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CEO’s message

The changing face of political risk

Business interruption insurance:

A claims perspective

By invitation: Political risk: An overview

Other news and insights

Marsh events

CONTENT

NEWS&VIEWS Q3 2016

Dear all,

At a time of profound transformation of the insurance industry, we are happy to introduce the third edition of our newsletter, News&Views.

Similar to our previous newsletters, we have tried to analyze issues that we, all the stakeholders, will need to debate and introspect about as the insurance market rapidly changes.

Change is inevitable in any industry, especially in this time of digitization and social media. For us in the insurance industry, any change that helps the policy holder and buyer is important, and will influence efforts to improve effective financial intermediation in our economy.

The policy holder and buyer have become the pivot around which the insurance industry revolves, and rightly so. In this edition, we have tried to study the growing trend in business interruption losses from a claims perspective.

A positive claims outcome is vital for a vibrant, robust insurance industry. Delay, deduction, and denial of claims, which unfortunately happens often, affect all of us in the industry. They are one of the reasons why the insurance industry is maligned.

In an increasingly polarized world, insurance and the financial security it offers have become even more important. Random acts of violence together with

continued political unrest in the Middle East and parts of Africa has destroyed lives and property as well as affected profits of diverse industries.

To provide financial certainty, political risk insurance can help pool risks and spread it over broad swathes of population.

As we come to the last few months of the year, let us reflect on how we—insurers, financial intermediaries, and clients—can help mitigate emerging risks, and the role that the insurance industry can play to strengthen economic growth.

To pave the way for greater insurance penetration, the role of insurance in providing financial certainty has to be reemphasized keeping the policy holder and buyer in mind.

We hope you find this newsletter informative. Please do let us know your views and share your feedback. It is our aim to make this newsletter a forum for discussion of issues of interest to the insurance industry.

Warm regards,

News&ViewsMessage from the CEO

INDIA

SANJAY KEDIA Country Head and CEO Marsh India

7,750 conventional terrorism acts in 2015 - Verisk Maplecroft

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THE CHANGING FACE OF POLITICAL RISK

The world is changing. Paris once the doyen of cities associated with romance and elegance has suffered not one but three terrorist events in rapid succession in a period of three years.

Then there were two recent terrorism events within days of each other, one in Dhaka, Bangladesh, on July 4, 2016, and the other in Nice, France, on July 15, 2016.

According to Verisk Maplecroft, there were 7,750 conventional terrorism acts in 2015. Such acts increase uncertainty and influence government policies heightening political risk concerns for business organizations.

INCREASING INCIDENCE OF ADVERSE GEOPOLITICAL EVENTS

Terrorism and political risk events are occurring in countries that were previously thought to be insulated from such acts. An internal political event such as Brexit, once considered unthinkable, has occurred. Unfortunately, these events have occurred at a time of declining commodity prices and a slowdown of China’s economy. Brazil, Russia, and South Africa are also facing economic distress.

As China recalibrates its economy, the country’s gargantuan demand for natural resources and commodities has declined from the rate of the past few years. Countries that primarily depend on the export of natural resources, especially oil, have been adversely affected in the past few months. Brazil and Venezuela, for instance, have experienced signs of a recession together with social and political unrest as the prosperity brought by high prices of oil and commodities is affected.

We are at a time in which unexpected geopolitical and economic events have morphed and fused to heighten risks.

Random acts of violence in different parts of the world combined with continued unrest in the Middle East, parts of Africa, as well as the slowing of China’s economy may herald a long period of social unrest that will affect organizations in all countries given the interlinking of modern business organizations.

POLITICAL RISK AND INDIAN COMPANIES

As Indian companies grow ambitious and seek access to technology, resources, and markets, they are increasingly building plants or buying companies overseas. Also, unlike the past, it is not just large Indian multinationals that have expanded their operations and organizations overseas. There is a new breed of company called the micro-multinationals, which are mid-sized firms that are exploring new markets earlier in their business cycles.

Software and IT services companies in India are exploring overseas markets before growing large in the domestic market. They tend to expand overseas early on in their lifecycle.

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“Most companies face risks in their bid to expand overseas, especially given the current uncertain geopolitical environment.”

However, the overseas markets are not just about opportunities. Most companies face risks in their bid to expand overseas, especially given the current uncertain geopolitical environment. There is a growing awareness of political risk among most companies in India that have or are planning offices, plants, or acquisitions. In the past few years, there has been an uptick in demand for political risk solutions from Indian multinational companies, especially those that operate in Africa and the Middle East.

WHAT MOTIVATES A COMPANY TO SEEK POLITICAL RISK SOLUTIONS?

Many insurance industry experts believe that companies buy political risk insurance (PRI) as a reaction to specific country or regional event. According to this school of thought, PRI purchase is a reactive action, rather than a proactive response.

However, another school of thought attributes other reasons for the purchase of PRI by companies.

The most common point of view is that buying PRI is purely a risk management function—that a company’s risk management philosophy drives the decision.

The other point of view in India is that banks drive companies to buy PRI. Many banks will not provide funds for projects that do not have PRI, either because of their own internal risk management concerns or because they have reached their lending limits for a given country.

Companies buy PRI when they are concerned about the political risks associated with their transactions and businesses. Political risks are varied and many. They could range from a breakdown in production due to a terror strike in the area surrounding a manufacturing plant to an increase in nationalist tendencies in a host country fostered by different factors, including rising unemployment in a period of slowing economic growth.

According to a media report, Business Standard, published in November 2015, the rise in global political uncertainty and turmoil increased the cost of political risk insurance by 100-600% for Indian companies, particularly those with investments overseas.

Manufacturing, engineering, procurement, and construction companies are becoming more aware of such global risks, especially given continual threats from Islamic State militants, the Syrian conflict, violence by Boko Haram, and the migrant crisis in Europe.

WHAT THE INDUSTRY SAYS:

“The decision on whether to buy political risk insurance will depend on the company’s sensitivity to losses in its overall exposure to such risks. A construction contractor, for instance, is heavily dependent upon the cash flow effects of an abrupt contract termination, even if the prospect of an eventual recovery from the owner is strong.

One of the advantages of political risk insurance is balance sheet protection – the policy will indemnify against the loss – of accumulated and retained profits and reserves, principal and interest on loans made to the foreign enterprise, and net book value or replacement value of foreign enterprise assets or capital equipment owned by the sponsor and lent to the foreign enterprise.”

ANIL AGRAWAL Finance Controller TATA Housing Development Company Limited

The views expressed are the author’s own.

According to a media report, Business Standard, published in November 2015, the rise in global political uncertainty and turmoil increased the cost of political risk insurance by 100-600% for Indian companies, particularly those with investments overseasNEWS&VIEWS Q3 2016

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WHAT RISKS CAN POLITICAL RISK INSURANCE MITIGATE AND TRANSFER?

In general, political risks insurance solutions can help provide cover for:

• Seizure of fixed or mobile assets owned or leased; Forced sales or abandonment of overseas investments.

• Physical damage and loss of revenue due to political violence.

• Substantive impairment of contract rights, such as prohibitive tax increases that target foreign-owned businesses.

• Default on payment obligations or other frustration of contracts due to political risk.

• Currency restrictions that block the transfer of funds.

THE CHALLENGES FACING THE POLITICAL RISK INSURANCE SEGMENT OF THE INSURANCE INDUSTRY

Actuarial modeling of loss is almost impossible for most categories of PRI due to the occurrence pattern of the underlying risks, which typically fall into the “low frequency / high severity” classification. This category of risk is quite different than for instance, auto casualty, which occurs each day (and even every minute) with relatively low value losses for each incident. There are reliable statistical data for auto casualty, which can be analyzed and patterns identified, from which to infer expected losses that are then used by auto insurance underwriters for underwriting and pricing decisions.

Political risk insurance has an infrequent loss pattern. In addition, as there is no single agreed universal definition of what political risk means, it is almost impossible to collect uniform data for this type of insurance. Most PRI policies have confidentiality provisions and disclosure of coverage details to third parties is minimal.

WHAT THE INDUSTRY SAYS:

“Many Indian companies have significant presence in certain African, Middle Eastern and Asian countries which they need to protect against uncertainties such as political violence, cancellation of contracts, change in government policy and military coups. Though the dip in oil prices has generally benefitted the Indian economy, it has adversely impacted Indian exporters having receivables from countries largely dependent on revenues from oil exports. Recent news reports on heightened unemployment of Indian workers in one of the largest oil producing countries due to cancellation of projects, further underscores the need for Political Risk Insurance.”

GAUTAM MURKUNDE Head of Trade Credit and Political Risk Tata AIG General Insurance Co.

The views expressed are the author’s own.

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TRENDS IN THE MARKET

The World Economic Forum’s World Risks Report 2016, in which Marsh Inc. is a strategic partner ranks state collapse and crisis as the second-most important risk for the next 18 months.

Business organizations too are becoming more concerned about political risks.

In a new McKinsey survey on globalization, Geostrategic risks on the rise, the share of executives identifying geopolitical instability as a very important business trend has doubled in two years. Eighty-four percent of executives (and the largest share in the survey’s history) said geopolitical instability will have an important or very important impact on global business in 2015, up from 61 percent in 2013.

“Eighty-four percent of executives (and the largest share in the survey’s history) said geopolitical instability will have an important or very important impact on global business in 2015, up from 61 percent in 2013.” WHAT THE INDUSTRY SAYS:

“At thyssenkrupp, we give utmost importance to proper assessment of all project risks and take adequate cover where suitable insurances are available. Given the fluid political and regulatory environment in some parts of the world and risks emanating therefrom, we take appropriate credit and political risk insurance to provide for such risks. We believe that in the present environment, it is well worth the investment.”

NEERAJ KUMAR Senior General Manager and Head- Legal & Insurance thyssenkrupp Industrial Solutions (India) Private Limited (Formerly Uhde India Private Limited)

The views expressed are the author’s own.

Reference:

• World Risks Report 2016, World Economic Forum http://www3.weforum.org/docs/GRR/WEF_GRR16.pdf.

• Kimko F., Global Realities, A. M. Best, available at http://www.ambest.com/review/.

• Political Risk Outlook 2016, Verisk Maplecroft, available at https://maplecroft.com/portfolio/new-analysis/2016/01/08/political-risk-outlook-2016/.

• The rise of micro-multinationals, HSBC Commercial Banking.

• Geostrategic risks on the rise, McKinsey & Company, available at http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/geostrategic-risks-on-the-rise.

• Global Turmoil Leads to Rise in Political Risk Insurance Covers, Business Standard, http://www.business-standard.com/article/finance/global-turmoil-leads-to-rise-in-political-risk-insurance-covers-115112500789_1.html.

However, less than one-third of executives say an understanding of these factors is extremely or very well integrated into overall strategy—and only 13 percent say their companies have taken active steps to address the risks from either geopolitical or domestic political instability.

The PRI market has seen an upswing in premium and reduction in lines from insurers in the past year, due to huge claims being reported from across the world.

In the future, political risk issues are likely to gain more prominence in the economy.

AKSHAY BHARDWAJ

Vice PresidentPolitical Risk PracticeAkshay. Bhardwaj@marsh.com

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BUSINESS INTERRUPTION INSURANCE: A CLAIMS PERSPECTIVEAt the heart of an insurance transaction lies claim, the assurance that we, the policy holders, are financially covered against unforeseen risks. A seamless claim process is important for all of us.

For a business organization to stabilize and resume normal operations recoveries under insurance claims, which is key component to risk mitigation strategies, are vital. The claim process can, however, be lengthy and taxing, especially due to complex terms and conditions, and ambiguous policy wordings. Many people and organizations face outcomes that are different from what they thought they had signed for.

BUSINESS INTERRUPTION AND CLAIMS

The claims process is more complex when business organizations face business interruption (BI) losses, which are different from direct damage to property and inventory. Many events, in addition to causing direct damage, also cause BI losses.

The reason why BI claims are often complex is the unique internal and external business environment of different manufacturing, processing, and service business organization. Such specificity makes each BI loss calculation subjective to the event and the affected organization.

To use the words of Arnold Palmer, the reputed golfer, a BI loss or a loss of profit (LOP) is “deceptively simple and endlessly complicated”. Although, Palmer used these words to describe golf, they also illustrate BI claims.

GLOBAL ECONOMY AND BUSINESS INTERRUPTION

Despite the current global environment, where many countries have introduced protectionist policies to safeguard their domestic business organizations, the latter’s link with global supply chains, IT service providers, and vendors continue to grow more than ever before in history. Entrepreneurs from emerging economies are also expanding their footprint beyond national boundaries.

As a result, organizations are vulnerable to risks in their home countries and in those where they have expanded to. A disruption in one region or country causes a ripple effect that engulfs multiple companies scattered in different areas of the world. The Thai floods of 2013, the Tianjin port explosion of 2015, and the Chennai floods of November-December 2015 amply show that.

WHAT THE INDUSTRY SAYS:

“It is nice to learn that business enterprises are now appreciating importance of business interruption insurance. There were countable number of policy three decades before but now with advancement of policy structure like IAR policy and others, there are many risks now covered for business interruption.”

YOGESH GANDHI Managing Director Cunningham Lindsey International Insurance Surveyors And Loss Assessors Pvt. Ltd

The views expressed are the author’s own.

For a business organization to stabilize and resume normal operations recoveries under insurance claims, which is key

component to risk mitigation strategies, are vital.

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Other long-term trends, such as digitization and outbreak of pandemics, such as zika and dengue, in large and densely populated urban areas, are emerging risks that have added new dimension to insurable BI risks.

GLOBAL BUSINESS INTERRUPTION CLAIMS 2010-2014

A study of global BI claims shows interesting trends. Fire and explosion accounted for 59% of 1,807 BI claims globally between 2010 and 2014, according to a report by Allianz Global Corporate & Specialty. The report also said that the average large BI property insurance claim is not more than Euro 2 million, about 36% higher than the corresponding direct property damage of Euro 1.63 million.

However, in Asia, including India, the pattern of BI claims is different. Floods and storms account for the largest proportion of BI claims. In an indication of the growing vulnerability of this region to natural calamities and the impact of climate change, BI claims from NatCat events have increased in value in Asia and risk events triggered by climate changes have increasingly become common.

The growth in outsourcing of manufacturing and IT services to Asia together with increasing concentration of economic activity in areas vulnerable to disruptive natural calamities have also raised the possibility of large BI losses and claims.

BUSINESS INTERRUPTION CLAIMS IN INDIA

As reliable industrywide data on BI claims is not available, a meaningful analysis of this segment of claim for India it is difficult to analyze these claims in India. However, given Marsh India and Marsh Inc.’s in fairly large number of BI claims under the insurance policies of clients, we can discern the following trends.

• There is an increase in the number of BI claims reported in India, which is probably due to a growing recognition of BI risk and the concomitant purchase of BI cover. Soft premium rates and increase in all risk forms of property damage cover are the likely catalysts.

• The rise in the number of natural catastrophes in the recent past—the deluge in Uttarakhand and parts of North India in June 2013, floods in Jammu & Kashmir in September 2014, Hudhud cyclone that affected the Andhra Pradesh coast near

Visakhapatnam in October 2014, floods in south India, and the unprecedented floods of Chennai in November and December 2015—together with the concentration of insured property at the affected geographies have increased the number of reported claims. The number of inquiries on coverages, especially non-damage business interruption (NDBI) risks, also rose. The NDBI risks were not perceived as an insurance coverage requirement before these NatCat events.

• The difficulty in calculating the likely value at risk and indemnity period of BI insurance policy for buyers, may reduce claim outcomes leading to frustration among policy buyers.

• The subtle variation in insurable gross profit and accounting gross profit is also a point of confusion and factorization of trends and special circumstance in loss calculation often lead to a debate in the absence of objective data coupled with varying interpretation of policy wordings.

“To use the words of Arnold Palmer, the reputed golfer, a BI loss or a loss of profit (LOP) is “deceptively simple and endlessly complicated.”

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BUSINESS INTERRUPTION LOSSES IN INDIA AFTER NATCAT EVENTS

The process of BI claims was intensely debated, after the NatCat events that India experienced in the past three years. Most of these events, killed many people, destroyed homes and businesses, and also led to large BI interruption losses and claims.

For instance, many automobile manufacturers, including subsidiaries of multinational companies, were forced to stop operations because of the Chennai floods. The Chennai area is a major automobile hub and the combined production of cars in the region is about 4658 vehicles and engines a day.

Industries, other than automobile, were also affected, including IT, cement, and refining.

The third quarter of the fiscal year is considered a weak period for the Indian IT sector, given the holiday season. However, in FY15-16, there was the additional impact of the Chennai floods, which led to flat or negative revenue growth coupled with a decline in operating profit margin of many companies.

References:

• Allianz Global Corporate & Specialty,” Global Claims Review 2015: Business Interruption in Focus”, http://www.agcs.allianz.com/assets/PDFs/Reports/AGCS-Global-Claims-Review-2015.pdf.

• Ramalingam, A, “ Chennai floods: Rs. 200 crore insurance claims so far for damaged aircraft, goods”, The Economic Times, http://timesofindia.indiatimes.com/business/india-business/Chennai-floods-Rs-200-crore-insurance-claims-so-far-for-damaged-aircraft-goods/articleshow/50142486.cms.

• Clyde & Company, “ The Chennai floods”, http://clydeco.com/insight/article/the-chennai-floods-the-insurance-impact.

• Sinha, S, “Chennai floods: Insurance companies likely to face claims worth Rs 1,000 crore”, http://articles.economictimes.indiatimes.com/2015-12-04/news/68771422_1_general-insurance-corporation-insurance-company-executive-claims.

• 33rd Annual Report 2014-15, Vizag Steel.

• The Financial Express, “IT companies like TCS, Wipro, HCL Tech to see weak third quarter on Chennai floods”, http://www.financialexpress.com/markets/indian-markets/it-sector-preview-need-to-look-beyond-this-quarter/191706/.

After cyclone Hudhud struck Andhra Pradesh in 2014, a large steel plant reported that the storm had not only caused property damage, but also led to BI losses. The organization’s estimate of BI claims was Rs.241.77 crore.

As the insurance industry in India transforms and customer-centricity becomes the core element for all insurance transactions, the claims process, especially for complex BI losses, will become even more important in the future.

BI policies are providing more complex coverages, which is required given the geographical spread of businesses. Such policies are one of significant premium generators in the insurance market and it is imperative for all the stake holders to work together to make the claims experience smooth for policy buyers.

THE CLAIMS PRACTICE TEAM

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BY INVITATION POLITICAL RISK: AN OVERVIEW2015 POLITICAL RISK SITUATION AROUND THE WORLD HAS DETERIORATED AND 2016 HAS NOT IMPROVED.

Much of the global political risk has been shaped by firstly, conflicts in Africa and dispute in the South China sea, persistent low commodity prices put a lot of pressure on net oil exporting countries but also on metal producers (Iron, Nickel, Aluminium), emerging countries roll of reform policies take more time than planned to be put on place damping investors’ confidence and expectation. The recent Brexit showed that EU is not as united as we thought. China is still behind the market expectations and of course the US presidential election on 8 November, 2016 might reduce investment sentiment amid the political uncertainty.

In this context, companies have an increasing appetite in covering their business for political risks.

We have seen more demands for the Non-Transfer and Non-Payment of Pubic Buyers Risks especially in net exporter countries impacted by the low commodities prices. This has resulted in public debt deterioration putting pressure on their fiscal budget and more uncertainty in their capacity to honour obligations.

But also a bigger interest from companies to cover their foreign investments (assets, equity..) across all type of industries. The default of sovereign/quasi-sovereign entities in emerging countries, Gulf and Latin America countries is still a concern and a big part of the requests. A lot of enquiries are still associated to the big infrastructures projects, with India and Indonesia being the top 2 countries in Asia. A few delays/default like in Mongolia showed the importance of the insurance product.

The outlook for the second half of 2016 is not very different but hopefully the commodities exporter countries will manage their budget based on a lower price. Small recovery of EU and the slow but steady growth of USA should push the rest of the world upward. China will have to demonstrate that the ‘ new normal’ does not affect the country and the rest of the zone negatively.

“A lot of enquiries are still associated to the big infrastructures projects, with India and Indonesia being the top 2 countries in Asia.”

JEAN-CHRISTOPHE CAVANNA

Commercial Manager Structured Credit & Political RiskCOFACE Singapore The views expressed are the author’s own.

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OTHER NEWS AND INSIGHTS

INSURERS FIREMARINE

TOTALMARINE CARGO

MARINE HULL

ENGGMOTOR TOTAL

MOTOR OD

MOTOR TP HEALTH AVIATION LIABILITY P.A.OTHER MISC.

GRAND TOTAL

GROWTH MARKET ACCRETION

PRIVATE SECTORS 2090.30 644.47 592.57 51.90 372.92 10302.54 5685.71 4616.83 2632.13 40.72 589.03 747.83 2404.44 19824.38 24.76% 43.74 3934.19

PUBLIC SECTORS 2372.31 773.07 443.55 329.52 601.80 9011.99 3455.65 5556.34 7689.42 162.11 373.92 358.72 1068.41 22438.30 12.84% 49.51 2554.03

STAND ALONE HEALTH

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1707.13 0.00 0.00 84.38 0.00 1791.51 31.91% 3.95% 433.36

SPECIALIZED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1266.96 1266.96 -29.75% 2.80% -536.63

INDUSTRY TOTAL 4462.61 1417.54 1036.12 381.42 974.72 19314.53 9141.36 10173.17 12028.68 202.83 962.95 1217.48 4739.81 45321.15 16.40% 100.00% 6384.95

GROSS DIRECT PREMIUM INCOME UNDERWRITTEN BY NON-LIFE INSURERS WITHIN INDIA (SEGMENT WISE) : FOR THE PERIOD UPTO AUGUST2016 ( PROVISIONAL & UNAUDITED ) IN FY 2016-17 (RS. IN CRS.)

SOURCE: GENERAL INSURANCE COUNCIL

INSURANCE COMPANIES SELL SHARES

The insurance industry is transforming at a rapid rate. Public listing of insurance companies’ shares has become a reality. ICICI Prudential Life Insurance’s IPO was welcomed by the market in September.

The insurance company’s IPO received bids for 1.38 billion shares, higher than the 132.37 million shares offered, valuing the firm at Rs41,500 crore, the online media house, live mint, said in an report, citing stock exchange data.

The report also added that the insurer garnered about Rs. 2, 332 crore in funds from the market. The Rs. 6,057crore IPO attracted about Rs. 700 crore worth of subscription, while shares worth Rs. 1,635 crore were already allocated to anchor investors.

Previously, in a discussion paper, The Insurance Regulatory and Development Authority of India (IRDAI) had said, “ As the operations of the industry players have stabilized and strengthened, and supported by the positive market sentiments, a couple of insurers in the private sector, have initiated steps to get their shares listed on the stock markets. In addition, the Government of India has also announced its intent to get the national reinsurer and one other general insurance company, listed on the bourses.

These efforts are aimed at unlocking the value of the equity held by the shareholders in the respective companies. Simultaneously, the IRDAI, appreciating the industry concerns on issues which could have acted as road blocks to this smooth transition to listing of equity of insurance companies on the stock exchanges has been proactive and made necessary regulatory amendments.”

https://www.irdai.gov.in/ADMINCMS/cms/frmwhats_List.aspx

NDTV, http://profit.ndtv.com/news/ipo/article-icici-prudential-life-insurance-ipo-subscribed-16-on-first-day-1461117

http: Prudential Life IPO Fully Subscribed on Last Day,

//www.livemint.com/Money/I0AjiGoXmIJFJcGuKlhaXL/ICICI-Prudential-Life-IPO-fully-subscribed-on-last-day.html

FINANCING OF INSURANCE PREMIUMS LIKELY IN THE FUTURE

According to The Financial Express, The Insurance Regulatory and Development Authority of India (IRDAI) is planning a discussion paper on premium financing, particularly for the non-life sector.

Officials in the industry believe that this step would increase penetration of general insurance, the newspaper added.

Currently, premiums in life insurance can be paid monthly, quarterly, half-yearly or annually. In general insurance, premiums are paid annually, and premium financing can help attract more people into buying insurance.

“All over world, if a person wants to buy insurance and does not have money, the premium is funded by banks and investors can pay back in installments. This is more for non-life insurance products, as they cannot be taken in installments. So, we are planning to come out with a discussion paper and hope to come out with some regulations in one month,” Nilesh Sathe, member-life, IRDAI, was quoted as saying in the newspaper.

http://www.financialexpress.com/industry/banking-finance/want-insurance-and-dont-have-money-soon-you-may-get-premium-funded-by-banks/362469/

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MARSH EVENTS

RISK ISSUES HIGHLIGHTED IN A CONFERENCE ON THE INFRASTRUCTURE SECTOR

Cyber risk is now a key boardroom issue in India, as an ever-evolving environment of threats, litigation, and regulation has broadened the spectrum of exposures and deepened the potential loss that companies face in their daily operations.

The topics that were covered were:

• Emerging risk management strategies, with emphasis on regulatory changes and reputational crisis preparedness.

• Cyber threats and increasing white collar fraud.

• Mergers and acquisitions related risks and solutions.

• Building resilience through cyber and D&O insurance.

Representatives from companies in different industries, including information technology, engineering, and finance, as well as lawyers and consultants spoke on the occasion.

For more information on cyber risk, please contact:

ANUP DHINGRA Anup.Dhingra@ marsh.com

ADITYA SAMAG Aditya.Samag@marsh.com

Balasubramaniam, Senior Vice President, shared insights from his experience working with companies in the renewable energy sector, while Gautam Pant together with Abhishek Shankar from the Power & Mining practice talked about Marsh capabilities and solutions.

The presence of industry representatives from insurer and loss adjuster helped make the conference interactive and interesting. The event was partnered by HDFC Ergo General Insurance Co Ltd. Many companies attended the event.

CYBER & EMERGING BOARD ROOM RISK CONFERENCE

Marsh India held a cyber and emerging boardroom risk event in Bengaluru on July 29, 2016. More than 50 companies from many different industries participated in the conference.

For more information on power and mining solutions, please contact:

MR. ANUJ PRATAP SINGH anuj.p.singh@marsh.com

MR. GAUTAM PANT Gautam.pant@marsh.com

India’s infrastructure industry and its mode of funding and operation have changed. Infrastructure projects are no longer just government funded. New business models have evolved with partial or full private ownership. There is no denying that the country needs better infrastructure to realize the dream of prosperity for all.

Infrastructure projects are vital for the economy. However these projects face complex risks and their successful execution and operation depend on the efficient management of these risks.

To facilitate a conversation about the risk issues and solutions of new infrastructure project, Marsh India organized a round table conference in Ahmedabad on July 5, 2016.

The event was attended by about 20 people, who represented public and private sector clients as well as survey companies and insurers.

The conference provided an opportunity for the participants to hear about the best practices followed by the industry to mitigate risks as well as ways to effectively manage risks. Marsh India’s P.

Marsh India Communications Team.

For any information and to give feedback, please contact:ANGANA BHARALI DAS angana.das@marsh.com

MARSH IS ONE OF THE MARSH & McLENNAN COMPANIES, TOGETHER WITH GUY CARPENTER, MERCER, AND OLIVER WYMAN.

The information contained in this publication provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation, and should not be relied upon as such. Insured should consult their insurance, legal and other advisors regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Statements concerning financial, regulatory or legal matters should be understood to be general observations based solely on our experience as risk consultants and may not be relied upon as financial, regulatory or legal advice, which we are not authorized to provide. All such matters should be reviewed with appropriately qualified advisors in these areas. Marsh cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk.

Marsh India Insurance Brokers Pvt Ltd is JV Company of Marsh Inc a global leader in risk management, risk consulting and insurance broking.

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About Marsh

Marsh is a global leader in insurance broking and risk management. Marsh helps clients succeed by defining, designing, and delivering innovative industry-specific solutions that help them effectively manage risk. Marsh’s approximately 30,000 colleagues work together to serve clients in more than 130 countries. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy, and people. With annual revenue of US$13 billion and approximately 60,000 colleagues worldwide, Marsh & McLennan Companies is also the parent company of Guy Carpenter, a leader in providing risk and reinsurance intermediary services; Mercer, a leader in talent, health, retirement, and investment consulting; and Oliver Wyman, a leader in management consulting. Follow Marsh on Twitter, @MarshGlobal; LinkedIn; Facebook; and YouTube.