‘Govt, industry actions needed to tackle new age risks’

Insurance companies’ work is changing as natural disasters blamed on climate change spread, cybercrimes rise and electric vehicles (EVs) become common, said industry leaders at the Business Standard BFSI Insight Summit 2025.

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In a panel discussion, Yashish Dahiya, chairman & group chief executive officer (CEO) of PB Fintech; Naveen Chandra Jha, managing director (MD) & CEO of SBI General Insurance; Anup Rau, MD & CEO of Generali Central Insurance, and Tapan Singhel, MD & CEO of Bajaj General Insurance, spoke about mandatory coverage, risk pooling, insurer-hospital transparency and other issues. Edited excerpts:

How is the general insurance industry managing new-age risks?

Singhel: When you look at climate change, it is not only about natural disasters but new viruses, new kinds of illnesses and what affects the work environment. If heat increases, gig workers can’t go to work. It is a wide spectrum of risks that come together. When you are looking for Viksit Bharat (Developed India), this has to be addressed and the insurance industry must come together. If I put numbers — if I look at the last year — losses run to lakhs of crores.

It will require different modes such as catastrophic bonds and tiered solutions where the government provides a layer and the industry does too. The problem is big. I don’t think we comprehend the magnitude of the problem and our ability to solve it.

Dahiya: There have been more catastrophic events in the last 10 years than in the last 100 years, and they have a negative impact. The insurance industry and the government must come together and align interests along with the consumer. Alignment comes in the form of encouragement.

If people pay electricity bills, it is not difficult to mandate that anybody living in a house must have a certain amount of insurance cover for a catastrophic event because there is a social impact. A single insurance company may not be able to carry that risk entirely. So, freeing up reinsurance is critical.