Insuring NDBI
The purpose of NDBI insurance coverage is to offer financial protection to businesses when their operations are interrupted or suspended due to non-physical loss or damage. Like traditional BI insurance, NDBI insurance covers a broad range of losses, including loss of income, extra expenses, loss of property or equipment use, loss of market or reputation, and loss of key employees. In the globalized business environment, just as BI expanded to include contingent BI, NDBI is also evolving to encompass contingent NDBI. Contingent NDBI provides financial protection to businesses if their operations are disrupted or suspended due to non-physical loss or damage to suppliers, customers, or other third parties. However, there are significant challenges in providing protection for NDBI.
Challenges in Insuring NDBI
BI insurance is considered complex for several reasons,including the wide range of perils it covers, complex policy wording, interconnected risks with other insurance coverage, and the challenges involved in assessing losses. NDBI risks, being intangible in nature, are even more complex and difficult to identify, predict, underwrite, price, or manage. Some of these challenges (see Figure 3) are outlined below.
Denne historien er fra July 2024-utgaven av THE INSURANCE TIMES.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 2024-utgaven av THE INSURANCE TIMES.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
"We concentrate on climate risk and adaptation, climate change mitigation and inclusive insurance which complements Munich Re's sustainability agenda. This has been the case from the beginning and has not changed."
Q1: The Munich Re Foundation was established in 2005 to mark the 125th anniversary of Munich Re. Could you elaborate on the mission of the Foundation and how it has evolved over the years?
IRDAI Corner
The Insurance Regulatory and Development Authority of India (IRDAI) as part of steps towards reinforcing empowerment of policyholders has issued Master Circular on Protection of Policyholdersi¦ Interests under the IRDAI (Protection of Policyholdersi¦ Interests, Operations, and Allied Matters of Insurers) Regulations, 2024 replacing 30 circulars.
Insurance Caselaws
The Supreme Court disagreed with the National Consumer Disputes Redressal Commission's (NCDRC) ruling in an appeal contesting an NCDRC ruling.
Legal Update
J&J told to pay Rs. 35L each as compensation to hip implant victims
New Product Launches
Star Health and Policybazaar Launch 'SUPER STAR': A Modular Long-term Health Insurance Plan
Pension to Elderly Women- A step towards dignified grey years
The problem of old age is more severely felt by the women because of their being financially dependent either on the spouse or on children. Ignoring the issues concerning elderly women poses a major social development challenge for the country.
The Why and How of Hyperpersonalization in Insurance
A case study by McKinsey predicted 5-15% increase in revenue and 10-30% increase in marketingspend efficiency through personalized product recommendations. Another study reported that 78% of insurance executives believe personalized service based on real-time data analytics will be a crucial differentiator in the industry.
Oxygen Mask for Suffocating Patients
The clouds of COVID menace have not yet vanished, Yet there is emergence of several associated diseases. The major loss was due to insufficiency of oxygen to the dying patients despite WHO giving several instructions for prevention of COVID like maintaining social distance and usage of mask.....
Inclusive Insurance Global Landscape: Summary of recent studies -
A report from the Microinsurance Network reveals that inclusive insurance is making strides, but challenges remain in terms of scale and reach. The report finds that 330 million individuals are covered globally by inclusive insurance products, including health, agriculture, and property insurance. However, despite these advancements, there is still an 88.5% protection gap-only 11.5% of the potential market is currently insured.
Inclusive Health Insurance: Ensuring Access to Affordable Healthcare for Low-Income Populations
Access to affordable healthcare remains a critical challenge for low-income and informal sector workers worldwide. With rising healthcare costs and the lack of financial safety nets, millions of people are forced into poverty each year due to medical expenses.