In an exclusive interview, BUSINESS LIFE reporter had the pleasure to discuss a multitude of topics with one of the foremost successful young leader Mr. Rohit Atul Boda, Managing Director of J.B. Boda Group in India.
Indian insurance industry is quite sizeable and attracts investment from leading insurance players from different corners of the world. Currently, it is being estimated that the Indian insurance industry will need more than $8 billion worth of capital to improve its solvency standards and increase the penetration levels. A rapidly growing economy, rising level of incomes, and improving life expectancy rate are some of the many reasons that will also contribute to the growth of the sector and present a great opportunity for insurance companies.
In an era where startups are causing untold disruption to traditional businesses and developments in technology are sparking continual innovation, management that is built on a conventional chain of command is no longer the most appropriate option.
This month’s BUSINESS LIFE cover interview is about a young entrepreneur at J. B. Boda Group., an India-based conglomerate, which is regarded as one of the world's continuously operating family-owned business. In more recent times, the group has diversified into general various lines of business as well. The Group operating since 1943, the pre-independence era, now for more than 75 years has proved its resilience and success. In particular, its value-based management and succession planning practices interested many business experts.
Rohit Atul Boda is universally recognized as one of the passionate businessman of his generation, who attributes much of his success to the business acumen learnt from his father and the Founders of the company.
Rohit is focussed about strengthening his family businesses and helping successors find their own solid path. He has been witness to the growth and transformation of many of the world’s most successful family business leaders.
A graduate of Mumbai University from R.A.Podar College of Commerce and Economics in Mumbai, India which was followed by his qualification into being an Associate from the Insurance Institute of India.
Rohit joined the Group in 2011 immediately following his graduation who started as an OFFICER cadre and was elevated to Managing Director in 2013 after gaining know-how and experience of the operations and has since grown the operations of the company.
His influence extends beyond the family business and is often courted by local and international business people for his views on the happenings in the industry and exploring new opportunities in the continents they operate.
The Managing Director of one of India’s largest privately-owned conglomerate, J. B. Boda Group has played a pivotal role in making the firm what it is today. Joining the family firm 8 years ago, Rohit gradually worked his way up to oversee the entire business.
J. B. Boda Insurance and Reinsurance Brokers Private Limited is majorly into the insurance and reinsurance activities with other Group companies providing services into the Protection and Indemnity Correspondents(Crowe Boda and Company Pvt Ltd) and Marine and Non-Marine Surveys(J. B. Boda Insurance Surveyors and Loss Assessors Pvt Ltd), Employee Benefit Schemes, Life Valuation, Risk Inspection(J. B. Boda and Company Pvt Ltd), Onshore and Offshore Surveys(Dhiraj Offshore Services Pvt Ltd) since 76 years and currently, the company operations are active in more than 90 countries worldwide. The expanding activities led to opening of offices outside the Mumbai headquarter and today the Group has 25 Offices in India and 2 Associated subsidiary Companies followed by representative offices in other parts of the world.
The group has more than 1000 personnel, including qualified and experienced Insurance and Reinsurance Professionals, Risk Management Professionals, Chartered Accountants, Valuers, Master Mariners, Naval Architects, Licensed Surveyors etc.
The Group was founded by Late Chairman Mr. Jagmohandas Bhagwandas Boda, together with his brother, Late Mr. Dhirajlal Bhagwandas Boda, way back in 1943, when they set out from the small coastal town of Porbandar (Gujarat State) to Mumbai, the commercial hub of India, to start “Reinsurance Broking” operations. In those days, “Reinsurance Broking” was unheard of in India and the insurance business of the country was in the hands of European and American giants in the industry. The painstaking professionalism, unimpeachable standards of conduct and reputation for fair dealing of our founders enabled the Group to develop an organization of respectable size from a relatively modest beginning. They pioneered Reinsurance Broking in India and today are the largest and oldest Reinsurance Brokers in India, Asia, Africa, Middle-East, developing countries, and the first Indian Multinational Reinsurance Broking House operating for over seven decades and also being the first India broker at Lloyds of London.
Late Mr. Bharat J. Boda was the third Chairman following his Father late Mr. Jagmohandas B. Boda and his uncle late Mr. Dhirajlal B. Boda. He was the President of the Insurance Brokers Association of India (IBAI) since its reconstitution in the year 2001.
After the sudden demise of Mr. Bharat J. Boda in September 2011, Mr. Atul D. Boda took the helm as Group Chairman. The Group is currently led by Mr. Atul D. Boda along with Mr. Gautam B. Boda, Group Vice Chairman and Mr. Rohit A. Boda, Group Managing Director.
The legacy of the pioneers has stood in good stead. Their simple fundamental principle is “SERVICE” – service with sincerity, honesty and integrity; and this is what has given the reputation that The Group enjoys in the industry today.
BL: What is the news of J. B. BODA & Co. (S) Pte. Ltd., Singapore which was established in 1981?
Rohit Atul Boda: The Singapore company, a separately capitalized company headed by Mr. Prakash Rao has completed more than 35 years now. The main focus of the company being treaty and facultative business from the Indian sub-continent and the Far East and South East Asian region with client base in Indonesia, Philippines, Magnolia, Brunei, Vietnam and others. Through this office the direct cedants as well as the retrocession programs are being serviced with JBB being the lead broker on some of these contracts.The Sri Lankan, Indonesian and Pakistan rep offices are the subsidiaries of J. B. Boda Singapore.
In addition to having their own client base, JBB Singapore also operates as a placement broker for business from the Indian sub-continent region, India being one of the bigger nations from where the business is sourced.
BL: What are the risks faced by insurance companies in India and elsewhere? Why is insurance a method of managing risk?
Rohit Atul Boda: Today, with the new Prime Minister winning his second term in 2019 India has been one of the fastest growing economies of the world. All the MNC industries into manufacturing, service or hospitality have now entered India or have plans to enter into the country. With the growing economy and opportunities the country faces greater risks. These risks are not only physical loss but also concerns about data management, cyber attacks, terrorism followed by global credit scenario and others are at stake.
In last 5 years, the country has also seen a substantial amount of catastrophes having a devastating amount of damage in the country with economic losses exceeding a humungous figure. The insurance companies currently have substantial capital protection through their reinsurance programs but the country today is also gearing up for the formation of Catastrophe bonds and alternative means of risk transfers.
In such scenarios insurance acts as an important tool to minimize the losses and protect the financial strain an organisation will go through in case of perils affecting the risk.
BL: What is the role of Insurance Regulatory and Development Authority of India (IRDAI)? What are the resulting benefits on the industry?
Rohit Atul Boda: IRDA is the regulator of the insurance market in India. It plays a significant role in controlling and ensuring the market functions in the most disciplined and appropriate manner. The regulator also ensures on the ethical functioning of the companies and the brokers.
Introduction of new products is also welcomed by IRDA with a set of pre-defined rules to be followed by the companies. Though India is a non-tariff and an open market IRDA does keep a strict watch on the rates charged by the companies. Thus ensuring operation of the market in a disciplined manner.
BL: Do you plan to use artificial intelligence in your operations one day?
Rohit Atul Boda: Data analytics and Artificial Intelligence is the next big thing on this globe which combines the human power and electric wires. Every organisation involved in any industry or sector is looking at Artificial Intelligence and insurance and reinsurance is no far from it.
For us as brokers AI will be extremely important in the coming future. Right from data mining, client pitching, servicing and studying the client pattern to the settlement of claim, AI will be an extremely important factor of the organisation and we surely plan to implement some day.
However, also we as a company firmly believe in the theory of ‘personal relationship building’ which has made us survive for 75 years and beyond. We believe that artificial intelligence is the future which will supplement our efforts however the factor of human touch and meeting the clients personally will always prevail as an integral part of the services for J.B.Boda Group.
BL: What are the new strategies of J B Boda Group? What about the expansion plans for 2020 and next 5 years.
Rohit Atul Boda: The Group is extensively focused on expanding its footprints in various parts of the world and in the country itself with expansion plans into tier 2 and tier 3 cities.
The recent development taken place at the Group level is the consolidation of insurance and reinsurance broking licenses and forming a single entity named J.B.BODA INSURANCE AND REINSURANCE BROKERS PRIVATE LIMITED. This decision was undertaken from the strategic point of view as the company deals into direct Broking activities in India and this consolidation is to supplement the activities undertaken by the insurance team in the region and for servicing multi-national Indian clients having Indian interest abroad.
With HO in Mumbai, India and 2 separately capitalized companies in London and Singapore the total representative offices expand to Nepal, Pakistan, Kenya, Bangladesh, Nairobi, Egypt, Indonesia and SriLanka. The latest in addition is opening of a representative office in Morocco which is the hub for Maghreb Africa via. Tunisia, Algeria and Morocco, Mauritania and Libya.
In last 5 years we have been able to penetrate in the US treaty reinsurance market undertaking placements for the local direct writing companies.
Also one of the important and growing opportunity lies in the Alternative Risk Transfer mechanisms like ILS, Sidecars, Market Loss Warranties wherein JBB has started to work on such projects.
In addition to opening of new offices the company intends to strengthen its current team in various offices and expand the manpower strength to cater to the growing portfolio and increasing client requirements
BL: How did the Group. excel and prosper during almost over 7 decades of operations and has developed strong business relationship in various countries and within India?
Rohit Atul Boda: For the company, service has always been the main focus. Plans to expand the business in various parts of the world was always backed by the principle of meeting the client requirement at the best possible price and solution from the insurance and reinsurance market. The reinsurance activities has been carried out since 1943.
However in addition to the insurance services provided, the company also deals in Survey activities through a separately capitalized company with its operations spread pan India and major offices of this company being located on the ports of the country to service inspection of the cargoes during loading and unloading. Also the inspection of the commodities is taken place at the labs which the company owns in a selected number of offices in the country.
The Protection and Indemnity correspondent activities, another capitalized company of the Group has been in operation since more than 2 decades now with exclusive tie-ups with Steamship Mutual Underwriting Association(Bermuda) and Shipowner’s Mutual Protection and Indemnity Association, Luxembourg. A clearly segregated team of correspondents working on the underwriting, claims and accounting forms a part of this niche segment catering to the shipowners in India.
With a ‘one-stop-shop’ for all the reinsurance, insurance and allied services the company provides an end-to-end solution including the survey of the risk to be insured on client’s demand as a part of our additional services.
BL: What are the various insurance and reinsurance services that the Group. is famous for across different countries?
Rohit Atul Boda: As a value-add to our clients, the Group focuses on providing enhanced technical services on the treaty contracts specially on the capital modeling, assistance on the actuarial services for new products and exposure analysis for the clients.
The reinsurance activities are well spread across the globe with working partnerships in many parts of the world.
Apart from the traditional ways of framing the reinsurance contracts, today the client demand keeps on surging for innovation in the existing contracts and main focus being on the cost with complete protection to the balance sheet and this has well being noted from the regions the Group operates in. Catering to these challenges, a special department working on the Alternative Risk Transfer and Structured Solutions has been formed at Head Office. The technicians study the portfolio post which appropriate and innovative solutions are provided with.
In this world of technology making changes every minute, innovation happening every day and data being centralized by business houses cyber attack is one of the fastest growing threats to the planet and this puts up the question “is our data protected?” With a special focus on the Cyber Insurance segment JBB has branched out into providing expert services on this line of business assisting clients with product development and reinsurance placements with markets that put up capacity for this line of business.
As the demand for niche segment grows it is extremely important to spread the knowledge the company experts posses with our clients based in various parts of the globe. In addition to reinsurance placements, the company also provides with expert services for products like Credit insurance, Extended warranty for white, brown, grey goods and automobile and Aviation line of business.
Agriculture is one of the most important segment of many economies across the planet and with the global warming phenomenon, volatility and climate change it is of prime important that the farmers are provided with adequate financial protection. This makes Agriculture insurance an important factor which a government of any country cannot ignore. JBB with a team of agronomists has reached out on the placements in the Indian market, which now is the third largest market in the world in terms of gross premium and number one in terms of reinsurance purchase.
In addition to India the company has also done work in the African region, Middle East market for Livestock and Bloodstock along with the traditional agriculture business for direct writing companies and has structured retrocession contracts covering various crop related products for a number of reinsurers. Right from assisting the client on product development, claims services and connecting the the government of the country where project is being undertaken, an end-to-end solution is provided. There have been plans to expand this segment in next 5 years with a special focus.
BL: As a founder of The Squat Fitness Center, what pushed you to establish it? How important is fitness to businessmen and to all humanity?
Rohit Atul Boda: Squat Up fitness centre was established in the year 2017, August 1 in the financial capital city of India, Mumbai.
As a child going to school followed by the time till my senior college days I had been an obese man weighing more than 210 pounds and that was the ‘only motivation’. Reading about health related disorders and the importance of fitness in every human’s life accompanied by giving something back to the society and making people fit was always the agenda.
Born and brought up in a family dealing in the services of financial protection I always put up a quote by saying “At J.B.Boda we insure your financial health and at Squat Up we ensure mental & physical health.
BL: How is Squat Up different from other fitness centers and what is the USP?
Rohit Atul Boda: A 10,000 sq ft arena dedicated to fitness is the USP in itself. Top-notch equipment brand of Hoist and Hammer Strength imported from USA accompanied by qualified trainers and experienced fitness coaches answering health related queries and solving client issues makes the center a unique one.
A dedicated nutrition counsellor working in sync with the fitness trainers giving optimum solution to the members coming to Squat Up.
A 1500 sq ft of open area workout for those who love to exercise in an open to sky space with a dedicated coach for HIIT and functional training.
BL: What are your ambitions and dreams?
Rohit Atul Boda: The ambition is to take the Group ahead by learning from the experience of senior executives at JBB working since decades in tandem with the millennial who have the energy to write ‘tomorrow’ and innovate and assist clients with the best possible alternative solutions by combining the experience gained from the stalwarts of the industry.
