Interview: Ashok Roy, GIC Re


Facing the new risk A


t Baden-Baden, Monte Carlo and various other forums where industry stalwarts


congregate, the talk tends towards overcapacity or alternative capacity and the threat it poses to  I, however, feel that rather than discussing


the ‘threat’ it poses, we should consider why it  crisis better, and delivered better results and performance when other areas were badly         speaks volumes about the stability of our core  We are in the business of insuring the risks


of others, or rather, we take upon ourselves    how do we face it?   see an opportunity in this development and        This is an opportunity to become more                have an opportunity to offer better terms and  The alternative capacity cannot provide the


  in because we manage our house well, so let us  We talk of overcapacity for the business that


we currently have on hand, or what we perceive   we losing sight of something here? Emerging markets have vast untapped potential, countries such as India and China have huge gaps in        The insurance industry needs capacity


       the US markets, and only in the property class         products, better tailor-made solutions and focus  Emerging markets are a prime focus area of


Lloyd’s Vision 2025. these markets ‘restrictive’, but it is only a matter


21.10.13 MONDAY


Let us see an opportunity in the ‘new’ capacity to develop ourselves as an 


quantity of data that a particular market       produces several terabytes of data, but do we have the capabilities to understand, analyse and put this data to good use? The entry of alternative capacity should


        We can start working on developing a       of the emerging markets, insurance is not a profession of choice and we feel the lack    The insurance industry as a whole has yet


to react to the threat of climate change that has the potential to wipe out what we have       are today termed ‘black swan’ events but with the increasing frequency and ferocity           alternative capacity can be a good impetus  We need to focus on understanding and


 “We need to focus on


understanding and modelling our exposures and come up with solutions for newer risks that are emerging.”


of time until these markets open up further and         These markets will require new products


 With most of the emerging markets being cat-prone, it is time we worked on developing modelling capabilities that suit these markets  All modelling depends on the quality and


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        at GIC Re are using this opportunity to spread   developing our technological ability to deliver      Alternative capacity providers


are not


pure investors, they will keep us on our toes          into more prudent underwriting, value-added services, and better management of our risks  Things change in all areas; only those who are able to adapt to the changing scenarios will  I am sure the global reinsurance industry will be able to emerge better equipped and better managed to continue to provide cover 


DAY 1: Monday October 21 2013 | BADEN-BADEN TODAY | 19


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