Zurich, RSA deal is off
Swiss insurance company Zurich has ditched plans for a takeover of UK based RSA. The almost U$-9 billion deal had been expected to go ahead but Zurich announced Monday that it is expecting its costs from the devastating Chinese port explosions at Tianjin to reach $200 million in the third quarter.
Reuters reports that RSA says that Zurich found nothing unusual during the due diligence process. The UK-based firm’s share price plunged 21 per cent on the news of the canceled deal.
Zurich says as well as the losses from the Chinese disaster it is also expecting third-quarter losses of $300 million from US insurance lines.
The 7 risks that may be opportunities for insurers
Global reinsurance intermediary
Aon Benfield has identified seven emerging risks that present re/insurers with business opportunities over the next five to 10 years. They include US mortgage credit as Freddie Mac and Fannie Mae transfer risk in the market; the sharing economy with consumers renting out their property, including homes, to others; reputation and brand; microinsurance, especially in emerging economies; corporate liability for giga losses; terrorism; and cyber risk.
Stephen Mildenhall, CEO of Aon Analytics will speak at a conference in Australia Tuesday and will tell delegates: “Risk owners are demanding new solutions for these emerging risks as they work to grow their businesses. This in turn represents opportunities for international insurers to grow through increasing the relevance of their insurance products. By investing in data and analytics, insurers will be able to grasp the potential around growth, geographic expansion and market feasibility.”
Here’s why insurers should invest in women
The insurance industry could experience huge growth from women in the emerging economies. A new study from
AXA, IFC-World Bank and
Accenture has found that in the emerging economies of Brazil, China, Colombia, India, Indonesia, Mexico, Morocco, Nigeria, Thailand, and Turkey women have growing incomes and buying power. They are also facing increased financial risks and are in need of protection. As a result, by 2030, the insurance industry is expected to earn up to $1.7 trillion from women alone - with almost half coming from only these 10 emerging economies- presenting a significant business opportunity for sustainable and inclusive growth. The report suggests that women have been overlooked in the insurance sector as a key customer segment despite the significant opportunity.
