Tracking the Transformation of Reinsurance in India: Insights from Rohit Boda, Group Managing Director of J.B. Boda Group
CXOToday has engaged in an exclusibe interview with Mr. Rohit Boda, Group Managing Director, J.B.Boda Group
How (Re)Insurance is gaining market in India
- Reinsurance seems to be gaining traction in India. Can you provide insights into the factors driving this expansion?
Absolutely. In my perspective, the growth of reinsurance in India is being driven by a confluence of factors that reflect the changing / evolving environment of our insurance industry. Due to the fact that the risks insurers encounter is getting bigger and more complicated, it is important to share these risks with reinsurers who have the requisite experience and skills. Notably, India’s growing middle class and its growing economy have increased the demand for comprehensive insurance coverage, thereby compelling the development of robust risk management solutions. In addition, reinsurance can help insurers improve their solvency and develop a more resilient business ecosystem. Given the prevalence of agriculture as well as the high susceptibility to natural disasters in our country, reinsurance steps in as a facilitator of specialized risk mitigation strategies.
- Could you please share your opinion on the current scenario of the Indian reinsurance industry?
The Indian reinsurance industry, in my opinion, has made amazing progress in recent years. This progress is driven by a convergence of regulatory modernization and market factors. The liberalisation of the reinsurance sector has brought in healthy competition and innovation, which has benefited both insurers and policyholders. As a result, we are seeing more customised / tailored alternatives that suit our insurance landscape. However, issues including as underwriting discipline and managing accumulative risks require ongoing attention. As we navigate this volatile landscape, it is crucial for the industry to prioritise long-term growth, careful risk management, and technical innovations that in turn drive efficiency.
- As a key player in the insurance and reinsurance industries, how do you see reinsurance evolving to address the specific problems and opportunities given by the Indian insurance market?
The Indian insurance sector is known for its diversity, ranging from traditional threats to developing challenges such as cyber threats and climate-related concerns. Reinsurers must adapt by offering unique solutions for these various industries. The shifting regulatory framework in India allows reinsurance businesses to innovate in areas such as risk assessment, underwriting practises, and capital management, requiring agility in aligning plans with changing compliance needs. Reinsurance is poised to play a critical role in encouraging long-term growth in the Indian insurance market, with an emphasis on environmental, social, and governance (ESG) considerations.
The J.B.Boda Group, as a leading player in the industry, is at the forefront of driving reinsurance development to answer the specific problems and opportunities given by the Indian insurance industry. J.B. Boda Group not only adapts to the unique needs of the Indian insurance market, but it also actively contributes to its growth by providing customised reinsurance solutions geared to various industries, including developing risks such as cyber threats and climate-related concerns. Furthermore, the company’s dedication to environmental, social, and governance (ESG) considerations is consistent with India’s growing regulatory framework, encouraging responsible risk-taking and market sustainability.
- Can you point out any specific trends or developing areas in the Indian reinsurance market that you believe are particularly promising?
Certainly. In the Indian reinsurance industry, I am particularly encouraged by the emergence of parametric insurance and digital distribution channels. The capacity of parametric insurance to deliver quick pay-outs based on predetermined triggers improves claims settlement efficiency, particularly for catastrophes. Digital platforms are altering distribution, making insurance products more accessible. The J.B. Boda Group has successfully developed software solutions that has helped simplify the insurance and reinsurance processes. These developments are consistent with J.B. Boda Group’s commitment to innovation and have enormous potential to reshape the sector.
- What are your projections for the future growth trajectory of reinsurance in India, and how do you see J.B. Boda Group playing a role in influencing that trajectory?
Reinsurance’s projected growth trajectory in India is undoubtedly favourable. This is being driven by increased insurance penetration and a more sophisticated understanding of risk. As economic activities diversify and the hazards associated with them grow, so will the requirement for appropriate risk transfer systems. The J.B. Boda Group is well-positioned to be a driving force in this journey. We aspire to create customised reinsurance solutions by leveraging our considerable knowledge, global network, and dedication to innovation. Additionally, we have also pioneered innovative insurance solutions such as Agriculture Re/Insurance and PROTECT, our proprietary (re)insurance software.
Questions for Mr. Rohit Boda, who is bringing dynamic changes in the business
- Could you describe some of the crucial strategies or initiatives you’ve implemented that have transformed the group’s trajectory?
We’ve implemented multiple strategies that have reshaped the J.B. Boda Group’s trajectory. It has been critical to foster an environment of creativity and learning.
One of the things we do at J B Boda is cross functional learning, which helps employees understand the business in a holistic manner and renders them more productive. We also pick up valuable learning from success stories of different teams and replicate the same for others.
To improve risk assessment and product creation, we’ve invested in innovative technology and data analytics. Globalisation has allowed us to enter new markets and diversify our business.
- Could you give an example of a specific business segment within the J.B. Boda Group that underwent considerable transformation under your leadership?
Our foray into digital insurance distribution is an example of transformational change. We built a technology-driven platform that streamlined the insurance purchasing and claims processes under my direction. The reinsurance segment has been considerably transformed by our In-house developed reinsurance broking software “PROTECT”. Not only that we have also developed actuarial software for providing core actuarial services to our clients. This digitization not only enhanced client experiences but also increased operational efficiency. The rapid evolution of this area demonstrates our adaptability and willingness to embrace change.
Furthermore, we’ve launched a new initiative focused on ESG (Environmental, Social, and Governance) and Carbon, where we’re actively developing innovative products related to climate change. We’ve established partnerships with leading Agritech companies on a global scale, including a recent memorandum of understanding (MOU) with the Syngenta Foundation and Geotree to advance our ESG and Carbon goals. Additionally, we’re collaborating with prominent contract farming companies worldwide to create groundbreaking parametric products in this space.
- How do you reconcile maintaining the group’s fundamental values and traditions while implementing innovative reforms with a legacy that spans decades?
In today’s highly competitive world, reconciling the maintenance of a group’s fundamental values and traditions with the implementation of innovative reforms is a complex challenge that requires a delicate balance of integrity and empathy. Our legacy spans decades, and while our values and traditions are the foundation of our identity, we recognize that they must evolve to stay relevant and competitive. Integrity is at the core of our approach. We are committed to upholding the ethical principles and values that have guided us throughout our history and Empathy plays a crucial role in this process as well.
We understand that change is a gradual process for our employees and stakeholders who hold our traditions dear. To reconcile these conflicting forces, we engage in open and empathetic communication. We listen to the concerns and feedback of our employees and stakeholders, demonstrating our commitment to their well-being and satisfaction.
We are taking a hard look at what we need to stay productive and maintain a competitive edge in the face of disruptions. Most of old ways of working can no longer deliver the results. We want to overcome the long-standing challenges like siloed workstreams, lack of transparency, inability to respond quickly, and the rigid top-down systems.
We have restructured the way our people work by empowering them. We empower the employees who are closest to the client to explore innovative ways to meet their demands, we support autonomous teams, we aim to keep visibility into their work, and we seek for the correct technology to enable teams to work dynamically.
We strongly believe that employees with the right tools and technologies are better able to quickly adapt and innovate in response to rapidly changing business needs. A secure, scalable work management platform that connects the entire enterprise and gives everyone the power to work together to innovate and adapt to continuous change can help us thrive amid the pressures of today’s environment— and future disruptions.
Technological advancements in the (Re)Insurance business
- In the area of (Re)insurance, what important technology developments have you implemented to improve operational efficiency and customer experience across the company’s various businesses?
Technology has played a critical role in increasing efficiency and customer satisfaction across our (Re)insurance business. We’ve used modern data analytics to improve risk assessment, pricing accuracy and streamline underwriting operations. Data plays a pivotal role in accurate pricing, and we have devised a mechanism of data validation which includes elements like Burn Cost, Cost of Capital, Margin requirements etc before putting into the pricing model.
Digital platforms enable seamless communication among stakeholders (internal and external) while also speeding up claims processing and offering real-time analytics for decision-making. Our digital platform facilities multi-channel communication providing excellent customer experience.
- Could you state on any specific technology-driven initiatives or platforms implemented by J.B. Boda Group to expedite procedures, manage risks, or provide more personalised insurance solutions?
Absolutely, at J.B. Boda Group, we have led various technology-driven initiatives and platforms to improve efficiency, reduce risks, and provide personalised insurance solutions. Our AI-powered risk assessment and suggestion tool is a noteworthy initiative. This platform uses data analytics to speed up the risk assessment process and customise insurance products to better match the demands of our clients. We collect data from disparate sources to provide real-time insights into client behaviour and preferences, allowing us to provide hyper-personalized insurance solutions.
In addition, we’ve launched a user-friendly client portal to give our clients convenient access to their policy details and claim status whenever they need it. These technology advances demonstrate our unwavering dedication to streamlining operations and providing customer-centric solutions that prioritise efficiency and convenience.
- With the rise of insurtech startups, how does J.B. Boda Group balance the incorporation of cutting-edge technologies while staying true to its legacy and keeping consumer trust?
While we embrace cutting-edge technologies, we remain committed to our heritage of trust and integrity. Our technology partners and solutions are extensively vetted to ensure they correspond with our values and security standards. We build on our tradition while being at the forefront of industry innovations by integrating innovation into our existing / established customer-centric approach.
We realise that technology itself is not the solution, it’s the technology driven uses cases that has the potential to solve business problems. We work with various InsurTech startups in areas like Underwriting, Claims, Reinsurance, Fraud Risk Management, Medical Screening and Connecting with external parties. We fully realise the value of InsurTech eco-system to co-create value for our customers.
- Customer expectations are changing. How does the company use technology to personalise (Re)insurance solutions, improve communication transparency, and improve the overall client experience?
We use data analytics to tailor insurance products based on customer and risk profiles. AI algorithms assist in tailoring coverage and pricing, increasing client relevance. Our digital platforms provide transparent communication and self-service alternatives, providing customers with real-time information and control over their policies and, as a result, enhancing their experience. This journey of putting customer at the centre and using technology as an enabler has just started and we continue to innovate on this direction.
From internal customer’s easy of doing business perspective, our proprietary reinsurance product “PROTECT” has the facility to send automatic notifications to our portfolio teams on some critical service parameters, thereby enabling timely servicing of clients.
- What emerging technical trends or developments do you anticipate will have a significant impact on (Re)insurance’s future, and how is J.B. Boda Group preparing for these changes?
Anticipating significant advancements in technology, I believe emerging trends such as AI, ML, Blockchain, and Telematics are poised to reshape the future of (Re)insurance. Specifically, Blockchain holds the promise of enhancing transparency, simplifying claims processing, and curbing fraudulent activities. Telematics-driven insights have the potential to revolutionize auto insurance with usage-based pricing models. Moreover, Machine Learning, encompassing both supervised and unsupervised learning techniques, can proactively predict early claims and detect fraud tendencies.
Our proactive approach at J.B. Boda Group includes investing in research and development, cultivating collaboration with tech entrepreneurs, and remaining adaptive to capitalise on the opportunities created by technological breakthroughs. To fully understand and manage climate-related risks, we recognise the necessity of advanced analytics, catastrophic modelling, and novel tools. Our dedication extends to using machine learning algorithms and big data to fine-tune our risk assessment models, which will ultimately improve pricing accuracy. Furthermore, we embrace automation and efficiency by implementing robotic process automation and AI-driven solutions, streamlining processes and lowering operating costs, ensuring we remain at the forefront of the growing (Re)insurance market.
