As investment returns remain low, the additional capacity in the industry must be used advantageously to create a new class of customers, says Ashok Roy, chairman and managing director at GIC Re.
The deflated investment markets have been causing insurers and reinsurers problems for several years now. What can companies do to negate these pressures?
The deflated markets have been a cause of concern for all, not only insurers and reinsurers. Most have now learned to live with it. This is more confined to the western markets; we in the emerging markets are slightly better off with investments still offering more respectable returns.
Added to low returns, the woe of excess or alternative capacity in our markets is a major issue. As returns in traditional investment markets have dipped, the insurance industry offers a safe haven. It is our good performance that has attracted them. We have been affected by this development as we are unable to price our products correctly. Pricing has remained soft now for quite some time.
GIC Re, FIDES, Ashok Roy, Reinsurance, Latin America, Insurance