Lloyd's remains bullish on Indian insurance market
Pointing to the $27bn insurance gap in India Lloyd’s chairman Bruce Carnegie-Brown said Lloyd’s will look to introduce specialist (re)insurance products into India, which will complement the local market and also plug some of the product gaps.
Bruce Carnegie-Brown, chairman, Lloyd’s of London,the largest specialised re/insurance marketplace in the world, has said India is very important to Lloyd’s business plans,as it represents a huge opportunity for growth.
The country is now the fastest growing global economy and is forecast to become one the top three economic powers in the world over the next decade, backed by the Indian Government’s target of creating a $5tn economy by 2024, he said in Mumbai.
“The future of the sector in India is surely very promising, At Lloyd’s we see a significant opportunity in the Indian insurance and reinsurance market'' he said adding that the economic growth will need insurance and reinsurance to support it,'' added Lloyd's chief.
The moves to allow 100 per cent foreign direct investment (FDi) in the Indian insurance intermediaries sector is a very positive step and will increase foreign investment in the insurance sector, said Bruce Carnegie-Brown
``We hope that the Government will consider introducing a 100% FDI in insurance companies, too,'' he said .
Lloyd’s is continuing to see an increase in its Indian business in 2018-19 and had written $275m of Indian reinsurance business during the year.
``We will focus both topline and bottmline in our Indian business,'' he said
Pointing to the $27bn insurance gap in India he said Lloyd’s will look to introduce specialist (re)insurance products into India, which will complement the local market and also plug some of the product gaps.
``We are very keen that more syndicates from Lloyd's platform should operate from the Indian market.It will happen in course of time,'' he said.
Currently, only one Lloyd's Syndicate Markel is working out of Lloyd's Indian platform
The Indian general insurance industry has demonstrated an impressive growth of 12-1 per cent in gross written premium last year, he said.
Carnegie-Brown said pointed the three main impediments-confidence, relevance and cost- to the growth of insurance industry globally. In terms of addressing relevance, he said that the insurnace industry should be using data and data analytics to make products that are more closely related to customers’ needs and more relevant for them.Products are also too expensive and this is because acquisition costs and administration costs are too high – and the industry needs to modernise its systems and use technology like drones and blockchain to improve performance.
“It is imperative to have an innovative culture within the organisation,” he said. “We must make it easier for new capital to enter the market.”
Carnegie-Brown highlightied the emerging risks which he enumerated as climate change, data and data analytics – and looked at what part the industry should play in the transition to a low-carbon world. “It will be a hard transition. Insurers who embrace innovation will be the best placed to thrive,” Carnegie-Brown said. “Risk will continue to be commoditised. The best way to predict the future is to create it.”
Meanwhile, Mumbai based Global Insurance Brokers have been accrediated as one of the brokers of Lloyd's, which is completely broker driven in mobilising its day-to-day business.There are only two Indian brokers-JB Boda and KM Dastur- who are currently accrediated to Lloyd'sof London.
The certificate of accreditation was handed over to Global Insurance Brokers Chairman Prabodh Thakker by Bruce,
As of now, Lloyd's participation in the Indian market is at 275 million dollars. It may touch $400 million in two years' time, according to a statement issued by Global Insurance Brokers.
"Our clients will have now in the revised and rising insurance market. Access to many insurers in the market is vital in terms of both product and pricing," said Thakker.
Global Insurance Brokers is a composite broker licensed by the Insurance Regulatory and Development Authority of India (IRDAI). It empowers businesses and communities through responsible, judicious and futuristic risk solutions.