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Sarvada research, workflows, and commentary focused on underwriting & risk.
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Underwriting & Risk
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August 14, 2026
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99 articles
Underwriting & Risk - August 14, 2026 - 11 min read
L&T's August 2026 order to build India's largest NVIDIA B300 AI factory with Together AI puts a construction programme reported at up to Rs 15,000 crore on the table. This piece works through what a GPU-dense build does to the marine cargo per-sending limits, the erection all risks testing extension and the delay-in-start-up sum insured, for the developers, EPC contractors and lenders pricing these deals now.
By Tarun Kumar Singh
Underwriting & Risk - July 28, 2026 - 11 min read
The Supreme Court's Sayona Colors judgment voided an entire fire policy for fraud, with a police SIT ordered on top. The facts that damned the insured are the same facts an honest capacity expansion generates. Here is the documentation protocol that separates the two.
By Tarun Kumar Singh
Underwriting & Risk - July 27, 2026 - 11 min read
IRDAI's 22 July 2026 letter to general insurer CEOs targets fire discounts of up to 99% off benchmark rates. For risk managers, the message is that the bottom of the property pricing cycle now has a date on it, and the window to convert cheap premium into durable policy structure is closing.
By Tarun Kumar Singh
Underwriting & Risk - July 24, 2026 - 9 min read
A sum insured that was right in April can be short by March, because reinstatement costs rise while the policy sits still. The escalation clause raises the sum insured automatically through the year, but only if the opening figure was right and the escalation rate was set from real cost inflation.
By Tarun Kumar Singh
Underwriting & Risk - July 22, 2026 - 9 min read
A warehouse holding Rs 100 crore of stock will never lose all of it to a single burglary, so insuring the full value against theft wastes premium on cover that cannot be used. First-loss insurance sets the sum insured to the realistic maximum theft, and the arithmetic behind it rewards buyers who understand it.
By Tarun Kumar Singh
Underwriting & Risk - July 21, 2026 - 9 min read
An empty building is a different risk from an occupied one, and Indian fire wordings say so through an unoccupancy condition most buyers never read. How the condition works, what counts as occupied for a seasonal plant or a unit under renovation, and how a vacancy no one disclosed defeats an otherwise valid claim.
By Tarun Kumar Singh
Underwriting & Risk - July 20, 2026 - 9 min read
Two large fire claims cost a major insurer about Rs 63 crore in a single quarter, roughly one point of combined ratio. The number is a reminder that fire underwriting fails on severity, not frequency, and that the PML assumption behind every large risk is where the discipline actually lives.
By Tarun Kumar Singh
Underwriting & Risk - July 19, 2026 - 9 min read
A single Supreme Court judgment on the economic value of a homemaker's work moved a quarter of a large insurer's underwriting result. That is not an accident of one book, it is how long-tail motor third-party reserving works, and why fleet buyers should read a reserve top-up as a signal about their next renewal.
By Tarun Kumar Singh
Underwriting & Risk - July 17, 2026 - 10 min read
Commission is not added to a technical premium, it is divided into it. What that means when a broker asks for five more points, where the money goes when the market will not bear the resulting rate, and why an underwriter measured on loss ratio never sees any of it.
By Tarun Kumar Singh
Underwriting & Risk - July 9, 2026 - 8 min read
How brokers structure fire declaration and floater covers for traders, FMCG distributors and warehousers with volatile stock values, using monthly declarations and provisional premium to avoid the average clause while insurers re-rate accumulation after GST-driven warehouse consolidation.
By Tarun Kumar Singh
Underwriting & Risk - July 8, 2026 - 10 min read
The LMA5410 property-treaty cyber exclusion and the LMA5400 fire and explosion carve-out are flowing into Indian fire and engineering wordings through treaty renewals, opening a non-affirmative gap that brokers now have to reconcile against the affirmative cyber tower.
By Tarun Kumar Singh
Underwriting & Risk - July 7, 2026 - 9 min read
The SHANTI Act 2025 rewrites how nuclear suppliers face recourse liability in India, and the Budget 2025 Nuclear Energy Mission brings private operators into the pool. Here is how vendor and supplier right-of-recourse exposure is actually insured.
By Tarun Kumar Singh
Underwriting & Risk - July 6, 2026 - 9 min read
The domestic terrorism pool caps out at Rs 2,000 crore per location, well below the value of a hyperscale data centre or gigawatt solar park. Here is when and how brokers place standalone sabotage and terrorism cover through international and GIFT City reinsurance.
By Tarun Kumar Singh
Underwriting & Risk - July 5, 2026 - 10 min read
How brokers and underwriters should read the private commercial coal-mine operator as a distinct risk: open-cast highwall failure, the HEMM and conveyor fire load, monsoon inundation, spontaneous heating and mine-development delay-in-start-up in a de-tariffed engineering market.
By Tarun Kumar Singh
Underwriting & Risk - June 30, 2026 - 6 min read
When a cyclone or a monsoon flood hits an accumulated property book, the recoverable is the output of treaty mechanics most direct underwriters treat as a black box. The hours clause decides whether a multi-day flood is one event or three. Reinstatements decide how many times the catastrophe layer can be tapped. The event definition decides clash. This post unpacks those clauses for catastrophe-exposed Indian property books and shows why they shape what an underwriter can safely accumulate.
By Tarun Kumar Singh
Underwriting & Risk - June 30, 2026 - 6 min read
The most expensive gap in an Indian liability programme is usually not the limit but the trigger. Professional indemnity, directors and officers, and product liability are written claims-made, so the retroactive date and the continuity of cover decide whether an old wrongful act is covered when a claim finally lands. This post explains how claims-made differs from occurrence cover, why the retroactive date must be preserved across renewals, and how brokers guard against a silent retro reset.
By Tarun Kumar Singh
Underwriting & Risk - June 30, 2026 - 6 min read
With the Insurance Amendment Bill bringing managing general agents formally inside the intermediary definition, delegated underwriting in India is moving from a grey area toward a regulated discipline. This post sets out how a binder defines the authority an insurer hands to an MGA, what underwriting guidelines and limits must sit inside it, and how bordereaux reporting and audit rights let an insurer keep control of a book it does not directly write.
By Tarun Kumar Singh
Underwriting & Risk - June 30, 2026 - 6 min read
Most Indian commercial capacity is not a single number an underwriter picks. It is assembled in layers of proportional and non-proportional treaty that sit behind the direct policy. This post explains how a quota share, a surplus treaty and per-risk and catastrophe excess of loss combine to set the line a direct insurer can offer, why ceding commission and reinstatements matter, and how treaty terms quietly constrain a book before facultative is even needed.
By Tarun Kumar Singh
Underwriting & Risk - June 30, 2026 - 7 min read
India is still commissioning thermal coal capacity even as global insurers and reinsurers withdraw from new coal construction and operation. That opens a widening gap between domestic energy policy and the cover a coal independent power producer or its EPC contractor can actually buy. This post sets out which insurers have published coal restrictions, what it means for property, machinery breakdown and erection cover, and how brokers structure programmes when international capacity narrows.
By Tarun Kumar Singh
Underwriting & Risk - June 30, 2026 - 6 min read
An underwriter loads a fire or liability policy with warranties intending them as risk controls, but Indian law treats a warranty as a stipulation in the nature of a condition precedent. Breach can let the insurer repudiate even where it did not cause the loss. This post sets out how brokers distinguish warranties, conditions precedent and bare conditions, how Indian courts enforce them, and how to negotiate the language at placement.
By Tarun Kumar Singh
Underwriting & Risk - June 25, 2026 - 11 min read
IRDAI completed its second quantitative impact study for the risk-based capital framework in 2025 and is drafting regulations. Once live, the catastrophe module attaches a measurable capital cost to every crore of coastal or seismic accumulation, turning loose zonal limits into a hard capital constraint that brokers can read and place ahead of.
By Tarun Kumar Singh
Underwriting & Risk - June 23, 2026 - 11 min read
Swiss Re's sigma 1/2026 put secondary perils at roughly nine in ten of 2025's record insured nat-cat bill of well over USD 100 billion. This post shows how an Indian underwriting desk should re-weight average annual loss and event loadings toward flood, hail and convective storm without over-fitting one bad year.
By Tarun Kumar Singh
Underwriting & Risk - June 22, 2026 - 10 min read
India passed 272 GW of non-fossil capacity by January 2026, and hail is exposing two weaknesses in solar placements: micro-cracking that silently bleeds yield without obvious damage, and a standard twelve-month business interruption period that cannot survive real module replacement timelines. Here is how to rewrite both.
By Tarun Kumar Singh
Underwriting & Risk - June 21, 2026 - 10 min read
Parametric covers have moved from informal-sector heat pilots into corporate property and business-interruption programmes. This desk-level manual shows brokers how to interrogate a trigger, model basis risk, set the payout curve, and position a parametric layer alongside the indemnity tower for cat-exposed Indian accounts.
By Tarun Kumar Singh
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