If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance.
When you face an unexpected financial emergency or suffer an expected loss, you immediately feel the stress and the need to get a quick monetary assistance. During this difficult time comes into picture insurance as a saviour. Insurance can be seen as a protection against any unforeseen loss. A definite amount, i.e. lump sum (premium), is generally paid to the insurance company to get the protection, i.e. money (cover), in case of any loss. There are certain terms and conditions that are applicable to every insurance policy and the money can be claimed by the insured only if those conditions are duly met.
Different insurance policies cover different domains of life, such as a policy for one’s health, a policy for one’s vehicle and a policy for one’s property. On a global platform, insurance companies are adjusting to the onslaught of the economic crisis. International insurance companies, which once resorted to saving expenses and conserving capital, have today started investing in the world market. This can be considered a positive step in the lucrative insurance sector.
Although with increased income levels, people are entering new insurance domains and are making their presence felt in the insurance market, some consumers and businesses continue to tighten their purse strings. For much of the European and US insurance markets, these conditions continue, with only slight improvement.
As per new market trends, insurance companies seem to enter untapped sectors and, at the same time, increase their current market size. As the global financial market seems to take a positive turn, there are many chances that the insurance sector will perform fairly well. According to Swiss Re's latest publication, Global insurance review 2015 and outlook 2016/17, “Demand for non-life insurance is expected to grow, led by an 8% to 9% annual gain in the emerging markets in 2016 and 2017. The life insurance sector faces challenges, in particular from ongoing low interest rates. Nevertheless, global life premiums are forecast to rise by about 4% in each of the next two years, led also by the emerging markets.”
The report further clarifies the market region-wise, “The global economy is expected to strengthen moderately next year. The US and the UK economies are currently growing by close to 2.5%, and real gross domestic product (GDP) growth in Japan and the Euro area are a more subdued 0.7% and 1.5%, respectively. The four economies are all expected to see slightly better growth in 2016. Emerging markets will grow by about 5% in each of the next two years, an improvement on the current 4% pace.”
Customers are the core of the insurance sector and their choices play a dominant role in determining the future of the market. It has become necessary for the insurers to redesign their distribution models. This is because current customers are resorting to buy insurance policies through independent financial advisor channels. As far as new market players are concerned, they are trying to utilise the power of digital marketing, mobile technology and other new innovations.
Since there is a pressing need of insurance awareness among the masses, governments are playing their part in doing so. For example, in India, the government makes sure it regularly creates insurance awareness through newspapers and television commercials. The Internet is also playing a major role in changing the insurance landscape by educating people about the benefits guaranteed by insurance in the form of lifelong monetary assistance, security and stability.
Despite all this, the insurance sector rarely gets the coverage it deserves in media across the globe. Most of the business magazines and websites give this sector a miss and focus on other domains to generate their stories on the economy. But World of Business ensures it does an extensive coverage of the sector, takes into account the regular feedback coming from the market and keeps its readers updated on the latest developments in this sector.