It seems that despite the economic problems, insurance companies have remain relatively unscathed. Well, this is true to an extent. Insurers are experiencing the same problems that you and I are, from worrying about what bank you keep your money with to difficulties obtaining credit – we are all in the same boat.
The thing that has kept insurers going seems to be the fact that we all still need insurance, and probably more now than ever before. We all still drive our cars, live in our homes and have mortgages and families to protect. In essence the income for insurance companies is relatively unchanged. The only area of concern is therefore the other side of the coin – i.e. the expenses of the company.
Outgoings generally increase over time even when there isn’t economic downturn so many companies are now reviewing their outgoings in a bid to cut out any unnecessary costs. This could be as simple as freezing employee salaries or moving utilities to cheaper suppliers. Simple measures but necessary to keep the companies profits going and thus keep them in business in these difficult times.