Media Releases

Upsurge in the Global Insurance Industry

Posted on 12 September 2016 by KenResearch Banking Financial Services and Insurance ,

Economic factors such as the inflation rate, economic conditions, financial market and the rate of economic growth affect global insurance market. The industry promised a significant growth in 2015 in both advanced and emerging economies. The insurance sector is growing rapidly in developing countries in comparison to the developed countries. But this growth is going to be temporary. Health insurance is the most lucrative sector and about half of the global population is under the coverage of various health insurance policies.

Mergers and Acquisitions(M&A)

There has been a surge in Mergers and Acquisitions in the insurance industry in the last year. Mergers and Acquisitions can improve efficiency in providing insurance cover, riders and can benefit insurers as well. This also reduces the risk for the insurer to effectively reduce reinsurance. Mergers and Acquisitions also provide financial support to the insurer. At the time, when insurer has to provide the sum insured to customer, Merger and Acquisition helps. There is a rising trend of Mergers and Acquisition in insurance sector. These Mergers and Acquisitions are engaged in dealing with both life and non-life insurance as well as reinsurance sector.

Trends in global Insurance Market

  • Non-life sector has a lower rate of growth in premiums than life insurance sector
  • The OECD countries registered positive growth rate in premium in both life and non-life insurance category
  • Insurers consider risk pooling as the key driver for growth in insurance market
  • Auto insurers are shifting towards usage based insurers which will help them in customer base segmentation and enhance claim handling capabilities
  • For processing claim capabilities, insurers are taking help from big data
  • There is an increase in use of aerial and digital imagery  of the location because visiting the event site is time consuming and risky. Also visiting the site requires time and there will be a delay in process of addressing the claim
  • There is an increasing demand for cyber insurance.  Most of the companies want to protect themselves from cyber-attacks or threats, it is expected that cyber insurance will become a default choice of many companies. It is another trend that will take the insurance market by force.
  • There is a new concept of peer to peer insurance has reduce the cost of insurance, thus many uninsured will buy an insurance policy
  • To understand the authentic customer’s risk profile for health insurance and the avoid the incidence of moral hazard, insurers are using mhealth apps

 

Insurers are developing various applications to keep a track of their customers. They are developing mobile health apps and developing technology of aerial and digital imagery to verify the details of claim made.

 

This industry requires trained professionals and experts and the problem is that there is a shortage of trained professionals at all the levels in the industry which stymies the full growth potential of the industry.

A positive growth has been witnessed in the global insurance industry showcasing moderate growth in 2015. The global insurance premium grew by 4.0% in 2015 and further expected to post similar growth trend in 2016. There was not much growth seen n world economy last year however 2016 is expected to post strong results in terms of economy growth and development. Non-life premiums took the charge of the growth in the insurance sector whereas life insurance sector underperformed.

 

To know more on Global Insurance Industry Insights, click on the link below:

https://www.kenresearch.com/banking-financial-services-and-insurance/insurance/SC-93-48.html

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Fintech Start-ups to Promote Financial Innovations in Banking Sector: Ken Research

Posted on 08 September 2016 by KenResearch Banking Financial Services and Insurance ,

Indian banking is the lifeline of the nation and its people. Banking has helped in developing the vital sectors of the economy. The sector has translated the hopes and aspirations of millions of people into reality. But to do so, it has had to pass miles and miles of difficult terrain. Today, Indian banks can confidently compete with modern banks of the world. In Indian banking system cooperative bank work side by side with the commercial bank to provide loan to needy especially for agriculture and agriculture based operations along with small scale industries and self-employment driven opportunities.

Since past 5-6 years Global Banking System has witnessed tremendous change with customers becoming more demanding and tech savvy. Nowadays customers tend to be happier if transfer of their money is done invisibly and conveniently. But traditional banks could not fully meet this customer expectation, which led to decline in mobile banking satisfaction in 2015.Here comes the role of Fintech firms which are growing in large numbers and have stolen one of the most profitable segments of banks. A Goldman Sachs report estimated the severity of this leakage, with $4.7 trillion in annual bank revenue and $470 billion in profit at risk of being displaced by fintech firms.  These leaks would restrict bank in retail banking only which is least profitable section. To fight this bank is left with two options only; one is to develop their own high end tech solution like Capital One developed Digital Lab. Second option would be going with Fintech firms i.e. developing partnership with them. Big banks will continue to use their large cash hordes and low cost of capital to pay a premium to acquire and leverage fintech solutions and exploit the banks’ brands, marketing know-how and distribution capabilities to package and deliver the solutions to ready customers. For example Ally Financial bought online brokerage TradeKing Group, the firm announced earlier this month, in a $275 million deal. BlackRock also decided to tap into fintech, last August, with the $150 million acquisition of online investment firm FutureAdvisor.

On similar lines in India, SBI, the largest public sector bank and one of the fortune 500 companies has signed a MOU with Society of Innovation and Entrepreneurship (SINE) IIT Bombay to promote innovation by start-ups in financial sector. SBI has commenced a strategic initiative to promote Innovation by engaging with Start-ups in Fintech area, through funding, procurement and co-innovation under a special window. Society of Innovation and Entrepreneurship (SINE) with SBI would provide opportunities for commercial exploitation of new age digital concepts, products and services. Another notable step taken by SBI in this direction was tie up with Snapdeal (one of the largest online retail) and PayPal (payment Solution Company). Apart from this it also signed MOU with Amazon to develop payment solution for customers and sellers. These all steps clearly depict bank’s eagerness to bring in financial technology in their system so as to cater customer needs more effectively.

This digital revolution in banking sector has not uprooted the traditional banks for sure as these Fintech firms cannot cover those infrastructural cost incurred for setting up things , but yes these have forced banks to upgrade their technology  so as to serve customers effectively.

To know more on coverage, click on the link below:

https://www.kenresearch.com/tag/banking-financial-services-and-insurance/payments/178.html

Related Reports:

https://www.kenresearch.com/tag/banking-financial-services-and-insurance/remittance/177.html

Contact:
Ken Research 
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

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