The reinsurance market’s ability and desire to innovate has seen it emerge as a capable private partner for public sector risk at a time when governments worldwide are looking to transfer risks from public to private balance sheets. Effective risk transfer and mitigation strategies within the public sector will play a crucial role in offsetting wide ranging financial and socio-economic impacts.
With its decision to extend lockdowns and increase testing rates, Indian Central and State Governments have put in place measures to better manage the COVID-19 contagion curve and alleviate the impact on strained healthcare systems. However, containment is ultimately dependent on therapeutic breakthroughs that are still months away. Curtailing the economic and humanitarian fallout requires the Indian Central and State Governments and industry players to address tougher and more urgent challenges than they ever have before, according to a new report from Oliver Wyman Partner Shashwat Sharma, Engagement Manager Arshpreet Singh, Consultant Anupam Gupta and others. Guy Carpenter is an affiliate of Oliver Wyman.
Over the next 6-12 months, the Indian Central and State Governments are expected to sustain more stimulus packages and implement a strategy of controlled localized lockdowns with scaled up public health tools, including testing, tracing and selective quarantine. Indian industry players will need to show true entrepreneurial spirit and nimbleness to manage uncertainties in this new normal, responding to changing consumer behavior, supporting their workforces and managing the overall economic impact on their businesses.
In a new report, India in Lockdown 4.0, Oliver Wyman offers its perspective on recovering and calls on government and industry to work closer together than ever before.