As negotiations for the 2017 reinsurance contracts begin in Monte Carlo, business conditions for the global reinsurance industry remain weak. S&P Global Ratings expects prices to continue declining in the absence of a very large loss. The soft cycle is proving to be deeper and longer than many market participants anticipated in 2013, with falling premiums increased competition putting pressure on reinsurers' top and bottom lines.
As mentioned in one of the recent industry articles
"While in recent years the main priority for investors was finding
yield, last year the focus turned to preserving capital. One asset class
that promises to deliver both good income and decorrelation from the
wider financial markets is insurance-linked securities (ILS)".
The mutual insurance sector has undergone a modest recovery in recent years, says Swiss Re's latest sigma report "Mutual insurance in the 21st century: back to the future?" Mutual insurers' share of the overall insurance market increased from 24% of direct premiums written in 2007 to just over 26% in 2014, reversing some of the declines of previous decades.
Heraclitus quoted in nearly in 500 BC, "There is nothing permanent except change". Or in other words, "Everything changes and nothing stands still". In other words, Plato said "You could not step twice into the same river". From time to time, history have proved that the statement of these wise men true.
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 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.
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.
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.
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.
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
The global insurance industry was a very active participant in the M&A wave of 2015, accounting for nearly USD 150 billion. While buyers, sellers, and their investment bankers appear to have taken a brief break from the frenzy, the Standard and Poors rating agency believes the deal-flow will continue, albeit at a slower pace, in 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.
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.
Reinsurance represents the continuation of the insurance segment and any negative effects are reflected on the further development of the reinsurance business.
"The cyber insurance market is currently estimated to be worth around USD 2 billion in premium worldwide, with US business accounting for approximately 90%. Fewer than 10% of companies are thought to purchase cyber insurance today. However, the cyber insurance market is expected to grow by double-digit figures year-on-year and could reach USD 20 billion+ in the next 10 years," states the recent study released by ALLIANZ, "A Guide to Cyber Risk: Managing The Impact of Increasing Interconnectivity".
The motor third-part liability insurance represents the most important insurance line of business, both in the developed and the developing countries. The legal framework, premium and reserving based on actuarial projections, guarantee funds, information systems, and reinsurance techniques all are crucial for the development of a healthy MTPL insurance system.
Due to the sanctions imposed by the USA and the EU for Russian Federation, some of local insurance companies were affected. This happened especially for placing the property or Cargo risks belonging to companies, whose owners are already in the "black list".
In light of the recent political events in Ukraine, a very important question is the existence of the reinsurance market in Ukraine, in particular, the placement of Ukrainian reinsurance risks.
According to experts' opinion, the only member of the insurance process focusing on the development of needs perceived for an insurance service is the insurance broker, who is acting in the interest of its clients. Furthermore, the market's welfare of the broker depends on how professionally and qualitatively it will deliver its services to the customer.
In addition to the deductible or the number of covered risks, there are other factors - such as the high frequency of damages, the road infrastructure and the high level of the compensation requests - that influence the CASCO insurance premium. In the case of Romanian, Russian and Ukrainian car owners the prices are among the highest in the Central and Eastern Europe region, according to the latest analysis carried out by the XPRIMM Publications.