Page 48 - Insurance Times March 2024

Increased digitalization, platform availability, insuretech the most vulnerable to floods and heat waves has lost close
solutions in claims, underwriting and product innovation and to 8% of GDP in 2022 due to climate change according to a
distribution will help leapfrog the industry. recent report by University of Delaware. Research predicts
that climate change could reduce India's GDP by around
Addressing Insurance 2.6% by 2100. This is especially challenging where general
insurance penetration is only about 1% of GDP, far below
Insurance Talent Management
global average. Low insurance penetration limits the
Since privatization of the insurance sector in 2001, the insurer's ability to spread costs across its customers and
number of companies in life, health and general insurance
makes it hard for insurers to underwrite for the frequency
has grown from 5 to 57. The industry has struggled with
and severity of risk.
high attrition and shortage of qualified specialists including
actuaries, risk engineers, techno commercial professionals
Growing physical risks will influence the future availability
and even sales force. Insurance as a career is not a top
and affordability of insurance capacity in India, making
choice for most youth. Hence demand for insurance specific
unviable the existing business models. Instead of continual
courses has been tepid and as a result the insurance
premium increases, a collaborative approach to risk
education infrastructure has not kept pace with the
management between the insured and insurers to adapt and
demands of employment in the sector.
work on mitigation measures is essential.
Maximizing on the young demographic dividend that India The insurance industry needs to play a central role in
possesses currently requires improving the reputation of the accelerating the shift towards a more sustainable
insurance industry as a career choice. It also calls for community. Insurers are not only protection providers but
providing creative and broader opportunities for young also as risk managers and advocates to educate and
people to engage in the insurance sector. spreading awareness. Some of the initiatives in addressing
climate change should be adoption of green loyalty
Addressing climate change programs, pay as use priced products, premium discounts
Globally, climate change has inflicted a population-weighted for electric/hybrid vehicles, limiting coverages for carbon
GDP loss of 6.3% in 2022. equivalent to approximately $1.5 emitting industries and increased parametric based
trillion. India, third highest in carbon emissions and amongst underwriting for weather risk.

FORM IV (SEE RULE 8)

1. Place Kolkata
2. Periodicity of Publication Monthly
3. Printer’s Name Satyajug Employees Co-operative Industrial Society Ltd.
(Whether citizen of India?) Yes
(If foreigner, state the country of origin) No
Address 13/1A, Prafulla Sarkar Street, Kolkata - 700 072
4. Publisher’s Name Sashi Prabha Agarwala
(Whether citizen of India?) Yes
(If foreigner, state the country of origin) No
5. Editor’s Name Dr. Rakesh Agarwal
(Whether citizen of India?) Yes
(If foreigner, state the country of origin) No
Address 25/1, Baranashi Ghosh Street, P.S. Girish Park,
Kolkata - 700 007
6. Name and address of individuals who own Sashi Prabha Agarwala
the newspaper and partners or shareholders Director, Sashi Publications Pvt. Ltd.
holding more than one percent of the total capital 25/1, Baranashi Ghosh Street, Kolkata - 700 007

The Insurance Times March 2024 43