Tuesday, October 14, 2014

Exploring Insurance And Financial Industry Trends

September 4, 2011 by  
Filed under Marketing

Both the insurance and financial industry trends of the early twenty-first century were dramatically re-shaped by the global financial meltdown of 2008 to 2010. Not only did the international crisis lead to the demise of several esteemed institutions, but it shifted perceived notions of the success of Western capitalist ideals. All over the world governments implemented new plans of intervention, however this was tempered by an over-arching pragmatic ideal that removes regulation quickly based on the domestic status.

One of the big concerns of modern corporations is the issue of responsibility and accountability regarding social and environmental decisions. Ernst & Young have printed a white paper showing that in 2010, there was a rise in shareholder resolutions which specifically emphasized the environment or similar issues of company accountability. Last year saw 191 resolutions over the 150 in the previous year.

The evidence indicates investors are more concerned than ever before with being responsible to society and the environment. Many argue this is almost close to becoming an essential priority because resolutions focused on these issues have risen steadily over the past six years. ExxonMobil shareholders voted to make the company be far more open to public on its oil and natural gas extraction process.

The recent global economic events have changed widely held beliefs regarding unlimited growth for corporations. Companies now need to shift their focus to sustaining long-term and steady growth as opposed to erratic bursts to meet their numerous financial goals. Sustainability requires a new pragmatic outlook where growth is not hazardously pursued.

The evidence shows that the corporate world struggled to meet impossibly high projections that targeted growth in various market and regional economies. The new ideas of long term growth do however require leaders that are able to quell the desires of investors to observe instant profit in exchange for steady progress. They will need to identify what the new areas of growth are.

Many commentators have estimated the price of insurance will increase as a result of the numerous natural disasters across the globe. In early 2011 there was an array of tragic events in Japan, New Zealand and Australia, devastating communities and rocketing insurance claims.

The largest insurers in the world, Lloyds of London, claim the array of natural crises including an earthquake and flooding would raise insurance rates as businesses try to regain and rebuild. This was confirmed by global insurers Caitlin, who said the number of disasters would inevitably lead to an increase in rates.

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