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.
Although mandatory in all European countries, MTPL insurance registers major differences both in rates and coverage accross the CEE and CIS markets. Thus, if in countries such as Russia and the Republic of Moldova the MTPL price is a standard one, regulated through the local legislation, in the member states of the European Union the price liberalization transformed the MTPL into one of the main sore points of the insurance markets.
In the report of the international rating agency Standard & Poor's, the international reinsurance market in 2013 was characterized as a record of high level of capitalization, high profitability and growing importance of the reinsurance sector, which together reflect the strong performance of the sector over the past five years.