It is imperative for the sector to keep evolving not only in terms of enhancing itsservice capabilities but also by expanding its bouquet of solutions to be able toeffectively address the growing spectrum of risks
The year 2018 symbolises the growing risk environment in which we live today. On onehand we faced risks related to environmental changes and global warming. On the otherhand new-age risks such as cyber events and data frauds emerged as a significant threatnot just to businesses but to consumers as well. Adding to these were risks relating tocross-border trade issues as was demonstrated between the economic powers with theimposition of tariffs and retaliatory measures. As per the estimates the trade war thatemanated between the US and China led the International Monetary Fund (IMF) to revise downglobal growth for 2018 by 0.2% to 3.7%.
On the domestic front India was largely aligned to the global scenario as far as therisk landscape is concerned. The country experienced floods and earthquakes throughout theyear. In fact as per estimates Kerala floods displaced around 1.5 million people themost compared to any other disaster in the world in 2018. On the emerging risks front aswell India ranked high. Between 2015 and 2017 our country was the target of 17% cyberattacks second only to the US.
For the non-life insurance industry this clearly indicates that the scale and natureof risks will keep increasing and expanding in the future. It is imperative for the sectorto keep evolving not only in terms of enhancing its service capabilities but also byexpanding its bouquet of solutions to be able to effectively address the growing spectrumof risks.
At ICICI Lombard we continue to transform ourselves to cater to this changing riskenvironment. Our approach has been to offer better value as a risk manager instead oflimiting ourselves to risk financing. We are helping our clients and customers prepare forrisk incidents through a gamut of innovative products and services. At the same time wehave been harnessing technology to empower our customers to manage and address risks moreeffectively. Our focus during the last few years has been on using the Internet of Things(IoTs) technology and advanced analytics to mitigate logistics property andhealth-related risks.
As a responsible corporate citizen we have been ensuring that we play a contributingrole in the development of the community as well. During FY2019 we continued to invest inthis cause by participating in the skill development
Our approach has been to offer better value as a risk manager instead of limitingourselves to risk financing.
initiatives of the ICICI Foundation for inclusive growth. At the same time we expandedthe scope of our direct CSR initiatives namely Ride to Safety' aimed at roadsafety for children and Caring Hands' an employee volunteering initiativefocussing on eye care for children. This year our endeavour to increase the awareness forthese social causes led us to attempt a Guinness World Record. Our unique effort whilesetting a new record enabled us to multiply the reach and impact of our CSR programmes.
As we look forward in our journey we are confident of the long-term prospects of theindustry. Despite having grown at a CAGR of approximately 17.0% for the last 18 yearsthere is ample headroom for further growth owing to the favourable demographic dividendand lower penetration of non-life insurance at around 0.93% of GDP against a worldaverage of 2.80%.
We have consciously strived to build an institution that rests on a robust platform andbenefits from a flexible and pragmatic management approach to embrace new practices insync with the rapidly changing times. Our thrust remains on investing in a talent poolacross the leadership team and the other levels of management and business operations. Itis this resource base that enables us to continue to lead the industry on many fronts andaddress our customer requirements effectively.
We thank our shareholders for reposing their trust in us and look forward tocontinually adding value in the years to come.
Lalita D. Gupte