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The Hindu
21-05-2025
- Business
- The Hindu
Spurt in premiums for war, political violence cover post Pahalgam attack
Following the terrorist attack at Pahalgam in April and the subsequent ceasefire earlier this month, insurance premiums for war and political violence cover available for Indian companies have risen 'significantly,' according to insurance brokers. Though Indian insurers are not offering any property insurance policies for war and conflicts to Indian corporates, policies covering war and political violence are being made available from international reinsurers which had been issued with stricter limits and conditions. Deepak Madan, Head Commercial Lines, Large Account Practices at Prudent Insurance Brokers said, 'Property insurance policies for war and conflict-related situations are typically excluded from insurance cover so there was no impact at all in premium. And thus geopolitical tensions usually do not influence premium rates.' 'But several companies had purchased war and political violence coverage which is a reinsurance-backed cover, available primarily through international markets. The availability and terms of coverage also vary according to the property's location, particularly in high-exposure areas such as Jammu and Kashmir and other border regions,' Mr. Madan said. Hari Radhakrishnan from Insurance Brokers Association of India (IBAI) said since the geopolitical risk had gone up considerably due to various conflicts such as Ukraine, Gaza, Iran and wider Persian Gulf, and Indo-Pak., there had been a downstream impact on insurance and reinsurance markets. 'Since these conflicts can affect oil prices or commodity prices, there can be impact on underwriting and claims in the form of increased costs, increased restoration periods, logistical challenges. Insurers and reinsurers have to factor these into their operating considerations,' he said. He said since the Indo-Pak. conflict is new and still developing even though there is a pause in active hostilities or live action, the impact might be less visible in the immediate term but could be more visible on a longer-term basis. On the impact on the supply chain due to disruptions caused by geopolitical developments, he said, 'When there are supply chain disruptions, certain insurance products such as trade credit insurance, contingent business interruption covers [coverage for suppliers and customers premises] , see a demand spike which is also being witnessed.'
The Hindu
07-05-2025
- Automotive
- The Hindu
Rupee falls 42 paise against U.S. dollar
Continuing its decline for the second day on Wednesday, the rupee depreciated sharply by 42 paise to 84.77 against the U.S. dollar – the biggest single day fall in a month on account of lingering geopolitical concerns and a stronger dollar index, analysts said. 'The easing of trade tensions has allowed the dollar to rebound, negatively impacting major currencies. Furthermore, consistent dollar demand from oil importers and hedgers have exerted downward pressure on the rupee over the past two days,' said Dilip Parmar, senior research analyst, HDFC Securities. He said the spot USDINR is anticipated to trend upward, potentially reaching 85.70 if it holds above 85. Conversely, 84.25 presents a significant support level, he added. Meanwhile, benchmark stock indices ended with small gains amid Indo-Pak. tensions. Nifty opened lower by 147 points as investors turned cautious following news of Operation Sindoor, a targeted strike by Indian forces on terror sites in response to the recent Pahalgam attack. However, it recovered more than 200 points from the early morning lows as markets digested the news. 'Dalal Street's resilience could be attributed to a substantial inflow of Foreign Institutional Investors (FII), with ₹43,940 crore in FII inflows over the past 14 days providing crucial support,' said Devarsh Vakil, Head of Prime Research, HDFC Securities. The Nifty finally ended the day with 34 points, or 0.14% gains, at 24,414 levels. Trading volumes on the NSE cash market were higher by 11% compared with Tuesday. Among the sectoral indices, Nifty Auto, Consumer Durables, and Realty were major gainers, while Nifty FMCG, Healthcare, and Pharma ended in the red. Auto companies staged a strong rally after the conclusion of the Free Trade Agreement (FTA) with the United Kingdom (U.K.) and a Double Contribution Convention.
