Impact of Lockdown on General Insurance Industry – Challenges and Opportunities
Explore the effects of the lockdown on the general insurance sector, including key insights on business response, gross premium fluctuations, emerging trends, and future opportunities. Discover how the industry is adapting to changing consumer behaviors and digital transformation, along with potential risks and competitive implications. Gain valuable insights from industry experts on navigating through the current challenges and positioning for success in a post-pandemic world.
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Presentation Transcript
Webinar Name: Webinar on General Insurance Venue: Webex Date: 11th June 2020 GI Industry: Lockdown and way forward Speakers: Sanjay Datta: Chief - Underwriting, Claims & Reinsurance - ICICI Lombard General Insurance Milind V Kolhe: Chief Underwriting and Reinsurance Officer - Bharti AXA General Insurance
Welcome Instructions Mute Q&A IAI support CPD Recording Feedback www.actuariesindia.org
Learning, Challenges and Business Response Leanings Business continuity plans, well tested and were largely successful Innovation and technical advancements People and businesses are forced to adapt Agility in business is an important factor Fewer cars on the road does not mean lower risks Challenges Limited physical interaction with partners and customers impacting new business Post-Covid-19, more private cars, more new drivers, higher risks Automobiles sales in April 20 were Zero. May 20, de-growth of 85% Domestic travel restrictions will result in lower conversions of new accounts Business Response Usage of technology to service the customers. Surveyors appointed for virtual survey through live videos of site or affected property/vehicle. Inability to conduct risk assessment for motor, health and commercial lines. However, alternate methods have been deployed. Regulatory relaxation to customers and industry. www.actuariesindia.org
Gross Premium: April 20 vs April 19 Overall 11% drop in gross premium Significant drop in Motor premium (51%), due to de-growth in new vehicle premium 21% positive growth in Commercial lines, led by property insurance Fire: growth of 41% De-growth in Marine (-18%) and Engineering business (-5%) Marginal growth in Health (4%). Travel insurance down by more than 82% Apr 20 Apr 19 In FY 19-20, the insurance sector witnessed a growth of 13% for Indian non-life industry www.actuariesindia.org
Trends and opportunities Changing consumer and business risk, needs, behaviors, and expectations Response by the industry by redefining and accelerating digital transformation New products and services Redefine risk management and underwriting Competitive implications Work from home as a new normal SME segment will be heavily impacted during the slowdown as small companies struggle to sustain their activity or even go out of business. Decline on the international transfers and reduction in exports will impact Marine business Lower economic growth and liquidity crunch in the market may result in delay in start of new and completion of existing projects Opportunity to expand on digital front; higher digital sales Increased Cyber risk Demand for new product Pricing pressure on Marine and Group Health business There will be additional pressure on capital as growth levels will affect absorption of overhead expenses Impairment of investments and portfolio correction www.actuariesindia.org
Lets stay focused We will go through the challenge together and successfully come out of it!! STAY SAFE! Thanks www.actuariesindia.org
