Demand among businesses for liability insurance is growing in India, with some insurers reporting a 50% increase in sales.
According to a report by Times of India, increasing incidences of violence and associated damage have caused businesses to become more open to buying liability insurance, which covers losses and damage caused by natural disasters, burglary and riots.
Sanjay Dutta, chief of underwriting and claims at ICICI Lombard General Insurance, said that the insurer has seen a 20% increase in uptake of its public liability insurance (industrial risks) policy, with a loss-claim ratio of around 50% to 60%.
Meanwhile, an official of SBI General Insurance said that the insurer is also enjoying an increase in D&O liability policies.
“A higher conversion rate of liability, from queries turning into sales, was seen under D&O liability policy, with an 80% rise in sales,” Vaidyanath Balasubramanian, underwriting manager of SBI General Insurance, was quoted as saying in the report. “With the amendment of Companies Act 2013, more companies are keen on insuring their officers, directors and independent directors.”
Shreeraj Deshpande, COO of Future Generali India Insurance, said that the company recorded between 30% and 40% higher sales of public liability insurance, mostly driven by educational institutions. Export requirements have also caused product liability policy sales to climb by around 50% to 60%.
