1. INDIA

2. 1 Is your country is prone to natural disasters such as earthquakes, floods, and storms?

3. 1 River floods Droughts Earthquakes Cyclone formations Landslides and avalanches

4. 2 What percentage of expected annual economic losses (all losses to the economy) due to natural disasters is insured?

5. 2 No precise data Out of 100 Most Expensive Natural Disasters of the 20th century, India accounts for five India is the second most disaster prone country in the world

6. 3 What are the risk transfer (reinsurance)/risk retention patterns for catastrophe type risks in the local insurance industry?

7. 3 Insurance companies have not generated and exposed significant capital for underwriting catastrophe perils.I insurers, with longer and broader expertise, remain willing to shoulder the major risk via reinsurance. Companies limit their catastrophe risk retention levels by sharing with the reinsurers in the form of a surplus arrangement and the balance being retained to the net account.

8. 3 Over recent years, tight markets have had a pass-through effect including proportionately higher commissions. Policy coverage restrictions are generally designed and imposed by foreign reinsurers, and their effect falls on the policyholders rather than the insurance companies Insurance companies benefit by the reduced risk exposure from the coverage restrictions,

9. 3 Reliance on traditional methods of risk retention and risk transfer –percentage of net-worth –excess of loss cover for catastrophe protections. –Two-risk warranty is invoked in all catastrophe protections. Exploration of Alternative Risk Transfer (ART)

10. 3 Series of losses can erode an insurer's net account and financial stability. Catastrophe Reserve

11. 3 Insurance industry's role for active involvement in promoting hazard and vulnerability mitigation has been mixed. Complexities and costs of implementation Reinsurers are seen as unlikely to share such costs Leadership role on mitigation measures a government function.

12. 4 Are the current retentions of catastrophe risk by local insurance companies adequate?

13. 4 Retentions by the local insurance companies have been adequately protected. Cat XL covers together with the whole account XL covers have protected the balance sheets of insurance companies ”Umbrella cover"

14. 4 Potential impact of catastrophe losses in closest collaboration with their reinsurers, and generally the latter's views prevail. PML, or expected aggregate catastrophe risk exposure help reinsurers determine the premium Reinsurers' premium levels have a very high gearing effect on the premium level charged under the primary policy issued to the policyholder.

15. 5 Are the current rates for natural disasters risk coverage actuarially sound in your country?

16. 5 Reinsurance product designed and priced by foreign reinsurers on the basis of their worldwide (rather than Indian- area) catastrophe experience. Need to evaluate portfolio risks precisely to demonstrate true exposures to reinsurers, and maintain reinsurance protection at a justified and reasonable cost.

17. 5 Lack of credible data. Data in respect of risk accumulation is not available. Instead of applying actuarial principles the insurers applying their own judgement Foreign reinsurers charging rates, which are not commensurate with the risks involved. Competition primarily seeking reinsurance commission revenues rather than underwriting or "risk taking".

18. 6 Please list all possible alternative (to the one that exists in your country) approaches to the management of natural disasters risk and indicate major pros and cons of each approach?

19. 6 Central Government plays a major role as far as mobilisation of financial resources – Calamity Relief Fund (CRF) –National Fund for Calamity Relief (NFCR) Hazard Maps Vulnerability and Risk Assessment

20. 6 Insurance Industry Reinsurance Pools & Financial Management Options

21. Thank You Arup Chatterjee -Team Leader Suresh Mathur Rakesh Bajaj Randip Singh Jagpal Kamal Chaudhry B. Raghavan Suresh Nair R.C. Sharma