Page 43 - Insurance Times March 2024

Asset Valuation in

Insurance: A

Strategic Pillar with

far-reaching

Syed Meraj Naqvi
Impacts Riskbirbal Insurance Brokers
CEO & Principal Officer,

"The insurance industry stands as no exception to this transformative wave. In fact, these dynamic
forces colliding could serve as the impetus for a profound reinvention, reshaping not only how the
industry conducts its operations but also redefining its intrinsic purpose and societal role. This
adaptability is becoming more than a strategic choice-it's a vital necessity for sustained existence."

C hange is sweeping through our world at an Asset Valuation at the Core of Insurance
unprecedented pace, eclipsing the rapid
Strategy
transformations seen in any historical era. The
convergence of shifts in climate, technology,
of the insurance industry. Asset valuation determines coverage
workforce dynamics, and societal expectations, alongside The delicate interplay between risk and value lies at the heart
the backdrop of macroeconomic and geopolitical limits, frames premiums, and secures the foundation of
fluctuations, is compelling businesses globally to overhaul businesses against unforeseen adversities. According to industry
their technological infrastructure, products, services, data, precise asset valuation not only ensures optimal coverage
business models, and organisational culture. This but also leads to a reduction in premiums.
metamorphosis is not solely driven by the pursuit of
profitability but is a crucial response for enterprises to Finance & Banking: The Strategic Dance
remain relevant and ensure their survival.
of Valuation and Risk
The insurance industry stands as no exception to this In the realm of finance, the symbiotic relationship between
transformative wave. In fact, these dynamic forces colliding asset valuation and insurance takes centre stage. Accurate
could serve as the impetus for a profound reinvention, valuations become the bedrock upon which sound financial
reshaping not only how the industry conducts its operations decisions are made. Recent industry reports underscore the
but also redefining its intrinsic purpose and societal role. This crucial role of standardised valuation practices and
adaptability is becoming more than a strategic choice-it's a heightened transparency in fostering a resilient financial
vital necessity for sustained existence. ecosystem and shaping effective risk management strategies.

In the complex landscape of risk management, asset Manufacturing and Supply Chain Dy-
valuation is more than a routine procedure-it's the vital force
that pulsates through the veins of the insurance industry. namics: Stabilising Forces in Valuation
Its importance goes beyond mere numerical precision; it In the intricate manufacturing and supply chain dynamics
actively molds decision-making processes and strengthens landscape, the valuation of tangible assets emerges as a pivotal
financial stability across various sectors. force, deeply integrated into operational decision-making.

The Insurance Times March 2024 39