Mr. Pushparajan Malajure is the Director, Technology Services, at Jardine Lloyd Thompson India (JLT), a British multinational corporation headquartered in London, England, that provides insurance, reinsurance and employment related advice/brokerage services. JLT is the fourth largest player, worldwide, in the insurance broking sector. JLT India was started in 2007. Since its inception, it has been growing at a CAGR of 8-10%. The focus of JLT is in providing specialized services to its clients. JLT has a global footprint operating in most developed and developing economies.
Insurance broking companies bridge the gap between major insurance providers and corporate clientele. The point of contact in the client company is usually the Chief Risk Officer (CRO). The CRO’s role is to manage the potential perils that a company faces. These perils or risks come in the form of natural calamities, consumer activism and risks posed by the existing business landscape of the client. Brokers help CRO’s manage the risks by chalking out a concrete risk mitigation plan and linking the company with insurance providers who provide risk coverage. JLT works both in the wholesale and retail insurance brokerage market. In the Re-insurance segment, JLT helps Insurance carriers to take on larger risks by partnering them with other insurance providers. In the employment sector, JLT provides pension and retirement services, health and benefits, investment services and wealth management services.
In India, Life insurance commands the biggest market share. However, non-life insurance sector is set to grow at the rate of 15% and is currently capped at 15 billion dollars. Thus, JLT and other insurance brokers working in the non-life insurance sector are set to reap the benefits of this upcoming sector in India. The Insurance regulatory and development authority India (IRDA) is mulling 100% FDI in insurance broking. This opens up a new avenue wherein insurance providers will be able to operate in India without the need for partnership with domestic companies.