BSE:540716 | NSE:ICICIGIEQ | 58888: | IND:Insurance - Non Life | ISIN code:INE765G01017 | SECT:Financial Services
Message from the Chairperson
The year 2018 symbolises the growing risk environment in which we live today. On one hand, we faced risks related to environmental changes and global warming. On the other hand, new-age risks such as cyber events and data frauds emerged as a significant threat, not just to businesses but to consumers as well. Adding to these, were risks relating to cross-border trade issues, as was demonstrated between the economic powers with the imposition of tariffs and retaliatory measures. As per the estimates, the trade war that emanated between the US and China led the International Monetary Fund (IMF) to revise down global growth for 2018 by 0.2% to 3.7%.
On the domestic front, India was largely aligned to the global scenario as far as the risk landscape is concerned.
The country experienced floods and earthquakes throughout the year. In fact, as per estimates, Kerala floods displaced around 1.5 million people, the most, compared to any other disaster in the world in 2018. On the emerging risks front as well, India ranked high. Between 2015 and 2017, our country was the target of 17% cyber attacks, second only to the US.
For the non-life insurance industry, this clearly indicates that the scale and nature of risks will keep increasing and expanding in the future. It is imperative for the sector to keep evolving, not only in terms of enhancing its service capabilities but also by expanding its bouquet of solutions to be able to effectively address the growing spectrum of risks.
At ICICI Lombard, we continue to transform ourselves to cater to this changing risk environment. Our approach has been to offer better value as a risk manager instead of limiting ourselves to risk financing. We are helping our clients and customers prepare for risk incidents through a gamut of innovative products and services. At the same time, we have been harnessing technology to empower our customers to manage and address risks more effectively. Our focus during the last few years has been on using the Internet of Things (IoTs), technology and advanced analytics to mitigate logistics, property and health-related risks.
As a responsible corporate citizen, we have been ensuring that we play a contributing role in the development of the community as well. During FY2019, we continued to invest in this cause by participating in the skill development initiatives of the ICICI Foundation for inclusive growth. At the same time, we expanded the scope of our direct CSR initiatives, namely ''Ride to Safety'', aimed at road safety for children, and ''Caring Hands'', an employee volunteering initiative focussing on eye care for children. This year, our endeavour to increase the awareness for these social causes led us to attempt a Guinness World Record.
Our unique effort, while setting a new record, enabled us to multiply the reach and impact of our CSR programmes.
As we look forward in our journey, we are confident of the long-term prospects of the industry. Despite having grown at a CAGR of approximately 17.0% for the last 18 years, there is ample headroom for further growth, owing to the favourable demographic dividend and lower penetration of non-life insurance at around 0.93% of GDP against a world average of 2.80%.
We have consciously strived to build an institution that rests on a robust platform and benefits from a flexible and pragmatic management approach to embrace new practices in sync with the rapidly changing times. Our thrust remains on investing in a talent pool, across the leadership team and the other levels of management and business operations. It is this resource base that enables us to continue to lead the industry on many fronts and address our customer requirements effectively.
We thank our shareholders for reposing their trust in us and look forward to continually adding value in the years to come.
Lalita D. Gupte
Date Sources:Live BSE and NSE Quotes Service: TickerPlant | Corporate Data, F&O Data & Historical price volume data: Dion Global Solutions Ltd.
BSE Quotes and Sensex are real-time and licensed from the Bombay Stock Exchange. NSE Quotes and Nifty are also real time and licenced from National Stock Exchange. All times stamps are reflecting IST (Indian Standard Time).
Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service