What is Socratus?
During the past 5 years, global P&C insurance market demonstrated average premium growth pace roughly in line with nominal GDP. For this period motor insurance remained one of the major growth sources, both in the developed and developing countries. In emerging economies this growth was impacted by increased engine utilization, while in mature markets it has been declining relative to nominal GDP growth mainly due to decreasing inflation expectations. Insurance premiums globally were falling primarily due to lower accident frequency. We expect the global insurance market capitalisation (based on the market value of public insurance companies) to grow at an average rate of 4-5% by 2022. The expected global insurance market growth rate in developed economies is likely to remain subdued over the next five years due primarily to limited improvement in macroeconomic conditions and relatively low short-term interest rates. We expect the average premium growth rate in emerging economies to be near 8-10% over next 5 years. We expect the investment income over all American operations to increase substantially by 2022, due to Federal Reserves’ plans to raise federal funds rate, while we expect in Europe relatively low-interest rates will remain at least till 2020. Due to this fact in Europe insurance companies are putting more emphasis on underwriting discipline, decreasing underwriting costs and increasing up sale ratio. ROE for the developing markets is higher primarily cause of higher technical profitability. As for the 5 years, preceding 2017, average total underwriting profit of the global non-life insurance market was positive with a combined ratio lower than 100% in most countries, we expect this trend to remain stable for the next 5 years. As the OECD confirms insurance companies “in many countries have scope to further improve underwriting profitability through better controls on operating expenses”. We view this as an essential possibility to fulfill this target with the use of Socratus’ platform. However, due to improved global growth outlook, we expect the European market to demonstrate revival of demand for non-life insurance products, with keen demand for motor insurance and cyber security insurance, e-commerce and property insurance.
Socratus Platform The platform is universal business application based on win-win rules. Its destiny is to deliver the new insurance environment for all ecosystem participants in a familiar way and make possible a smooth move from traditional insurance model to native. The platform comprises multiple modules to cover the full cycle of new insurance product delivery.