How the Reinsurance Broker Market is changing and the Strategic Options open to a small to medium sized broker.
As the foreign markets change the opportunities available to finance firms increase and in response to this scenario amongst the deregulation, and the globalisation of their industrial customers, many insurance firms are increasing their foreign direct investment. They are paying hefty amounts to acquire other insurers and expanding through mergers internationally. The reason for this is the belief that only very large insurers will have the cost advantages necessary to remain competitive in the emerging global market. This expansion appears to be an attempt by insurers to achieve economies of scale. Economies of scale are said to exist when a firm's operating costs increase at a lower rate than its output. 50 pgs. Bibliography lists 3 sources.
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