General insurance Financial and market conditions affecting insurance

[Phabbyfundz]

Many forces affects the price, availability and security of the insurance product. Some are external, such as the state of the economy, changes in the interest rates, and the stock market, regulatory activities, the number and severity of natural disasters, growth in litigations, and rising medical costs. Others are internal such as the level of the competition.
Fortunately insurance companies run their business conservatively, as if every day might bring a new disaster, so despite current economic and financial conditions, the industry has been able to function normally. Unlike banks insurers are not highly leveraged they generally do not borrow to make investments or to pay claims they limit the amount of risks they assume to the capital they have on hand and because they do not sell the risks they assume to another party they have some skin in the game they must underwrite carefully or suffer the consequences.

 

[Chibson]

there are several factors that affect insurance ranging from financial and market factors to so many of them. The economy of a country has a very big role to play and also have a great impact to the operations of insurance companies. Natural disasters as you have stated is also a major factor.

 

[Wisdom01]

Exactly many factors affects the price of the insurance product and the major one could be government policies , the government could place huge tax on those insurance companies and they would probably need to add that to the premium price so they don't make too much loss , trying to settle out tax

 

[Mandy96]

Well I really agree to this. The reason is because this usually happen in my country. If you happen to set up an insurance company in Nigeria, these are the fundamental things that will cause an obstacle for the business. I believe this is why people are avoiding to invest in it

 

[Mataracy]

There are many factors that can affect the price of insurance company. One of this is when a country is in war and unrest it will really disturb the price because there will be scarcity of resource in the country and people will not move closer to the company yo insured any thing since they them self do not have anything to eat yet.