Page 8 - The Insurance Times September 2024

Data shows premiums earned by non- in terms of human fatalities and eco- agencies for compensation and re-
life insurers in July stood at Rs nomic losses due to natural catastro- building of houses. The global average
29,032.29 crore, compared to Rs phes every now and then, proposals by for insurance protection is 54 per cent.
26,567.26 crore in the year-ago pe- the insurance industry to bring the
riod. Non-life insurers include general population and properties in the coun- Floods to heatwaves, cities
insurance companies, standalone try under a catastrophe insurance plan
health insurance companies, and has been hanging fire for the last 13 with corporations to get
specialised PSU insurers. years. own disaster management

Further, in April-July of FY24, non-life A host of proposals, including the lat- body
insurers, who operate in multiple busi- est from the Standing Committee on Amidst increasing instances of city-
ness segments, including motor, health Finance of the Lok Sabha in February level disasters like urban flooding or
and marine, reported a 12.15 per cent this year, for an insurance catastrophe heatwaves, the Centre has proposed to
Y-o-Y growth in premiums to Rs 1.01 pool (INCIP) which would have miti- set up an Urban Disaster Management
trillion. Standalone health insurers re- gated the sufferings of the people are Authority ( UDMA) in each of the state
ported a 24.45 per cent Y-o-Y jump in stuck with the governments and the capitals and all other cities that have
premiums to Rs 11,601 crore, and IRDAI with no decision taken about the a municipal corporation.
specialised PSU insurers saw a 13.5 per complex issue of implementing the
cent growth to Rs 1,581.44 crore, the scheme across the country. That too at The UDMAS will form the third tier of
data showed. a time when several landslides, cloud the institutional framework alongside
bursts and floods have hit several states the National Disaster Management
While PSU general insurers clocked like Himachal Pradesh, Kerala and Authority (NDMA) and the State Disas-
7.75 per growth in premiums during
Uttarakhand over the years. ter Management Authority (SDMA). In
this period, private sector insurers re-
Though over 350 people died and fact, the third tier, at the district level,
ported 10.69 per cent growth.
nearly 200 others are still missing in the also exists. But the UDMAS are meant
Among major companies, in July, New major landslide that occurred in to cater to the special needs of larger
India Assurance - the largest non-life Wayanad, Kerala, on July 30, people cities that often comprise of multiple
insurer - reported a 9.31 per cent are unlikely to get benefits as they are districts.
growth in premium to Rs 3,557.56 largely uninsured. Properties worth The provision for UDMAS has been in-
crore. hundreds of crores were destroyed in cluded in the Bill to amend the Disas-
the landslide. Insurance sources said ter Management Act of 2005, that
Natural catastrophes: In- normally less than 10 per cent of the was introduced in Lok Sabha.
surance cover proposal people and property are covered in any The Bill also mandates the setting up
region in India, leaving a huge gap
hangs fire for over a decade without protection. They will have to of State Disaster Response Force

While the country has suffered heavily depend on the government and other (SDRF) in every state. The 2005 Act
only provided for the constitution of the
National Disaster Response Force
InsuranceDekho eyes reinsurance market with li- (NDRF). Several states already have

cence from IRDAI raised their own SDRFS. The bill man-
dates it for everyone. The UDMAS, to
Gurugram-based insurance marketplace InsuranceDekho has received the be headed by the municipal commis-
composite insurance broking licence from the Insurance Regulatory and De-
velopment Authority of India. This will allow the firm to offer reinsurance sioner, will be entrusted with the re-
sponsibility of preparing and imple-
service to its clients beyond insurance broking.
menting city- level disaster manage-
Reinsurance is the system through which some amount of the risk on the ment plans.
books of an insurer gets transferred to another insurance company.
In recent years, a number of cities
"Our goal is to leverage our technological prowess and deep industry ex- have been paralysed because of disas-
pertise to bring enhanced value to our clients and partners. This approach ters, mostly caused by extreme rainfall
not only improves the insurance landscape but also strengthens our market resulting in flooding events. The most
position," InsuranceDekho chief executive Ankit Agrawal said. striking example was Chennai in 2015,

8 September 2024 The Insurance Times