MARKETS & TRENDS

S&P Global Ratings Comments On Brexit Vote

Following the United Kingdom's (U.K.) referendum decision to leave the European Union ("Brexit"), S&P Global Ratings said on June 24th that it would be reviewing the ratings potentially affected by the referendum result. Despite the "leave" vote, any exit will likely be a drawn-out process while treaties or other arrangements are negotiated between the U.K. and the EU regarding their future dealings.

Global insurance industry grew steadily in 2015 amidst moderate economic growth, but 2016 outlook is mixed

Global insurance premiums grew by 3.8% in real terms in 2015, amidst variations in regional growth rates, Swiss Re's latest sigma report says. The overall performance was steady after a 3.5%-gain in direct insurance premiums written in 2014, and coming in an environment of just moderate (2.5%) global economic growth, the latter a key driver of insurance demand. There was a slight slowdown in the life sector in 2015, with global premium growth dipping to 4.0% from 4.3%, due to weaker performance in the advanced markets. On the non-life side, strong growth in the advanced markets of Asia, and improvement in North America and Western Europe, contributed to a 3.6% increase in global premiums, up from 2.4% growth in 2014.

Agriculture Insurance

The whole civilization process started because men started cultivating. Foundation of society was formed as they started living at one place for carrying out agriculture activities, for survival. There are various theories of agriculture and how it started, however the conclusion is, agriculture gave birth to the formation of society as people started living together in primitive stage. In terms of profession, agriculture would be considered as oldest profession, or an employment sector where people are involved.

Women and Insurance. An Issue, The Diagnose & A Way Out

We discussed in last two write up about the concept of insurance and welfare insurance. We discuss the purpose of insurance where we claimed that it has to reach to the last man in society, this is something going beyond the traditional thinking, it is an out of box thinking. It will not go against the concept of profit and loss.

Welfare Insurance. The Purpose of Insurance is to reach the last man in society

As we all know the history of insurance, the purpose of insurance was to protect ship-owners in time of difficulty. But we do not have data to validate how much ship-owners population was covered. I received many emails after the first thoughts on welfare insurance were out. While interacting with some intellectuals, a point came up that the penetration of insurance is low, because of the cost.

Welfare Insurance & CIS Region

Although Welfare Insurance is a new term, it is requirement that needs to be addressed on a priority bases. Financial inclusion, mass health and mass accident policies, mass/ group life insurance policies, agriculture & cattle insurance, etc. are common in insurance industry.

Business interruption (BI) is top global business risks according to Allianz Risk Barometer 2016

The impact of business interruption (incl. supply chain disruption), market developments (volatility, intensified competition and market stagnation) and cyber incidents are the major risks occupying the attention of companies at the start of 2016, according to the fifth annual Allianz Risk Barometer, which surveys over 800 risk managers and corporate insurance experts from more than 40 countries.

How can Kazakhstan become competitive in the WTO?

Kazakhstan's accession to the World Trade Organization (WTO) - is definitely a landmark event that will allow using the trade potential of the country with maximum benefits in the era of globalization. However, it is also important to protect the local market, including insurance one. According to Kazakh Association of Insurers (ASK), the competitiveness of domestic insurance market must be assessed not only in terms of business scale, the size of capital and assets, but also from the standpoint of equal or equivalent regulatory requirements.