http://autoinsurancereview.tk/wp-content/uploads/2016/08/iStock_44383134_LARGE-283x190.jpg
Mutual insurance’s challenges and rewards: Swiss Re
Mutuals should embrace digital technology to compete with peer-to-peer insurance
Staff on August 3, 2016
The mutual insurance sector has recovered somewhat in the past few years, Swiss Re found, noting cumulative premiums written by mutual insurers outpace the wider insurance market.
This outperformance was most concentrated during the 2008 financial crisis. Nevertheless, the sector continued to grow, with mutual insurers writing just over 26 per cent of the market’s direct premiums in 2014, up from 24 per cent in 2007.
“That mutuals’ relative premium performance did not reverse once economic growth resumed after the financial crisis, suggests a degree of permanence to the segment’s recovery,” says Kurt Karl, chief economist at Swiss Re. “Some mutual groups have expanded internationally in recent years, and new mutuals have been established in a number of markets, another indication of the segment’s renewed popularity.”
Read: Gore decides to remain a mutual company
Despite these gains, mutual insurers’ market share is still well below previous highs, Swiss Re said. It also noted mutuals may be facing new challenges, including new risk-based capital requirements and tougher corporate governance arrangements.
Additionally, Swiss Re suggests insurers should embrace digital technology if they want to attract clients, especially given the prevalence of peer-to-peer insurance platforms, which enable individuals to share risk among themselves.
“Exploiting social media and smart analytics to better understand the needs and preferences of customers should be a natural fit for mutuals,” said Swiss Re. “Mutuals could play a crucial role in keeping insurance premiums affordable and certain risks insurable.”
Read: Peer-to-peer insurance is changing the brokers’ role
Mutual insurance’s challenges and rewards: Swiss Re
No comments:
Post a Comment