Lessons from forest fires and other disasters: Insurance gap and underinsurance

Technology failures, earthquakes, cyberattacks, data breaches, power failures, cooling system breakdowns, natural disasters, fires, business interruption losses, and regulatory penalties for downtime or data loss – is the insurance industry looking at technology from the other side of the table also now while it taps it for fraud control, real-time policy personalisation and sharper underwriting? Irfan Shirwani, MD of Placement & Claims, Lockton India, takes us through these new riders and bets. He also highlights why economic loss in most of the disasters is multiple folds of the insured losses- and more so in India.

- By Pratima H

Can you explain how insurance brokerage differs from other insurance services?

Insurance brokerage in India operates under a regulated framework and differs from other intermediary services by offering a wide range of services, including advising clients on the most suitable insurance solutions for effective risk mitigation, negotiating premiums, and assisting clients throughout the claims process. Through in-depth evaluations, we identify key exposures and recommend comprehensive solutions to mitigate potential risks. For instance, manufacturing businesses require protection against equipment breakdown, product liability, and workers’ compensation, while the construction sector benefits from coverage for general liability, builder's risk, and surety bonds. In healthcare, medical malpractice, cyber liability, and HIPAA compliance are critical considerations, whereas technology and SaaS companies prioritize cyber insurance, intellectual property protection, and business interruption coverage.

What, where, and how much is technology used in what you do?

At Lockton India, most of our processes are automated and technology driven. We have deployed tech solutions throughout the life cycle of the client journey to ensure that our client's risks are fully protected at all times, clients get the best-possible coverage relevant to their risks at the optimum price and from the right markets and receive the best possible support in the shortest time.

How will the Insurance Industry evolve with Agentic AI, Super Agents, and AGI?