In the conditions of a market economy, the insurance business performs a socially necessary stabilizing function, ensuring the continuity of production of economic entities, the safety of individuals and the state, as it guarantees the policyholders compensation for loss in the event of death or damage to property and loss of income. There is a direct relationship between the level of social improvement, the level of development of market relations and the level of development of insurance. Thus, in countries that are world leaders in the field of social and market relations, insurance has become one of the most stable and most developed branches of the national economy. The functioning of financially stable insurance companies on the insurance market, as the main subjects of insurance relations, is a necessary condition for the stable development of the country and its economy. The study of international competitiveness and strategy for the development of insurance services is quite relevant.
Cyber risks are moving up the list of internal risks for most organizations, and malware threats are becoming more apparent and more serious. Companies with complex supply chains remain at the greatest risk, and for these firms, developing cyber resilience and improving cyber security will be a priority. The insurance market can work closely with third-party cyber specialists to offer risk management services such as stress testing, resilience training and forensic analysis to identify potential IT infrastructure exposures. Cyber insurance remains a relatively immature market, although it is still developing in most industrialized countries, and insurers are looking to develop models to better quantify these risks and structure policies to effectively and sustainably meet business needs.
As political tensions rise as a result of the conflict, Western companies will continue to be aware of the public sentiment and ESG risks associated with associations with Russia. Leading insurance companies offer reputation insurance and crisis management products to help companies cope with the financial losses incurred as a result of public scrutiny and losses. Other products, such as directors and officers (D&O) insurance, are likely to see increased demand, and many stakeholders will look to corporate boards for ways to navigate and overcome the effects of war.
While these are immediate solutions, many of which are already available, the insurance industry will need to challenge itself to address the wider protection gaps that arise in a well-managed and sustainable manner. Clients are eager to take advantage of this opportunity in the insurance industry. As an industry, insurers must pool their expertise, resources and capacity to drive product innovation that can help businesses respond and reduce the burden on the global economy.
Policies and products are not the only tools available to the insurance industry. Insurance’s central position at the heart of a functioning society, encompassing nearly every product, asset and person, gives it a unique opportunity to bring together businesses, governments, regulators, investors and many others for a coordinated approach to building societal resilience. As the scenarios outlined in this report make clear, the risks facing society can no longer be considered in isolation; and they cannot belong to the same person, business or industry. COVID-19, climate change, and the invasion of Ukraine have highlighted the systemic flaws embedded in our economies and societies and the irreversible merging of our world.
Forbes Global 2000, an authoritative financial and economic publication, ranks the world’s insurance companies every year. In 2022, a rating compiled based on the results of the previous year’s activities of the world’s largest companies was published. This convincing list includes companies from 63 countries, the combined revenue of which reached $35 trillion, and the market value of the companies presented in the rating is $44 trillion.
The rating is based on a comprehensive combination of the company’s revenue, sales, assets and market value indicators. In this list, we have selected insurance companies, compiling the top insurance companies in the world.
In the list of 2,000 companies, the insurance industry was represented by 46 insurance companies, 34 life insurance companies, 25 property and casualty insurers and 3 companies that are insurance brokers.
Thus, every 19th company on the Forbes list is an insurance company. The specific weight of the number of insurance companies in the Global 2000 is 5.4%.
Insurance in today’s world is becoming an increasingly important component of our financial planning and ensuring future stability. Although many people may think of the insurance business as complicated or unnecessary, it actually has a number of important benefits. Below are five compelling reasons why you should pay attention to the insurance business:
Financial Risk Protection : Accidents and unexpected circumstances can happen to anyone. Insurance policies provide financial protection in the event of an insured event, such as an accident, illness or property loss. Instead of bearing all the financial responsibility themselves, insurance companies may assume some or all of the cost.
Peace of Mind: Knowing that you are covered by insurance policies gives you psychological comfort and peace of mind. You don’t have to constantly worry about what will happen if an accident occurs. You can focus on the important aspects of life knowing you are protected.
Future Planning: Insurance products can also help you plan for the future. For example, disability insurance or life insurance can provide financial support for you and your family in the event of unforeseen circumstances.
Risk Mitigation: In some cases, insurance companies also offer risk mitigation services. They can provide advice on how to avoid accidents or reduce their consequences. This can be particularly useful for businesses and individuals facing complex financial risks.
Mandatory Requirements: In many cases, insurance is mandatory to be eligible to perform certain activities or receive services. For example, car insurance is mandatory in many countries. Therefore, paying attention to the insurance business, you ensure compliance with the law and the opportunity to access various opportunities.
In the conditions of globalization processes, state policies for the development of the financial services market, in particular European markets, should coincide. European integration creates an opportunity to modernize the economy of all European countries, attract foreign investments and the latest technologies, increase the competitiveness of product manufacturers, enter global markets, including the market of financial services and its integral component – the insurance market. an element of the market economy and a factor of the competitiveness of the economic system. The insurance market allows solving a whole complex of socio-economic issues, starting with the formation of a system of various guarantees for individuals and legal entities and ending with the strengthening of investment potential both on a national and international scale. A country that does not take into account global insurance development strategies risks being left far behind the leaders of world development and cannot count on a mutually beneficial partnership not only in the European, but also in the international community.
All these factors demonstrate the importance of the insurance business in today’s world. Although it may seem complicated or unnecessary, it plays a critical role in ensuring our financial stability and protection against risks.