General insurers call for norms to navigate climate disasters

With a surge in climate-related disasters, cyber threats, and emerging workplace models, leading voices from the general insurance industry have called for stronger collaboration between insurers, government, and technology partners to address these “new-age risks”.

- BS REPORTER

Speaking at a panel discussion moderated by Manojit Saha at the Business Standard BFSI Insight Summit 2025, chiefs of insurance companies shed light on the need for building comprehensive frameworks to protect people and businesses against digital frauds, climate catastrophes, and the risks associated with electric vehicles (EVs) and the gig economy.

Tapan Singhel, managing director and chief executive officer (MD & CEO), Bajaj General Insurance, noted that climate change poses not only environmental but also economic and social risks. “When a climate disaster strikes, less than 10 per cent of the total economic loss is actually insured. The rest remains uncovered, which has a direct 2 per cent impact on India’s gross domestic product (GDP),” he said. Singhel emphasised the need for a joint strategy between the government and insurers involving “catastrophe bonds and tiered-level risk pooling” to make India’s disaster resilience more robust.

Similarly, Yashish Dahiya, chairman and group CEO, PB Fintech, mentioned that climate risk management cannot be left to insurers alone. “We need alignment of interests between government, industry, and consumers. Mandating basic catastrophe insurance for homeowners, just like motor insurance, can be a simple yet effective step,” he said.

Dahiya suggested linking such insurance to essential utilities like electricity or gas connections to ensure universal coverage.