Does recession affect insurance?

Submitted by carol on Tue, 03/03/2009 - 09:15
Recession has come like a tsunami and has swept away giants off their feet and made them fall on their face. The only way to survive in this recession is to somehow hold on to the business and not let it fall apart. Diversified insurers who have strong balance sheets and have diversified business are expected to survive in this recession market. With a steady growth rate and the potential to function continuously these insurance companies achieve the kind of ratings that benefit both shareholders and policyholders. Such data obviously means that the company is in business and can still offer its customers insurance plans. Chances of the company increasing your insurance premiums are also unlikely because all that these companies need right now is to keep running the business. There are a few who believe that this recession will act as a boon to the insurance industry. With more and more individuals moving away to different geographical locations in search of new employment, there are more and more opportunities for insurance companies to get new customers. This potential spike in demand for insurance is also seen as a threat since the increased number of clients will obviously result in an increased number of claims. A good thing in this time of recession is that the inflating cost of care has dampened a little as a result. Medical treatments, tests and drugs have seen a sloping graph recently and hence it is a relief on the policy holder’s pocket. Health care system all over the world is in a state of change. If you are looking for insurance now, you may still shop for the best deal. However, the business is seeing subtle changes and that is affecting the amount of premiums that the insurance companies will charge you. So if you are serious about finding the right quote get in touch with an insurer you know or contact your agent.
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