1

2

6

10

12

CEO’s message

Policy wording: Another step in liberalizing

the insurance market

Employee choice through voluntary plans:

Need of the hour

Other news and insights

Marsh events

CONTENT

NEWS&VIEWS Q2 2016

Dear all,

I am happy to share the second edition of our newsletter, News&Views. In this edition, we again share with you issues of interest to all of us.

The insurance industry in the country is in the cusp of a rapid transformation. There is a growing recognition of the value that risk coverage provides to everyone. In a country with a large population of people below or near the poverty line, the role of insurance in safeguarding livelihoods at times of disasters --natural, man made, and health related--is vital.

Recurrent natural disasters, together with rising incidence of disease—lifestyle, tropical, and pandemic—cause havoc on people’s livelihoods and finances every year.

According to the World Health Organization, in 2012, healthy expectancy in India in both men and women was nine years lower than the overall life expectancy at birth. This lost healthy life expectancy represents nine equivalent years of full health lost through years lived with morbidity and disability.

The government in a nod to the importance of insurance in combating poverty and health has announced and expanded a number of insurance schemes to provide some measure of risk coverage to people who need it the most. There also have been a number of changes in regulations that ensure the smooth functioning of the insurance industry.

A few of the regulations will go a long way in enabling the insurance market to function effectively and further hasten the process of aligning it with international best practices. As risk management needs of Indian corporates grow, global best practices in managing risks and risk transfer in the form of insurance are becoming important.

The insurance market has also become more complex with multiple insurance providers and products. For the insurance industry to grow and deepen, it is important for all stakeholders to adopt the pricing practices, service standards, and product innovation that match the demand that consumers have.

It is in this context that we discuss the recent changes in regulations and emerging trends in the health insurance sector.

I hope you find this newsletter informative. Please do let us know your views and share your feedback. It is our aim to make this newsletter a forum for discussion of issues of interest to the insurance industry.

Your’s sincerely,

News&ViewsMessage from the CEO

INDIA

SANJAY KEDIA Country Head and CEO Marsh India

According to media reports that quoted the General Insurance Council, penetration of general insurance in India has declined to 0.70% in 2014-15, from 0.80% in the

previous fiscal, despite an increase in per capita premium during the same period. NEWS&VIEWS Q2 2016

2 News&Views

POLICY WORDING: ANOTHER STEP IN LIBERALIZING THE INSURANCE MARKETOn February 18, 2016, the Insurance Regulatory and Development Authority of India (IRDAI) announced new guidelines on product filing procedures for general insurance products. The regulator said the new product filing guidelines were enacted keeping in mind the evolving needs of consumers and flexibility required for general insurers to respond to the changes. The IRDAI’s “use and file” guidelines is another step to liberalize the Indian insurance market and make it more customer-centric.

As the economy transforms and the risk landscape changes, insurance policy wordings also need to change. Standard wordings that have not changed with time and the economy are no longer capable of meeting the risk coverage needs of companies. New modes of entrepreneurship and technology require insurance policy wordings for specific risk coverage, with customer-centric terms and conditions.

THE ROLE OF POLICY WORDINGS

Insurance is an intangible product. In an insurance contract, one party, the insured, pays the premium in advance. Policy wordings that enumerate the terms and conditions of the risk coverage are vital if the insured event becomes a reality. There are many instances where the insured is shocked to find that the event that he had obtained risk coverage for is not eligible for payment of claims, simply because the insured had not read the policy wordings carefully.

Even where the insured has read the policy conditions, they are often so steeped in jargon and legalese that they were almost incomprehensible. This has been a serious issue, especially in emerging risk areas where the contractual understanding is below average. The complexity of the policy wordings in insurance policies has remained

“New modes of entrepreneurship and technology require insurance policy wordings for specific risk coverage, with customer-centric terms and conditions.”

WHAT THE INDUSTRY SAYS:

“File and Use” Policy Wording Guideline has been a long time in coming.

It was most impatiently awaited and eagerly looked forward to.

This guideline will help quickly customize the coverage wording requirements of Insureds, especially for corporates.

Hopefully, this will be the first of more such customer-centric development in our Indian market that will enable us to benefit from use of leading edge world-class products and processes.”

P. CHANDRASEKAR Group Head – Insurance RPG Enterprises Ltd.

NEWS&VIEWS Q2 2016

Marsh 3

a bone of contention for a long time, but there have not been many changes despite several strictures and ruling by relevant authorities.

The fundamental role of the insurance products is to give a measure of financial certainty to different stakeholders of the economy. Risk taking and entrepreneurship flourish when the insurance industry is organized and nimble enough to change with the evolving economic needs of multiple stakeholders.

In India, the path toward policy wording liberalization has been gradual. The reason for this is probably the need to retain the consistency of interpretation of existing time-tested wordings. The slow insurance penetration in the country is also a likely factor. While the insurance industry’s growth has jumped after privatization, total penetration remains a cause of concern with millions of people uncovered by any form of insurance coverage.

GOVERNMENT INITIATIVES FOR THE INSURANCE INDUSTRY

Keeping this in mind, the government is undertaking measures to bring the weaker sections of the society under insurance protection. The “use and file” regulation, although primarily for general insurance products, follows a slew of measures announced by the government to energize the insurance market. The government is planning to spend Rs.5,500 crore for the crop insurance scheme, the Pradhan Mantri Fasal Bima Yojana. In his Budget speech, Finance Minister Arun Jaitley said farmers will have to pay a nominal premium for the coverage.

The government also announced that it will expand health insurance for the weaker sections of society. Importantly, the government said it will allow state insurers to sell their shares in the market. Media reports say that state insurers will probably divest about 10% of their stake. This measure, if implemented effectively, will help improve the flow of funds into these insurers, and at the same time, bring transparency and efficiency in the market.

HISTORICAL PERSPECTIVE

The “use and file” guidelines follow previous notifications by the regulator. In 2014, IRDAI had allowed policy wording changes in the fire and all risk insurance policies that appeared to be outdated.

Although, innovation in product design for competition was the aim of these guidelines, most of the innovation that had occurred in the past was more in the form of add-ons and extensions to existing policies, rather than industry-specific policies that truly provided a missing link in coverage in the insurance market. The new “use and file” guidelines have to be seen in this context.

A FEW HIGHLIGHTS FROM THE “USE AND FILE” GUIDELINES

• Pricing should be without any cross subsidization.

• Standard covers available under existing tariffs cannot be abridged beyond the options permitted.

• The risks qualifying as large risks will need to be insured at the rates, terms, and conditions of insurance at the rates and terms provided by the reinsurers with no variation.

• Where insurance is for properties at several locations and one of those qualifies as a large risk, insurance of all the locations covered under that policy can be deemed to be a large risk. However, all the properties have to be covered under one policy by a single entity.

The policy wording is the foundation of the procedures of notification and settlement of claims.

According to media reports that quoted the General Insurance Council, penetration of general insurance in India has declined to 0.70% in 2014-15, from 0.80% in the previous fiscal, despite an increase in per capita premium during the same period.

When many thousands of people do not have access to insurance, the need to tinker with traditional insurance products was likely not considered important. However, with the recent changes in the economy there has emerged a need for coverage of emerging risks.

Insurance effecti ely pools and transfers risk from individuals and companies, thus encouraging investments and driving GDP growth. It supports the government and society by reinvesting funds and sharing the cost of catastrophes. According to a report by McKinsey & Company and Federation of Indian Chambers of Commerce & Industry (FICCI), a one standard deviation increase in general insurance penetration induces a per capita GDP growth of 0.39%.

WHAT THE INDUSTRY SAYS:

“This guideline should help corporate’s to customize or tailor make industry specific policy wordings based on their respective industry specific risk and transfer many emerging risks to the insurance companies .

We expect quick implementation of this guideline and insurers which act fast will have the first mover advantage.”

ALBERT MATHEWS GM - Finance USV Private Limited

NEWS&VIEWS Q2 2016

4 News&Views

• Marine hull business products will need to indicate the net minimum premium rate for each class of cover, with clauses and exclusions. The business cannot be underwritten below such rates.

• In engineering projects, it is also possible to cover movable and portable equipment.

USE AND FILE GUIDELINES AND CLAIMS

Contract certainty is the most important aspect of insurance coverage and risk transfer. This can only be achieved by reaching an agreement between the insured and the insurance company before the insurance contract is signed.

The policy wording is the foundation of the procedures of notification and settlement of claims. As far as possible, clear and simple language should be used in drafting insurance contracts. It is therefore imperative that insurance policies unambiguously state the terms and conditions for claims procedures. The new “ use and file” guidelines will help in customization of insurance products and removal of ambiguity.

BY MARSH INDIA EDITORIAL TEAM

WHAT THE INDUSTRY SAYS:

“The new IRDAI norms would facilitate insurance companies to adopt a more structured approach while designing products, pricing, and diligently manage the operations of the entire product lifecycle. This change will stand in good stead for companies as they will be able to create more innovative and need-based products.

The new norms would also check underpricing, as the pricing would require actuarial and technical justification that has to be approved by a product management committee, a special committee to be formed by the concerned company.”

T A RAMALINGAM Senior President Bajaj Allianz

WHAT THE INDUSTRY SAYS:

“Companies take the policy to minimize the business risk. For every business, insurance requirement is different. Policy wording guideline is an advantageous move for the insurance industry in India. This guideline will help the industry to propose the cover as per business risk. The insurance product terms and condition should comply with all the requirement of protection of policy holder.

Risks would be covered and rated as per actuals and not on perceptions. Covers would become more open and broad, and easy to understand.”

TRIVENI SHETTY Senior Finance Manager Emerson Network Power India Ltd.

CONCLUSION

The new guidelines are a step in the right direction. In the ever-evolving Indian economy, the risk needs of corporates are changing. Every corporate is unique, with its own set of risks. Even within a particular industry sector, risks differ and the coverage should reflect that.

Effective insurance wording and broadform cover will go a long way to help corporates recoup losses and rebuild when disaster strikes. Policy wordings need to provide adequate certainty to corporates as they change to meet the challenges of an evolving economy, with its twin arm of traditional manufacturing, and the rapidly developing service and digital economies.

However, product innovation will only occur when customer needs are assessed, before introducing a new product, with unique policy wording. The marketing of new insurance products should also be effectively undertaken together with regular assessment of the performance of the products.

NEWS&VIEWS Q2 2016

Marsh 5

References:

1. IRDAI.

2. Narayanan M., Senior Vice President, Head of Claims, Marsh India.

3. Rao G. V., “ Need for Innovation”, IRDAI Journal, April 2012.

4. Jain S. K., “Consumer Orientation”, IRDAI Journal, April 2012.

5. Federation of Indian Chambers of Commerce & Industry and McKinsey & Company, “India General Insurance “ Vision 2025”: Towards an inclusive, progressive, high performing sector” available at http://ficci.in/spdocument/20333/India-General-Insurance-Vision-2025.pdf.

6. Bera S., Live Mint, “Budget 2016: Govt. raises agriculture spending to Rs36,000 crore” available at http://www.livemint.com/Politics/T3pDBIVQPF6Ri6MnyEEeBK/Union-Budget-201617-Govt-gives-Rs36000-cr-to-farm-sector.html.

7. Press Trust of India, “General insurance penetration down to 0.70% in FY15”, December 20, 2015 available at http://www.business-standard.com/article/pti-stories/general-insurance-penetration-down-to-0-70-in-fy15-115122000148_1.html.

NEWS&VIEWS Q2 2016

6 News&Views

EMPLOYEE CHOICE THROUGH VOLUNTARY PLANS: NEED OF THE HOUR“Our people are our greatest asset” most organizations say it and for good reason. It is only because of employees and their dedication that organizations meet their unique needs and generate long-term value for their diverse customers and communities in which they maintain and operate their businesses. Attracting, engaging, and retaining talent are critical to the success of organizations, but are challenging at the same time due to a variety of factors, including changes in demographic preferences and shifts in behavior and attitude to work and lifestyle.

A “one-size-fits-all” strategy to attract employees is inadequate in a diverse workforce, with employees in different stages of life. Today, it is difficult to categorize employees in simple terms of age and health. Contrary to previous eras, younger employees are increasingly falling ill with diseases that are associated with ageing, such as high blood pressure and heart attacks.

Consequently, organizations are striving to provide the most appropriate and sustainable benefit strategy that will satisfy the needs of their employees. This is all the more important when we consider the intense competition for talent. Employees look for rewards beyond compensation alone. Flexibility and choice act as strong value proposition for organizations to differentiate their brand and gain competitive edge in the market to attract and retain skilled employees.

CREATING A FLEXIBLE ENVIRONMENT

Employees increasingly view benefits not as perks, but as tools to fulfill needs they consider vital in their lives. In a competitive landscape, where intense competition for skilled talent co-exists with unemployment, the benefit package retains its traditional role in attracting and sustaining employee satisfaction.

In our country, a comprehensive medical insurance is the most sought after benefit by employees. More so as medical inflation has jumped in the past few years. Anecdotal evidence points to double digit increase in medical costs with the concomitant impact on employees’ and organizations’ finances.

Also, as choice permeates all aspects of our lives, “choice” in benefits is the natural progression. A majority of organizations believe that employee choice in benefits will help improve employee retention and

A “one-size-fits-all” strategy to attract employees is inadequate in a diverse workforce, with employees in different stages of life.

“A one-size-fits-all strategy to attract employees is inadequate in a diverse workforce, with employees in different stages of life.”

NEWS&VIEWS Q2 2016

Marsh 7

attraction, harmonize the benefits, reduce attrition, and make employees see the long-term value in the benefits provided to them.

Even though the concept of providing employee choice is new in India, voluntary parents’ plans, top up covers, and additional life covers are attempts at providing better customization. Such customizations are gradually being incorporated into group employee benefit package.

In many developed countries, especially the United States, employee choice in benefits is a fact of life. Most organizations, especially big multinational companies, have incorporated choices in their benefit strategies with both employers and employees bearing the expenses.

In Asia, too, organizations are increasingly adopting choice in their benefit strategy. Typically in these countries, benefits are divided into insured and non-insured benefits.

Insured benefits include medical, life, and accident with the option of enhancing health screening, maternity, dental, vision, critical illness, and parents’ coverage. Telephone, gym, health and wellness, travel, vacation, personal and family development, and professional subscription are the non-insured benefits.

In India, choices are slowly being incorporated in benefit packages. Among organizations, software and financial service companies have taken the lead in providing choices in their benefit strategies.

According to Marsh data and analysis, there is a 20-40% increase in employee participation if a plan is partially subsidized in place of a fully employee paid plan.

“According to an employee health and benefit survey conducted by Marsh with more than 300 organizations worldwide in 2014-15, Marsh 8th Annual Employee Health and Benefits survey, 75% of the employers experienced a double-digit increase in benefit costs.”

A SNAPSHOT OF COSTS OF A FEW SURGICAL PROCEDURES IN RS

Indicative costs as discerned from third party administrators’ and claims’ data

CANCER TREATMENT

500,000 & Up

CARDIAC SURGERY

300,000 – 500,000ANGIOPLASTY

200,000 – 300,000

HIP REPLACEMENT

200,000 – 400,000KNEE REPLACEMENT

200,000 – 400,000

NEWS&VIEWS Q2 2016

8 News&Views

CHANGING BENEFIT STRATEGY IN ORGANIZATIONS

According to an employee health and benefit survey conducted by Marsh with more than 300 organizations worldwide in 2014-15, Marsh 8th Annual Employee Health and Benefits survey, 75% of the employers experienced a double-digit increase in benefit costs. However, instead of cutting benefits to lower costs, these organizations are moving toward improving employee choice and a defined contribution model.

In India, many of the respondents acknowledged that organizations are gradually moving toward a defined contribution model away from defined benefits. Nowhere is this better illustrated than in insurance cover for parents of employees. A rise in insurance claims for dependents, such as parents, had forced many organizations to remove this benefit from employee benefit package.

However, in the past two years, insurance coverage for parents is again being offered by organizations, as it is a benefit valued by employees, albeit with a difference. Employees increasingly contribute to the cost of their benefit package together with the organization. Although, there are a few organizations that still fully subsidize the cost for parental health coverage.

Given that the employee benefits space is undergoing a remarkable transformation because of increases in benefit costs, and changes in employee attitude to work and lifestyle as well as technology, employees need to be seen as consumers of employer-sourced services and not simply as receivers of benefits as compensation.

CHOICE AND PARENTAL COVER

The Marsh survey among respondents in India indicated that about 35% of the organizations offered insurance cover for parents as part of employee choice, in addition to the 41% that sponsored insurance for parents. Also, about 18% offered top-up plans for employees.

Similarly, choices were available in health and wellness programs and other benefit enhancements, such as maternity limits and different co-pay percentage on claims.

According to the Insurance Regulatory and Development Authority of India’s, (IRDAI) annual report for 2014, approximately 60 million of the Indian population is covered under health insurance in non-government schemes. Out of these, around 33 million is covered in group plans probably facilitated by their employers. This number in comparison to the current population of India, which exceeds 1.2 billion, shows that the penetration of health insurance in the Indian population is a mere 25%. Out of these, the number of senior citizens or parents with insurance cover is lower.

As the cost of medical treatment costs lakhs of rupees, employees are looking at their employers for adequate coverage both for themselves and their parents.

The costs for organizations increase when parents are included in the base plan. Therefore, the best solution to provide cover to parents and at the same time maintain cost is to offer a voluntary plan for parents. One of the key ways to drive employee participation in voluntary plans is to offer some form of subsidy or co-sponsorship of the plan.

According to Marsh data and analysis, there is a 20-40% increase in employee participation if a plan is partially subsidized in place of a fully employee paid plan. What is more is that the incident rate and cost per parent also declines if there is an increase in the participation because of plan subsidization.

“Individual behavior is influenced by a complex set of triggers—incentives, circumstances, needs, values, and opportunities—that determine how they respond.”

NEWS&VIEWS Q2 2016

Marsh 9

References:

1. The 8th Annual Marsh India EH&B Study.

2. Deloitte University Press,”The future of health Care Insurance: What is Ahead” available at http://dupress.com/articles/the-future-of-health-care-insurance-whats-ahead/.

3. Suresh M., Senior Vice President, EH&B practice, Marsh India.

Parental programs are increasingly being offered by insurance companies to organizations. If there is appropriate participation in the program, it is a profitable proposition for an insurer as well.

The key to voluntary plans and offering employees’ choice is communication. The ease of participation and an effective rollout through an interactive website affect the level of participation. It is important for employees to understand what these plans are about, their benefit, their differentiating factor, and most important the need to make the right selection.

THE ROLE OF INCENTIVES IN EMPLOYEE HEALTH BENEFIT

As organizations balance employee choice with sponsored insurance solutions to provide the optimum benefit package that will meet employee expectations and the payroll costs, they are also looking to use incentives to promote healthy behavior. They are acknowledging that the majority of health care costs worldwide are the direct result of unhealthy lifestyles.

BY MARSH INDIA EH&B TEAM

Individual behavior is influenced by a complex set of triggers—incentives, circumstances, needs, values, and opportunities—that determine how they respond. Organizations in a bid to rein in benefit costs and influence employee to adopt healthy practices are using a complex set of incentives, from gift vouchers to paid gym membership when attaining a certain milestone.

These incentives are at a nascent stage of the health insurance industry and mostly limited to the developed countries. Nonetheless, they are the next stage in the evolution of providing choice to employee benefit package.

CONCLUSION

In India, organizations are increasingly becoming aware of the role of choice and incentives in their benefit package. Lifestyle benefits, such as yoga and free in-premise health checkups are also becoming popular. In the future, choice and incentives will probably become the defining tools in an organization’s benefit package.

NEWS&VIEWS Q2 2016

10 News&Views

OTHER NEWS AND INSIGHTS

INDIA LIFE INSURANCE MARKET OVERVIEW

The life insurance segment’s first-year premium grew 15.55% to Rs. 9,5871.62 crore as of January 2016. The state life insurer Life Insurance Corporation of India’s first-year premium increased 14.99% to Rs. 66,335.70 crore, while the private sector life insurers grew 16.82% to Rs. 29,535.92 crore. The private sector insurers experienced a growth in both Individual NB and Group NB, while LIC’s Group NB increased but Individual NB declined.

The number of individual policies grew 2.03% for the public sector and 8.30% for the private sector, with an overall increase of 3.47% in the industry. The total number of lives covered under Group policies rose 42.05%.

GENERAL INSURANCE PREMIUMS RISE IN APRIL 2016

Premiums in general insurance companies rose about 12% in April, as compared to the same period last year.

Data from the General Insurance Council shows that private companies experienced higher growth as compared to their public sector peers.

In April 2016, the gross premium income of the general insurance industry grew to Rs 10,525.35 crore, from Rs 9,404.36 crore in April 2015. The gross premium income of private insurers increased 13.1% to Rs 4,606.40 crore during the month, while the public sector insurance experienced a growth of 11% to Rs 5,484.45 crore.

CHANGES IN TRADE CREDIT INSURANCE GUIDELINES

The Insurance Regulatory and Development Authority of India (IRDAI) provided a fillip to the trade credit insurance market by revising the guidelines that it had issued in December 2010 for this insurance market.

The new guidelines came into effect on March 10, 2016.

INSURERS FIREMARINE

TOTALMARINE CARGO

MARINE HULL

ENGGMOTOR TOTAL

MOTOR OD

MOTOR TP

HEALTH AVIATION LIABILITY P.A.OTHER MISC.

GRAND TOTAL

GROWTH MARKET ACCRETION

PRIVATE SECTORS 3854 1250 1136 114 776 22570 13042 9528 5307 93 1087 1601 3156 39693 13% 41% 4602

PUBLIC SECTORS 4874 1738 991 747 1597 19841 8127 11714 15494 345 682 814 2334 47718 12% 50% 5167

STAND ALONE HEALTH 0 0 0 0 0 0 0 0 3984 0 0 170 0 4154 41% 4% 1211

SPECIALIZED 0 0 0 0 0 0 0 0 0 0 0 0 4830 4830 18% 5% 728

INDUSTRY TOTAL 8728 2987 2127 861 2373 42411 21168 21242 24784 437 1769 2585 10320 96394 14% 100% 11708

GROSS DIRECT PREMIUM INCOME UNDERWRITTEN BY NON-LIFE INSURERS WITHIN INDIA (SEGMENT WISE) IN FY2015-16 (PROVISION AND UNAUDITED IN RS. CRORE)

SOURCE: GENERAL INSURANCE COUNCIL

INSURERS APRILGROWTH OF APRIL

2016 OVER APRIL 2015CUMULATIVE UP TO APRIL

% OF GROWTH UP TO APRIL 2016OVER THE PERIOD UPTO APRIL

2015

2016-17 2015-16 2016-17 2015-16

PRIVATE SECTOR 4606.4 4072.98 13.10% 4606.4 4072.98 13.10%

PUBLIC SECTOR 5484.45 4939.5 11.00% 5484.45 4939.5 11.00%

STAND-ALONE HEALTH 318.37 249.3 27.20% 318.37 249.3 27.20%

SPECIALISED 116.13 142.58 -18.60% 116.13 142.58 -18.60%

GRAND TOTAL 10525.4 9404.36 11.90% 10525.4 9404.36 11.90%

GROSS DIRECT PREMIUM INCOME UNDERWRITTEN FOR AND UPTO THE MONTH OF APRIL, 2016 ( RS IN CRORES)

SOURCES: 1. GENERAL INSURANCE COUNCIL.2. HTTP://WWW.FINANCIALEXPRESS.COM/ARTICLE/INDUSTRY/INSURANCE/GENERAL-INSURERS-APRIL-GROSS-DIRECT-PREMIUM-

Here are a few highlights from the new guidelines.

• The new guidelines take into account the changes in the economy, especially in the micro, small, and medium sectors, which increased the need for trade credit.

• The proceeds of claims under the trade credit policy can be assigned to bank/non T bank financial companies registered with the Reserve Bank of India, as given under Section 38 of the Insurance Act 1938.

• A trade credit policy will grant an indemnity of 85% of the trade receivables from each buyer.

• Trade credit insurance can be issued to fewer than 10 buyers, with the insurer using appropriate policy conditions and underwriting techniques to place prudent compliance obligations on the insured.

More details on IRDAI’s new guidelines are available in https://goo.gl/BbA1RB.

NEWS&VIEWS Q2 2016

Marsh 11

MARSH EVENTS

THE CHANGING FACE OF PRODUCT RECALL

As risks morph and take on myriad shapes, many industries are combating increased costs and reputational damage from product recalls. Product liability and recall is an emerging risk in India, especially for automotive OEMs, ancillaries, pharmaceutical companies, and the food and beverage industry.

Car recalls are no longer limited to the developed countries. For instance, India recalled one million vehicles in 2015.

In an increasingly interconnected manufacturing process with ancillary product makers sharing risks with original equipment makers (OEMs), it is important for all manufacturers in the supply

MITIGATING TRADE CREDIT RISK

As companies expand their operations, identifying viable customers and ensuring payments by them are becoming challenging.

Counterparty non-payment risk continues to pose a risk in developed and developing markets. Businesses operating in India too face unique difficulties.

Given the growing need to mitigate trade credit risk, Marsh India organized a roundtable conference on trade credit risk on February 22, 2016, in Ahmedabad. More than 40 people attended the conference. Companies, such as Cadila Pharmaceuticals, Adani Group, Jindal Worldwide Ltd, Torrent Pharmaceuticals, and AIA Engineering Ltd., participated in the event.

Marsh India’s Bhavesh Patel, senior vice president, shared insights from his experience together with Akshay Bhardwaj, vice president. Nithin Kumar, head of commercials and sales, at Atradius India also shared his views at the event.

For more information on trade credit, please contact:

BHAVESH PATEL bhavesh. patel@marsh.com

AKSHAY BHARDWAJ Akshay.Bhardwaj@marsh.com

chain to adopt strategic risk management solutions.

To discuss the growing risk of product recall, Marsh India organized a seminar on the issue on March 17, 2016, in Pune.

The seminar was attended by more than 50 industry professionals. Representatives from many large companies participated, including Piaggio, Mercedes-Benz, Emcure Pharmaceuticals, Tata Bluescope, Volkswagen, and Thermax.

The key speakers at the seminar were Anup Dhingra, FINPRO practice leader at Marsh India, Naresh Tuli, procurement head at Piaggio Vehicles, and Sasi Kumar Adidamu, chief technical officer at Bajaj Allianz GIC.

For more information on product liability and recall insurance, please contact:

MOHIT HALKARE Mohit.halkare@marsh.com

BIREN SAHOO Biren.Sahoo@marsh.com

A FEW FORTHCOMING MARSH EVENTS1. MCS Employee Health & Benefit event in Gurgaon on June

17, 2016. If you want to participate in the event, please contact Sarath.nair@marsh.com

2. Lloyds City Risk Index event. Date and city yet to be decided. If you want to participate in the event, please contact Sarath.nair@marsh.com.

Marsh India Communications Team.

For any information, please contact: ANGANA BHARALI DAS angana.das@marsh.com

MARSH IS ONE OF THE MARSH & McLENNAN COMPANIES, TOGETHER WITH GUY CARPENTER, MERCER, AND OLIVER WYMAN.

The information contained in this publication provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation, and should not be relied upon as such. Insured should consult their insurance, legal and other advisors regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Statements concerning financial, regulatory or legal matters should be understood to be general observations based solely on our experience as risk consultants and may not be relied upon as financial, regulatory or legal advice, which we are not authorized to provide. All such matters should be reviewed with appropriately qualified advisors in these areas. Marsh cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk.

Marsh India Insurance Brokers Pvt Ltd is JV Company of Marsh Inc a global leader in risk management, risk consulting and insurance broking.

Marsh India Insurance Brokers Pvt. Ltd. having corporate and the registered office at 1201-02, Tower 2, One Indiabulls Centre, Jupiter Mills Compound, Senapati Bapat Marg, Elphinstone Road (W), Mumbai 400 013 is registered as composite broker with Insurance and Regulatory Development Authority of India (IRDAI). Its license no. is 120 and is valid from 03/03/2015 to 02/03/2018.

Copyright 2016 Marsh India Insurance Brokers Pvt Ltd. All rights reserved. Compliance IND-20160516-A

About Marsh

Marsh is a global leader in insurance broking and risk management. Marsh helps clients succeed by defining, designing, and delivering innovative industry-specific solutions that help them effectively manage risk. Marsh’s approximately 30,000 colleagues work together to serve clients in more than 130 countries. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy, and people. With annual revenue of US$13 billion and approximately 60,000 colleagues worldwide, Marsh & McLennan Companies is also the parent company of Guy Carpenter, a leader in providing risk and reinsurance intermediary services; Mercer, a leader in talent, health, retirement, and investment consulting; and Oliver Wyman, a leader in management consulting. Follow Marsh on Twitter, @MarshGlobal; LinkedIn; Facebook; and YouTube.