Page 42 - Insurance Times July 2019

The second major advantage that we see is the utilisation premium for such kind of policy. And one does not need to
of the claim amount. Each and every agency which funds have any sanction from anyone because the Finance
such reconstruction of the losses, have their own ways of Commissions have been appealing about such activities for
checks and balances. For instance, the World Bank aid could the last 15 years.
specify that the money should be spent primarily to take
care of compensation for deaths only, or may be just to pay There are many countries like Mexico, Philippines,
for the reconstruction of dwellings, or may be just to pay Bangladesh etc that have existing parametric insurance
for the compensation of dead cattle. The claim amount paid covers, proven right time and again.
under a parametric insurance policy is free from such
clauses - one can utilise the amount for necessities like As discussed earlier, we may be running out of time on
restoration of road transport, or communication or may be account of the amazing pace at which the world moves. The
eatables! The prerogative is that of the insured. speed with which the disasters strike us and the way we
reconstruct again.
Such policies typically are taken by the governments and
thus the insured here is the government. The time has come for us to work jointly, and I mean the
stakeholders in this series, to have risk mitigating measures
Each and every state government has its share of the State for such 'cat events', or else there would be no legacy that
Disaster Relief Fund, which can be utilised for payment of we leave behind for our children.

Do You Think Risk Management Education and Infosec, BCM keeping in mind the economic growth and also
Awareness in India Needs a Serious Thought From the upcoming regulations like GDPR/Srikrishna Committee
All Stakeholders of the Insurance Industry? recommendations, risk based capital regulations similar to
At present, there are no degree courses on risk management Solvency 2/Basel 3 norms.
offered by colleges/universities in india similar to msc/ms
Any Other Developments You Would Like to Share?
in risk management.
Yes, certainly, at the broad level, I would say that few
There is a need in the country for involving colleges/
developments which is of strategic importance and which
universities for creating of full time/part time risk
have made tangible difference to SBI Life's operations were
qualifications.
alignment to global Risk Standard/Framework like ISO
Risk associations like RIMS USA, IRM UK are assessing the
31000:2018 & COSO ERM 2017 Framework
scope for professional development of the Risk community
With the vision of moving from risk centric ERM to objective
and trying to establish local chapters in India.
centric ERM, we benchmarked our risk and control practices
They are also trying to talk to colleges/institutions for
with COSO ERM 2017 framework and other global best
developing risk courses and certifications like CRMP.
practices. The benefit of adopting COSO ERM 2017 is that
IIRM (Hyderabad, India) is also tied up with IRM (London)
it embeds risk based strategy into the DNA of the
to promote their risk certifications.
organization and it integrates risk with strategy and
There is a vast scope for professional courses in ERM, performance.

!! Hearty Congratulations !!

Thanks readers for excellent response for our Insurance Quiz published in our June 2019 issue. This month the lucky
winners of the Quiz is Anant Sharma.
Who will be the next?????ho will be the next?????
W Who will be the next?????ho will be the next?????
W Who will be the next?????
42 The Insurance Times, July 2019