Posts from — December 2011

The financial crisis has affected most businesses but one of the most seriously hit was the insurance business. By the nature of their business the insurance companies are intimately tied to the financial markets so when they suffer a downturn it hurts the insurance companies. There has clearly been a major impact on the insurance business but it has turned out not be as bad as many people feared that it would be.

The impact of the financial crisis on the insurance business has been serious but not disastrous. Certainly the insurance companies have been hurt by it but for the most part they have managed to survive. There have been a few companies that have suffered more than others but for the most part the insurance companies took precautions to make sure that they would not be exposed to too much risk, at least the well run companies did. The result is that for the most part the insurance business has acted as something of a stabilizing influence on the financial markets.

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