Insurance Market Is At An Exciting Point And Is Yet To See The Best: Prabodh Thakker, Chairman at Global Insurance Brokers
In an interview with BW Businessworld, Prabodh Thakker, Chairman at Global Insurance Brokers, talks about changing the landscape of the insurance industry in India and abroad
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Tell us a bit about GLOBAL’s business model and distribution model. How have things changed post the dissociation from Aon?
GLOBAL has evolved and come a long way with great opportunities and extraordinary team support. We have now moved big time into our in-house process with 500 core broking team, re-strengthening the governance standards and taking a big leap in IT technology. An in-house developed technology tool called GPS (Global Policy Service) is a complete change in the landscaping the way services will be done. We have increased the Global branch footprint to 15 which acts essentially as the point of sale and servicing aided by the product specialties.
Do you cater to individuals too, or is yours a purely B2B setup?
We primarily serve B2B, but without compromising and losing the focus on our corporate clients and with the help of advanced technology, we are now expanding into B2C space. The products for B2C are identified strategically and keeping in mind the need for end-consumers. We are up and running with motor insurance product and will soon be on term life, health and much more products which individual can procure online.
How is the insurance landscape changing in India and abroad? What are the factors driving the change?
India is witnessing headline development with the government forcing a huge insurance penetration through awareness about risk and prominence given to medical health. The Modi healthcare and agriculture are a game changer which is pumping billions of dollars of premium to GIC and the local insurers.
Globally, we see the trend that underwriters are now moving out of constantly giving the loss-making portfolio and the client. Gone are the days where people used to do business in hopes through passion and relationship. The balance sheet is now a talking point. Changing risk dynamics and rising need of being adequately insured has led to a huge scope for Indian insurance players across the segments such as a direct insurer, reinsurer or distributor.
What kind of demand GLOBAL is witnessing for products from corporates across the industry?
At the moment cyber and liability insurance is a big buzz. Cyber insurance is expanding beyond the BFSI sector and we see demand rising from other technology driven segments. Most of the corporates and board members are revisiting their insurance policy to ensure protection from unexpected risk situations. Directors want to buy higher limit, they want to be doubly sure about the quality of the contract. This is a positive change where we are seeing board and companies are not price-centric and now the quality is coming to play. There is another good change and development in the government sector. The government now wants to buy insurance but instead of negotiating with insurers they seek professional advice from brokers that creates high impact and value for the money spent in premium.