sigma

A trusted source of market information for managers and specialists in the re/insurance industry. The sigma series provides comprehensive analysis of trends in the global insurance markets, and also of strategic issues facing re/insurance and the financial services sectors.

2018

Jun

sigma 2/2018: Constructing the future

sigma No 2/2018: Constructing the future: recent developments in engineering insurance

Engineering insurance is a specialty line of business that provides protection against losses from unforeseen circumstances during the construction and operation of plant, buildings, and infrastructure. With annual premiums of around USD 21 billion, it represents only a small part (around 3%) of the overall commercial insurance market. However, without such cover many construction projects and the operation of vital machinery would prove prohibitively risky to undertake.

Apr

sigma 1/2018: Natural catastrophes and man-made disasters in 2017: a year of record-breaking losses

Total insured losses from natural catastrophes and large man-made disasters were USD 144 billion in 2017. An active hurricane season in the North Atlantic, and a series of wildfire, thunderstorm and severe precipitation events across different regions pushed global catastrophe claims to their highest level ever recorded in a single year. Total economic losses were USD 337 billion, making an all-peril global catastrophe protection gap of USD 193 billion in 2017. Globally, more than 11 000 people lost their lives or went missing in disasters, while millions were left homeless.

2017

Dec

sigma 6/2017: Life in-force management: improving customer experience and long-term profitability

For long-term sustainability, life insurers need to maintain a strong connection with their consumers. Increasingly, insurers are focusing on improving relations with existing policyholders by offering higher-value products, increasing persistency and improving claims management. This increased focus on existing rather than new business is about improving customers experience and enhancing long-run profitability. Profits on in-force life books can be improved by judicious asset management, optimal capital allocation and by reducing operating costs. Such actions can reduce the cost of providing cover and also lower prices for consumers.

Oct

sigma 5/2017: Commercial insurance: innovating to expand the scope of insurability

Technological, economic, demographic, societal and geopolitical macro trends are driving deep changes in the business environment. These structural changes create new opportunities, but also new risks. Further, the corporate sector has changed from being dominated by physical assets to deriving more value from intangible ones. These transformations and the associated exposures they give rise to show in the risks that companies are most concerned about. For example, today business interruption is the key corporate risk concern, increasingly linked to cyber and supply chain risks, according to surveys of risk experts across the globe.

Sep

sigma 4/2017: Insurance: adding value to development in emerging markets

Emerging markets have been a major driver of global insurance premium growth over the last two decades. In 2016, emerging markets accounted for 20% of global premiums, up from 5% two decades ago. Nevertheless, many individuals and enterprises in emerging markets remain under- or uninsured, and therefore unprotected against external shocks arising from illnesses, natural disasters and accidents. These shocks can have lasting negative consequences for both economic growth and human development. The latest sigma reviews recent evidence-based research, which offers granular insights about the contribution of insurance across a broad range of development metrics.