The Financial Crisis Hit the Insurance Companies

The financial crisis is getting stronger and stronger and now it is going to question the future of the insurance companies.

The economists claim that there is a hard time coming for them and many of the leaders, as known, may not overcome the obstacles. There is a decrease of selling insurance services of nearly 2 per cent for the first half of the year, which is a lot. The experts say that they are two main reasons for that: the growing competition (there is a record for new registered insurance companies in 2007) and the other reason is that fewer and fewer people make the decision to squirrel some money away in order to have their vehicle, house or flat insured.

There is a decrease of 2. 0 percent on car insurance and 1. 8 percent on the housing insurance. However, what's the way this important sector can save itself until it is not too late? If strong precautions are not taken, a quarter of the little companies may be taken over by larger ones. There also expectations that some of the leaders in the branch may not manage with the nonstop coming difficulties.

However, there is another reason for decreasing the sells of insurance services but it has nothing to do with the financial crisis. It is the complaints of cheated people by insurance companies. It was just one year ago when all of the people talked about HILD and that its activity was illegal. Everybody used to say that they are cheaters and take advantage of the old people. Unfortunately, it didn't reflect all over HILD, many companies of that kind and having similar activities scored a sudden drop with more than 4 per cent (when that happened, there was no crisis).

The economists are categorical. If we want the insurance companies to flourish again, the branch must be filled with young and energetic people and the marketing researchers should pay some serious attention to the image which most of the people have of the insurance companies and of course try to make it better.