A combination of large pay-outs for different kinds of carriers and the impact of low interest rates in developed markets has caused the average total shareholder return of publicly held insurance companies to drop into negative territory. The average return was much below the 15% average return recorded in other industries, pushing insurance to near…
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A study of insured losses over the last half century reveals that weather-related events have significantly escalated compared to non-climate perils. Between 2010 and 2019, global insured losses from wildfires increased by 500%. On the other hand, the humanitarian aid deficit grew from a little under a billion dollars two decades ago, to $4 billion…
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Digital ecosystems, orchestrated by powerful platform businesses and crisscrossing traditional industry sectors, are estimated to top 30% of global economic activity by 2025. While Amazon, Google, Alibaba, Tencent are early pioneers, others are shaping up across strata, in B2B as well as B2C. They thrive by efficiently matching supply with demand while solving deep entrenched…
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Nobel Prize winning economist Daniel Kahneman, in the 1970s, studied biases in economic decision-making and how people handle risk, challenging the belief that humans behave rationally when making financial choices. The ensuing body of work that it spawned – “Behavioral Economics” – has become entrenched in business parlance, as rigorous research has demonstrated that understanding…
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