The Indian economy is growing exponentially with the nation poised to become the third-largest economy in the world and this makes India one of the most exciting markets
for Lockton. The young and digitally empowered population presents tremendous opportunities across industries and we are committed to leveraging this momentum, shared Dr. Sandeep Dadia, Chief Executive Officer & Country Head, Lockton India, in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN). Edited exceprts
Could you share a bit about your journey in Lockton so far? Lockton’s acquisition of the IRDAI License and the Arihant Capital acquisition mark significant milestones. Could you tell us about the challenges and opportunities these acquisitions present, and how they align with Lockton’s broader strategic goals in India?
My journey with Lockton during its expansion into the Indian market has been both thrilling and strategically impactful. As one of the world’s largest private insurance brokers, we recognised tremendous opportunities in India and Lockton’s strategic entry into the market reflects our commitment to expanding in key growth regions, and we are thrilled to bring our global expertise to one of the world’s most dynamic and promising economies. Through the acquisition of Arihant Insurance Broking, we have laid a strong foundation to deliver best-in-class risk management and insurance solutions tailored to the Indian market.
Our approach is rooted in Lockton’s enduring values of independence, innovation, and client-centricity. By combining our global capabilities with deep local insights from our experienced team in India, we aim to address the unique challenges and opportunities businesses face here. India is at a pivotal moment of transformation, with increasing awareness of risk management and demand for bespoke consulting services. This presents
a great opportunity for growth, and at Lockton, we are uniquely positioned to cater to these needs.
However, as with any market entry, the challenges lie in navigating a highly competitive landscape, understanding the nuances of a diverse and complex market, and aligning our global capabilities with local requirements. We address these challenges by combining our entrepreneurial spirit with a client- centric approach, empowering our associates with the resources and autonomy they need to deliver exceptional value.
As you look ahead, what are your key priorities for Lockton in the Indian market? What changes or advancements are you hoping to introduce in the insurance broking space?
Lockton’s approach in the Indian market is built on understanding the diverse and dynamic needs of Indian businesses across industries. Our three-step approach—Advisory, Placement, and Claims Advisory—is central to our methodology. This framework allows us to assess risks comprehensively, design tailored insurance solutions, and ensure seamless claims management, enabling businesses to make more informed decisions.
What sets Lockton apart is our independent, privately-owned structure, which fosters an entrepreneurial culture. This gives us the freedom to prioritise long-term client relationships over shareholder interests. Unlike traditional brokers, we challenge industry norms to develop innovative and creative solutions, tailored specifically to the unique risks faced by Indian businesses.
In the insurance broking space, our goal is to redefine the client experience by making businesses safer, smarter, and more profitable. This involves not only delivering innovative and bespoke insurance solutions but also introducing advancements in risk management, claims support, and overall service delivery. Our team of empowered and creative thinkers plays a pivotal role in achieving this vision, as they continually push boundaries to meet and exceed client expectations.
Lockton has witnessed impressive growth globally as the largest privately held
insurance broker. What expansion plans are you most excited about in India? Are there any specific regions or sectors you see as strategic priorities?
The Indian economy is growing exponentially with the nation poised to become the third-largest economy in the world and this makes India one of the most exciting markets for Lockton. The young and digitally empowered population presents tremendous
opportunities across industries and we are committed to leveraging this momentum. We plan to strategically expand our presence in the insurance broking space and deliver innovative insurance solutions tailored to the evolving needs of Indian businesses and individuals.
Our immediate focus includes establishing a robust local presence within the next 12 months and this footprint will enable us to directly service our global accounts present in India, transitioning them from tie-up brokers to being handled by our dedicated local team.
In terms of sectors, we see strategic priorities in addressing new-age risks emerging from advancements in Electric Vehicles (EV), Artificial Intelligence (AI), and cybersecurity. These areas demand not just innovative insurance solutions but also education and awareness across the ecosystem to ensure adequate coverage and risk mitigation. India’s strong digital infrastructure and advancements in AI, IoT, and mobility services also provide fertile ground for innovation in the financial services segment. We aim to lead the way by introducing tailored products and services that cater to the unique demands of this evolving landscape.
How does Lockton help clients manage and minimise their Total Cost of Risk (TCOR)? Could you share any unique solutions or methodologies that can be employed to drive value for clients?
In today’s volatile business environment, traditional approaches to risk management which primarily focus on insurance premiums are no longer sufficient. The application of the Total Cost of Risk (TCOR) framework is a more holistic way of approaching risk management by considering both direct and hidden costs. This allows businesses to gain a comprehensive understanding of their risk profile, identify inefficiencies, and adopt proactive strategies for long-term stability and growth.
Lockton’s TCOR methodology is designed to help clients effectively manage and analyse all risk- related costs across their organisation by leveraging a technology-driven approach. From risk transfer expenses like insurance premiums to indirect costs such as compliance challenges, administrative inefficiencies, and transaction costs from claims. By breaking down these components, we empower businesses to allocate resources more effectively, streamline processes, and reduce redundancies.
Given the increase in natural calamities globally, how can one manage clients to
mitigate and manage risks associated with these events? Have recent events led to any shifts in your risk assessment and advisory strategies?
Recent events in terms of natural calamities have indeed prompted us to rethink our approach to risk assessment and advisory. The rise in natural calamities globally underscores the critical need for businesses to adopt a proactive and comprehensive approach to risk management in their specific industries and geographies. For example, we now emphasise innovative solutions such as parametric insurance, which allows
for quick payouts based on pre-defined triggers like the intensity of a cyclone or the amount of rainfall, making it particularly effective in managing catastrophic risks. These solutions ensure that clients can address high- impact events swiftly without waiting for lengthy claims assessments.
Our approach involves detailed risk assessments, customised mitigation plans, and innovative insurance solutions to ensure resilience and preparedness.
Through comprehensive site evaluations, advanced risk modeling, and the use of flood control maps and storm surge data, we help clients identify vulnerabilities and simulate disaster scenarios. We also recommend strategies to enhance property resilience, including structural reinforcements and compliance with building codes, while developing robust business continuity plans for operational stability during and after disasters. Furthermore, we design tailored insurance programs and explore alternative solutions like catastrophe
bonds and parametric insurance to ensure clients are financially protected.
Also Read | Data-Driven Innovations Improving Claims & Operational Efficiency
What trends do you anticipate will shape the insurance and risk management sectors in the coming year? Are there specific technological, regulatory, or market developments that you think will redefine the industry?
In India, intermediaries not handling premiums but focused on policy servicing through underwriters, TPAs, or surveyors play a key role in claims assessment and service efficiency. Growing demand for seamless client interfaces and integration
with insurers and reinsurers has led to regulatory encouragement for advanced technologies like BIMA Sugam, a game-changer expected to enhance standardisation, efficiency, and risk management. At Lockton, we are developing in-house solutions to meet these technological demands.
The industry is rapidly evolving, with data-driven products and tailored policy wordings replacing standardised formats. This shift amplifies the role of brokers in defining contracts, creating bespoke solutions, and addressing unique client needs.
Innovations like parametric insurance, surety bonds, and transactional insurance products are gaining traction, addressing emerging risks such as pandemics and urban flooding.
As clients seek protection against critical risks, the market is set for growth. With 100% FDI, global practices will further enhance risk pricing, ensuring high-risk assets bear appropriate premiums. These trends are reshaping India’s insurance landscape, driving efficiency, resilience, and innovation.
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