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Press release

Health, economic shocks, and cyberattacks remain top risk concerns for Indian companies: Marsh/RIMS study

09/12/2021

Mumbai, December 6, 2021 – According to a report released today by Marsh, the world’s leading insurance broker and risk advisor, and RIMS, the risk management society®, the continued effects of the COVID-19 pandemic and concerns about future public health crises remain top-of-mind for Indian business leaders for the second consecutive year.

The report, Excellence in Risk Management India 2021: Advancing Towards Resilience, is based on research among over 200 c-suite executives and risk professionals from India’s leading firms. Nearly one-third (30%) of respondents identified the continued effects of the COVID-19 pandemic as the most impactful short-term risk facing their organisations, followed by a prolonged recession (19%), and cyberattacks and data fraud (13%).

Notably, only 10% of respondents stated they are fully prepared for the continued fallout from COVID-19 or a new health crisis, while over half (58%) said their organisations are “not or somewhat prepared” – highlighting a worrying gap in their deeper understanding of risk preparedness and building resilience against future critical events.

Fundamentally a human crisis, 90% of respondents believe that their employees have been adversely affected by the pandemic, which in turn has had a negative impact on their supply chains and clients. In response, according to the report, many organisations have actively taken steps to safeguard both the physical and mental health and well-being of their employees.

Sanjay Kedia, Country Head and CEO, Marsh India, commented: “This research underlines the toll that a low frequency, high impact event like a pandemic can take on Indian organisations, and the importance of being sufficiently prepared to quickly respond. As interdependencies further increase, it is crucial that Indian companies develop their risk resilience. This will determine their ability to survive and thrive.”

This year’s report also points to the need for greater development and innovation around insurance solutions that cover critical and emerging risks. The majority of respondents (53%) said that the insurance products currently available in today’s market do not cover all of their organisation’s critical emerging risk needs.

“In the face of so much uncertainty, global business leaders have recentered their focus on risk management and insurance strategies to effectively prepare for future challenges and leverage new opportunities,” said RIMS President Ellen Dunkin. “Key to that preparation is having a network of professionals that is willing to share their experiences. RIMS is committed to uniting the risk management and insurance communities to facilitate this important exchange of best-practices and deliver powerful insight like that found in this Marsh, RIMS report.”

 

About Marsh

Marsh is the world’s leading insurance broker and risk advisor. With around 40,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $18 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.

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Disclaimer: Marsh India Insurance Brokers Pvt Ltd is a subsidiary of Marsh McLennan.

Marsh India Insurance Brokers Pvt. Ltd. having corporate and the registered office at 1201-02, Tower 2, One World Center, Plot-841, Jupiter Textile Compound Mills, Senapati Bapat Marg, Elphinstone Road (W), Mumbai 400 013 is registered as a composite broker with Insurance and Regulatory Development Authority of India (IRDAI). Its license no. is 120 and is valid from 03/03/2021 to 02/03/2024. CIN: U66010MH2002PTC138276.