Dec
04
2013

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Growing up in a urban community it was not uncommon to know teenage girls with children. My mother made it her duty to emphasis how much of a struggle it would be to have a child at such a young age. Although I did not take the proper steps to avoid pregnancy as a teen I was blessed enough to have my first child as a adult. Even now as an adult it is a struggle to raise a child while going to school and working to support my family. Now that I am a mother and a aunt to two teenage girl I stress the importance of not having children until they establish themselves. Although my son has been a motivation for me to complete school and strive for more in life I would recommend anyone to wait until they are financially stable before bringing anyone else into the world. Major problems that our society faces today include diseases, teen pregnancies, hatred, crime, and war. As a society we have a lot of work to do in order to fix these crucial issues. It seems as though unprotected sex has become a norm in the younger community causing the development of many diseases that often goes uncured simply because parents are not aware of their children being sexually active. The only way to address this issue is for the school systems and parents to become more involved with teens and their sexual activity; this could be done simply by providing guidance to teens and insuring them that no matter the issue they will always have someone there to talk to. Awareness classes could be held that addresses the dangers that come along with unprotected sex. Simply by being more open with teens  could lead to a dramatic decrease in sexually transmitted diseases. Teen pregnancies are another issue that ties in with unprotected sex. There has definitely been a rise in babies having babies causing more children to be raised in poverty. As a society we should be more willing to insure that less teen moms has to rely on government assistance to survive. We could also help those teen moms out by providing daycare so that they could finish school and work their way out of poverty.  Hatred, crime and war are also issues that have seem to take a turn for the worst. Every day on the news there is a different story on the news about gang violence, robbers, and killings. For centuries we as a society have allowed ourselves to be at war with one another over foolishness causing the person to become harmed over issues that could be easily solved. At some point we have to realize that violence is an issue that has to stop; too many innocent lives are being taken and even more people have to pay their debts to society by rotting away in prison missing out on the joys that life has to offer. I would love to be able to go around to all the crime filled neighborhoods with single teen moms to make awareness for disease and crime, many of these issues take place simply because there is no one in these cities and towns that will give the love and support that is needed.

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  43. The effect on life insurers’ earnings is more neutral, according to Beinsure Media research. As opposed to non-life insurance, most life insurance products, e.g. mortality, wealth accumulation and longevity protection, offer benefits that are nominally fixed. Having said this, inflation tends to erode the value proposi-tion of life insurance with fixed benefit payouts, weighing on new business and leading to higher lapses.

    The immediate impact of inflation for insurance earnings is negative, primarily through rising future claims costs on current insurance policies, the need to bolster loss reserves and, in case of stag-flation, reduced demand.

    Digitalisation is one obvious route to achieve this objective in areas such as distribution (the biggest non-claims cost block), marketing and customer service.

    The impact of inflation on non-life insurers’ earnings is negative while the effect on life insurers is more neutral

    To counter rising claims costs, insurers may further accel-erate claims automation and straight-through processing as well as expand (or build) partner and supplier networks in order to negotiate fixed prices for a longer period of time.

    In investment management, there is some scope for inflation protection on the back of tactical asset allocation, for example by tilting the investment portfolio away from bonds towards commodities, equities and real estate. For insurers, however, such benefits remain elusive in light of very high solvency capital requirements for those asset classes.

    Inflationary episodes typically cause lower economic growth or even recessions, which hurt demand for insur-ance, especially in areas where customers consider insur-ance a discretionary or non-essential expense.

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  44. We argue that for customers, and society at large, the value of insurance increases in times of inflation, for the following reasons:

    – Customers’ reduced financial flexibility adds to the relevance of financial protection, inflation impact and stability afforded by insurance coverage;

    – The role of insurance in encouraging loss prevention and reduction becomes more relevant as individuals, households and businesses face a higher financial burden from any uninsured losses and a lower inflation-adjusted value of fixed payouts;

    – Financial intermediation further gains in importance. Top Life insurers in particular can help transform individuals’ and households’ short-term (cash) deposits into longer-term, higher-yielding savings, which are less prone to value erosion than deposits;

    – By stabilising people’s financial situation, insurance also contributes to mitigating social inequality. As long as insurance coverage is in place and remains affordable, vulnerable people are less exposed to falling (back) into poverty following a financial shock exacerbated by a sudden surge in inflation.

    Demand for non-life insurance could also benefit from portfolio shifts from financial to real assets. Furthermore, increasing prices of real assets such as cars and property translate into higher demand for insurance as asset owners seek to expand policy limits.

    However, the effects of inflation on interest rates are widely considered more relevant. Customers might have more appetite for savings-oriented life insurance products that come with higher yields and inflation-protection features.

    More generally, as professional absorbers and managers of risk, macroeconomic shocks such as unexpected inflation challenge insurers’ role in society, but they also offer opportunities.

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