Marsh India YearbookThird Edition

2 Marsh India

From the CEO’s Desk

The Marsh India Story 2018

Case Studies

Regulatory Changes In 2018

What We Published

View From Risk Street

Marsh Cares

Marsh In the Media

Client Speak

Marsh Events

Marsh India Leadership

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At a glance

Dear all,

I am pleased to share this edition of our annual publication – Marsh India Yearbook. In this edition we piece together our achievements, the experiences of our clients, and discuss some of the challenges we, and our industry faced in the past 12 months.

2018 has been a very important year for the insurance industry in India. We faced a complex environment marked by many changes – regulatory, governmental, and technological. At Marsh, we take pride in what we have achieved within this challenging environment.

On the policy front, the year started with the launch of the National Health Protection Scheme – Ayushman Bharat (Ayushman Bharat) – which is likely to spur a greater focus on the development of the health care industry. One of the largest state-sponsored healthcare schemes in the world, Ayushman Bharat is likely to benefit around 10 million families (50 million people), all of who will gain access to INR500,000 worth of health insurance, free of charge.

Gross direct premiums of non-life insurers in India reached INR1.51 trillion (USD23.38 billion) in 2017-18 (April-March). During the April-December period of the financial year 2018-19, the total premium underwritten by the general insurance industry reached INR1.23 trillion, up 13% on a year-on-year basis.

The growth in many non-life insurance companies has been spurred by the development of the agriculture sector in India, mainly thanks to the Prime Minister Crop Insurance Scheme. Further growth is expected due to Ayushman Baharat.

The insurance industry has also been boosted by product innovation, vibrant distribution channels, and targeted marketing campaigns. Premiums placed through brokers have grown from INR5,700 crore in financial year 2009-10 to INR33,440 crore in financial year 2017-18. Broking accounted for 21.35% of non-life insurance business in financial year 2017-18.

According to an EY report, non-life industry insurance is expected to reach INR400,000 crore (INR4 trillion) by 2025 and brokers’ share is expected to account for 40%, or INR160,000 crore (INR1.6 trillion) by 2025.

As the statistics show, the broking channel has experienced significant growth, which is expected to continue. This development has, and can only continue to be realised by the proactive and collaborative action of all stakeholders — insurers, brokers, regulators and others.

Through this Yearbook, we piece together case studies and client testimonials which mark Marsh India’s milestones as we continue our journey towards becoming trusted advisors to our clients, truly understanding their industries, risks and business environments.

Yearbook 3

In 2018, we saw significant growth in our client base and our employee strength. Despite being a challenging year, our investments in our business and our people continued unabated in 2018. We opened five new offices during the year in Noida, Chandigarh, Kochi, Vizag, and Mumbai to position ourselves for sustained long-term growth. Our 600 employee-strong workforce now operates out of 17 locations across the country, and supports over 4,000 clients, including many large domestic and multinational companies.

The practices within our business that saw substantial growth this year include: Financial and Professional Liability, Private Equity Mergers and Acquisition, India Client Service, Trade Credit and Political Risk Insurance, Energy and Infrastructure, and Treaty Reinsurance. We secured some large programs with some big multinational clients, auguring well for business in 2019 and beyond, and highlighting the risks our clients are most concerned about. Internally we launched a number of employee initiatives, working towards making Marsh India an employer of choice.

The interests of clients form the cornerstone of the insurance business. This makes the role of insurance brokers an important one because we are uniquely positioned as the only insurance distribution channel that completely represents clients’ interests. With this in mind, we hope to strengthen our client-centric focus by keeping clients at the heart of everything we do and empowering them to move on to the next stage of their growth in 2019.

We hope this Yearbook will engage our clients and other stakeholders within the insurance industry to continue the conversation on risk.

I would like to reiterate that your feedback and ideas are important to us. Please write to us at contact.india@marsh.com.

Warm regards,

Regards,

SANJAY KEDIA Country Head and CEO Marsh India

4 Marsh India

THE MARSH INDIA STORY 2018

In 2018, Marsh India celebrated the 15th anniversary of its Indian operations. Marsh India Insurance Brokers Pvt. Ltd, a joint venture between Marsh International Holdings Inc. and Indian partners commenced its journey in India on March 3, 2003. Marsh was the first foreign insurance broker to be registered as a composite broker with the Insurance and Regulatory Development Authority of India (IRDAI).

At the end of its first year of operation, Marsh India had three branches with 35 colleagues handling 25 clients across the country. In the next ten years, by 2013, Marsh had grown to have eight branches with 200 colleagues, managing more than 2,400 clients.

Today Marsh India is the largest insurance broker in the country, with 17 branches. We have close to 600 colleagues managing 4,392 clients, which includes 80% of India’s top 500-listed corporations.

YEAR BRANCHES COLLEAGUES CLIENTS

2003 3 35 25

2007 4 86 335

2009 7 142 778

2011 8 200 1,534

2013 7 294 2402

2015 9 429 3,221

2017 12 543 4,092

WHERE ARE WE NOW

2018 15 600 4,392

Yearbook 5

OUR PRACTICES IN 2018EMPLOYEE HEALTH AND BENEFITS

2018 will be known for landmark decisions that affect the way organizations look at their employee benefits plans. The employee benefits landscape has undergone and will continue to undergo significant changes with the individual “employee” being the focal point. Increasingly benefits are used by organizations to establish and sustain a thriving workforce.

A number of legislative changes have focused on benefits for individuals reflecting the employee benefits objectives adopted by organizations. Most human resource practitioners welcomed these changes and embraced them quickly. Here are few major developments that made headlines and should be watched in 2019:

• The Union Budget of India (2017-18) concentrated extensively on health insurance, promoting adequate insurance, adequate access and adequate care. This changes the focus for employers from “ease of doing business” to “ease of living”.

• Amendments to maternity leave in the Maternity Benefit (Amendment) Act 2017 has meant a change in workforce planning strategies, as well as employment contracts, processes, systems and policies to enable new financial and work-from-home entitlements, non-discriminatory appraisal systems, and the development of onsite/near-site crèche facilities for the children of working mothers to be implemented.

• The Mental Healthcare Act 2017, which came into force in May 2018, makes some significant changes including requiring that every insurance company provide medical insurance for mentally ill patients on the same basis as is available for those with physical illnesses. These changes allow employers to consider the structure of their employee benefits programs to include a focus on mental health and well-being.

• The Mental Healthcare Act 2017 now allows for health insurance coverage for genetic disorders and various other previously excluded treatments such as: ayurveda, yoga and naturopathy, unani, siddha, and homoeopathy.

• Amendments to the Rights of Persons with Disabilities Act 2016 and the subsequent notification of the Rights of Persons with Disabilities Rules 2017 are intended to bring Indian legislation in line with the United Nations Convention on the Rights of Persons with Disabilities. The changes provide substantial protections for people with disabilities and employers need to take note of these in order to avoid falling foul of provisions, particularly because “private establishments” must now observe the requirements in respect of their employees. “Private establishments” includes companies, firms, cooperatives or other societies, associations, trusts, agencies, institutions, organizations, unions, factories or such other establishments as may be specified.

• A ruling in relation to section 377 of the Indian Penal Code recognized lesbian, gay, bi-sexual, and transsexual live-in partners as having equal status as married spouses – thereby giving them access to spousal benefits in employee benefits plans.

• In December 2018, the Lok Sabha passed the Surrogacy (Regulation) Bill 2016. The Bill regulates surrogacy services in India, prohibits the potential exploitation of surrogate mothers, and protects the rights of children born through surrogacy. The Bill will become law once it is approved by the Rajya Sabha and receives the consent of the President. Employers need to consider how they will cater for changes arising from the Bill in their employee benefits programs.

WHAT WE DID DIFFERENTLY THIS YEAR

Marsh India’s Employee Health and Benefits team assisted many organizations to adopt the following benefits to offer holistic coverage and place emphasis on how employees can find meaning from their work:

1. Preparing for the Future

Mental well-being: Coverage for inpatient and outpatient treatments related to mental health. Outpatient cover: Coverage for dental, vision, specialist visits, second opinions and diagnostics Various studies have indicated that almost 44% of all inpatient claims could have been avoided with appropriate outpatient care plans. Diversity and inclusion: Most companies have opened up coverage for LGBTQ and live-in partners. In addition, coverage enhancements specific to women, like egg freezing, cervical vaccinations, and maternity leave enhancements are also being adopted.

6 Marsh India

Differently abled children: Coverage to address the following for employees’ children:

• Autism spectrum disorders.

• Cerebral palsy.

• Dyslexia.

• Neuromuscular disorder

• Down syndrome.

Revamp disability benefit: Most group personal accident plans don’t cover adventure sports, trekking and other such activities undertaken as a team building activity or on account of individual interest as they fall under standard exclusions. Marsh worked with various insurers who are now providing coverage to ensure holistic risk management. Similarly, income protection insurance on account of medical disability is also being evaluated for clients. Post-retirement benefits: With some companies seeing 1-2% of their workforce retiring every year, they were looking for solutions to offer post-retirement medical benefits. Marsh India worked with a number of clients who are willing to introduce post-retirement solutions to retiring employees. Parents / elder care: Currently Marsh’s clients see 55% of employees’ claims reported by employees’ parents. Marsh developed comprehensive elder care solutions to assist clients achieve their cost objectives.

Elder care plans, which focus on health maintenance, could be the potential solution to encourage higher participation, reduce anti-selection, and reduce medical inpatient incidences.

2. Commitment to Health and Well-Being

Health risks are changing from communicable to non-communicable, lifestyle-driven risks. As such, health and wellness solutions are undergoing significant change. Most organizations no longer view this area as an engagement platform, but as important providing tools for employees to manage their health risks. Solutions being adopted by organizations are:

• Onsite / offsite health checks.

• Onsite clinic services.

• Critical illnesses.

• Family doctor / telemedicine.

• Condition management programs.

• Pregnancy care programs.

3. Flexibility

Employees’ ability to customize benefits according to their needs will enable a thriving workforce. This year we have seen a number of enquiries from firms looking to actively customize their benefits programs.

• Voluntary benefits: Modular plans that offer better benefits than traditional top-ups, customized retail insurance solutions including health, life, motor, critical illness, parents, gadget, home, and outpatient services, were adopted in 2018.

• Flexible benefits: In 2018, we saw the highest number of organizations adopting flexible benefits as compared to the last five years. Primary objectives were:

‹ To offer more comprehensive suit of benefits without making them part of core benefits.

‹ To respond to employees’ needs to change the cover according to individual life stages.

‹ To manage benefit costs in the mid to long term.

‹ To create awareness about total rewards.

• Focus on millennials: Disruption is stealing the headlines and will impact job design and skills, and further fuel generational divides in specific industries. Millennials form more than one-third of the workforce in most organizations. More and more organizations are looking for benefits to respond to this change in demographics.

4. Future of Work Analytics

In a bid to study consumer behavior trends, health insurance and benefit providers are analyzing a range of data points, including: vendor performance, the impact of wellness solutions, employee feedback, network versus non-network rates, out of pocket expenses, and underlying cost. The main objectives of the analysis are to:

• Keep premiums under control.

• Identify and mitigate health risks.

• Drive provider / vendor performance for a better employee experience.

• Actively steer adoption of the right provider network.

• Determine which aspects around benefit optimization can be achieved.

Our focus in working on all these aspects of our service in 2018 has been to continuously improve upon our services and develop new solutions for our clients on a regular basis.

Yearbook 7

MULTINATIONAL CLIENT SERVICE

In 2018, India’s Multinational Client Service (MCS) worked hard to maximize meaningful interactions with clients, collaborating with them and our global colleagues to achieve results that benefit from both our global and local expertise. Taking this approach, the MCS team built further on the foundation of its initiatives, demonstrating we are one of India’s best risk and insurance providers to multinational clients.

Consistently bettering our client’s experience is what defines us. Our intention is to create strong and sustainable relationships with our clients where we become trusted to advise upon and manage their whole risk portfolio.

WHAT WE DID DIFFERENTLY THIS YEAR

1. Global Colleague Initiatives

A key focus has been accessing our global colleague (GC) network to deliver best-in-class solutions for our MCS clients. This is a two-way process of educating our global colleagues on the needs of our clients and understanding where our global colleagues can add best value to our MCS clients, based on their expertise. This year, we’ve focused on the below initiatives to enhance the service we can provide to clients:

• Our MCS newsletter, India@Risks and Insurance, provides our GCs with updated information about the emerging risks and trends across all lines of insurance in the Indian market. This year we also provided clients with warnings of natural catastrophes and measures to minimize losses. The idea is to help GCs better prepared when dealing with MCS clients.

• The annual GC feedback survey, collects feedback regarding the experience of the GCs with our Indian client executives (CEs). Our CEs have concentrated on having consistent interactions with GCs to improve the quality of information flow and therefore improve our offering to our multinational clients. We have modified the GC feedback survey study to ensure we understand how to get the best out of these interactions in order to use the information to best service our clients.

2. MCS Employee Health and Benefits: Delivering Better Advisory to Multinational Clients

The MCS Employee Health and Benefits Consulting Team was created to ensure we deliver meaningful insights from employee health and benefits data to our MCS clients. This team also has carriage of our Customer Relationship Management initiative, and:

• Helps our client executives prepare insights for clients.

• Delivers benchmarking and portfolio reviews for multinational businesses.

FINPRO AND PEMA

WHAT WE DID DIFFERENTLY THIS YEAR

1. Event Cancellation Insurance Program For The Largest Fantasy Sporting Platform In India

Fantasy sport is a new frontier in India, being recognized as one of the fastest growing genres in the sports industry. Fantasy sport has similar characteristics to broadcasters or sponsors - fast paced digitalization and a large early adopter audience. (For example, India cricket viewership via television is at 824 million and the online cricket fan base is already around the 300 million mark).

The Marsh India Sports and Events team has been a pioneer in this fast-paced, niche segment, placing what is possibly the first insurance policy in the country, to cover the interests of a fantasy sporting platform.

SOLUTIONS...DEFINED, DESIGNED AND DELIVERED.

MARSH INDIAMULTINATIONAL CLIENT SERVICE2017 GLOBAL COLLEAGUES SURVEY

INDIA@RISKS AND INSURANCE

Marsh India MCS Global ColleaguesNewsletter (Volume 10)

YEARS INI N D I A15 September 2018

8 Marsh India

2. Medical Cover for Marathoners in India

In 2018 we arranged the first ever medical insurance offered in India for a marathon event, covering the medical expenses (including hospitalization) of competing runners.

Similar covers are available for leading marathons across the world, however the concept was tested in India in 2018 for the first time for one of the largest marathons in Asia, covering 40,000+ runners.

This was achieved thanks to the collaborative efforts of Marsh India’s Sports and Events and Employee Health and Benefits teams.

3. Pollution Legal Liability

In a major breakthrough, the PEMA team was successful in placing pollution legal liability policies for the metals, waste management, and food and beverage sectors, with exposures from single-site to multiple-sites.

During 2018, the team placed a pollution legal liability policy with a limit upwards of USD20 million for a domestic company. This was a complex placement as the coverage was required for multiple sites across India. Because of Marsh’s global reach, the team was able to generate competitive quotes for the clients from Indian markets as well as re-insurers.

The important factors that allowed the PEMA team to create value for clients were: relevant data gathering, understanding of risks, and expertise with respect to pollution legal liability policy wordings.

PLACEMENT

WHAT WE DID DIFFERENTLY THIS YEAR

2018 saw many ups and downs in the domestic insurance market. As the largest intermediary in the country, Marsh India ensured any adverse impacts of the market rollercoaster were not felt by our clients. In addition to smoothing the way for clients, below are some of the many firsts Marsh India achieved for clients this year:

• Non-Damage business interruption – we successfully structured, negotiated and placed a non-damage business interruption cover for a road infrastructure company to cover one of the largest operational road risks in India. The cover operates for specified perils even if there is no physical damage to the asset due to the occurrence of the peril.

• Largest onshore / offshore energy account in India – we successfully placed the largest reinsurance cover in the onshore and offshore energy sector.

• Reinsurance terms for employee health and benefits – we placed a very significant personal accident insurance program for account holders of one of the largest private sector banks in India. We secured additional capacity from the overseas reinsurance market as the domestic insurance market did not have sufficient capacity to underwrite the entire program. This is a unique arrangement in the employee health and benefits space.

• Facilities for directors and officers (D&O) and commercial general liability (GCL) insurance – Marsh India successfully negotiated pre-agreed premium rates, terms, and coverage for D&O and CGL insurance, up to specified cover limits.

• Association with up-and-coming insurers – Marsh India has always been a frontrunner in developing and cultivating new and up-and-coming smaller private insurance companies by offering them the opportunity to participate in the various insurance programs of its clients.

• New employee health and benefits covers – outpatient services, super top-up, HIV, same sex partner, and lasik cover are some of the new innovations that Marsh has successfully had included into employee health and benefits programs by actively engaging with insurers.

ENERGY AND INFRASTRUCTURE

WHAT WE DID DIFFERENTLY THIS YEAR

1. Energy

In October 2018 Marsh India won the right to place a substantial onshore and offshore risk policy for one of the largest domestic conglomerates. This win has further strengthened the footprint of Marsh as the market leader in the energy sector.

This significant win was a result of teamwork across Marsh offices in India, London, Dubai and Singapore. The Marsh team demonstrated considerable value to the client with respect to program design as

Yearbook 9

well as the successful placement of the onshore and offshore risk program according to the client’s requirement. The key Marsh differentiators which helped to win the account were as follows:

• Comprehensive review of the policy wordings for adequacy and coverage.

• Improvements in cover, based on the clients risk exposure.

• Full placement with the best securities, despite time constraints.

• Pricing efficiencies and optimization of the coverage.

Our efforts were widely appreciated by the client and the local insurers, for whom we completed the reinsurance placement.

2. Infrastructure

• Hosted a renewable energy conference: The topic discussed was “Emerging risks and solutions”. The participants included global risk management consultants, insurers and claims specialists.

• Structured and placed solutions such as solar performance warranty cover and weather parametric covers for operators and manufacturers, primarily from the wind and solar industry.

• Engaged with large clients on risk engineering, highlighting various post-loss remedial measures implemented at sites which incurred major losses in the recent past.

• Placed a cyber liability policy for one of our major clients. This improved the risk transfer mechanism for losses arising out of cyber exposures for the client’s entire group.

• Conducted roundtable discussions on structural defect insurance at Pune and Mumbai. The events were attended by leading developers, architects and consulting engineers as well as investment houses.

3. Marine, Erection-All-risks and terrorism policy in Bangladesh

After almost three years of persistent follow-ups and working with Indian power companies and local Bangladesh-based insurers, Marsh India placed Marine, Erection-All-Risks, and Terrorism policies for a large thermal power plant in Bangladesh. This is one of the largest and most prestigious projects across India and Bangladesh, having a value of around USD1.5 billion.

To deliver the winning proposal we worked diligently and met the contractor team, principal and also the Bangladesh-based insurers. This deal is a testimony to the success that can be achieved with coordination of the practice, sales team and branch office.

TRADE CREDIT AND POLITICAL RISK INSURANCE

Marsh’s team is one of the leading trade credit specialties team in India, offering comprehensive solutions for all four components of the practice – trade credit, political risk, structured finance and sureties. The team registered double digit growth in 2018 and contribute roughly 24% of value of total trade credit insurance business in India (excluding the business of the Export Credit Guarantee Corporation of India). Marsh is the first and only broker in the trade credit and political risk (TCPRI) space to have a dedicated claims desk.

WHAT WE DID DIFFERENTLY THIS YEAR

• We placed two new programs providing seamless and centrally-serviced trade credit insurance policies.

• As a first in India, the Marsh TCPRI team assisted Indian contractors to secure USD120 million worth of sureties to help them with their contracts abroad.

• For the first time in India, an Indian bank’s foreign branch performed insurance-backed lending, guided by our quality consultation.

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CASE STUDIESAFFINITY

Marsh’s Affinity programs are structured to provide organizations and associations with insurance solutions for their valued members, customers and partners. This allows our clients to differentiate themselves from their competitors and creates additional revenue streams for them.

Our Affinity model is based on a deep understanding of clients’ needs and business requirements. With this in mind we prepare and structure custom solutions that cover both existing and emerging risks.

How to add value to a customer who wants to differentiate his offering

Our client manages a domestic rail travel portal providing ticketing, timetable, hotel, and meals information all under one roof. Their service allows customers to plan and make informed travel decisions.

THE PROJECT

The client wanted to add a valuable, relevant and complementary service that would differentiate its offering and increase customer retention.

The client is a part of highly competitive industry. Most of its customers make their travel plans before they book tickets. However, cancellations happen every hour. Any cancellation attracts penalty charges, depending on how close it is from the date of the journey.

THE SOLUTION

Marsh India suggested designing a No Reason Cancellation Cover the client could on-sell to its customers. Any customer booking tickets from the client have the option to buy this additional cover which costs 3-5% of the ticket price. The premium depends upon the time of booking, Passenger Name Record status and reservation class.

Customers are entitled to a full refund if they later cancel their tickets.

This is a part of emerging risk covers for sharing economy clients and their customers and it is an automated program administration using a technology platform and application programming interface (or API) services.

THE RESULTS

This is a recently implemented solution. The client is already seeing increased traffic at its portal and experiencing significant enquiries about the policy.

FINPRO

How we helped our client process an employee fraud claim

THE PROJECT

Our client, one of world’s leading IT companies, entered into a contract with a customer to provide customized solutions for the customer’s telecommunications business.

During the course of providing its professional services, our client noticed that there were some employees of the customer who were involved in fraudulent activities which resulted in unauthorized access to the client’s customer data. The fraudulent activity resulted in the customer being fined by the regulatory authority. In addition, our client was subject to a substantial damages claim.

Yearbook 11

THE SOLUTION

There were three different incidents which had taken place. The insurer was viewing them as three separate claims rather than a single claim. Such an approach would have resulted in three separate deductibles being applied with an almost zero payout being made to our client. The insurer had also brought up issues related to the delayed notification of the claim.

As we saw it, if we could establish and prove a link between all three incidents the insurer would be able to treat all three incidents as a single claim with a single deductible.

THE RESULTS

Marsh demonstrated our experience and expertise in understanding and analyzing the policy wordings to challenge the insurer’s position and establish a link between the three incidents. This ensured the claims were considered as one single claim with a single deductible. This resulted in a maximum payout to the client.

PROPERTY

How a construction firm sufferred a significant loss due to a structural defect

THE SITUATION

Just after handover, a reputable construction firm in India discovered irregularities in a flagship project pertaining to the structure of one of its key buildings; irregularities in the structure amounting to minor strut distortion and torsion effect to some elements.

The fault had occurred when the sub-contracted structural design consultant committed a major error and omission, resulting in a faulty load design calculation.

Upon re-verification of the design load calculations, the construction firm had to commit to quick action to resolve the situation. Since this was a complex structure, rectification wasn’t possible. The building had to be demolished and re-built at a cost of INR 9 crore.

THE CHALLENGE

As there was no physical damage and the client had taken a deliberate decision to re-construct, the insurance policy or Contractors All Risk policy didn’t trigger any claim. Therefore the client sought recovery under the structural design consultant’s Professional Indemnity cover which had been required under the terms of their contract.

THE RESULTS

After a long legal process (close to two years), the claim was approved and the client was compensated INR30 lakhs. (Since it is not financially viable for the structural design consultant to procure a professional indemnity policy covering the entire value of the construction, they had taken our insurance based only upon their part of the contract value – INR 30 lakh. As such, the claim was limited to this project fee.)

The client is now actively engaging with Marsh in order to procure a Structural Defect Insurance cover.

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MAJOR REGULATORY CHANGES IN 2018

1. Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations 2018 - released in January 2018

• Claims consultancy limits increased.

• Risk management services allowed:

‹ Brokers allowed undertaking risk management services and charging fees.

‹ Brokers allowed engaging experts for providing risk management services.

• Removal of mandate requirement for individual and retail business.

2. National Health Protection Scheme - Ayushman Bharat launched

• Launched by the Pradhan Mantri Jan Arogya Yojana in September 2018.

• About 10 million families (50 million people) will get access to Rs5 lakh worth of health insurance free of charge.

• Largest type of scheme in the world.

3. Insurance Regulatory and Development Authority of India (Re-insurance) Regulations 2018 released in December 2018

• Mandatory for cedants to approach foreign reinsurance branches in India and national reinsurers before cross border reinsurers.

• These regulations prescribe an order of preference, whereby the request for quotation will necessarily be required to be shown to Indian reinsurers and at least four foreign reinsurance branches in India.

• Further, these regulations prohibit the permission of seeking terms from any Indian Insurer not approved by the IRDAI to transact reinsurance business.

• Insurance Regulatory and Development Authority of India

‹ Shri Subhash Chandra Khuntia – Chairman

‹ Shri Sujay Banarji – Member, Distribution.

‹ Smt Alamelu T, Lakshamanachari - Member, Non-life

• Public Sector Insurers

‹ Shri Atul Sahai – Chairman-cum-Managing Director, The New India Assurance Co. Ltd

‹ Shri Girish Radhakrishnan – Chairman-cum-Managing Director, United India Insurance Co. Ltd

‹ Smt Tajinder Mukherjee – Chairman-cum-Managing Director, National Insurance Co. Ltd

KEY APPOINTMENTS IN 2018

Yearbook 13

BOLLYWOOD MOVIES: AN INSURANCE PERSPECTIVEWith the controversy surrounding a recent Hindi movie it is a good time to review how film or entertainment insurance policies have developed in India.

On the wake of different controversies surrounding recent films with historical references, production houses are now aware that films can be impacted not just in the pre-production and production phases, but also even after it has been released.

Like the recent events, it is not rare in India for a movie, particularly with a historical context, to be banned in multiple states even before the Central Board of Film Certification certified the film. For such films, mob attacks and disruption in production stage causing a delay in the release of the film, is not uncommon either.

Luckily, there are insurance policies which are often used and come in handy in such cases.

Now let us look at how, an insurance cover can be beneficial for such mega projects.

INCEPTION

Bollywood started taking insurance seriously from the late 1990s. Since then, insurance has become an indispensable part of films in Bollywood. For the initial 8-10 years, filmmaking was treated as project insurance, where the cover ceased on completion. However, in 2009, after an outbreak of Swine Flu, authorities in Maharashtra ordered a shutdown of public places like schools and theatres. This badly affected the collections a couple of high profile movie releases that took place at the

time. This episode prompted the introduction of the ‘distributor’s loss of profit’ cover.

CURRENT HISTORY

At present, nearly 70% of the films produced in Bollywood are covered under insurance where as big-budget films from South India are also looking for insurance covers. For regional movies, insurance adoption or penetration is presently at around 25%.

Currently, there are two broad types of covers associated with filmmaking in India, namely Film Production Package Insurance and Distributor’s Loss of Revenue (DLOR) Insurance Policy. Sum insured for both the policy varies with the premium paid.

WHAT WE PUBLISHED: INSIGHT REPORTS

14 Marsh India

According to Marsh India analysis, the film insurance market in India is now at INR 300 million, in terms of premium collection, and the market is growing at 25-30% annually. With the advent of the “100 crore club” or movies where gross collection exceed INR 1 billion, a film producers are now opting for production policy with coverage of INR 700 million to INR 1 billion and DLOR policy of over INR 1 billion. Typically, premiums for both policies range between INR 2.5 million – INR 3.0 million for a INR 1 billion coverage.

HOW IT WORKS

Firstly, the Film Production Package Insurance comes into effect in the pre-production and production stages. The policy covers any damages to the sets and its equipment. The policy also covers any losses if production of the film or shoot is affected due to other perils like adverse weather conditions or act of god incidents like earthquakes and tsunamis. Additionally, some other potential risks like injury/critical illness to the lead artistes leading to disruption or delay in shooting are also covered by various insurers.

Reference data:

Films released in 2017:

Hindi: 364*

Regional: 1622*

*Source: Film Federation of India

Types of covers:

• Film Production Package Insurance.

• Distributor’s Loss of revenue insurance policy.

Average sum insured:

• INR 700 million to INR 1 billion for Film Production Package Insurance.

• INR 1 billion and above for Distributor’s Loss of Revenue Insurance Policy.

Premium rate: INR 2.5-3.0 million for INR 1 billion coverage.

Indian market: INR 300 million, in terms of premium

Subsequently, Distributor’s Loss of Revenue Insurance Policy comes into effect once the movie is released. Once a film is completed, the distribution and satellite rights are sold to Film Distributors (India & Overseas), including Satellite TV and online streaming right holders. Through this policy distributors safeguard their projected income. Some risks that the policy addresses include the impact on the post-release revenues due to factors like opposition from some political/social groups, calls for boycotts/strikes and violent protests and riots, acts of God such as floods or earthquakes. However, loss of revenue due to bans by state governments are, in general, excluded under the policy terms. However, bans by any other groups, organizations come under insured risk.

DLOR is offered by insurers covering these risks. The cover commences before the release of the movie until 60 to 90 days after.

Yearbook 15

BANKERS’ INDEMNITY INSURANCE: IGNORE IT AT YOUR PERILOver the last few months, the Indian financial space, particularly the banking sector witnessed a slew of fraudulent incidents. In most of the cases the resulting losses are significant enough to leave a gaping hole on the balance sheet of these financial behemoths.

In the last five years (from April 2013 to March 2018), over 23,000 fraud cases were reported by various Indian banks, involving a 1 whopping INR 1 trillion, a recent report by Times of India quoting the Reserve Bank of India data said.

According to data collated by the RBI, of the 23,000 cases, 5,152 incidents of fraud, amounting to INR 284.59 billion were reported in the last financial year (2017-18) alone. It is fair to assume that a huge number of these incidents involved employees of the banks.

Whether these incidents were preventable is a matter of debate. What is certain however, is that the amount of money involved in these

cases could have been significantly lower had the banks taken adequate insurance cover.

THE COVER

Almost all banks in India buy a Bankers Indemnity Insurance policy issued by locally licensed general insurance companies. The policies cover losses incurred for theft occurring within the insured's premises, in transit, if there is forgery or alteration, criminal dishonesty, if goods are hypothecated, infidelity or criminal acts by appraisers, among other things.

Most insurers provide insurance on all of these basic factors, with each offering different incentives and/or additional cover. For example, one general insurer allows banks to cover losses relating to automated teller machines, expenses for loss minimisation, earthquake, fire or terrorism, as additions to the policy cover.

Bankers indemnity insurance policy covers losses incurred in the event of:

• Theft occurring within the insured's premises.

• Theft occurring in transit.

• Forgery or alteration.

• Criminal dishonesty.

• If goods are hypothecated.

• Infidelity or criminal acts by appraisers and others

16 Marsh India

THE RISK

According to Marsh research, fraud or crime accounts for 85-90% of the big losses in the operational risk for Indian banks. Globally, also, it remains the biggest threat to banks.

Despite this clear threat, liability insurance limits purchased by Indian banks are low. Most Indian banks are buying liability insurance for amounts as low as INR 2 crores up to INR 25 crores – which also results in low premiums and deductibles. Out of the total insurance spend of a bank, these liability insurance accounts for 5 -10%.

Similar-sized banks globally usually have a crime insurance cover of $100-500 million. Deductibles in these global insurance programmes are around INR 50 million which is the same amount as the insurance cover purchased locally by most banks. This means the Indian banking system has yet to recognize the need for such a cover to the same extent as its foreign counterparts.

On the flipside, many of the claims we have seen made by Indian banks in last 18 months easily exceed these thresholds. And where forgery and/or alteration and/or fraud is committed with internal and external connivance, the claims values are substantially larger.

Based on the size of operations of Indian banks, and the loss implications of these risks, it is fair to say that current liability limits purchased by them are inadequate.

Risks for Indian Banks:

• Fraud/crime accounts 85-90% of the big losses in banks’ operational risk.

• Only 5-10% of total insurance spend accounts for operational risk

• Limits purchased are grossly significantly lower than losses they are aimed to cover.

• Recent claims easily exceeded the limits purchased.

THE WAY FORWARD

Recent incidents of fraud have not only triggered a need to revisit the insurance limits purchased, but also deductibles or self-insured retention levels. Taking a higher deductible signifies a bank's

confidence in its own controls and risk appetite against its balance sheet. It allows it to garner higher limits from insurance markets, making the risk transfer through insurance more efficient.

Banks should explore the ways of spreading the coverage by purchasing a combination of crime, cyber and professional indemnity insurance. This would minimize gaps in cover and better ensure a positive claims response. Cyber is relevant because many claims today are a combination of internal and external incidents, including fraud committed through digital means. Higher limits help protect against catastrophic risk events like recent high-value fraud, and a comprehensive risk cover ensures that operational risks like crime and cyber fraud as well customers' claims are covered, whether caused by banks' negligence or external fraud.

COVERING YOURSELF

• Increase the limits of insurance purchased.

• Improve the scope of the cover by purchasing crime, cyber and professional indemnity insurance covers.

• Go for higher deductibles and comprehensive risk covers.

Yearbook 17

TIME TO BE FLEXIBLE WITH BENEFITSThe Employee Health and Benefits landscape is undergoing rapid change due to a confluence of factors including diverse demographics, increasing healthcare costs, and shifts in behaviors towards work and lifestyle.

One of the biggest challenges faced by corporates today is how to create a balance between spend on benefits and creating real value for employees. A competitive benefits package is becoming a negotiating tool for attracting and retaining the right talent.

As a result, it is increasingly important for employers to think creatively and offer flexibility to their employees. This allows employers to adapt to the demands of a rapidly changing and dynamic workforce and provide relevant and innovative benefits to their employees.

JOURNEY TOWARDS ‘EMPLOYER OF CHOICE’

There are two widely followed employee benefits programs with differing features: Traditional benefits packages and flexible benefit packages.

Traditional benefits packages:

• Defined benefit approach.

• Employer chooses the benefits.

• Employer absorbs the cost. No co-sharing of costs.

• Employer absorbs future cost increases.

• Employee undervalues cost of benefits.

• Same benefits for all employees.

Increasingly these types of packages are less appreciated by younger employees who want to opt for alternate benefits to suit their lifestyles and needs.

Flexible benefit packages:

• Defined contribution approach.

• Employees decide on benefits.

• Cost shared by employees. Co-sharing of costs is available.

• Employees co-share future cost increases.

• Employees choose benefits suiting their individual needs.

A flexible benefits package allows employers to expand the benefits offering and introduce new products, without actually bearing additional cost.

HOW CAN YOUR ORGANISATION MAKE A FLEXIBLE PACKAGE WORK?

• Design a benefits plan that resonates with business objectives and employees’ needs, based on a comprehensive data analysis.

• Ensure effective and timely delivery of benefits, by deploying easy to use technology.

• Implement targeted branding and communications to effectively communicate the program.

Marsh India implemented the first flexible benefits package for a client in 2009. We currently manage multiple clients who use such packages, covering more than 20,000 employees.

18 Marsh India

D&O LIABILITY: A RISK WORTH COVERING FOR SENIOR CORPORATE OFFICERSThe duties, obligations, and personal liability of the independent directors as gate keepers of the companies have been rising significantly under the new Companies Act. This has also aggravated further with the heightened activities of the banks pursuing resolution of non-performing assets (NPAs) under the new Insolvency and Bankruptcy Code, 2016 or public spat amongst high profile directors.

In the present circumstances, many independent directors are finding their jobs extremely onerous under heightened regulatory scrutiny and increased liability. Adequate protection under a proper D&O policy will help them perform their duties effectively.

Considering these, the recent directive by the Securities and Exchange Board of India (SEBI) mandating D&O policy for independent directors for Top 500 listed companies is an important step in this direction.

“With effect from October 1, 2018, the top 500 listed entities by market capitalization calculated as on March 31 of the preceding financial year, shall undertake Directors and Officers insurance (‘D and O insurance’) for all their independent directors of such quantum and for such risks as may be determined by its board of directors,” the SEBI directive said.

ORIGIN AND ISSUE

D&O Insurance has been in India for over 15 years and is now prevalent amongst most listed firms and some of the mid-sized firms, baked by private investors. But comprehensive coverage and adequacy of limits remains an issue for the Indian market. Most of the cases, such covers are bought from a procurement approach rather than risk-based approach in assessing the exposure for the management.

It must be noted that SEBI has insisted only on the purchase of a

D&O Policy and it has left it to the board to decide on the quantum of coverage and limits purchased.

If corporates are not buying adequate limits then independent directors will remain exposed to such risks and may need to buy additional individual D&O polices which are not prohibited by the regulator in India. Internationally, many companies do provide for separate dedicated limits for Independent directors via Side A policies. This is to ensure the company doesn’t utilise all the limits when an event takes place, leaving nothing to protect directors and officers.

WHAT IS D&O POLICY

D&O liability insurance helps corporate directors and officers to discharge their duties with confidence and protects in the event of any personal litigation – often in addition to the company being sued – by investors, employees, regulators, or competitors, among other parties.

Yearbook 19

Such an insurance policy covers any liability arising out of breach of duty, mis-statements, errors and omissions, civil fines, and penalties. Any kind of criminal act (if proven) and criminal fines and penalties are excluded under the policy as the purpose of this policy is not to encourage wrongful behaviour.

COVERAGE

Any liability arising out of:

• Breach of duty

• Mis-statements

• Errors and omissions

• Civil fines and penalties

EXCLUSION

• Criminal fines and penalties

PRESENT CONTEXT

In the last few months, we have already seen the banking sector demanding higher limits while purchasing or renewing their D&O policies. At Marsh we have seen Indian banks, including public sector lenders, looking to raise the limits under their existing D&O insurance policy by up to 50% since early 2018.

This higher demand can be attributed mainly to the recent challenges faced by the Indian banking sector, which has led banks to re-think on their D&O purchased limits and coverage. Secondly, the recent SEBI directive has also been a factor behind higher demand for such covers.

For the corporate sector, we have already seen demand for such polices rising by around 15-20% over last year, and we expect the growth to continue given the regulator’s insistence to buy such covers.

According to Marsh India’s internal estimates, in many cases, the limits purchased by banks and corporates were inadequate. In light of recent regulations, they would be used up quickly just to defend allegations made, thereby effectively leaving nothing for civil damages awarded.

• The size of Insurance coverage and policy limits in the Indian banking sector varies significantly between the private sector and public sector in general.

• The private sector banks, especially those that are listed overseas, tend to buy sizeable limits compared to public sector banks.

• Some of the public sector banks have coverage less than INR 10 crores.

• The covers taken by Indian banks are below median levels compared to their global peers and even other Asian countries, who tend to buy 2-3 times higher limits.

15-20% increase in uptake due to recent SEBI directive and incidents of bank issues

• PSU banks also opting for higher limits

• Banks see a 50-100% rise in limits in 2018-19

CANNOT BE IGNORED ANYMORE

Sanjay Kedia, Country Head and CEO of Marsh India, advises, “The risk of exposure to civil wrongdoing, fraud and class action lawsuits or global regulations like FCPA and UK Bribery Act or whistle-blower situations or simply financial misstatements, make it imperative for Indian companies to buy D&O covers in line with what their peers buy internationally. The experience of a banking sector is an early warning for other sectors to tighten

their internal controls and review their management’s exposure before they are in the middle of the storm.”

It is very common for clients to buy a D&O policy through a professional broker as this is a highly specialised field where brokers have worked out bespoke solutions for clients along with cost, coverage, and limits optimization.

D&O insurance is set for significant changes with covers for newer risks. Companies need to understand the need for adequate and comprehensive coverage, and act accordingly.

Once a director retires, the D&O policy doesn’t offer life time coverage which leaves them high and dry without any recourse to corporate resources. So there is a need to insure such risks

In India, the size of domestic D&O coverage varies significantly from one firm to another. Outside of listed entities, we find many corporates don’t have meaningful limits and comprehensive coverage. There is a clear need to apprise board and independent directors whilst evaluating D&O exposure backed by risk based analytics and benchmarking of near peers.

CHALLENGES:

• Inadequate coverage

• Lower limits

• Lack comprehensive coverage outside listed entities

• Procurement based approach followed while accessing D&O exposure

• Risk based analytics not considered while assessing D&O exposure

• No coverage for retired directors.

20 Marsh India

D&O AND CYBER

Cyber claims come in many different guises. In addition to ensuring adequate cyber cover is in place, directors may also look to their D&O insurance programme to respond to any investigation or claim against them personally in the event of a cyber event.

A typical D&O policy covers individual directors for all acts, errors and omissions arising from their conduct as directors, which could include matters relating to a cyber incident.

Companies should consider whether there is cover under the D&O policy in the following areas:

• Investigation costs – regulatory investigations arising out of a cyber incident, and at full policy limits.

• Insured individuals – all persons who are involved in significant cyber-related decisions and implementation on behalf of the company.

• Investigation of cyber circumstances – costs incurred investigating any circumstance resulting from a cyber event where litigation is anticipated.

• Allocation – clear demarcation between the entity and the individual. As the D&O policy is for the benefit of the individuals, consider how joint costs will be allocated between the cyber and D&O policies. The loss attributable to the directors should be allocated appropriately.

• Shareholder actions – shareholder actions against the company which arise as a result of a cyber-related incident (e.g. following a stock drop).

• Reputational damage costs for directors – costs of mitigating any reputational injury resulting from a cyber incident.

Yearbook 21

GDPR FINES AND PENALTIES: INSURABILITY WILL VARY BY LOCATION, POLICY, AND LAWThree months after enactment of the EU General Data Protection Regulation (GDPR), a primary question for many organizations is how the costs of compliance and non-compliance will interplay with their insurance policies. Fines and penalties are top of mind due to their potential size, variance according to local law, and the issue’s resonance with key stakeholders.

Insureds are asking: “Will my insurance policy respond in the event we are faced with a fine or penalty?” Marsh’s view is that currently the answer is more grey than a black or white certainty in most markets.

Key factors in answering the insurability question will likely include:

• Specifics of insurance contracts: Which policies might provide coverage? Do they expressly provide or preclude coverage? Choice of law provision in the policy.

• Decisions by courts in relevant jurisdictions, once the issue enters the legal system.

• Nature of the fine or penalty – civil or criminal – and how egregious the non-compliance.

Any consideration of insurability must begin with the insurance contract as the foundation for coverage and recovery outcomes. Organizations should work with their advisors to understand how their policies might respond and, where possible, seek to add policy wording that provides the best chance at recovery in the event of GDPR non-compliance.

4 • GDPR Fines and Penalties: Insurability will Vary by Location, Policy Details, and More

GDPR Considerations in the United States and Canada

Coverage: The Evolution of US and Canadian Markets

In the US and Canadian insurance markets, most “off-the-shelf”

cyber policies provide some form of GDPR coverage where a cyber

incident is the trigger, namely with respect to breach response

costs, such as forensics and personal notifications. Standard cyber

policies also likely provide coverage for related defense costs

resulting from a regulatory action commenced by an EU Member

State Data Protection Authority.

However, until recently, the intent of most cyber policies written

in the US and Canada was to not provide coverage for fines and

penalties pertaining to organizational privacy practices and

compliance where a cyber incident was not necessarily the trigger.

Identifying this potential gap, Marsh has worked with major US and

Canadian insurance markets to secure broad coverage for GDPR

fines and penalties for multiple clients, where lawfully insurable.

At this writing, at least six major US primary markets — collectively

comprising a significant share of the US cyber insurance

market — and five major Canadian primary markets have either

agreed to provide this coverage by amending their policy language,

or confirmed the intent of existing language to include GDPR fines

and penalties.

With a regulatory exposure as comprehensive and unpredictable as

the GDPR, insurers in the US and Canada vary considerably in how

and to whom they will provide this coverage. Some carriers provide

coverage for GDPR fines only on a case-by-case basis; others do so

more broadly. Similarly, some require interested insureds to fill out

additional underwriting questions or provide other supplementary

information. The scope of coverage also varies, and negotiations

regarding additional exclusion waivers or policy rewording may be

required to ensure the policy responds as intended.

0

0

March 2017

1

0 3

2

September 2018March 2018November 2017June 2017

6

9

6

Number of US insurance markets providing broad coverage for insurable GDPR fines and penalties

US primary markets US excess markets14

As of September 2018, US markets that are providing coverage for GDPR fines and penalties by amending their policy language, or confirming their intent to include GDPR fines and penalties within their existing policy language.

SOURCE: MARSH ANALYSIS

22 Marsh India

STRUCTURAL DEFECT INSURANCE: A NECESSITY FOR CONSTRUCTION BUSINESSA reputable construction firm in India discovered irregularities in a flagship project pertaining to the structure of one of its key buildings just after handover.

The fault occurred when the sub-contracted structural design consultant committed a major error and omission resulting in a faulty load design calculation.

Since this was a complex structure, rectification wasn’t possible. The building had to be demolished and re-built at a cost of INR 9 crore.

As there was no physical damage and the client had taken a deliberate decision to re-construction, the present policy or Contractors All Risk Policy didn’t trigger any claim.

The client sought sanctum under the Professional Indemnity covers of the

WHAT IS STRUCTURAL DEFECT?

Structural defect is a major risk which might derail construction firms’ growth and aspirations.

The Real Estate Regulatory Authority Act, or RERA Act, which came into force from May 2017, seeks to protect home-buyers as well as help boost investment in real estate.

RERA Act enforces a strict form of construction liability under civil law known as structural defect liability, making a construction firm liable for post construction defects, also known as inherent or latent defects.

Structural defects include any damage inherent to the building which may be physical in nature or otherwise, and that go undiscovered at the time of handover.

Structural Design consultant that were required under the terms of their contract.

After a long-drawn (close to two years) legal process, the claim was approved and the client was compensated INR 30 lakhs– grossly inadequate when compared against the overall claim of INR 9 crore.

Since it is not financially viable for the consultant to procure a professional indemnity policy covering the entire value of the construction, they had taken it based on their contract value - INR 30 lakhs. Hence the claim was limited to this project fee.

Could the builder have been better insured? The answer lies in “Structural Defect Insurance.”

Yearbook 23

This includes faults, breakage, or cracks, appearing over time in elements such as load-bearing columns, walls, slabs, beams etc., which can affect the strength and stability of the building, including the following:

• Defects due to design flaws.

• Defects due to faulty or bad workmanship.

• Defects due to materials used.

• Major cracks in masonry work.

• Any defect found to have resulted from negligence, use of inferior materials, or non-adherence to regulatory codes

THE RISK

Structural Defect Liability is a clause under the RERA Act which mandates:

• The promoter is liable for structural defects for five years from the date of handover of a residential project.

• The Developer is required to rectify any structural defect, defects in workmanship, quality, or provision of services, or any other obligations as per the sale agreement brought to the notice of the promoter within five years.

A recent amendment in the Maharashtra Regional and Town Planning Act, 1966, mandates that the key stakeholders of a construction project will be held liable for structural defects in a building (commercial or residential) discovered within a period of 10 years from the date of handover1.

As per the amendment, stakeholders in a construction project include:

• The builder.

• Architect/ License surveyor.

• Structural Engineer.

• Site Supervision/Site Engineer.

• Construction Company including contractor, sub-contractor.

• Consultants appointed for various activities involved in the construction work.

Further, government sources have been quoted to be saying that the insurance papers requiring this liability to be transferred properly to an insurer would be needed in order for them to process the OC for any building.

HOW INSURANCE HELPS

To cover the liability of the stakeholders in construction, covers known as Structural Defect Insurance or Inherent Defects Insurance are available.

The scope of such covers may include any inherent defect, inferior workmanship, or defective materials that may appear in the building structure within the tenure of the policy. Such defects which were undiscovered at the time of completion of the project must be covered by the insurer by way of considering the cost to strengthen the structure and restoring to an original or acceptable state.

Main features of the policy:

• The policy period can be extended by up to 10 years.

• This is a first party cover and hence proof of legal liability is not required, eliminating the lengthy legal process which normally causes delays in other comparable policy settlements.

• The policy is freely assignable to future tenants or purchasers, facilitating the formalization of a sale or tenancy agreement.

• The potential risk of insolvency can be mitigated.

• The property sale is enhanced with a valuable guarantee, offering buyers added confidence.

• The developer is better able to command a premium on the selling price by virtue of the warranty they can offer.

1http://apnarera.com/engineers-and-architects-responsible-for-buildings-structural-flaws-in-maharashtra

http://www.freepressjournal.in/mumbai/mumbai-bmc-issues-notification-holding-builders-architects-responsible-for-any-structural-flaws-found-after-oc/1244960

24 Marsh India

Striking a balance between containing benefits costs and enhancing benefits coverage continues to be a top priority for employers, as they navigate a competitive talent marketplace.

By adding a voluntary benefits component to their overall benefits strategies, employers are finding it is possible to offer their employees a complete benefits package.

The voluntary benefits space is growing in importance and it offers something for both employers and employees.

For employers, it’s an easy way to enhance the company’s benefits program without adding to their costs or unduly stretching their administrative burden.

For employees, their workplace is acknowledging its diversity and multi-generational make-up and giving them the flexibility to tailor their benefits to match their needs.

KEY MARKET DRIVERS FOR VOLUNTARY PLANS

• A saturated group benefits market.

• Employers are looking to control company healthcare costs.

• Employers want to stay competitive with peers who offer similar benefits.

• These polices can be carried over by employees to their new jobs which makes them attractive to insurers.

KEY IMPACTS OF VOLUNTARY EMPLOYEE BENEFIT PROGRAM

Cost of insurance benefits

Double digit medical inflation coupled with a focus on profitability and utilization of benefits programs has forced companies to look for other employee benefits options

rather than just opting for low-cost schemes.

Adequacy of benefit plans

When it comes to current employee benefits programs, employees in India probably incur highest out of pocket expense compared to other markets. Wellness and financial risk covers are also inadequate.

Voluntary employee benefits programs offer platforms to add enhanced benefits which would otherwise have to be built into a core plan. This solution minimizes cost increases. Voluntary employee benefits programs allow employees to buy additional coverage. Enhancements that can be offered on a voluntary basis include:

Higher medical, life, travel and/or accident coverage for employees and dependents.

• Opting for plans to cover various out of pocket expenses like out-patient services.

VOLUNTARY BENEFITS

Yearbook 25

• Buying plans to cover other risks like auto and/or home.

Talent strategy

As employees become more aware of benefits, a voluntary employee benefits program has become an important part of attraction and retention strategies for Human Resource functions.

Voluntary programs offering choice of benefits that address the changing workforce needs, assist employers to become employers of choice. In this way voluntary employee benefits programs address three important employer objectives: market competitiveness, changing lifestyles and wellbeing, and access to medical advancements.

What is Voluntary Insurance?

Voluntary employee benefits programs are a suite of benefits offered to your employees to help them cover unexpected expenses without needing to tap into emergency funds or retirement savings.

These programs provide extra benefits that employees opt to take up at their own cost. Employee benefits programs

are a great way for employees to manage:

• Save tax.

• Get access to competitive insurance products.

• Health insurance and Term insurance.

• Domestic and international travel insurance.

• Critical illness insurance and Super top-up insurance.

• Portability insurance.

• Motor insurance.

• Personal accident insurance.

Main Features:

• No minimum enrollment.

• 100 percent employee paid.

• Products can be launched within five days.

• Financially strong insurers recognized for service delivery and timely claim pay-out.

• Convenient and seamless.

For Employees:

• Voluntary participation.

• Hassel-free services.

• Competitive rates / coverage.

• Tax advantages in some cases.

• Convenient payment options.

• Little or no paperwork.

• Choice to meet individual needs.

For Employers:

• Enhanced coverage without additional cost.

• Improved perceived value of benefits.

• Employees become responsible for choosing the right set of benefits for them.

• No administration burden to manage enrolment process.

TABLE 1 - VALUE OF VOLUNTARY BENEFIT PROGRAM

• Attract and retain talent (68%).

• Meet employee needs (60%).

• Enhance benefits (44%).

• Help derive greater value for benefit spend (43%).

• Helps in maintaining benefit cost increase (40%).

TABLE 2 - MARSH INDIA’S 8TH ANNUAL EH&B SURVEY – EMPLOYER PERSPECTIVE – SET OUT FIVE KEY DRIVERS FOR PROVIDING BENEFITS PROGRAMS WITH CHOICE:

26 Marsh India

VIEW FROM RISK STREETThis section of the Yearbook highlights the most talked about risk trends of 2018 and how they impacted policyholders and insurers.

GLOBAL RISKS REPORT 2019

Rising geopolitical and geo-economic tensions are the most urgent risks of 2019, along with the risk of extreme weather events which continues to be the single most prominent risk globally, according the World Economic Forum’s Global Risks Report 2019.

Due to the geopolitical tension the report indicates that the world’s ability to foster collective action in the face of urgent major crises has reached a crisis level, with worsening international relations hindering action across a growing array of serious challenges.

Massive incidents of data fraud and large-scale cyber-attacks have been flagged among the biggest risks in terms of likelihood, while increasing polarisation of societies and growing wealth disparity has been listed as among the key concerns by the latest edition of the report, which was published last month.

The Global Risks Report 2019, which incorporates the results of an annual global risks perception survey of approximately 1,000 experts and decision-makers, points to a deterioration in economic and geopolitical conditions, with 90% of experts saying they expect further economic confrontation between major powers in 2019.

In the survey’s 10-year outlook, cyber risks sustained the jump in prominence they registered in 2018, but environmental risks continue to dominate respondents’ concerns beyond the short term. All five of the environmental risks the report tracks are again in the high-impact, high-likelihood category:

• biodiversity loss.

• extreme weather events.

• failure of climate-change mitigation and adaptation.

• man-made disasters.

• natural disasters.

The report is released in January every year, shares the perspectives of global experts and decision-makers on the most significant risks that face the world. It cautions that we are struggling to keep up with the accelerating pace of change. It highlights numerous areas where we are pushing systems to the

brink, from extinction-level rates of biodiversity loss to mounting concerns about the possibility of new wars.

John Drzik, President of Global Risk and Digital, Marsh, said: “Persistent underfunding of critical infrastructure worldwide is hampering economic progress, leaving businesses and communities more vulnerable both to cyberattacks and natural catastrophes, and failing to make the most of technological innovation. Allocating resources to infrastructure investment, in part through new incentives for public-private partnerships, are vital for building and strengthening the physical foundations and digital networks that will enable societies to grow and thrive.”

The Global Risks Report 2019 focuses explicitly on this human side of global risks, looking in particular at the role played by complex global transformations that are under way: societal, technological and work-related. A common theme is that psychological stress relates to a feeling of lack of control in the face of uncertainty

Lastly, this year’s report revives the Future Shocks series, which recognizes that the growing complexity and interconnectedness of global systems can lead to feedback loops, threshold effects and cascading disruptions. These “what if” scenarios are food for thought as world leaders assess potential shocks that might rapidly and radically disrupt the world. This year’s sudden and dramatic breakdowns include vignettes on the use of weather manipulation to stoke geopolitical tensions, quantum and affective computing, and space debris.

In partnership with Marsh & McLennan Companies and Zurich Insurance Group

The Global Risks Report 201914th Edition

Insight Report

Yearbook 27

CYBER ATTACK AND DATA FRAUD: MARSH-RIMS STUDY REVEALS TOP RISKS FOR INDIAN COMPANIES

Indian companies trying to embrace the giant wave of digitization have voted large scale cyber attacks and massive incidents of data fraud or theft as the top risks to their businesses (88% and 85% respectively), according to a report by Marsh and The Risk Management Society (RIMS™). India’s growing dependency on data and digitization has increased the risk of cyber attacks, the report adds.

The devil is in the detail. In May, the Indian Computer Emergency Response Team (CERT-In) found

that over 22,000 Indian websites, including 114 government portals, had been hacked between April 2017 and January 2018. Furthermore, as reported in The Tribune, high profile data theft incidents such as the breach on Aadhaar, India’s national database, have risk professionals in India questioning whether businesses and the government are adequately prepared to handle cyber attacks and data breaches.

The Marsh-RIMS report, Excellence in Risk Management – State of Risk Management in India, was based on responses from 123 C-suite executives and senior risk professionals from companies spanning 19 industries to an online survey conducted by Marsh and RIMS in September 2018. The survey findings were supplemented

with expert input from Marsh & McLennan Companies (MMC) and RIMS.

Extreme weather events (84%), severe energy price shock (81%), and failure in major financial institutions (81%) complete the list of the top five risk concerns of Indian corporates according to the report.

“India faces an increasingly diverse and rapidly evolving risk landscape. The interconnected dynamics of geopolitics, technological advances, global economic integration, social instability, and climate change mean that the manifestation of one risk is increasingly likely to influence others,” Sanjay Kedia, Country Head and CEO of Marsh India said.

T P RISKS5BY LIKELIHOOD

1. Extreme weather events (e.g. floods, storms).

2. Failure of climate-change mitigation and adaptation.

3. Major natural disasters (e.g. earthquake, tsunami, volcanic eruption, geomagnetic storms).

4. Massive incident of data fraud/theft.

5. Large-scale cyberattacks.

BY IMPACT

1. Weapons of mass destruction.

2. Failure of climate-change mitigation and adaptation.

3. Extreme weather events (e.g. floods, storms).

4. Water crises.

5. Major natural disasters (e.g. earthquake, tsunami, volcanic eruption, geomagnetic storms).

INTERCONNECTIONS

1. Extreme weather events AND failure of climate-change mitigation and adaptation.

2. Large-scale cyberattacks AND breakdown of critical information infrastructure and networks.

3. High structural unemployment or underemployment AND adverse consequences of technological advances.

4. High structural unemployment or underemployment AND profound social instability.

5. Massive incident of data fraud/theft AND large-scale cyberattacks.

TRENDS

1. Changing climate.

2. Rising cyber dependency.

3. Increasing polarization of societies.

4. Rising income and wealth disparity.

5. Increasing national sentiment.

28 Marsh India

BUSINESS CRITICAL RISKS

The study revealed an increased focus on emerging digital and environmental risks. The critical

risk areas faced by organizations were classified into three categories:

• Contemporary Risks Risks which are already of significant concern to organizations. The biggest risks in this category include:

‹ Severe energy price shock.

‹ Extreme weather events.

• Imminent Risks Risks which are likely to be of significant concern to organizations in the next one to three years. The biggest risks in this category include:

‹ Asset bubble risks.

‹ Failure of regional or global governance.

‹ Large-scale cyber-attacks and data frauds.

• Risks on the Horizon Risks which are likely to be of significant concern for organizations in more than three years. The biggest risks in this category include:

‹ Social stability.

‹ Infectious diseases and water crisis.

These are just a few of the many emerging risks that will affect the business environment in India. The interaction of longstanding and emerging risks is creating even

more unique and unpredictable challenges. Indian organizations, and especially their risk functions, need to be prepared to face such issues. Organizations need to be more proactive in keeping up to date about emerging risks. They can do this through greater interactions with their brokers and by participating at events and forums where risk management knowledge and best practices are shared.

(Source: Marsh RIMS Excellence in Risk Management – State of Risk Management in India, 2018)

88%

80%

85%

76%

84%

76%

81%

72%

81%

72%

Large-scale

cyberattacks

Fiscal crises in

key economies

Massive

incident of data

fraud/theft

Water crises

Extreme

weather events

Shortfall of critical

infrastructure

Severe energy

price shock

Failure of urban

planning

Failure of a

major financial

mechanism or

institution

Failure of national

governance

1

6

2

7

3

8

4

9

5

10

Yearbook 29

MARSH CARESMarsh believes in making an impact that matters and every May we participate with a lot of enthusiasm in Marsh &McLennan Companies’ (MMC) Global Volunteer month and work towards a cause we believe in. In 2018 we shortlisted initiatives well in advance, focusing on contributions that would leave a lasting impact, and garnered the support of as many colleagues as possible to ensure high participation rates across all our office locations

MUMBAI

Marsh Mumbai colleagues visited Model Farm and Training Center run by Yuva Parivartan, a non-profit organization situated 84 km from Mumbai at Wada, Maharashtra. The Center runs an Integrated Rural Development Program in Palghar and Gadcharoli districts of Maharashtra which helps increase the income of small, marginalized and landless farmers by adopting best practices in the areas of water management, agriculture, livestock and much more.

Marsh volunteers helped farmers make some of the products they sell.

• Making sapling bags: Colleagues prepared sapling bags for the farmers.

• Plastic bottle recycling: Colleagues helpedcut plastic bottles into pre-defined shapes for use as aquarium and hanging flower pots. The aquariums are used to breed fish and pots are used for planting climbers.

• Crop insurance session: The farmers were also part of a session conducted by Marsh Mumbai

colleagues who introduced them to the concept of agriculture and crop insurance by educating them on types of crop insurances available and different initiatives taken by the government to mitigate farmers’ losses.

• Donations: Colleagues also donated various items for farmers and their families to the center such as clothes, books, toys, and bags.

30 Marsh India

BENGALURU

Marsh Bengaluru colleagues visited a charitable organization called Little Sisters of the Poor. This organization is a home for the elderly and is spread in over 30 countries. Marsh colleagues participated in various cultural activities to keep up the spirits of the residents.

The activities included:

• Organizing musical sessions.

• Round of housie.

• Purchasing curios and crafts made by the residents.

• MMC also donated hygiene products to the center.

GURUGRAM AND NOIDA

Marsh colleagues from Gurugram and Noida celebrated Global Volunteer Month by volunteering at the Blind Relief Association for almost eight days in May 2018. The Blind Relief Association is a not-for profit organization that provides quality school education and training

programs to prepare teachers of the visually impaired.

Marsh colleagues participated in activities like:

• Making candles and paper bags.

• Painting walls, packing, and shifting.

• Cleaning the library and dining area of the association.

Yearbook 31

ENGAGEMENT @ MARSH INDIAAt Marsh India, we believe that festivals are a great opportunity for engagement with colleagues and it also ignites the spirit of collaboration. In 2018, Marsh India celebrated various festivals across all locations which saw a lot of participation from all our colleagues.

We kick started the festivities by organizing activities for International Women’s Day on March 8.

This was followed by celebrating the spirit of patriotism and freedom on Independence Day on August 15, where colleagues were dressed in tri-colors and participated in a quiz based on Indian history and its freedom struggle.

We also we celebrated the festival of light, Diwali with lantern making workshop and raffle draws. There were also awards for the best dressed colleagues.

The year ended with the theme of “Joy of Giving” during Christmas celebration where colleagues participated in a fundraiser by

setting up food stalls as a part of a “Chef for Compassion” event.

Colleagues also decorated their workspaces to keep up the spirit of Christmas. We organized a donation drive where colleagues donated clothes, shoes, books and toys.

Gratitude week was organized for our housekeeping staff to show our appreciation for their work and support. These included writing messages for them, informative sessions and a pot luck lunch.

Independence day celebration

Christmas celebration

Diwali celebration

32 Marsh India

“..accepting the portability request and extending the cover to parents is at the insurance company’s discretion. Portability is widely available for employee, spouse and children, but insurers are reluctant to extend this to parents and senior citizens.” Marsh India CEO and Country Head, Sanjay Kedia, The Economic Times, April 27, 2018.

“Looking at the size of operations of Indian banks, limits purchased have been grossly inadequate. As the recent cases showed, some of the claim values are substantially larger than the cover where there is forgery or alteration.”

Marsh India CEO and Country Head, Sanjay Kedia, Bloomberg News, May 9, 2018.

“We have noted demand for cyber insurance from manufacturing firms to prevent cyber induced business intelligence losses and regulatory actions,”

Marsh India SVP - FINPRO & PEMA Leader, Anup Dhingra, Business Standard, May 2018.

The policy covers the management liability and professional indemnity of insolvency professionals for the period of assignment. It protects the Insolvency professionals against claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of professional service”.

Marsh India CEO and Country Head, Sanjay Kedia, The Economic Times, April 27, 2018.

“80% of these forensics are usually outsourced as per the requirement. When a company pays millions, they expect the best talent to review it who understands the nitty-gritties of such an instance,” Anup was quoted in the article.”

Marsh India SVP - FINPRO & Private Equity Mergers and Acquisitions leader, Anup Dhingra, The Economic Times, February 19, 2018.

“Flexi programs also offer the flexibility in terms of the dependents employees can cover. For instance, a single employee need not have the same premium if he has to cover himself. Or if he has a working spouse, he can remove the spouse from the cover and instead buy an add-on personal accident cover,”

Marsh India President Employee Health & Benefits, M Suresh, DNA News, October 3, 2018.

“Cyberattacks, volatile weather top risks for India Inc, says Marsh-RIMS study”

Moneycontrol.com, November 13, 2018.

“We know that health inflation, as a thumb rule, is 50 percent more than consumer inflation and these programmes do not only need a cost allocation in terms of the health inflation index, but also in terms of user awareness.”

Marsh India CEO and Country Head, Sanjay Kedia, Business Standard, February 9, 2018.

There have been many new advances in technology that ensure the patient outcome is better and he/she is able to get back to productivity faster, but some insurers do not allow coverage or even partial payment viewing these as ‘experimental’,

Marsh India MD – Employee Health & Benefits, Affinity and Operations, Mohit Agarwal, Asia Insurance Review, March 2018 edition.

“Marsh India CEO says Indian Market is Touted to be #1 Growth Driver in Entire APAC Region”

Marsh India CEO and Country Head, Sanjay Kedia, www.entrepreneur.com November 2018.

MARSH IN THE MEDIA

Yearbook 33

helpdesk supports our teams - with claims assistance and understanding benefits terms enabling them maximize their benefits experience.

Our employees value the additional support offered to them. Extension of associated services and discounts for our employees is something which only large brokers like Marsh can offer. Our partnership is truly valued!

MEETU ZALANI

Compensation and Benefits Leader, Pfizer India_______________________________

Thanks to the Marsh India team for helping us in our continuous endeavor to improve our employee experience. We find Marsh’s expertise quite helpful – right from the plan design, where they work with us to get to the optimum strategy, through to implementation. The communication materials help drive the right messaging and create an awareness about what is on offer and how best to leverage benefits. I find their support in policy administration and claims management quite effective. The regular reviews to keep us on top of how things are moving are very useful. Thank you for helping us provide a superlative benefits experience to our employees.

SOMNATH MITRA

Vice President, Human Resources, Altisource

CLIENT SPEAK THE VIEWS EXPRESSED ARE THE AUTHOR’S OWN.

Two years ago Dell and EMC came together to build a stronger company. As part of this integration, the new Dell EMC wanted to offer its employees a comprehensive and competitive benefits program aligned o best practice in each country in which we operated. The aim was to strike the right balance of adhering to our global guidelines and philosophy, and maximizing value and significance for our team members. A harmonization of benefits program was important in bringing our teams together, and ensuring our company provides market-competitive programs across the globe.

During this entire journey Marsh India played a pivotal role. From designing the right strategy to successful implementation, its team worked as an extension to the Dell EMC team. The employee benefits consulting, analytics services and market best practices offered by the Marsh India team provided the clarity needed by our benefits committee to make key benefits harmonization decisions.

One year since the implementation at Dell EMC in India, the close partnership with the Marsh India team has provided beneits harmonization success - via comprehensive benchmarking, market data review, side by side comparisons, recommendations, and other harmonization related activities.

Effective communication support was important to ensure employees felt informed and aware of the

positive change. Our employees found the custom benefits materials provided by Marsh very informative, as well as the enrollment support which resulted in an increase in employee participation rates.

We wish Marsh India all the best. It has been an absolute pleasure partnering with the Marsh India team and we look forward to our partnership in future projects.

AMIT KUMAR

Senior Advisor, Compensation & Benefits, Dell India

_______________________________ Pfizer has been partnering with Marsh India for over a decade now and we would like to acknowledge the fact that our end-to-end management, from the renewals, enrollments and the overall implementation of our benefits programs, is managed by them seamlessly. The Marsh India team, backed by their global expertise and deep dive market analysis, offer useful benefits consulting insights. Marsh’s capabilities results in various solutions to manage benefits costs and options to enrich our program, year after year.

Being a pharma company with multiple locations and varied workforce, managing the large scale of our employees and offering them support can become challenging. The complete policy administration is managed well. A dedicated

34 Marsh India

NatCat considerations are critical for any hydro power project and it is not an easy task to forecast the impact of environmental forces considering the uncertainties. Strategic project locations, tough terrains and harsh weather conditions pose challenging risks for man, material and investments during project execution.

For sustainable and consistent growth it is very important to protect these deployments against losses. Effective risk management is the need of the hour. Sound technical principles, balanced with robust risk mitigation and transfer tools are the key for any hydro project to thrive. Insurance is an inevitable tool of risk management and has contributed significantly to the growth and reinstatement of various hydro power projects across the globe. The market has evolved; offering traditional covers and also offering facilities like parametric covers protects revenue streams and ensures energy security.

We have been associated with Marsh for more than two years and the team has always been instrumental in advising on emerging risks and solutions. The team has always been on the front foot bringing efficiencies to our program and delivering the best value.

PUNEET PANCHAL

Regional Insurance Specialist – S.E. Asia, Andritz Hydro

We have worked successfully with Marsh India for many years to assist us with the design of our different insurance plans. Their knowledge, insight and expertise have been significant assets in being able to maintain comprehensive and competitive benefits, and doing so in the most cost-efficient way possible. They provide great customer service and we value their partnership for the same. We’re looking forward to a successful and engaging collaboration for the future.

NAMRATA RAJKUMARI

Namrata Rajkumari, Thomson Reuters

_______________________________

Risk management and efficient risk transfer require multilayered dialogue with different stakeholders at all stages. For the hydro manufacturing industry, staying competitive requires huge investments in technology, people and processes. Hydropower is booming in Southeast Asia with the increasing demand for energy resulting from rapid population growth and a focus on clean and sustainable energy sources.

As investments in the hydro power sector in this region surge, so do the risks of owning, constructing and operating the same. Regulatory, monetary and environmental risks are seemingly acute considering the macroeconomic volatility.

Marsh India possesses a willingness to get things done, and get it done swiftly. The company has provided great support in introducing and managing assignments in various foreign geographies. It also provides us with valuable inputs on emerging products, surety and solutions. It has always risen to the challenge and delivers on expectations through relentless client focus, sheer responsiveness and flexibility. Marsh doesn’t implement something and then just walk away, but ensures the repeatability of its successful operations.

The interaction, communication, and process, with Marsh is great. A personalized service combined with their efficiency and competitive pricing make Marsh India our choice for insurance broking.

MANAS AGARWAL

President, Jaguar Overseas Limited

Yearbook 35

MARSH EVENTS Events play an important role in our engagement with clients. They allow us to understand our clients better, provide an avenue to share insights and experiences, and to further develop relationships.

Marsh events often act as a platform to exchange ideas and feedback between clients and other stakeholders such as industry bodies and regulators.

In 2018, Marsh India had a busy year organizing and participating in 33 events across the country.

MUMBAIJanuary 16 Bankruptcy Code 2016 – Role

and Responsibility of Insolvency Professionals

FINPRO team

October 6 Roadshow: Financial Lines FINPRO teamDecember 7 Seminar: Defect liability

in construction – risk and insurance solutions

Property team

December 10 Seminar: Personalization of benefits – Redefining employee value propositions

Employee Health and Benefits team

DELHI/GURGAONJanuary 18 Roundtable: Addressing Key

Risks for Japanese and Korean Corporates In Indias

Japan Client Service

Roundtable: Property Risk and Employee Health and Benefit

Employee Health and Benefits team, Property team

February 2 Roundtable: Business Interruption and Liability

Risk Management Practice

February 23 Changing Landscape in Risk Management

Marsh Risk Consulting

August 10 Emerging Trends in Risk Management

Risk Management Practice

November 17 Seminar: Renewable Energy Energy Team

BENGALURUAugust 10 Roundtable: Highly protected

riskMarsh Risk Consulting

December 11 Personalization of benefits – Redefining employee value propositions

Employee Health and Benefits team

PUNEJanuary 17 Roundtable: Highly protected

risk – Way forward for business resilience and property protection

Marsh Risk Consulting

February 7 Building agile benefits – The changing perspective

Employee Health and Benefits team

June 22 Roundtable: Warranty and Indemnity Insurance

PEMA

Branch Total activities to date

Delhi/Gurgaon 9Mumbai 6Bangalore 6Pune 4Hyderabad 3Kolkata 2Chennai 2Jalandhar 1Total 33

36 Marsh India

Roundtable on Highly Protected Risks – Way Forward For Business Resilience and Property Protection, on January 17, 2018, at Pune. The event was attended by 100 delegates across the industry.

Roundtable on Emerging Risk and Mitigation Solutions, in Kolkata on February 9, 2018. The event was attended by 70 delegates.

Building Agile Benefits: -The changing perspective - Pune on February 7, 2018.

Bankruptcy Code: Role and Responsibilities of the Insolvency Professionals, Mumbai, January 18, 2018. This event was attended by more than 100 risk management professionals and other industry leaders.

Changing Landscape in Risk Management in Delhi, on February 23, 2018. More than 100 delegates participated in the event.

Building Agile Benefits -The changing perspective - Chennai on August 24, 2018.

Yearbook 37

Building Agile Benefits -The changing perspective in Bengaluru – January 8, 2018.

Roundtable on Changing risk landscape - Who is responsible in a shared economy model? In Bengaluru on May 21, 2018. Around 50 delegates attended the event.

Building Agile Benefits -The changing perspective - Hyderabad on July 7, 2018.

38 Marsh India

MARSH INDIA LEADERSHIP

MOHIT AGARWAL MANISH LALWANI

JOSEPH LONAPPAN

SANJAY KEDIA

Country Head and CEOsanjay.kedia@marsh.com

KADAMBINI JOSHI

NITESH GOYAL

ASHISH PARAKH

PRAKASH RAJAN

ANURAG DHARNIDHARKA

Managing Director,Branches & Multinational

Client Servicesmanish.lalwani@marsh.com

Managing Director,Employee Health & Benefits,

A�nity, Operations & Technologymohit.agarwal@marsh.com

Managing Director,Sales

prakash.rajan@marsh.com

President & CFOnitesh.goyal@marsh.com

Senior Vice President,Strategy, Risk Management Practise,

Marketing & Communicationsashish.parakh@marsh.com

Senior Vice President,Legal, Compliance & Public A�airsanurag.dharnidharka@marsh.com

Senior Vice President,Human Resource

kadambini.joshi@marsh.com

Managing Director,Energy, Aviation, Infra,

Marine & Placementjoseph.lonappan@marsh.com

Yearbook 39

ABOUT MARSH

A global leader in insurance broking and innovative risk management solutions, Marsh’s 30,000 colleagues advise individual and commercial clients of all sizes in over 130 countries. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With annual revenue over US$14 billion and nearly 65,000 colleagues worldwide, MMC helps clients navigate an increasingly dynamic and complex environment through four market-leading firms. In addition to Marsh, MMC is the parent company of Guy Carpenter, Mercer, and Oliver Wyman. Follow Marsh on Twitter@MarshGlobal; LinkedIn; Facebook; and YouTube, or subscribe to BRINK.

Marsh India Communications Team

For any information, please contact:NILADRI BHATTACHARYA niladri.bhattacharya@marsh.com

Disclaimer: Marsh India Insurance Brokers Pvt Ltd is a joint venture between Marsh International Holdings Inc. and its Indian partners. Marsh is one of the Marsh & McLennan Companies, together with Guy Carpenter, Mercer and Oliver Wyman. This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy.

Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any modeling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. Insurance is the subject matter of the solicitation. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

Marsh India Insurance Brokers Pvt. Ltd’s corporate and the registered office is at 1201-02, Tower 2, One Indiabulls Centre, Jupiter Mills Compound, Senapati Bapat Marg, Elphinstone Road (W), Mumbai 400013. Marsh India Insurance Brokers Pvt. Ltd is registered as composite broker with Insurance and Regulatory Development Authority of India (IRDAI). Its license no. is 120 and is valid from 03/03/2018 to 02/03/2021. CIN: U66010MH2002PTC138276. Compliance IND 20190315B.

Copyright 2019 Marsh India Insurance Brokers Pvt Ltd. All rights reserved.

40 Marsh India

NOTES:

Yearbook 41

NOTES:

PH17-3237_ASM

MUMBAI (HEAD OFFICE)

1201-02, Tower 2, One Indiabulls Centre, Jupiter Mills Compound, Senapati Bapat Marg, Elphinstone Road (W), Mumbai , 400 013T: +91 22 6651 2900 F: +91 22 6651 2901contact.india@marsh.com

GURGAON

Unit-I, 7th Floor, Tower-ADLF Infinity Towers, DLF Cyber CityGurgaon – 122002T: +91 124 4049 200F: +91 124 4049 201

AHMEDABAD

301, Zodiac Plaza, Beside NABARD,HL College Road, Off C. G. RoadNavranagpura, Ahmedabad Gujarat -380 009, IndiaT: +91 79 4023 2200F:+91 79 4023 2211

ANDHERI, MUMBAI

3rd Floor, Fleet House (next to Marol Metro Station),Opposite Marol Fire Station,Andheri Kurla Road, Andheri East,Mumbai 400059, India.T: +91 22 68352500

BANGALORE

Tower C Land Wing, 4th FloorRMZ Millennia Murphy RoadUlsoor, Bangalore , 560008T: +91 80 41857800F: +91 80 41857777

BHUBNESHWAR

Office no. 19, Dindayal Bhaban, Ashok Nagar,Bhubneshwar - 751001

CHENNAI

Alamelu Terrace, 3rd Floor# 163, Annasalai Opp. Spencer Plaza Chennai - 600 002T: +91 44 4348 6969F: +91 44 4348 6965

COCHIN

Centre A, 7th Floor, Alapatt Heritage Building, MG Road, Kochi – 682035

DIBRUGARH

301 3rd Floor, Hotel Varsa, Marwari Patty, Dibrugarh 786 001, Assam T: +91 7578014118

HYDERABAD

203, 2nd Floor, Ashoka Vishnu Capital, Plot No: 90, Road No: 2, Banjara Hills, Hyderabad – 500034, IndiaT: +91 40 4664 8800F: +91 40 4664 8888

INDORE

Regus, DNR 90, Unit Nos. 301 3rd floor, 569/3, MG Road, Indore – 452003 T: +91 731 4785000 F: +91 731 4785003

KOLKATA

PS Arcadia Central Unit #2C, 2nd Floor, 4A, Abanindranath Thakur, Sarani, (CAMAC Street), Kolkata - 700 017 T: +91 33 6940 0016 F: +91 8100265030

NOIDA

91Springboard, 2nd FloorSector C-2, Noida-201301Uttar PradeshT: +91 124 4049200

PUNE

2nd Floor, GE Plaza, Airport Road,Yerawada, Pune 411 006T: +91 (20) 67090600 F: +91 (20) 67090666

VADODARA

Office No. 203, Pavanveer Square, Hari Bhakti Extension Colony, Near Malhar Point, Old Padra Road, Vadodara, Gujarat - 390007 T:+91 265 3023898 F: +91 265 3023898

VISHAKHAPATNAMQubexpro, V Mall, 4th Floor, 10-27-2/4, Facor Layout,Waltair, Uplands, Vishakapatnam, 530003