Which factors fuelled the growth of group business during the pandemic?

The risk posed by the Covid-19 pandemic is unprecedented. It has surpassed all major risk events that the industry has seen in the past. The crisis has brought the need and importance of buying group health insurance plans like never before.

The pandemic has affected employees’ mental and physical health across all age groups, hampering productivity across industry verticals. Corporations needed to ensure employees’ psychological and physical well-being, and buying group health insurance helped them in this endeavour for business continuity.

Retention of employees is another factor that has led to increased buying of group health plans. Companies have realised that they can least afford to part ways with employees during these times as fresh hiring is a challenge.

The government was also proactive in coming out with new regulations for the employees’ well-being, which encouraged manufacturing companies to take care of their blue-collared workers before resuming operations over and above the minimum regulatory insurance Employee State Insurance scheme.

The industry requirements have changed drastically. How ICICI Lombard plans to cater to them, pertaining to group health business?

Health insurance, which is primarily considered an avoidable expense in our country, has become the default requirement of HR managers. Our survey found health insurance purchase rise about 50 per cent during the pandemic.

I also see a shift in buying and renewing health insurance plans. What was earlier done through human intervention through an agent or negotiation happening face to face, has become a digital process. As we know, many insurers and corporates have adopted a ‘work from home’ policy during these Covid times. For us, the virtual world movement was smooth and without any disruption due to our increased technology adoption even before the pandemic struck. Now, it is increasingly becoming routine for most corporates as well as insurers.

Also, we see a marked increase in the demand for cyber insurance as companies have been a victim of cyberattacks due to a lack of adequate cybersecurity measures. According to the Computer Emergency Response Team (CERT-In) data, cyberattacks amid the Covid-19 pandemic rose almost 300 per cent as against last year.

The rise in cyber breaches, increased awareness, third-party requirement from customers and partners, along with new regulations in Europe resulting in fines as high as 10 million to 20 million euros (or 2 per cent to 4 per cent of annual global turnover) for compliance breach is propelling the need for cyber insurance.

How does ICICI Lombard plan to offer custom-built policies to its group customers?

Our role as an insurer has changed over the last decade from being a traditional risk transferor to a risk solutions partner. Insurers have traditionally indemnified corporates for conventional risks such as property damage, business interruption, and transportation risks. New age risks like data protection, cybersecurity, loss of market, and reputation are gaining increased importance in the modern era. Insurers and corporates need to brainstorm together to identify possible risk scenarios before placing mitigation techniques.

At ICICI Lombard, we are resorting to increased use of technology with our risk solution offerings to improve our customers’ claims experience both in terms of transparency and quick turnaround. Also, documentation submission has increasingly moved to the online mode for a faster turnaround and hassle-free experience for our customers.

Tracking of consignments by use of GPS techniques is helping corporates minimise supply chain disruption. Geo-fencing procedures that alert us in the deviation of routes by vendors or suppliers are immediately alerted, thereby initiating quick action with the necessary authorities.

We are also providing value-added services, optimising the cost of usage of construction machines. Facilitated by measuring direct fuel consumption against the machine’s actual use, this technology allows our clients to minimise losses and undertake timely maintenance of their equipment.

In healthcare, we launched the ILTakeCare app a couple of years ago. It gives customers the access to all their health records and policy-related information in one place. Customers can also avail themselves of 24X7 teleconsultation with qualified doctors anytime and also submit claim documents online.

Why are manufacturers taking more cybersecurity covers? What are the climate change risks after the pandemic?

The pandemic is yet to be over but even in these times we see a sharp spike in cyberattacks because of increased use of e-commerce and digital tools for communication. Unlike in the past, hackers’ target is no longer the data-rich companies, mainly in the IT, ITeS and financial services sector, and the manufacturing industry using the internet to control their operations and machinery. According to an IBM report, India ranked second in the number of cyberattacks in the Asia-Pacific region in 2020. Along with the professional services sector, the manufacturing segment is targeted the most after the finance and insurance sectors, thereby increasing sensitisation among manufacturing companies.