This presentation makes you clear which influence the financial crisis has/had in the insurance industry. It shows the problems, consequences and a review of the situation at the moment.
1. The hard times of the
insurance industry
Glenn Van Lierde
2FV03
2. Contents
• Financial crisis hit insurers too
• Problems
• Standard & Poor’s and Moody’s
• Consequences
• New rules by EU
• Rising prices
• Life insurance
• Cost
• New tax
• Car insurance
• Black box
• Situation at the moment
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3. Contents
• Financial crisis hit insurers too
• Problems
• Standard & Poor’s and Moody’s
• Consequences
• New rules by EU
• Rising prices
• Life insurance
• Cost
• New tax
• Car insurance
• Black box
• Situation at the moment
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4. Problems
• Standard & Poor’s and Moody’s
• Decrease of solvency-label
• Reasons:
• Bad investment strategy
• Low capital adequacy ratio
• insufficient diversification of their activities
Less sales to commercial buyers and brokers
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5. Contents
• Financial crisis hit insurers too
• Problems
• Standard & Poor’s and Moody’s
• Consequences
• New rules by EU
• Rising prices
• Life insurance
• Cost
• New tax
• Car insurance
• Black box
• Situation at the moment
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6. New rules
• To take on the crisis
• Made by the European Union
• Had influence on costs of insurances
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7. Rising prices
• Life and health insurance
• First time in over a decade
• 1st rule: offer unisex rates on all types of insurance
Life insurance women ; illness cover men
• 2nd rule: tax to close down loophole
Costs of insurances
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8. Rising prices
• Car insurance
• Rule: no discrimination of gender when setting premiums
premium car insurance women
annuity rate men
• Solution: “black-box” technology
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9. “Black-box” technology
• New way to determine your premium
• Box in your car
• Give information to insurer about:
• How
• When
• How much you’re driving
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10. “Black-box” technology
• Avoid spiralling insurance premiums
• Establish your premium
• Solution for:
• Women
• Younger and older people
• People who drive infrequently
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11. “Black-box” technology
• Examples:
• Based on miles: the more you drive, the more you pay
• Based on how you drive
• Drive well: repayment of 11.25 per cent
• Drive badly: pay 15 per cent more
• Conclusion
• Solution for:
• Women
• Younger and older people
• People who drive infrequently
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12. Contents
• Financial crisis hit insurers too
• Problems
• Standard & Poor’s and Moody’s
• Consequences
• New rules by EU
• Rising prices
• Life insurance
• Cost
• New tax
• Car insurance
• Black box
• Situation at the moment
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13. Situation at the moment
• Good ratings of Standard & Poor’s and Moody’s
• Higher solvency-score
• Better capital adequacy ratio
• Conservative investment strategy
• Improve their diversification policy
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