The current pandemic is an important reminder that the non-life insurance industry mustkeep evolving in terms of developing risk mitigation models
Today we stand at the brink of a new world order. The implications of the coronavirusoutbreak for each one of us are profound and will reverberate for a long time to come. Thepandemic has disrupted our lives like never before. Countries across the world are facingmultiple issues even as they struggle to curtail the rising number of infections -financial turmoil unemployment health hazards social unrest etc.
Add to this the geo-political tension between nations that continues to derail globaltrade. India is facing many of these problems and more. With a huge population to sustainthat gets its livelihood primarily from unorganised sectors the country must grapple withits own set of unique challenges.
However it is during moments like these that our individual and collective effortscan be truly momentous. We have been witnessing acts of dedication and perseverance frommany of our frontline personnel. Add to this are the policy actions taken by ourgovernments at the central and state levels as well as proactive measures by regulatoryand governing authorities to ensure we as a nation stand strong amidst these headwinds.
What has emerged from the pandemic is that advancements in the technology andforecasting system. It is very difficult to develop any early warning system or accuratelypredict a specific risk scenario. Further the country must traverse the difficult path oflimiting the spread of the contagion while ensuring that we return to economic growth atthe earliest - to sustain the aspirations and livelihood of millions constituting India'sworking populace.
For the non-life insurance industry the current pandemic is an important reminder thatthe risk scenario is ever-changing. It is also clear that the industry must keep evolvingin terms of developing risk mitigation models. It needs to introduce solutions that are insync with the times. Adding to this the new way of working has brought to the forefrontnew risk situations e.g. cyber-attacks on individuals. This clearly shows theinterconnected nature of our world wherein one phenomenon impacts such diverse aspects ofour life.
Further the developments highlight the need for individuals and corporates to embracerisk mitigation solutions against the ever-changing risk events. For a country like Indiawhere non-life insurance penetration remains at a low 0.97% of GDP compared to the globalaverage of 2.8% the gap to overcome is significant. This is true across segments be ithealth home motor or other segments.
At ICICI Lombard we have been continuously evolving in terms of adopting a robust riskmanagement framework.
We have been at the forefront of introducing innovative and relevant insurancesolutions. Our endeavour especially in the recent times has been to provide our customerswith a host of convenient tools to meet their insurance needs enabling them to be servedwhile adopting social distancing norms for their own safety and well-being. As we takefurther steps in our technology journey we will continue to enhance our capabilities inareas such as Artificial Intelligence Machine Learning etc. and deploy our expertise inintroducing new-age solutions.
Going beyond business we have been directing our efforts in the upliftment of thecommunity. We have deployed our resources through ICICI Foundation towards skilldevelopment. At the same time we have been conducting direct initiatives such as eyescreening camps for underprivileged school children under the aegis of 'Caring Hands'road safety focused programmes namely Ride to Safety and educating children on safedrinking water under Niranjali. Considering the current scenario we have initiated freeCOVID-19 testing for underprivileged sections of the community and provided PPE kits tomedical personnel. We have contributed to the PM CARES Fund in line as well.
As we look ahead we believe that the current pandemic will pass sooner than later.Having said that at ICICI Lombard we will continue to pursue a prudent risk managementframework to maintain sustainable and efficient business operations. Our robust businessfranchise and talent pool will strive towards further strengthening our core proposition.
Lalita D. Gupte