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Innovations in Liability Insurance

UTTARA VAID ADVISORYDelhi 3rd June 2015

For PHD Chamber of Commerce

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The Changing Regulatory And Business Scenario

Changing Mindsets reflecting International Best Practices

Insurance Industry’s Response

Changes in Liability Insurance Industry

• New Products : Cyber Insurance, Reputation Protect

• Innovations in Existing Products : D & O, Crime, E & O

Conclusion – Questions ?

Contents

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The Changing Scenario

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Companies Act Changes which have impacted the

D & O landscape

• Section 201 of the erstwhile Act scrapped

• Section 197 (13) grants statutory recognition

to D & O insurance

• Class Actions permitted

“Make in India” Government Initiatives

Regulatory Mandates

Changing Regulatory and Business Scenario

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Changing Mindsets /International Best Practices

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Changing Mindsets/International Best PracticesDeductibles

Consolidation

Higher involvement of senior management in risk transfer and insurance purchasing decisions

Appreciation of necessity behind risk transfer and contractual mandates

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Liability Insurance Industry’s response to these changes

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New Focus on meeting Industry’s needs Responding to demands from the Industry to introduce new policies

which are combining various coverages from different classes of business to provide fit-for-purpose policies

For existing policies endeavours to understand pain points and introduce wording to cover insurable risks

Introducing sector-wise special forms to meet sector specific needs Bundling various policies together to provide comprehensive coverage Drive towards improvements necessitated from legal outcomes and claims experience

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Innovations from the Liability Insurance Industry

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New Products

• Cyber Insurance

• Reputation Insurance

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Innovations in Existing Products - D & O Ins.• Fewer Exclusions • More protection to Non-Executive Directors• More protection to Retired Directors• Trending towards Side A covers • Many different forms to cater to specific risk exposures• More willingness to cover Incidental Expenses covers (To the main

claim, though may often be sublimited) • Claims handling procedures improved and more empathetic

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Innovations in Existing Products - E & O Ins. More emphasis on Sector Specific wording which meet sector specific requirements .

Examples abound

Industry/Sector E & O Form/Wording

• Construction Construction PI• Health Care Medical Malpractice • IT/Communication ITC E & O/ Technology E & O • Financial Sector FIPI, Stock Exchange PI, IMI• Media Multimedia E & O

More reality based wording with need-based endorsements More choice to the Insured to select the claims handling protocols Uttara Vaid Advisory

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Innovations in Existing Products - Crime Ins. New Wording can be adapted for both Insured’s needs and also the

Business Financier’s/ Lending Institutions’ needs More comprehensive wording takes care of both first party crime and

third party crime in the same form. One bundled wording that eliminates the need to have specific

policies such as • Money-in-transit /Cash in safe policy • Burglary and House-breaking policies (?)• Fidelity Guarantee policies

Many new, topical coverages added in the Crime form

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Conclusion

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ConclusionAn exciting time to be in the field of Liability Insurance today, in any capacity – as a buyer, seller or broker !Winds of change observed From the Insurer’s side - An increased readiness to achieve actual risk transferFrom the buyer’s side - An increased awareness to get fit-for-purpose products with emphasis on coverage and claims handlingFrom the broker’s side – Ask and you shall get !

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Presented by

Uttara Vaid AdvisoryMobile - +91 9757129164Email – uttara.vaid@uvadvisory.comWebsite – www.uvadvisory.com

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