Interview with Nikita Prabhu - General Insurance Actuary

Ques 1: Why did you choose Actuarial Science as a career? Ans: I came to know about Actuarial Science when I was in high school from my father who is an insurance agent. He showed me the Ready reckoner for premium rates and told me that ‘actuaries’ were behind the mathematics of it. I researched the profession and found it quite fascinating. I could apply the knowledge gained from the study of mathematics, statistics, economics, and finance to solve a range of real-world problems. It seemed highly rewarding. Ques 2: How is it like to work in both consulting and core Insurance based company environments? Ans: I was fortunate to start my career in consulting with Ernst & Young. Early on in my career, I got exposure to the different fields that actuaries work in, such as life insurance, employee benefits and general insurance. This initial experience aroused my curiosity towards general insurance (GI) and hence I chose to become a GI actuary. In a consulting firm, you get the

ESG Funds and its impact


E: Environmental

S: Social responsibility

G: Corporate governance

Usually an investor looks at financial parameters before investing in any company but now they started looking at non-financial parameters associated with climate, environment which drives their decision to invest in a particular company or not.

There are 3 parameters that investor look for:


·         In this decade there has been an increase in average global temperature, rivers getting polluted and deforestation rising causing huge problems for the upcoming generation

·         So investors want to invest in companies those are switching to renewable resources, improves their waste management practices, or curbing their emission levels.

Social responsibility

·         Companies should handle the resources in an optimal manner where they work. The concept simply is that If you are taking from environment or society, you have to give them back

·         Companies should not involve in any activity that cause harm to natural environment

·         In India, it’s a law that you have to pay 2% of your company profits for CSR i.e. corporate social responsibility activity

Corporate governance

·          It’s all about honesty and integrity of management

***So now let’s look at ESG fund and its impact on industries and are there any ESG funds exist in India***

ESG Fund

ESG fund is a type of mutual fund where fund will invest in companies that will score high on 3 parameters i.e. E,S,G discussed above

Some Indian ESG funds are as follows:

·         ICICI ESG fund (announced in September 2020)

·         SBI Magnum Equity ESG

·         Axis ESG

·         Quantum India ESG

Global markets have so far 3300 ESG funds with $41 trillion in it

Prospects and Impacts

·         Indian millennials are getting much more conscious about Climate change and they will start investing in companies that are good at ESG parameters

·         Tobacco companies will suffer a big hit as well as coal electricity based firms.

We will cover impact of Climate change on Insurance industry in the upcoming article.

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