Industry experts have called for the creation of a legislative framework to strengthen catastrophe (CAT) insurance and improve risk management in regions prone to natural disasters. The proposed framework aims to provide clear regulatory guidance, ensure financial sustainability of CAT products, and promote wider coverage for vulnerable populations.
Experts note that existing insurance mechanisms often struggle to address extreme weather events, natural disasters, and climate-related risks, leading to gaps in protection and financial exposure for individuals and businesses. A formal legislative structure would standardize policy design, underwriting practices, and claims procedures, making catastrophe insurance more reliable and accessible.
The initiative is expected to enhance investor confidence, improve regulatory clarity, and strengthen disaster resilience, ensuring that insurance markets can respond effectively to large-scale catastrophic events while protecting policyholders.
Want to deepen your expertise beyond today’s news?
Explore practical certification courses designed for banking, risk, insurance, compliance, ESG, AI, and emerging technologies professionals.
Learn from industry experts and earn certifications from RMAI and BFSI Sector Skill Council of India.
#Insurancenews
