In India’s rapidly evolving business environment, relying solely on insurance is no longer sufficient to manage the full spectrum of risks companies face. Along with the country’s manufacturing development comes an evolving nature of risk, becoming more complex, interconnected, and unpredictable with increased operational complexity.

External factors like severe weather events can also damage infrastructure, disrupt operations, and increase costs. These climate-related risks are not only harder to predict but also more difficult to insure against, especially as insurers reassess their exposure and raise premiums or withdraw coverage in high-risk areas.

Moreover, the long-term effects of climate change, such as rising sea levels and resource scarcity, pose strategic threats that insurance alone cannot address. At the same time, the value of businesses is increasingly tied to intangible assets like intellectual property, data, and brand reputation. These assets are difficult to insure and even harder to recover once compromised. A loss of customer trust or reputational damage can have enduring consequences that no insurance payout can fully repair.

Stakeholders including customers, investors, and regulators, now expect businesses to demonstrate resilience and responsibility. One needs to take a comprehensive and holistic approach to risk management today, to address India’s risks tomorrow.