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funds like banks and NBFC. The insurance industry, thus, has
positioned itself as a basic pillar of our modern society. It will
undoubtedly continue to assume that status in the future, even
though, under influence of technological advancement and
trends toward globalization and deregulation of financial and
real markets, the nature of the insurance business and its value
proposition are likely to undergo considerable changes.
Insurance has become an essential ingredient of the risk and
complexity management strategies for individuals, social groups
and businesses. It has enabled us to cope with increasingly
complex and uncertain circumstances. The insurance business’s
core functions of collection, accumulation and management of
contractual capital savings have turned insurance companies
into very important institutional investors and key players on
the international financial markets.
The demands for transparent asset management that confirm to
regulatory provisions and the efficient use of excess capital that
results, are putting extra pressure on the competitive position
of insurers. Serious cost control is now claimed to be of vital
importance for the industry’s financial attractiveness and future
viability.
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