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Insurance Industry in the Global Financial Crisis

Capital market industry had beaten the global financial crisis that marked the fall of stock price index. Industry financing  also suffer because of the increase in interest rates and high "yield" bonds, which make loans decreased demand and increased credit delinquent.

The banking industry as a star. Tight liquidity at this time to make the transaction a loan, so drag the interbank currency credit contraction experienced dramatically. In short, industry prone financial turbulence crisis, which centered in the United States.

How the insurance industry? Because financial institutions are also associated with the capital markets and banking, are also the problems of liquidity and exchange rates, the insurance industry indeed it can not avoid. Just look at the case the largest U.S. insurance company, AIG, and the loss of funds by states and the U.S. Government. The value of investment in unit-linked products (insurance linked to investment) is also generally fell, although the potential for new fashion, given the view that long-term investment. 

Unlike with other financial institutions are only just get disastrous if a crisis occurs, the insurance industry can in fact get "blessings" of the crisis. This is because the business is the business of insurance and risk protection.

In situations such as the current uncertainty, the performance of the insurance industry had more dynamic. Not only the public awareness of insurance increased, but also the role of insurance in the economy, encourage saving and also become dominant.

Now many people concerned about the economic conditions of uncertainty in the coming years, one of them is the possibility of weakening economic growth that usually culminate in the reduction of employees at many companies. For people who never use insurance to cover the cost of health care and education, the future will certainly not clear. If the loss of jobs, certainly intended to fund all the difficulties, given that there is no longer routine income. However, for those who have been using insurance can be a little calmer because there is protection insurance. At least, that can think more calmly in the search for new jobs. Corporations that project stopped due to lack of financing from banks also need not worry if you have been close to the insurance risk.

If not yet take into account the impact of high economic conditions of increasing social upheavals such as the hurly-burly that can cause damage to property, such as buildings and motor vehicles. In the middle of this concern, people will rely on insurance to protect their properties.

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