As the world’s economy heads toward a collapse
, due to the pandemic, the insurance industry continues to generate growth worldwide and maintain profitability.
When comparing 2018 and 2019 insurer results, we notice a slight deterioration for last year’s outcome. However, even so, the industry still registered gains of $5.4 billion and a profitable combined ratio of 97%. In 2020, nonlife premiums are expected to grow with 2% in the USA.
However, insurance providers worldwide are increasing the premium volume because they raise the rates to compensate for catastrophe losses and mounting liability. The Marsh’s Global Insurance Market Index reveals that commercial policy pricing will soar with 6% in the second quarter of 2020.
The life insurance and annuity growth will reach new levels
In 2020, the global premiums are expected to grow with 3% due to the emerging markets where insurance policies are forecast to increase with 9%. But there is also a high chance the global life insurance growth will be tempered by macroeconomic events including the pandemic, the outcome of the USA elections, and the economic growth in Europe and Asia.
In 2019, The United States, life insurance and annuity market growth rose by only 1.3%, but the profitability rate did better and registered a 36% increase. In the second quarter of the year, the life insurance premiums evolved with a 5% increase. Since people are afraid of the results of the coronavirus pandemic, growth is expected to maintain the ascendant direction.
Most insurers are
looking for innovative expense efficiencies (exploring opportunities like
robotic process automation) and diversity of costs because they want to invest
proactively. They have been experimenting for years with tools and data sources
to enhance customer experience, improve the sales process, and engage with
policyholders. In 2020, they’ll benefit from the hard work
, and use
the accumulated data to meet the evolving needs of the market.
The car insurance market will register a 1.1% growth in 2020
In 2020, the market size of the automobile insurance industry in the USA, measured by revenue, is $290 billion. As a result of the increasing number of vehicle accidents and low revenue volatility, Statistics show that the car insurance industry increased faster than other advisory and financial markets. In 2020, even in the context of the pandemic, the automobile insurance market will register a 1.1% growth compared with the last year. The providers that offer the best and cheapest car insurance will get the best results.
What is the best opportunity for growth in the car insurance industry?
The main trigger for the growing demand for car insurance premium is the number of registered vehicles. The evolution of the oil price will also influence the development of the market because when the fuel costs drop, more people tend to purchase and drive cars. Therefore they need to purchase car insurance. The number of new vehicle sales isn’t a reliable indicator, because new motors are pricier to insure.
As insurers modernize services, they should also focus on subjects like the enhancement of distribution systems and platforms because they will reveal the full economic value of their investments.