Recent forecast by Swiss Re reveals that total non-life insurance premiums from the emerging markets will double from US$123 bn in 2003 to around US$250 bn by 2014, at constant prices. In the same manner, the life premiums are also said to move up from US$188 bn to US$450 bn during the same period. The future of the insurance and risk management industry all over the world is said to be filled with new business opportunities. This is partly a result of identification of new risks like Geo-Political Risks, Global Warming Risks, etc., as well as the evolution of the industry to meet the new challenges with new process management methodologies like outsourcing, offshoring, tele-underwriting, etc.
The rapid change in the insured's environment and the need for the insurance company to respond to it aptly has become mandatory. The governments around the world have also positively responded to the incremental change going on in the insurance industry by adapting conducive financial market reforms thereby enabling insurance companies to operate with maximum freedom and support. The top global insurance players like Allianz, AXA Group, American International Group, Assicurazioni Generali, Aviva plc, and ING Group have been forced by the dynamic business environment to operate with low interest rates and investment returns in a saturated market. |
