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Banking and Insurance is in the loss across the world

Posted in insurance by kishosingh on March 7, 2009

One of the largest insurance companies American International Group Inc. has lost about $60 billion in just 92 days. The amount is as high as $470,000 in a minute. You can say that it is equal to the net worth of Bill Gates.

The loss has made a history in the insurance sector. About the loss of AIG it is being said that if $62 billion is distributed in US population then each Americans is able to get about $200.

About the loss of AIG’s loss HT writes, “AIG’s loss amounts to 92 per cent of the $67.4 billion that Americans spent at world’s largest retailer Wal-Mart Stores Inc. in the fourth quarter, which includes the holiday season. It would take a person spending $1 million per day, everyday, the next 169 years to spend as much money as AIG lost during the fourth quarter, which lasted just 92 days.”

With the news it is clear that insurance sector is also in the crisis. There is data which clear about the crisis but what is real cause and internal crisis no one knows because we have the example of one of the biggest technology company Satyam.

On the other hand in the banking sectors there is hot news about HSBC, which is one of the biggest banks of Europe. HSBC bank has announced that there is slump about 70% in its annual net profit. On the bank there is huge debts about 25 billion dollars.

To fight the crisis they are planning to cut 6,100 jobs by shutting most of its HFC branches. About the crisis Stephen Green who is the chairman of HSBC said with Hindustan Times, “”In this difficult environment, we missed our profitability targets. The coming twelve months will be difficult. We expect parts of Asia, the Middle East and Latin America to continue to outperform Western economies, but to be constrained by the global downturn.”

These slowdowns are quite clear now in banking and insurance sectors due to economic crisis. What will be with insurance policy no one knows. What is the planning by corporate companies is not clear still however the job crisis is on the head of common people. There is no way now to survive life.