Higher Compliance for Financial Liability Insurance Online
Financial Liability insurance is catching up the trend with higher compliance in the insurance industry with the market still being small but the growth being tremendous. Financial liability insurance segment has brought a big growth opportunity for general insurers among raising compliance standards along with greater integration of domestic companies with their global peers. This segment is poised to grow annually at over 30% according to the Chief Executive of Bharti Axa Insurance, Amarnath Ananth-anarayanan. He further added that this
growth trend will be supported by the rising overseas operations of domestic companies.
The demand for financial liability insurance products like directors and officers (D&O) liability insurance, errors & ommission products and professional indemnity has been increasing in the recent past.
The financial liabilities insurance segment is attracting interest from corporate houses though it is under Rs 1,000 crore as of now. The corporate houses have given the higher level of investor activism and compliance norms among others.
D&O cover includes all kinds of liabilities arising out of activities like discrimination of any kind or fraudulent actions done by directors or officers, sexual harassment charges, etc., to cover rising claims. So, the companies are looking forward for these types of products.
Sanjay Datta, the head – underwriting and claims, ICICI Lombard, said that Satyam scam has made the importance of financial liabilities products realised. Financial liabilities products are highly demanded from domestic corporates with provisions like class suits and personal liability of independent directors under the new Companies Act.
He further added that things will slowly catch up in D&O segment as well which is a $10-billion market. These products would grow at higher pace with raising investor activism and employee awareness.
The trend is quite positive in this space in spite of being a small segment according to an official from New India Assurance.
The general manager of New India Assurance, S Sampath kumar said that his company is well assured to extract out the benefit of this new growth area.