As everyone knows current world insurance market is not good. But various studies and researches show that this is just a temporary phase and by 2010 this market will recover. Due to stock markets downfall & gloomy employment prospects growth in life insurance premiums, the industry’s biggest earner is expected to turn negative this year.
But as economy recovers, there would be higher life premiums and better investment results. This growth will not only have an impact on profitability but also shareholders capital and ability to raise the money.
The recession in world market is definitely reducing the amount of insurance coverage but the capital shortage will support upward movement of prices.
But the demand for other types of insurance is going to be flat. Also profitability in other insurances is likely to increase due to stronger investment policies. The demand for additional cover would increase in 2010 along with economy.
According to a report global life insurance premiums fell by 3.5% while non-life insurances decreased to 0.8%. As from report we can get to know that insurance sector was hit hardest in financial crisis period with financial loss to developed countries like Britain, France, and Italy etc.
But in developing countries life premium growth was accelerated by an average of 14.8%. So in general we can say that the insurance sector crisis affected developed countries much more than developing countries making it prove that developing countries stand out a chance even in tough financial crisis all over the world.
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The recession in world market is definitely reducing the amount of insurance coverage but the capital shortage will support upward movement of prices.
But the demand for other types of insurance is going to be flat. Also profitability in other insurances is likely to increase due to stronger investment policies. The demand for additional cover would increase in 2010 along with economy.
According to a report global life insurance premiums fell by 3.5% while non-life insurances decreased to 0.8%. As from report we can get to know that insurance sector was hit hardest in financial crisis period with financial loss to developed countries like Britain, France, and Italy etc.
But in developing countries life premium growth was accelerated by an average of 14.8%. So in general we can say that the insurance sector crisis affected developed countries much more than developing countries making it prove that developing countries stand out a chance even in tough financial crisis all over the world.
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