In today’s volatile and high-stakes world, Indian business leaders are not just strategists or growth enablers they are risk managers at heart. Their biggest challenge? Navigating a landscape where risks have become increasingly complex, interconnected, and catastrophic in consequence. From cyber breaches that can wipe out decades of customer trust to climate events that physically damage core infrastructure, the modern C-suite is dealing with an expanding risk spectrum.
Cyber era (Shutterstock (PIC FOR REPRESENTATION))
At a time when risks are more visible than ever, this is a timely opportunity for reflection and decisive action to assess whether Indian enterprises are adequately equipped to withstand this onslaught. Insurance is no longer just a regulatory requirement it is a strategic asset. And yet, there are significant gaps in how risk is understood, managed, and transferred in corporate India.
The World Economic Forum’s Global Risks Report, to which Marsh McLennan is a strategic contributor to, has consistently highlighted three interlinked threats that demand urgent attention from Indian businesses: Cyber, climate, and catastrophe.
Let’s start with cyber. In an era of accelerated digitisation, businesses are collecting more data, operating on cloud-based systems, and engaging with third-party digital partners and while this creates immense operational value, it also creates new risks. Unfortunately, cyber insurance adoption in India is still in the earlier stages for many businesses, and the reality is that many firms lack adequate coverage and at times clarity about policy terms and exclusions, which can leave their business operations vulnerable.
On the climate front, India is one of the most climate-vulnerable countries in the world. Extreme weather events such as floods, droughts, heatwaves, and cyclones are intensifying, yet few companies have embedded climate risk into their insurance planning. Most still rely on traditional property and casualty policies, which may not respond effectively to climate-induced business interruptions or supply chain failures. This is where parametric insurance, which pays out based on predetermined triggers like rainfall levels or temperature, is increasingly being seen as a strategic tool.
And then comes catastrophe, both natural and man-made. From industrial accidents and fires to geopolitical shocks and cross-border supply chain disruptions, catastrophic events are becoming more frequent and less predictable. Leaders must consider not only their direct exposures but also the systemic vulnerabilities that ripple across sectors and geographies.
The truth is, many Indian companies are still approaching insurance as a static purchase decision, or as an annual renewal exercise, largely driven by cost rather than coverage or strategic alignment. This mindset needs to change.
Risk today is dynamic and so must be the insurance response. Businesses need a more integrated approach that links enterprise risk management with risk financing. This means understanding the full spectrum of insurable and uninsurable risks, building tailored coverage portfolios, stress-testing risk models, and periodically recalibrating insurance strategies to reflect evolving exposures.
Additionally, there's a growing need for leaders to look beyond traditional indemnity products and explore innovative solutions such as business interruption covers, trade credit insurance, and directors and officers’ liability (D&O) policies — all of which are becoming essential in boardroom conversations.
This is where trusted risk advisors make a critical difference. The role of the insurance broker has evolved from being a transactional intermediary to that of a strategic risk partner. Today, risk advisors are not only helping companies place insurance, they are working alongside leadership teams to measure exposures, model loss scenarios, and mitigate vulnerabilities before they escalate.
The goal is to help organisations shift from hindsight to foresight. By leveraging data analytics, sector-specific benchmarking, and scenario planning, advisors enable businesses to anticipate emerging risks and structure resilient, fit-for-purpose insurance programmes. Whether it’s helping a manufacturer prepare for cyber intrusions or guiding a logistics firm through climate-sensitive regions, the focus is on proactive planning to strengthen enterprise resilience.
As India strides toward becoming a $ 5 trillion economy, we must also become a more insured economy. Insurance is a vital pillar of financial resilience, economic continuity, and investor confidence.
The C-suite is awake to the reality that disruption is the new normal. The question is, are we insuring wisely enough to stay ahead of it?
This article is authored by Sanjay Kedia, chief executive officer, Marsh McLennan India, president & CEO, Marsh India.
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