 "Irdai to make listing a must for large insurers")
An increase in global political uncertainty and turmoil has led to a rise in political risk insurance covers being taken by Indian companies.
These policies are taken by companies that have investments in overseas markets and exposure to such risks.
Ketan Kale, Practice Leader-Credit, Political and Security Risk, JLT Independent Insurers Brokers, said in markets where there was political instability or threats, the premiums were higher by 100 per cent to 600 per cent. JLT Independent recently offered such a policy to a pharma client for Yemen. The cover of $10 million was for political violence.
Political risks include expropriation, currency inconvertibility, political violence, sovereign defaults and other specific perils. Under security risks, kidnap & ransom, apart from political violence including terrorism, war/civil war, riots, property damage and business interruption, are included.
Sanjay Radhakrishnan, chief executive, JLT Independent, said several Indian multinational companies were now taking such covers, with a rise in terrorism and related risks in several parts of the globe. There was a rise in awareness among manufacturing as well as engineering, procurement and construction companies about such global risks.
Threats from Islamic State militants, the Syrian conflict, violence by Boko Haram and the migrant crisis in Europe were some of the recent risks that have companies worried.
Kale said the market was maturing after the financial crisis and there were over 50 specialist (re)insurers in this space. However, he said, the market was soft as more capital was available in the market.
JLT targets Rs 20-crore revenue in Apr-Mar
JLT Independent, a global specialist insurance broker that began operations in India in December 2014, is targeting Rs 400 crore premium in the country in April to March. Further, it is also targeting a revenue of Rs 20 crore for this period. Sanjay Radhakrishnan, CEO of JLT Independent, said they already have 186 companies as clients.
JLT Independent is a 74-26 joint venture of JLT and Sunidhi Group. “We may look at increasing stake to 49 per cent from 26 per cent,” said Radhakrishnan. He also added that they would start posting profits in two-three years.
