Economist: Insurers will thrive during recession
Insurers will flourish during the recession, according to the Economist magazine.
Fewer claims and reduced claims costs mean that the economic downturn is a big positive for insurance firms.
In particular, recession pushes down motor accidents because people drive less.
Injury claims also fall because the most dangerous industries – construction and manufacturing – are the hardest hit by economic turmoil.
Furthermore, in developed countries non-life policies are usually mandatory.
Anyone wanting to buy a house with a mortgage, drive a car, or employ a worker will normally need insurance.
Looking back over the history of US insurance, profitability has no obvious links with the economic cycle.
Category: Financials, Insurance News
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