Global Non-Life Insurance Industry: Porter’s Five Forces Strategy Analysis
The economic recession had quite an impact on the global non-life insurance industry. Motor insurance accounts for the largest segment of the non-life insurance market and due to dipping sales of automobiles around the world, this segment was impacted the most during the 2008-2012 period. However, growth of the non-life insurance market remained strong in the Asia-Pacific region. The coming years are likely to boost the growth of the global non-life insurance industry.
Aruvian Research analyzes the Global Non-Life Insurance Industry in Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.