Challenges and Opportunities in Insurance Sector
"Emerging markets are the workshops of the world, supplying cheap goods, services and raw materials to the developed world" (Mark, n.d.). In recent years, China, India, Russia, and Brazil became most dominant economies country all over the world. "Goldman Sachs ingenious named them BRIC which these countries occupy a significant percentage of world's land coverage, 30% of the world's population and amount of a combined GDP (PPP) of US$12.4 trillion"(Davia and Tim,2010). They are all biggest and fastest-growing emerging market. China's growth has very fast increase, actually the real annual average GDP is growing with 9.1% from 1978 to 2008, faster than any other east countries. The emerging market continues to be a fantastic source of opportunities only if nations use their resources of labor, skills, improve education and health correctly. They should resolve the issue of transportation and innovate the energy market. Public services that are ineffective, inefficient and abuse capital should be eliminated. Government policies should modify and favor the private sector, instead of pouring money in short-term monetary stimulus. Emerging countries are still attractive to global businesses because privatization is replacing state-owned enterprises, which attracts foreign investments. There is an increasing potential in the emerging market because of resources like low-cost and hardworking labor, raw materials, natural resources and government support. Moreover, western countries are providing goods and services to the growing population of the middle class, as well as the latest technology, equipment and machinery to their government. Despite all the challenges facing today’s economy, outsourcing is still the best option for some well established companies. Therefore, opportunities existed in the emerging market is not exaggerated.
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