Change and consolidation

The world is in flux. Amid the aftershocks of the Covid-19 pandemic, inflation has hit many markets hard.

Ongoing uncertainty is also fuelled by the war in Ukraine as the world waits to see how the conflict will unfold. Amid these developments, change is also happening in insurance, driven by digitisation – which in turn is propelling new models, from flexible cover to parametric policies.

Read on for more details about the major changes that will affect insurance over the next 12 months and beyond.

Change and consolidation

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Insurers must keep a wary eye on two major events that remain out of their control: conflict between Russia and Ukraine, and the ongoing effects of the pandemic.

Such macro trends affect local economies, and also the finer details of insurance policies. For instance, we are finding that brokers and reinsurance firms in many markets can no longer do business with Russian insurance providers.

Russia’s neighbours are feeling the effects, too. In Turkey, for example, marine insurance must now be handled domestically rather than through cover previously issued from Russia. Meanwhile, a legion of workers from Tajikistan can no longer be employed over the border; shrinking their homeland’s economy but also the market for various types of cover. Amid these issues capacity has slipped from Russian insurers’ hands and risk has become an obvious problem.

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