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Finance & Insurance - Coggle Diagram

- - - - Insurance companies, as the largest institutional investor group in Europe - and operating with very long investment horizons - have a major role to play in the financing of the transition to a low-carbon economy. As risk managers, they also play a central role in the identification and measurement of material climate risks. They can make a difference by integrating ESG factors and risks into both the assets and the liabilities sides of their balance sheets.
      - As the largest source of external financing in the EU, banks are an essential component of the financial system.
        As such, the lending and financing activities must form part of the transition to a low-carbon economy. “As the backbone of the European financial system, they also have a responsibility” to strengthen the financial system’s stability by better managing their exposure to material ESG risks.
      - Pension funds, as large asset owners on top of the investment chain, set the demand for ESG incorporation into investment decision-making. Through mandate setting, they ensure that their investment beliefs and commitments are reflected in their strategies, in their governance processes and in the contractual relationships they have with their investment managers. Given their long-term investment horizon, they are also required to
        focus on managing ESG risks, notably those related to climate change.
      - In investing their clients’ money, asset managers (AMs) have a duty to act in the best interests of these investors. This means, on the one hand, that AMs should ensure they are equipped to address the preferences of their clients - including their sustainability preferences - and, on the other hand, that they should be fully transparent regarding the products they offer and the ESG impacts of those products. In addition, in their equity and debt financing activities, AMs that invest in listed or private equity should integrate ESG considerations throughout their investment value chain, from product manufacture right through to disclosure to investors.
      - The legal mandates of central banks and financial supervisors typically include responsibility for price stability, financial stability and the safety and soundness of financial institutions. Following COP21, however, it became obvious that central banks had a role to play - in cooperation with the financial sector, policy makers, academia and other stakeholders - to instill best practices in addressing climate-related risks.
      - Finally, stock exchanges are uniquely positioned to foster money flows towards sustainable products or companies, enhance disclosure and transparency and strengthen resilience of capital markets to the potential economic impact of climate change.
        Since 2009, the Sustainable Stock Exchanges (SSE) initiative has been working with stock exchanges to encourage partnerships and the adoption of best practices in the area of responsible investment for sustainable development.
- - - - Approximately $162 billion of alternative finance volumes directly stem from funding provided
        by institutional investors such as banks, pension funds, mutual funds and family offices. With the involvement of institutional investors on the rise, most regions were fairly equally split, with roughly 50% of funding coming from the institutions and rest provided by retail investors.
      - In 2018, the global online alternative finance industry facilitated $304.5 billion worth of funding. Although the Chinese alternative finance market has faced considerable hardships in 2018, it still accounted for 71% of global volumes ($215.4 billion). Excluding China, online capital raising activities grew by 48% year-on-year to reach $89 billion in 2018. The United States ($61 billion) and the United Kingdom ($10.4 billion) came in second and third respectively. In 2018, five additional countries surpassed the $1 billion threshold of alternative finance market volume including the Netherlands ($1.8 billion), Indonesia ($1.45 billion), Germany ($1.27 billion), Australia ($1.16 billion) and Japan ($1.07 billion).
      - The leading alternative finance models in mainland Europe include P2P Marketplace Consumer lending ($2.9 Billion), Balance Sheet Property Lending ($1.4 Billion), and P2P Marketplace Business lending ($997 million) accounting for 38%, 18%, and 13% of overall regional volumes respectively.
    - - Consistently, the largest online alternative finance model by market segmentation was P2P / Marketplace Consumer Lending. The digital nature of most P2P lending platforms can offer opportunities for decreased overhead for lenders and lower interest rates for borrowers, indicating that individuals with capital see P2P and Marketplace lending as a viable option for a return on investment, and borrowers are seeing access to capital previously more difficult to attain.
  - - - Alternative financing services are easy to operate, unlike the traditional banking systems. The alternative financing is an internet-based platform which uses bitcoins & social impact bonds for financing. The data for the alternative financing is transparent to the consumers, which therefore promotes the growth of availing alternative financial instruments.
        Furthermore, the alternative financing helps in reducing the operational cost by decreasing the cost in infrastructure, workforce, and maintenance of financial services. Moreover, the alternative financing provides a suitable plan to ensure the borrower’s repayment process, which reduces the market risk for the company. Therefore, the lower operating costs and market risk, will boost the growth of global market during the forecast period.
      - Key players operating in the global alternative financing industry include LendingClub, MarketInvoice, CircleBack Lending, Peerform, Zopa, Mintos, Lendix, RateSetter, SoFi, and BorrowersFirst. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global market.
      - The alternative financing businesses have increasingly adopted & implemented internet-of-things and blockchain-based technologies. As these technologies help in adding advanced proficiencies such as easy accessibility and transparency to the alternative financing platforms, which further boost the market growth.
    - - With connecting fundraisers directly to the investors, alternative financing can help in reducing the transactional costs & improve the market efficiency for the company. Therefore, surge in adoption for alternative finance instruments, easy accessibility of the financing services, and the cost saved by the consumers are expected to boost the growth of the market in near future.
  - - - The relatively low level of external funding indicates that there is a need to strengthen and expand alternative finance mechanisms for MSMEs. Given
        the expectations from the sector in terms of economic growth and job creation, improving access to finance for MSMEs is crucial for countries in emerging economies.
- - - - The precision medicine market was valued at approximately USD 58,450 million in 2020, and it is expected to reach about USD 98,550 million at a CAGR of 9.2% over the forecast period.
      - Amid the current pandemic, precision medicine is advancing at a breakneck speed. The healthcare industry is focused on conducting precision medicine and genomics research to better understand COVID-19 susceptibility, measure its impact, and discover potential therapies.
      - Furthermore, in the past few years, a number of gene therapies, diagnostics, and medicines have been introduced in this field, due to the rising incidence of life-threatening medical conditions, such as cancer and rare diseases. For instance, as per the data published by the Globocan 2020 report, 19.29 million people were living with cancer. Hence, characterizing or sequencing genes is the most important method to gain information about genes and their probable mutations.
      - The precision medicine market is segmented by technology (big data analytics, bioinformatics, gene sequencing, drug discovery, companion diagnostics, and other technologies), application (oncology, CNS, immunology, respiratory, and other applications), and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America).
      - Precision medicine applications are primarily directed toward better treatment against oncological diseases and expected to hold the major share in the precision medicines market. The key factor behind the dominance of the segment is the rising prevalence of cancer and the rising number of drug candidates for the same under clinical trials.
      - According to the National Clinical Trial Registry (NCT) of the United States, as of June 1, 2020, there were about 191 registered clinical trials that were related to precision medicines, and this is expected to boost the market growth in the near future.
      - The precision medicine market is highly competitive and consists of several major players, along with a number of smaller companies. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new technologies at affordable prices. Companies, like Medtronic PLC, Pfizer Inc., Novartis AG, Qiagen, and Teva Pharmaceuticals, hold substantial shares in the market.
    - - The adoption of precision medicine will affect all stakeholders and touch many health systems levels. This will include individual-level perspectives through societal perspectives. Stakeholders will have their own definition of value and requirements for acceptance and uptake. All stakeholders desire technologies to be backed by evidence but there are likely to be variable views on what constitutes “sufficient” or “high quality” evidence, and these elements should be considered in the context of value assessment.
      - Precision medicine involves the participation of established industries who already work within the healthcare market, such as pharmaceutical or diagnostic industries, but also new players, such as information technology industries, working to deliver decision support or news to patients. For these industries, precision medicine may offer opportunities, such as focused value propositions, efficient clinical trials, reduced development risk, new treatment targets, or high-margin markets. However, each of these opportunities requires evidence that suggested benefits are realized in practice
  - - - A consistent rise in geriatric population would boost the growth of connected healthcare market. On the basis of type, M-Health services hold the largest market share followed by M-Health devices and E-Prescription. The global m-health devices market will grow at an average annual rate of 38.6% over the next five to six years.
      - Globally, North America holds the largest market share for global connected healthcare market which is expected to grow at the CAGR of 30% over the forecast period i.e. 2017-2030.
      - Europe being the second largest market for connected healthcare is anticipated to grow at a compound annual growth rate of 27.6% during the forecast period i.e. 2017-2030.
      - Due to the connectivity of healthcare facilities and devices, patient monitoring is done on real time basis, notably cutting down of unnecessary visits by doctors; also give them the chance to utilize virtual infrastructure of cloud computing to make informed decisions and offer evidence based treatment.
      - Growth is mainly driven by government-sponsored programmes enabled by better healthcare infrastructure and data storage facilities. Moreover, connected healthcare solutions provide ease to the patients to consumer healthcare services and help the medical experts to provide better and efficient cure to the patients.
      - it presents multiple challenges related to sensitivity of health data. Furthermore, streamlining and digitizing health data as well as its expanded use, strain the data centers. Data security is another risk that is likely to increase with the volume of data hence the need to shield information from cyber attacks.
    - - Rising partnerships between the companies and the introduction of connected healthcare in developing economies will further create new opportunities for the connected care market in the forecasted period of 2020-2027.
      - North America dominates the connected care market due to well-developed internet infrastructure, well-developed healthcare sector and presence of major players in this region. Europe is the dominating region in terms of growth in connected care market due to growing number of aged-population suffering from various diseases.
      - Cost-effectiveness and patient’s convenience is the vital factor escalating the market growth, also rising aging population, increased involvement of patient population, continuous Increase In lifestyle diseases, rising government expenditure on the healthcare sector to facilitate numerous healthcare services, increased internet penetration in developed and developing countries and rising patient-centric approach are the major factors among others driving the connected care market.
      - The major players in the connected care market are AgaMatrix, AIRSTRIP TECHNOLOGIES, INC., AliveCor, Inc., Allscripts Healthcare, LLC, Apple Inc., Boston Scientific Corporation, Cerner Corporation., GENERAL ELECTRIC COMPANY, Honeywell International Inc, Medtronic, Microsoft, Persistent Systems, Koninklijke Philips N.V., Qualcomm Technologies, Inc., Vivify Health, Inc., IBM Corporation, and SAP SE among other domestic and global players.
  - - - In 2018, 2 million employees participated in health and wellness programmes
      - When considered as a whole, retailers and manufacturers are a powerful force to help address the issues that concern both consumers and health authorities. Retailers benefit from direct contact with consumers and have a unique opportunity to listen and gauge opinions. Manufacturers can then use this feedback to innovate and create new products that respond to market demand.
    - - Fitness market size in 2021 = $96.7 bn
      - 184,000,000 members of health and fitness clubs worldwide
    - - These days, consumers view wellness through a much broader and more sophisticated lens, encompassing not just fitness and nutrition but also overall physical and mental health and appearance.
      - Our latest research shows that consumers care deeply about wellness—and that their interest is growing. In a McKinsey survey of roughly 7,500 consumers in six countries, 79 percent of the respondents said they believe that wellness is important, and 42 percent consider it a top priority.
      - We estimate the global wellness market at more than $1.5 trillion, with annual growth of 5 to 10 percent.
      - A rise in both consumer interest and purchasing power presents tremendous opportunities for companies, particularly as spending on personal wellness rebounds after stagnating or even declining during the COVID-19 crisis. At the same time, the wellness market is getting increasingly crowded, creating the need to be strategic about where and how companies compete.
      - Consumer preferences:
        
        Better Health: Extends beyond medicines and supplements to include medical devices, telemedicine, and remote healthcare services, as well as personal healthcare trackers
        
        Better Fitness: Was steadily increasing over time before experiencing some upheaval over the past year, with many consumers struggling to maintain pre-COVID-19 fitness level
        
        Better nutrition: Has always been a part of wellness, but now consumers want food to help them accomplish their wellness goals in addition to tasting food
        
        Better Sleep: Now goes beyond traditional sleep medication, like melatonin, to app-enabled sleep trackers and other sleep-enhancing products
        
        Better mindfulness: Has gained mainstream consumer acceptance recently, with meditation focused apps and meditation-oriented offerings. During the COVID-19 crisis, reports of mental distress have increased globally; more than half of consumers in each of our surveyed countries said they want to prioritize mindfulness more. Half of the consumers said they wished that more mindfulness products and services were available, indicating an opportunity for companies
        
        In overall spending, consumers expect to increase their purchases of both wellness products and services over the next year. We expect a greater shift toward services, especially those (such as personal training, nutritionists, and counseling) that emphasize physical and mental health
        
        Finally, companies should understand that
        wellness consumers aren’t a monolithic bloc
        with lockstep preferences.
        
        Our survey showed that they tend to fall into distinct groups that behave very differently. Wellness enthusiasts are high-income consumers who actively follow brands on social media, track new-product launches, and are excited about innovations. The socially responsible prefer (and are willing to pay more for) brands that are environmentally sustainable and with clean/natural ingredients. Price-conscious consumers believe wellness products are important but meticulously compare features and benefits before purchasing to get the best deal.
        Loyalists prefer to stick with their current routines and the brands they know, while passive participants are only marginally involved with the wellness category and don’t actively follow brands or new products.
        
        Looking for natural/clean products: In the case of dietary supplements, consumers around the world said, by 41 percent to 21 percent, that if they had to choose between more natural supplements and more effective ones, they would choose the more natural option. Same with skincare: by 36 percent to 21 percent, consumers said they would choose the more natural option over the more effective one
        
        Consumers are keen for natural/clean products in an array of areas, such as skincare, cosmetics, multivitamins, subscription food services, and sleep enhancers. The magnitude of the shift is striking. Consumers overwhelmingly indicate a preference for natural/clean products, particularly in Brazil and China.
        
        Potential strategy for companies. Reevaluate your development road map to consider whether you have more opportunities to introduce natural or wellness-oriented products or to acquire natural/clean product lines. This strategy could look different by segment: in apparel, products designed with organic/natural materials and sustainability in mind; in consumer health, natural/clean beauty products; in retail, merchandising with an eye to products that resonate as authentically natural.
        
        We do see traditional channels holding for certain product categories: fortified foods, multivitamins, and skincare still largely sell through brick-and-mortar stores. Other breakout categories (such as fitness wearables) are almost entirely online native.
        
        Create seamless omnichannel and digital offerings to ensure that you meet your consumers where they are. Beyond building channel partner relationships, consider developing a supply chain, package sizes, marketing, or the like specifically for e-commerce. For service offerings such as gyms, use a holistic online strategy to build app-enabled features that keep consumers engaged throughout the ecosystem.
        
        Influencers are a key part of the wellness market, and one that traditional companies have had to learn how to leverage for connecting with consumers. In the United States, Europe, and Japan, 10 to 15 percent of consumers say they follow social-media influencers and that they have already made a purchase based on an influencer’s recommendation.
        
        Use influencers to win with your consumers across social channels, partnering with agencies to identify people who will be a natural fit with your brand and resonate authentically with your target consumer base.
        
        Services has been a growing part of the wellness market: experiences are increasingly available as offerings. We see this trend reflected across countries—consumers are shifting toward services that address physical- and mental-health needs (for instance, personal trainers, nutritionists, and counseling services). We see services as an enhancement to—not a replacement for—the overall wellness space. Products remain a consistent and critical part of the segment, at roughly 70 percent of self-reported consumer wellness spending globally
        
        Consumer healthcare companies could consider diagnostics or coaching offerings that support a direct connection to the consumer. One company partnered with a telemedicine provider to introduce an app that gives parents immediate video access to healthcare providers for their children. Fitness companies could consider offerings such as connected devices and virtual communities—products and services beyond gyms and exercise equipment.
        
        This market offers room for growth to all sorts of industry players: traditional “nutraceuticals” companies with experience in regulatory and licensing requirements; global entrants with extensive value chains, marketing capabilities, and deep channel relationships; regional consolidators with local knowledge and partnerships; and emerging brands with digital know-how, integrated consumer data, and an agile operating model