MARKETS & TRENDS

Despite its complexities, insurers and companies can get to grips with cyber risk, Swiss Re sigma says

Cyber risk is a growing concern for businesses, with recent attacks demonstrating that the costs of a cyber breach can escalate well beyond managing the fallout of lost or corrupted data. Swiss Re's latest sigma report "Cyber: getting to grips with a complex risk", says businesses need to do much more to integrate cyber security into their risk management programmes. Initiatives to boost cyber resilience are underway.

The CEE - a motor insurance market under pressure

The motor insurance market in Central and Eastern Europe (CEE) has been extremely competitive in recent years, with players across the board adjusting their business models to optimize costs. Less diversified insurers that have failed to build scale are struggling with profitability, reads a recent report by Standard & Poor's, "CEE Motor Third-Party Liability Insurance Profitability: The Good, The Bad, And The Ugly".

ALLIANZ: New-age corporate leaders are facing new and higher risks

"Rapidly changing risks and increasing compliance requirements mean corporate leaders are under scrutiny over alleged wrongdoing as never before. There are a growing number of areas that can result in a company and its directors being sued," states the recently issued D&O Insurance Insights - Management liability today: What executives need to know report by ALLIANZ.

UKRAINE: An insurance market "deserted" by foreign investors?

Despite the regulatory authority's efforts the Ukrainian insurance market continued to be confronted with a systemic crisis, which was noticed not only in insurance business. One after another, foreign insurance companies' which were active on the Ukrainian insurance market have decided to give up their business.

Sustained insurance sector growth in 2017 largely based on demand from emerging markets

The global economy is expected to grow moderately over the next two years, supporting continued growth in insurance premium volumes, Swiss Re's publication Global insurance review and outlook for 2017/18 shows. Growth in global non-life premiums is forecast to fall slightly from 2.4% in 2016 in real terms to 2.2% in 2017, and accelerate to 3.0% in 2018. In the life sector, global premiums are expected to grow by 4.8% in 2017 and 4.2% in 2018. The emerging markets, in particular emerging Asia, will be the main driver of premium growth in both the non-life and life sectors.

S&P: Insurance In Ex-Yugoslavia 25 Years After Dissolution: Is The Gap Closing?

Intense competition, difficulties in appropriate pricing because of lacking actuarial data, unresolved legal issues, unfinished privatization as well overall economic instability stalling development are some of the main findings of the latest report issued by S&P Global rating on the ex-Yugoslavian insurance markets (Insurance In Ex-Yugoslavia 25 Years After Dissolution: Is The Gap Closing?)

The Russian banking system: Has the bottom been reached or is the economy still in recession?

In the first half of 2016 the Russian economy "shrank" and the fall affected all sectors of the economy. Moreover, the official forecasts about the end of the crisis were ambiguous. Despite this, experts forecast the recovery and growth of the economy in the current year. At the same time, the situation in the banking sector inspires "cautious optimism". So, at the end of the 2nd quarter of 2016 the banking sector has become profitable even without data from SBERBANK Russia (Figure 1).

The client is always right

Over the last few years, the Russian insurers have tended to characterize insurance fraud as one of the most actual threats to their business. It would not be appropriate to say that there were no measures taken in order to reduce this phenomenon. Once they've considered, for example, that introducing a distinct article in the Russian criminal code dedicated to fraud will substantially solve this issue. As a result, in 2012 a special article was introduced in the criminal code (No.159, paragraph 5) - insurance fraud. However, the situation has not improved - on the contrary, it got worse.