Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (February 2021)
19 slides from Icici Lombard General Insurance's investor presentation, Feb 12, 2021
Slide 1: Key Findings
Key Findings February 12, 2021
Slide 2: Agenda
Agenda Challenges in measuring and managing Corporate Risk ICICI Lombard Corporate India Risk Index Framework, approach & calculation Sectoral Insights Recommendations for Superior Risk score
Slide 3: Corporate Risk: Uncertainty in business
CORPORATE RISK Uncertainty in business 3
Slide 4: Corporates face challenges in managing risks
Corporates face challenges in managing Accentuated by lack of single-stop the risks due to their widespread nature solution to understand risk exposure and and contextual uniqueness its management Difficult to “So many webinars and briefings – identify source and not one credible, comprehensive unde
Slide 5: What about a Standard Matrix for Corporate Risks?
MM of rainfall Richter scale Credit rating What about a Standard Matrix for Corporate Risks? Inflation % Employee Quality – PPM retention 5
Slide 6: Many Questions Unanswered…
Many Questions Unanswered… • Healthcare sector has very high exposure to risks because of the nature of business and given Covid. Are they managing it? • Within the BFSI sector, how do I know if my company is managing risks better than others? To what extent? • My New age firm is well funded. But am
Slide 7: ICICI Lombard Corporate India Risk Index
ICICI Lombard Corporate India Risk Index
Slide 8: Risk Framework (1/2)
Risk Framework (1/2) • ICICI Lombard Corporate India Risk Index will be a one of it’s kind unified, standardized corporate risk index that spans industries and companies • It will help companies understand the level of risk that their business is facing and also assist in developing a successful ris
Slide 9: Risk Framework (2/2)
Risk Framework (2/2) 32 risk elements across 6 broad dimensions Measured across 4 parameters spanning exposure and management Market and Economy RISK EXPOSURE Emerging Operational Awareness Probability Risks and Physical Comprehensive Risk Coverage Natural Hazard and Events Technology Criticality Pr
Slide 10: Intelligent Risk-taking is a Winner's Strategy!
Intelligent Risk-taking is a Winner’s Strategy! RISK MANAGEMENT RISK INDEX = RISK EXPOSURE 10
Slide 11: Why Businesses should Look Forward to Corporate India Risk Index?
Why Businesses should Look Forward to Corporate India Risk Index? SUSTAINABLE ROBUST Annual risk ratings after re- validating the importance of Well-defined measurement technique risks each time based on business excellence models of Six-sigma and Lean EXHAUSTIVE • Covers multiple sectors • Inclusiv
Slide 12: The Corporate India Risk Index Scale
The Corporate India Risk Index Scale ICICI Lombard Corporate India Risk Index Measures effectiveness AND efficiency of an entity to manage the risks that it is exposed to Score < 30 30 - 50 50 – 60 60 - 80 80 Ineffective Sub-optimal Optimal Superior Over-prepared Most current risks Very effective
Slide 13: How Corporate India is placed on Corporate India Risk Index 2020
Corporate India Risk Index 2020 • Corporate India Risk Index, 2020, stands at 57 which is optimized risk handling (should strive to reach to a superior risk handling score) What does score 57 mean? How Corporate India is placed on Moderate Risk Implies optimized risk handling Exposure but there is s
Slide 14: Sector Insights (Sub-Optimal Risk Index)
Sector Insights (Sub-Optimal Risk Index) • Significant gaps in risk management against risk exposure in both the segments • Need to focus on Market & Economy, Crime & Security and Technology Risks Risk Risk Exposure Management New-Age 65 61 51 • Major gaps in risk handling on Market & Economy Risks,
Slide 15: Sector Insights (Optimal Risk Index)
Sector Insights (Optimal Risk Index) • Most of these sectors handle operational and physical risks really well; with the exception of Chemicals and Pharma where that risk category is an intrinsic risk Risk Risk Exposure Management Metals and Mining 60 54 54 Automotive 59 72 72 • Optimized handling o
Slide 16: Sector Insights (Superior Risk Index)
Sector Insights (Superior Risk Index) • Superior risk handling was found in 4 sectors: Healthcare, BFSI, Media-Telecom and IT-ITES • BFSI is the only one with very high risk exposure than others but excels in risk management too Risk Risk Exposure Management Healthcare 70 55 59 • Superior risk handi
Slide 17: Corporate Risk Index – India 2020
Corporate Risk Index – India 2020 Risk Dimensions – across industries Automotive and Ancillary Chemicals and Petrochemicals Pharmaceuticals, Biotech and Metals and Mining Infra and Realty Medical Devices Market and Economy 52 Market and Economy 46 Market and Economy 56 Market and Economy 62 Market a
Slide 18: Recommendations to achieve Superior Risk Indexing
Recommendations to achieve Superior Risk Indexing External Environment Insurance coverage to protect a company against multiple environment and business factors De-risking the company by focusing on multiproduct, multi-geography, multi-customer and multi- industry Internal Systems & Procedures W
Slide 19: Thank you
9 ICICI ELombard Thank you
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