Survey shows insurance industry is ready to take on more risk

Risk ahead insurance industry

Insurers are looking to increase risk in order to fight back trend of low yields Goldman Sachs Asset Management has release its latest annual survey of the insurance industry’s leading Chief Investment Officers and Chief Financial officers. These insurance officials represent organization with more than $6 trillion in global balance sheet assets. The survey is the third of its kind from Goldman Sachs, which aims to release these reports every year for the foreseeable future. Notably, the survey shows that insurers may be willing to take on additional risk in…

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International Insurance Review released by Globalsurance

International Insurance fund news

First annual International Insurance Review report released Globalsurance, an international insurance information organization, has announced the results of its first International Insurance Review. The report, which is to be released annually, aims to study the rate of premium inflation within the international private medical insurance (iPMI) industry. The first edition of the International Insurance Review makes use of 7,916 data points provided by eight leading companies in the international medical insurance industry over the past 5 years. Using this data, Globalsurance has determined that insurance premiums around the world are…

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Insurers pulling out of markets in the wake of natural disasters

The natural disaster rate climbs as industry reevaluates high risk areas. Natural disasters seem to be happening more regularly, a fact that the global insurance industry is becoming uncomfortable with. In terms of insurance, powerful storms and weather-related catastrophes are becoming more commonplace. As such, insurers are feeling the pressure of increased liability and the potential for steep financial losses in the wake of a catastrophic event. There is a strange trend gaining momentum in the industry today, which is spurred by the severity of recent natural disasters. Insurance markets…

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MIT and Princeton University researchers say that major storms will become more frequent because of climate change

A new report from the Massachusetts Institute of Technology (MIT) and Princeton University claims that so called “100-year Storms” could happen as frequently as every 3 to 20 years. 100-year storms are natural disasters of massive strength that leave a great deal of destruction in their wake. Risk modeling firms were the first to popularize these terms to express the potential risks that insurance organizations had to prepare to mitigate. Insurers use the risk assessments provided by modeling firms to price coverage, but this new report could change everything. Researchers…

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EU to introduce tough rules regarding data use and protection

The European Union is preparing to propose new regulations concerning how corporations use the personal data of Internet users this week. The new rules could have a major impact on companies like Google and Facebook as they would put staunch limits on how they use the information of the people that use their services. Viciane Reading, vice president of the European Commission, a branch of the EU, claims that the new rules are needed to remove the grey areas that exist in Europe’s legal system. Europe is currently awash with…

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Investors call for private sector to mobilize against climate change

Despite controversy, the issue of climate change is gaining serious momentum with various industries. During a session of the United Nations last week, a group of investors with a collective $26 trillion under management, took a stand on the issue, claiming that the private sector needs to be more involved in protecting the environment and that no singular government can solve the problem. The collective group is comprised of insurance professionals, government officials and business leaders from all over the world. Few governments have taken the issue of climate change…

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Berkshire India announces intentions to sell either health or life insurance

A branch of Berkshire Hathaway – a firm owned by Warren Buffet – called Berkshire India has announced that it will be selling either Bajaj Allianz life or health insurance products to consumers in India. Bajaj Allianz corporate agent, Berkshire India is already providing retail customers with online travel and auto insurance products through its distribution website. However, according to Arun Balakrishnan, the CEO of BerkshireInsurance.com, within the upcoming six months, the insurer plans “to launch one more product which would be either health insurance or term life product.” Their…

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Institute of International Finance warns European Union regarding upcoming changes to insurance and banking regulations

As the European Union seeks to draft new plans governing the investments made by insurance companies, the world’s largest financial institution has voice concern over the initiative. The Institute of International Finance claims that the new rules being weighed by the EU will encourage insurers to seek out riskier investments. Such practice would put the world’s financial infrastructure in a dangerous position, as the assets most often pursued by insurance companies looking to generate major profit are the ones whose failure is disastrous. The EU is looking to change regulations…

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Cinven buys U.K. Guardian life and pension from Aegeon

Cinven Ltd. has announced that it has purchased the life and pension unit of U.K. Guardian from the Dutch insurance company which owns Scottish Equitable, Aegon NV, for $449 million, in the effort to reduce its expenses within the United Kingdom. According to Aegon, which is based in the Hague, by the end of June 2011, the U.K. Guardian unit had recorded a value of approximately $445 million. Its unit for asset management will still be responsible for Guardian’s approximately $12 billion in assets on Cinven’s behalf. By 2015, Aegon’s…

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Insurance survey shows consumers unclear about what they really have

A new survey from Accenture, a managing and technology services company, has been released. The survey draws upon the experience of 7,000 people across 13 countries regarding their satisfaction with the insurance industry. The worldwide industry has come under a fair amount of scrutiny recently for glorifying insurance policies that are far less than what they claim to be. Accenture’s survey reveals major gaps between what customers expect to receive from insurers and what they are actually getting. According to the survey, 84% of respondents said that they were satisfied…

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