IIFL | Mumbai | February 22, 2016

TL Arunachalam, Director- Global Strategy & Special Projects, Bharat Re-Insurance Brokers Pvt Ltd

TL  Arunachalam, Director- Global Strategy & Special Projects, Bharat Re-Insurance Brokers Pvt Ltd. is a lawyer by qualification and has been with the insurance industry for close to 25 years as of 2014. He has both insurance company and broking Insurance experience, both in India and abroad. Within insurance domain, he has been on the Business Development / Marketing space for the last 18 years.

He has a degree in English Literature and Law (with elective subject in Insurance) from University of Madras and also has an Associateship of Insurance Institute of India specializing in Marine Insurance. He is a certified Six Sigma Green Belt holder from BIS. Mr. Arunachalam is also key contact for Bharat Re in the UNiBA Partners, which is a global brokers Network, headquartered in Brussels, Belgium with more than 52 members represented in over 120 locations world-wide.

Through this network Bharat Re gets opportunity to service mid-segment Multinational Corporations operating in India and also places insurance business of Indian corporate who set up business abroad. Mr. Arunachalam has been spearheading a number of initiatives through sophisticated peer-group interactions with certain insurance companies and other entities in India.

Bharat Re-Insurance Brokers Pioneers in the profession of Corporate insurance consultancy with high level of experience in advising medium and large corporates with enhanced role post liberalization of the insurance sector in India and also post de-tariffing of the Indian general insurance market after 2006. Very active in key sectors like textiles & garments, chemicals, bulk drugs, pharma, petrochemicals & energy sector.

Proven expertise in areas like Business Interruption insurance and ris management for emerging risks such as renewable energy, executive liability, project insurance etc. Our team of senior professionals comprises of over a dozen Chairman / CXO level professionals from leading insurance / broking companies in India.
Replying to Sarika Kodag of IIFL, T.L. Arunachalam says, In the Reinsurance Division, our clients are insurance companies for whom we place their book of business, either on treaties or on facultative (per-risk) basis.

What is your call on the Indian economy?
India is fast emerging as a major global manufacturing hub across sectors, especially in defence production and auto/auto ancillary. “Make in India” should certainly bring in higher volumes of FDI into India especially from Europe. With China slowing down and other compelling economic factors, it is natural that the major markets are looking at India to gain access to an educated, trained, and young population and cheaper labour and benefit from an investor-friendly government.
What is your outlook for the re-insurance broking industry in India?
Bharat Re is into both Direct broking and Reinsurance broking – due to our Composite licence. In Direct broking, we handle clients directly, providing them cutting edge risk management and insurance solutions. In the Reinsurance Division, our clients are insurance companies for whom we place their book of business, either on treaties or on facultative (per-risk) basis. Permission given to global reinsurance players such as Lloyds, other leading reinsurers setting up their branches/offices in India, and GIFT City taking shape in Gujarat would definitely spur growth not just for Indian market placements, but also regional markets such as SAARC, MENA, and SE Asia and distant markets eagerly looking at capacity, experience, and support.
Brief us about company financials?
We would be ending the year with about Rs.300 crore gross premium placed and are planning to grow at 12% rate on current levels. Our growth is linked to market conditions in terms of revenue parameters regulated by IRDA and market conditions governing premium rates.
What will be your expansion and growth plans going forward?
We are planning to move into some new geography such as Orissa in the coming financial year and certain other pockets where manufacturing units are concentrated. We would also build on our capabilities on provide LIA services to banks, and provide risk consultancy services. Our Reinsurance business is growing well and we would be reaching newer markets in the coming financial year.

What are the current opportunities and challenges that you face in the industry?
The opportunities include new investments coming into India through FDI, growth in investment in the domestic market, and the government encouraging new business via start up route.
How do you differentiate between concepts such as political risk insurance, credit insurance, and terrorism insurance?
These are specialist insurance products that are highly critical to entrepreneurs because they capture extraordinary risk exposures – investment abroad in a business venture would have all these risks – one of them is relevant to which business opportunity depends on the destination country- if it is a volatile political environment – both political and trade credit exposure would be there. In the current market – we can structure credit insurance, which includes political risk also or a standalone political risk insurance product also. Terrorism international can be in conjunction with a property insurance cover and generally in large projects or operational risks, it is possible for us to put in place a standalone terrorism and sabotage insurance cover, for which, we can obtain terms from international reinsurance markets.
How many clients do you have currently?
Since we have a high degree of specialization in providing solutions to corporate clients, we have built a strong book of business with about 700 business customers located across the country. We are gradually building our book of business, based on our service capabilities and value additions.

Launch of any new services for the current fiscal?
We are already on our way to put in place strong employment benefits in practice with the help of experienced team members in the domain who can ensure that our clients are looked after. Likewise, our specialization in Liability Insurance products is also in place and we have a front seat view of an active and vibrant liability insurance market in India with a highly evolved and internationally relevant product liability, CGL, and cyber liability insurance products. We are sure in the next fiscal about seeing good scope.




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