A softening insurance market, low interest rates and volatile equity markets damaged the Global Direct General Insurance Carriers industry in the first half of the five years to 2015. Declining demand during the recession caused a weak pricing market to continue through 2011, to the detriment of premiums. Moreover, because industry operators invest the majority of their assets in bonds, historically low interest rates have damaged investment income substantially. Nevertheless, demand from emerging markets has driven industry growth, while a decline in natural disasters since 2012 has aided profit margins.
Businesses in this industry initially underwrite insurance policies relating to property, casualty, liability and other general risks. In underwriting insurance policies, general insurers earn premiums that they then invest to generate additional income. The underwriting of life, disability, health and medical insurance represents a separate industry, although many businesses compete in both insurance markets.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.