Insurance branch: a need of innovation News 25 September 2014 , No hay comentarios Insurance companies have been one of the main players hit by the current financial crisis. The AIG bailout was not very good news for a branch that has shown a little ability to develop new solutions and evolve. As the OECD reports, the industry is pressured by price competition in premiums and by low interest rates, which reduce the chances to offer attractive savings products. Moreover, experts also said that insurance products are now more complex and this has had negative effects amongst customers. However, chances are growing in emerging countries, where the improvement of standard of living awake the people’s attention for these products. What is the evolution of some of the main insurance companies? Let’s see the T-Advisor figures: Omaha’s Oracle conglomerate, the biggest American insurance, obtained US$ 140,310 million in 2013, a 13.7% more compared with the former year. The net income increased also a 31.4%, until US$ 19,845 million. French biggest insurance company revenues increased slightly a 1.2% in 2013, till €91,249 million. The net profit reached €4,482 million, a 10.2% more. The German insurance group decreased the revenues a slight 0.3%, till €101,416 million. However, the net profit jumped a 14.1%, till €6,344 million. The Italian insurance company, as the German competitor, decreased its revenues a 1.1%, till €85,043 million. However, the net income multiplied almost 6 times, a 582%, till €2,142 million. The comparison in the main data made by T-Advisor has the following results: Performance YTD Volatility YTD Score Liquidity VaR 1 week Berkshire Hathaway 18.56 % 12.84% 8.67 10 -2.24% AXA -9.39% 21.14 % 7.06 7 -5.39% Allianz 5.33% 17.42% 7.15 10 -4.56% Generali -5.67% 17.64% 5.87 10 -4.32% AXA and Generali, the French and Italian players, show the worst results compared with Allianz and Berkshire. They are still suffering the crisis effects. The American company is the most profitable and also has the lowest volatility and VaR. Its trend is a steady and progressive upward line. Allianz shows the second best figures amongst this group. The German company is still considered a safe harbour by investors.