Page 25 - The Insurance Times November 2024

ment creates two imperatives for risk and control profes- 5. Proactive Engagement and Gover-
sionals:
a) Systems and processes are now major sources of risk, nance:
particularly regarding customer privacy, data security, Despite the changes taking place, one constant is the im-
and cyber threats, portance of strong governance. This involves establishing
adequate, fit-for-purpose structures and teams to maintain
b) Shorter lead times for providing mitigation and address-
oversight of the business. Additionally, risk and control
ing issues due to the fast-paced digital economy. teams must proactively engage with business leaders (e.g.
predictive monitoring systems or reporting dashboards)
4. Continuous Education: periodic scorecard management before things "take a turn

Risk professionals must continuously upskill and become for the worse."
more tech-savvy, either by taking short courses on systems
or databases or by taking on additional roles within differ- Conclusion:
ent departments (think "wearing two hats") such as opera- The demand for Risk professionals will continue to grow due
tions or financial control. This will help professionals relate to the uncertain and volatile nature of the 21st-century
to business challenges and gain specialized skills. economy. It's up to us to seize the day!

Insurance buyers ignore home, healthcare needs, focus

on family's financial security

Over 70 per cent of Indians are setting aside immediate requirements like purchasing a home, buying a vehicle,
healthcare needs or going on a vacation and instead prioritise their family’s financial security, says a survey.

While savings and securing the family’s future are considered as the primary reasons for opting for life insurance
policies, this focus on family often comes at the expense of other immediate financial goals. With 60 per cent of
individuals zeroing in on just one priority — family financial security — they are overlooking the importance of savings
and meeting immediate requirements, says the survey conducted by Canara HSBC Life Insurance.

Returns from life insurance policies are much lower when compared to mutual funds where returns can be as high as
around 15 per cent per annum. Mutual fund investments, especially monthly SIPs, are now increasingly becoming an
important avenue for savings and higher returns. Returns from life insurance plans are normally around the bank FD
rates or even less in most cases.

Delving deeper, the survey reveals that 64 per cent of individuals wished they had begun their term insurance journey
sooner. “Despite 83 per cent acknowledging the importance of term plans, a mere 11 per cent take the time to
review their coverage annually. This lack of regular assessment leaves only 25 per cent of Indians feeling confident
that their policy will sufficiently cover unexpected expenses,” the survey says.

The story continues with retirement planning. “While 66 per cent of Indians start planning for retirement in their 30s,
a staggering 74 per cent regret not starting earlier. This delay has left only 27 per cent feeling prepared for retire-
ment, and just 24 per cent believe their maturity amount will fully meet their financial needs,” it says.

The narrative takes a moving turn when it comes to planning for their children’s future, the survey says. “Only 18 per
cent of Indian parents feel fully prepared, and an equal percentage believe their policy’s maturity amount will be
enough to secure their child’s future. The regret is palpable, with 71 per cent wishing they had started the policy
sooner and 82 per cent of parents feeling unprepared for their child’s financial needs,” the survey says.

22 November 2024 The Insurance Times