Factories Are Becoming More Expensive to Insure

Everyone tracks raw material costs. Hardly anyone tracks insurance costs. As the value of factories, warehouses and industrial assets rises, companies are increasing insurance coverage to protect against operational risks. This is creating a structural tailwind for industrial insurers and risk management services. Companies like ICICI Lombard, New India Assurance, Go Digit General Insurance, SBI General (through SBI) and Marsh India (unlisted) could benefit as industrial insurance penetration deepens.