Insurance companies are often hailed as the ultimate safety net, but how safe can they be if they refuse to write risks? Imagine a fire insurance company rejecting a proposal because the property "might" catch fire. Isn’t that like a doctor refusing a patient because they’re “too sick to treat”?
Insurance, at its core, is about embracing uncertainty. Yet, many insurers shy away from “risky” proposals, hiding behind underwriting guidelines as if they were gospel. Let’s face it - rejecting risk entirely contradicts the very essence of this industry. If a risk appears likely to incur losses, the answer isn’t rejection; it’s revaluation. Offer higher premiums, suggest mitigative steps, or add value through preventive services. After all, no loss is ever a certainty.
Picture this: A client with an aging factory finds themselves hopping from insurer to insurer, holding a proposal like a rejected boarding pass. It’s not just frustrating - it’s counterproductive to India’s dream of “Insurance for All” by 2047. If insurers continue to cherry-pick low-risk clients - like insuring an iron rod against fire - we might hit premium targets, but we’ll miss the point.
Instead, why not redefine risk management? Charge extra premiums and invest them in risk mitigation. Equip clients with safety tools, audits, or training. It’s a win-win: the client feels secure, and the insurer gets proactive protection against claims.
India needs insurers who don’t run from risk but partner with it. After all, isn’t the “business of risk” supposed to be bold?
