consumers are at peace.
Lastly, Risk Management isn't a one time job, each day there
Example is a new chance of risk and it needs to be managed in time

One of the examples could be an investor buying stock in an before it causes any loss or harm to the company or the
exciting new company with high valuation even though they economy so the risk management professionals could never
know the stock could significantly drop. In this situation, risk be at rest.
acceptance is displayed as the investor buys despite the So as economies grow with time, need of risk management
threat, feeling the potential of the large reward outweighs professionals does too.
the risk.
References
Conclusion O https://www.intechopen.com/books/risk-management-
Role of Risk Management professionals is substantial to a current-issues-and-challenges/importance-of-risk-
high degree in today's economies due to the rise in many analysis-and-management-the-case-of-australian-real-
different types of risks such as GDP, stability of the company, estate-market
loss, fraud, error by employees and the list goes on. O https://www.finyear.com/attachment/67799
O http://citeseerx.ist.psu.edu/viewdoc/
To safeguard a company and its consumers risk management download?doi=10.1.1.466.7611&rep=rep1&type=pdf
is must and should never be ignored by the management of O https://www.nevadabusiness.com/2013/04/risk-
the company. management-a-necessary-consideration/
O https://searchcompliance.techtarget.com/definition/
Because of the demand of risk to be managed, risk risk-management

Indian cos face higher reinsurance rates

Global reinsurers have intimated Indian general insurers about the hardening of pricing and tighter terms and con-
ditions in the coming days for Indian business in the wake of Russian invasion of Ukraine and subsequent imposition
of severe sanctions by Western countries on Russia.
Domestic general insurers, who were waiting for April 1 reinsurance renewal, might have to rush for early renewals
of their annual business to avert a price hike, insurance sources said. "Yes, we have received alerts from our global
reinsurers about a possible hardening of premiums and tightening terms and conditions in coming days. The higher
pricing will be impacting marine cargo, particularly movements in Black Sea initially but if war continues, it can
include property prices, going ahead," said an official of New India Insurance, the country's largest general insur-
ance company with operations in 28 countries.
"We have advised our clients for early renewals to avoid any kind of complications," he said. Indian insurers normally
reinsure their business with global reinsurers as a risk mitigation measure.
In fact, one of the India's large insurance accounts, Air India, with a sum assured of $ 10 billion is due for renewal
by April 1. The NIA is the primary insurer for Air India, which was acquired by Tata from the government recently.
"Though there is no impact on Indian clients immediately, they need to move fast as situation can further escalate
in the international markets.'' said the CEO of one of the global reinsurers having its operations in India.

40 The Insurance Times, April 2022