by masteris009 » Wed Dec 24, 2008 06:42 am
about six months back, there was a boom period in insurance sector. But after ecomonic crisis it is getting down. What do you say about this? people's craze toward insurance is the same in your country or area even during this period of economic crisis?
Posted: Wed Dec 24, 2008 09:49 am Post Subject:
Well, the insurance experts will soon join the discussion, but IMO so far the insurance industry has weathered the financial storm pretty well. The reserve of the insurance industry is vast and well kept to survive through this phase. Hence, the insurance consumers don't have to worry about their claim payment. No insurance company hasn't yet declared insolvent. However, the scenario may change once the turmoil is over.
Posted: Wed Dec 24, 2008 05:29 pm Post Subject:
masteris009 wrote:
about six months back, there was a boom period in insurance sector. But after ecomonic crisis it is getting down. What do you say about this? people's craze toward insurance is the same in your country or area even during this period of economic crisis?
masteris009,
You can't lump all insurance into one bucket.
There are certain sectors of insurance that are so swamped with new business right now they have had to temporaily stop taking status calls from agents and had to increase new business personel by 10% to 20% just to try to dig out from the mountain of new business as investors are fleeing Broker-Dealers and their certified clueless clown Registered Representatives.
One must understand that just because the word insurance is in a company's name that doesn't mean they have any exposure to Credit Default Swaps or Mortgage Backed Securites or Hedge Funds.
Very few companies attempt to be all things to all people. State Farm and Allstate and others attempt to be all things to all people but in actual practice they sell auto and homeowners insurance and that's the method they use to prospect for the more stable and profitable forms of insurance such as; life insurance, disability income and annuity sales.
The Dow-Jones Industrial average could go down to zero and it wouldn't affect my business operations one bit.
So far I know of two (2) companies out the thousands in the USA, who,... EXCEPT for Gubment intervention,... are out of business:
#1) AIG
#2) Standard Life Insurance of Indiana
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Posted: Sat Dec 27, 2008 02:50 am Post Subject:
I'm not seeing business slow down. It may be changing markets. It use to be a lot of new homeowners buying term insurance. I'm seeing the Final Expense market take off. Also the C.I. and D.I. products are a hot item right now.
It's like fishing. Just change baits and if you have to, change spots. There are still good fish in this lake.
Posted: Thu Jan 08, 2009 10:49 am Post Subject: Thanks you all
I got more from this discussion. I liked all the replies. After all very very thanks to all of you.
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