Turbulent world boosts insurance industry
The insurance industry is being boosted by geopolitical turmoil according to some of the largest global insurers. Evan Freely, global head of credit specialities at
Marsh told the Financial Times: “It seems to us that there are more geopolitical tensions now then there have ever been since the end of the cold war.”
With tension over Russia and the Middle East increasing companies are spending more on insurance coverage and up to $2 billion is being bought for single political risks. Fear that projects will be cancelled is one of the largest concerns of corporates. As well as the risk of violence, economic worries are also growing. “China has had a tremendous impact,” says Ray Antes, political risk specialist at
AIG. “It hasn’t led to losses yet, but we’re watching our exposures carefully.”
Profits have been good in recent years on geopolitical risks with 30 to 50 per cent being common margins for insurers but now exposure is also increasing.
Insurance sector must embrace diversity says Willis exec
The CEO of Willis GB, part of the global insurance firm Willis Holdings, says that the insurance industry must embrace diversity and hire and develop the best talent regardless of gender, race, sexuality or nationality. Marketwatch reports that Nicholas Aubert is calling for diversity as a long term strategy for the growth of the industry saying that “diverse teams get better results.” He noted that 96 per cent of Fortune 500 CEOs are male but that it’s not just women who are under-represented. Mr Aubert was speaking at the week-long DiveIn Festival, part of a collaboration which includes Lloyds of London.
The Insurance agency that donates half of its profits to charity
An insurance agency in New Milford, CT is breaking with the traditional business model by donating more than half of its profits to charitable causes. The chairman of Goodworks Insurance Company, Chad Yonker told newstimes.com that it’s good for business: “People who do business with us not only benefit from our extensive network of insurance carriers and the savings that we can also provide, but because we are also making significant contributions to their own community.” The firm began in Massachusetts in 2006 and has grown to five locations with two more planned so far. Yonker notes that it would not be possible for all businesses to do the same, especially if they try to switch to the model retrospectively. However Goodworks was set up with the charity-giving element in place.
