The newly published Mapfre ‘2023 Economics and Industry Outlook’ report foresees opportunities for the insurance division, even though there is a slowdown in some branches.
Global economic growth is seven-tenths of the last claim in October last year, the report said. underWhile it is predicted to slow to 2 percent, it is also stated that the majority of global growth this year will come from Asia.
Mapfre says life insurers will benefit
The Outlook report also includes an analysis of how the global economic environment will affect the performance of the insurance sector. Data show that the sector as a whole, especially life insurers, may benefit from tighter monetary policy and investment opportunities in 2023.
Mapfre experts also believe that the market will face more challenges in terms of business development in 2023. He hypothesizes that this will be more common in developing countries.
However, experts predict that tighter monetary policy, combined with higher interest rates, will continue to flourish the savings-based life insurance business, partially offsetting the negative effects of the economic downturn.
Insurance portfolio investments also seem to grow in 2023
The report also predicts that insurance portfolio investments will grow this year and support technical profitability.
Speaking about the newly announced report, Mapfre Economics Analysis, Sectoral Research and Regulation Manager Ricardo González said that the negative impact of the increase in bond yields and stock performance on the balance sheets of insurance companies was absorbed by the USA. He added that the life insurance savings business and the classical annual retirement environment with interest rate guarantees continue to develop.
2023 risk assessment from Allianz
According to Allianz’s 2023 Risk Barometer report, cyber incidents and business disruption have been in the midst of top corporate concerns for the second year in a row, as economic and power risks rise as well.
Of the more than 2,700 risk management professionals polled by Allianz for the latest version of its barometer, 34 percent marked both cyber and business disruptions as the most valuable risks.
Fund size in BES reached 440 billion TL
According to the information of the Pension Supervision Center (EGM) on January 19, 2023, the total fund size in the BES, where the number of participants was 7 million 936 thousand, was 405.4 billion liras.
In OKS, where the number of participants was 6 million 741 thousand, the fund size was recorded as 33.3 billion liras. Thus, the total number of participants in the system reached 14 million 678 thousand people, including OKS, and the total fund size reached 439 billion TL, including OKS and State Contribution.
Burak Ali Göçer, General Manager of Garanti BBVA Pension, said that the BES has become an investment tool as well as a savings tool. Emphasizing that PPS will continue to grow in 2023, and that savings under the age of 18 continue and will continue, Göçer said: “We entered January very quickly. With the increase in the base price, when 120 thousand liras is invested in the system in 2023, 36 thousand liras of state contribution will be received, which was even more attractive.”
Participation Pension General Manager Ayhan Sincek stated that BES entered its golden age in 2023 and said, “Both the events experienced during the pandemic and the economic fluctuations experienced after the pandemic started the search for a safe harbor in people. In this process, BES has proven to be the most reliable investment tool for both today and the future.”