Page 32 - Insurance Times September 2020

Premium incomes and increasing D) 7 Major Markets Total Insurers Premium as
claims Ratios combining Natural
Catastrophic losses along with compared to 1980, 2019, and forecast for the year 2030
COVID-19 Pandemic losses. consequent to COVID-19 Events.
Y Global Life Premiums are likely to
Market Share Forecast Amounts in US$
fall annually by 1.50% till 2021 as
against 2.2% growth up to 2019. COUNTRY 1980 2019 2030 1980 2019 2030
1 USA 48% 39% 36% 229 2460 3660
Y Global Non-Life premium are likely
to grow marginally on an average 2 China - 10% 18% - 617 1777
during 2020-21. Emerging Markets 3 Japan 15% 7.3% 6.1% 75 459 621
Non-life premium are likely to be 4 U. K. 6.9% 5.8% 4% 35 366 404
better.
5 Germany 8% 3.9% 3.5% 40 244 320
Y Personal lines business may grow
6 S. Korea 0.3% 2.8% 2.5% 2 175 258
but commercial line business may
7 India 0.4% 1.7% 2.3% 2 106 234
suffer downturns.
Y COVID-19 Losses will imply Source : SIGMA Reports 4/2020
increase in Premium with highest
rates and greater penetration. E) Conclusion:
Y Nat Cat Losses on an average $ 75 COVID-19 Pandemic's Viral Storm is still ongoing and is likely to disappear by 2022.
BLNS per year from 2001 to 2017. All people of the world have to learn to live with Isolation, Distancing and
They were US$ 93 BLNS in 2018, Sanitization in all Social, Political and Economic activities individually as well Asian
US$ 60 BLNS in 2019. congregation.

Y Worldwide AOG Perils losses in
The only great advantage is Pollution Free Environment everywhere! We all
2019 are US$ 176 BLNS. Ongoing
breathed polluted air in all metropolitan cities in the world so far.
COVID-19 events losses may be
more than $ 300 BLNS by 2022. Now man-made pollution is cleared by COVID-19 events! T

Struggling insurers face another threat as Amazon gears up to

enter motor insurance market
Insurers around the world have endured an extremely tough 2020 due to the significant fallout from COVID-19, and they
appear to face another unwelcome threat in the form of Amazon selling car and motorcycle insurance, says GlobalData,
a leading data and analytics company. Ben Carey-Evans, Insurance Analyst at GlobalData, comments: “The tech giant is
launching it in India, but has an enormous global reach, and could eventually make it a strong competitor for incumbents
around the world. Motor insurance has been one of very few product lines relatively unaffected by COVID-19 so far, with
claims largely declining, due to people traveling less. However, insurers will not welcome the extra competition as vehicle
sales are expected to decline in the wake of the pandemic, as consumers continue to work from home.”
Amazon’s entry into the insurance market will help shift consumer expectations about buying insurance products from
non-traditional players. Large global tech companies such as Google, Amazon, and Facebook have enormous customer
bases that they can leverage when selling insurance. However, consumers are still hesitant to purchase insurance from
them. GlobalData’s 2019 UK Insurance Consumer Survey found that 62% of consumers would prefer not to purchase an
insurance product from Amazon. Likewise, 63%, 66%, and 78% of consumers would not purchase insurance from Google,
Apple and Facebook, respectively. Yasha Kuruvilla, Insurance Analyst at GlobalData, comments: “Since customers are
reluctant to purchase insurance from tech companies, partnering with a third-party provider is the better strategy, at
least until they become recognized names in insurance. Amazon’s partnership with insurtech Acko rather than an
incumbent also highlights the retailer’s desire to work with digital and agile companies.”

28 The Insurance Times, September 2020