News - Markets & trends


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.

Motor insurance in Kazakhstan: Trends and challenges in 1H2016

Motor insurance lines, such as MTPL and Motor Hull, remain the most popular retail insurance products in Kazakhstan. Thus, in the first half of 2016 the market share of motor insurance in the total GWP totaled 17.3% and 19% in 2015.

The insured person in the new regulatory environment. Consumer or stakeholder?

Solvency II has always been seen by many as the Area 51 of the insurance world - mainly due to its technical nature - journalists and other stakeholders alike. It has something almost mystical about it... you know it's something - but you don't always get it! However, this article is not about Solvency II per se. It is about the coming of age of the consumer landscape. And it is about the future. It is about how consumers truly became stakeholders and why they need to be involved in writing good regulation more and more.

Softer For Longer: Are Global Reinsurers Ready For A Long Soft Cycle And An Evolving Business Landscape?

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.

ABILS for insurance companies as potential investors from CEE region

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)".

A comeback for mutual insurance? Swiss Re sigma report investigates

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.

Terrorism insurance

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.

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.