Page 9 - The Insurance Times August 2024

ance domains, the company said in a
statement. India Inc show superior risk handling: ICICI Lombard
Despite facing global headwinds and increased risk exposure in certain sec-
CASHe said that with a direct insurance tors, Indian enterprises have demonstrated resilience and strategic advance-
broker licence, it can now sell insur- ments, leading to improved risk management scores. The fourth edition of
ance products across diverse catego-
the ICICI Lombard Corporate India Risk Index 2023, a study conducted in
ries from all insurance companies op- collaboration with Frost and Sullivan, shows an improvement in the risk in-
erating in India, including life and gen-
dex score from 63 in 2022 to 64 in 2023.
eral insurance such as health and ve-
hicle. Of the 20 sectors covered in the 2023 Risk Index nine sectors showed 'Supe-
rior' handling of risks, including telecom and communication, pharmaceuti-
The company will provide essential ser-
cals, healthcare delivery, automotive and ancillary, manufacturing, FMCG,
vices such as policy recommendations, media and gaming, new age and start-up and tourism and hospitality. The
claims assistance, and customized risk BFSI sector showed significant improvements in cyber security measures but
management solutions as well as in- remained susceptible to global economic volatility.
stant quotes and online purchasing
options for personalized customer ex-
periences. Insurers to pay GST on sale In such a case, since the insurance com-
pany has to dispose of the property, the
of salvage after settling
Future Generali to recruit outward GST liability on disposal or sale
claims of the salvage is to be discharged by the
more specially-abled per- insurance companies.
The GST (Goods and Services Tax) coun-
sons cil has clarified the taxability of wreck
Future Generali India Insurance ex- and salvage values in motor insurance Insured losses from
pects specially-abled persons (Persons claims, stating that general insurers crowdstrike outage could
with Disabilities or PwD) to account for have to pay GST liability in case of dis-
nearly one per cent of its total posal or sale of the salvage after set- reach $1.5 billion
workforce, which is estimated at close tling the claims. Global insured losses from recent mas-
to 4,000 employees, by December Salvage value refers to the value of sive IT outage are likely to range from
2024. The general insurance company damaged or destroyed property that $400 million to $1.5 billion, cyber
is also looking to on-board more people can be recovered and sold after an in- analytics firm CyberCube said.
from the LGBTQIA+ community with a surance claim has been settled. This A software bug in cyber security firm
view to create a diverse workforce clarification came in response to re- CrowdStrike's quality-control system
within the organisation. quests from industry players seeking caused the software update that
crashed computers globally, the U.S.
According to Anup Rau, MD and CEO, clarity on salvage value. firm said this week, as losses mount
Future Generali India Insurance, "from There have been representations from following disruption to services from
around seven employees at the end of stakeholders seeking clarification as to aviation to banking. The outage may
December 2022, we now have on whether, in the case of motor vehicle be the single largest cyber insurance
board 27 specially-abled persons across insurance, GST is payable by the insur- loss, CyberCube said in a statement.
various functions and we are hoping to ance company on salvage or wreckage It was "a major event for the cyber
close this calendar year at around 40 value earmarked in the claim assess- insurance market but does not come
employees." ment of the damage caused to the close to the destructive potential that
As per Census 2011, PwDs account for motor vehicle. leading insurers are holding capital
close to 2.21 per cent (2.68 crore) of The tax authorities explained that in against", CyberCube said.
the country's total population of situations where the insurance con- Insurer Parametrix estimated insured
around 121 crore. Only seven out of the tract provides for the settlement of losses from the outage of $540 million
Nifty 50 companies had over one per claims on full Insured's Declared Value to $1.08 billion for Fortune 500 com-
cent PwD on their rolls during FY23, (IDV) without deducting salvage or panies, excluding Microsoft, whose
with four out of them being in the pub- wreckage value, the property will be- computer software was affected by the
lic sector space. long to the insurance company. CrowdStrike bug.

The Insurance Times August 2024 9