The Economist magazine has predicted that Insurance companies will thrive during the recession as other industries struggle to stay in business. The magazine says that fewer claims and lower claims costs will see insurance companies buck the trend during the current crisis for the following reasons.
Recession pushes down motor accidents as people drive less.
Industrial injury claims will fall, because the most dangerous industries-manufacturing and construction-are among those hardest hit by the recession.
Anyone wanting to buy a house with a mortgage, drive a car or employ a worker will inmost cases need mandatory insurance cover.
It is unlikely that premiums will reflect the fall in claims however as the insurance industry also has a good history of looking after itself.
0 comments so far
There are no comments for this post yet. Why not be the first by filling out the form below.