even millions of people losing their properties and even lives in natural disasters,
the loss could have been worse if not for the assistance of insurance. Across the
globe, life, health and car insurances are prevailing. Indeed, insurances have
undergone great changes in both developed and developing nations. The changes
in the market showed the gradual move towards liberalization and privatization
and also the consolidation of insurance operations.
The last 5 years had shown eventful development of insurance market. Not only in
America and Europe was there a great change. Even developing cities of Kuala
Lumpur, Malaysia, Jakarta, Indonesia and Bangkok, Thailand has revamped their
own systems to make way for further growth Singapore, Japan, Seoul, South
Korea and China, on the other hand, are known to have distinct insurance
Some of the changes that insurance underwent to are:
I. Adaption of Technology
Technological usage has benefited insurance in terms of cost and ease of usage.
Services have become more efficient and products are easily distributed. However,
the products sold online limits to be personal insurances as the internet is still an
easy venue for scammers and hackers. Larger insurance coverage, such as
commercial insurance continues to rely on agents and Brokers for advisory inputs.
2. Fragmentation of specific function
Insurance companies have become more detailed. The task has been distributed
into underwritings, administration and fund management and other different
functions provided by different entities. This disaggregation could be useful for
developing countries, which could then invest in capturing specific markets such
as policies administration, marketing, claim settlement/processing and fund
management, accounting and underwriting.
3. Strengthening of ties between the bank and insurers
Banks and insurers have joined forces over the years through conglomerates
(broader financial spectrum) and bancasurrance (fuse between bank and
insurance) Insurers have diversified into banking and asset management products.
Moreover, new services and products are also offered. Insurance also have secured
risk management program for the benefits of clients.
4. Ease of Access through off-shore sites
Gone were the times when insurance have been imprisoned within the boundaries
of its localities. International connection has been developed to cater to the
demands of those abroad. Axis Capital Inc., one of the leading insurance
companies in Bermuda, is itself an example with off-shore sites in as far as
Singapore, Australia and Europe. More than 10 branches more are scattered
around the United States.