Economic recovery to boost life insurance business
As advanced economies continue to recover, the life insurance sector will grow, according to the world’s second largest reinsurer. Swiss Re says that last year the value of policies dropped in developed countries, especially in the US, but that with employment figures improving things will begin to improve. Emerging markets did see growth in 2013 and Swiss Re believe that will continue, and pick up pace, especially in India and China. Non-life insurance is also expected to see global growth, with the emerging markets again seeing more rapid increases.
Global strategy for environmental risk – the ticking timebomb
The increase in globalisation is creating growing risk from situations that would once not have been a consideration for most businesses. Research from RSA, WWF and PwC says that environmental risk is a ‘ticking time bomb’ that needs a global management strategy. The report highlights cases where an environmental crisis in one part of the world creates a ripple effect along supply chains which damages multiple businesses with losses of billions of dollars. The researchers point to the example of the economic crisis; not an environmental issue but a stark example of how systemic weakness is a huge risk. Read the full story.
US government watchdog recommends action against insurers
A US government agency is in favor of legal action being taken against insurance companies due to allegations that state-controlled mortgage insurers Fannie Mae and Freddie Mac may have been overcharged for insurance. The Inspector General’s Office of the Federal Housing Finance Agency says that two insurance companies and their subsidiaries may have colluded with intermediaries resulting in overpriced insurance. The overpricing is said to be in the region of $158 million in 2012 alone. Read the full story.
Australians buying more life insurance
More Australians are buying life insurance policies according to new figures. The TAL Australian Financial Protection Index has seen a rise of 38 per cent year on year, with the 35-49 year old ‘generation X’ demographic creating the most growth. These are typically those with more at risk; bigger families, mortgage and a higher wage. As well as life policies, there has been increase in critical illness and income protection. Despite the growth, there is still plenty of room in the market, with many Australians believing they are underinsured and 20 per cent having no life insurance. Read the full story.
Insurance firm party cost half a million
We all enjoy an office party, but not all are as rich as this one. The boss of UK insurance company Admiral has entertained staff with an event costing £500,000 ($847,000). With a stadium decked out in Alice in Wonderland and Harry Potter themes, jazz bands, jugglers and a zip wire, this was the staff party of the year. Fun loving CEO Henry Engelhardt, originally from Chicago, provided free food and drinks for his 5000 staff and the night was topped off by a performance from Simon Cowell protégé Olly Murs. Read the full story.