Swiss Re – Nirantar Bharat: The business case for sustainable India
Executive summary :
Nearly one year since the outbreak of COVID-19, the reality is clear – this is going to be a long-drawn fight which will drain more resources, financial reserves and more regrettably, result in the loss of more lives than we could have imagined.
Pandemic an economic disaster
While it first began as a healthcare issue, it soon emerged as a multifaceted economic and social crisis that exposed vulnerabilities in supply chains, infrastructure, financial markets and other lifeline sectors. Despite the encouraging news of an effective vaccine, it remains a question if the normal life we were once leading before the outbreak will return post pandemic.
The cost to global economic resilience is dear. Whilst governments around the world released relief packages to stimulate the economy, these are short-term measures that are neither sufficient today nor sustainable for tomorrow. More sustainable strategies are needed to enable economies and societies to build back better.
As one of Asia’s largest economies and the world’s second most populous country, India is well-positioned to steer Asia’s development. With a ‘whole of society” approach, the country is poised to bring about radical reforms across key lifeline sectors for the country and play a pivotal role in driving change towards Nirantar Bharat (or sustainable India).
Three pillars to post-COVID economic recovery
The world economy is experiencing the deepest recession of our lifetimes as COVID-19 continues to take its toll on our society. Given its wide-ranging impact, recovery no longer resides solely in the availability of a vaccine or healthcare support. A sustainable recovery that will transit smoothly into future growth is only possible when supported by three key pillars: proper social protection, resilient infrastructure and digitalisation for a future-ready economy.
- Social protection – Well-designed policies and programmes that help reduce poverty, promote efficient labour markets and protect against risks will enable people to prevent, manage, and recover from adverse situations more effectively, strengthening societal resilience against shocks.
- Infrastructure– Enabling infrastructure development can increase productivity, connect cities, and kindle capital investment, which will be a key foundation to stimulating a slowing economy due to pandemic disruptions.
- Digitalisation– The accelerant effect of the pandemic on digital transformation is undeniable. In an increasingly digital economy, embracing technology is essential to boost society’s access to public services, while provide fertile ground for the growth of entrepreneurship, competitiveness and innovation in the global marketplace.
While seemingly independent, these three pillars are inextricably linked. Building a robust infrastructure will provide the foundation on which individuals with appropriate social protection can continue to contribute to economic value creation. Digitalisation enables flow of information and a greater awareness of risk, while facilitating easier access to social protection and infrastructure that connects India and the world.
Role of insurance in enabling sustainable recovery
As leading experts in risk management, the re/insurance industry can play a vital role in supporting the private and public sector achieve sustainable development through these three pillars, specifically by i) closing the health and mortality protection gap, ii) investing in infrastructure resilience and iii) ensuring the integration of insurance in a holistic digital ecosystem.
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