The global financial meltdown caused plenty of top insurance companies to panic. Many are shutting down since there is no other choice but to give in to the crisis. There are some firms though, who survive barely through their management efforts and others that continue to exist through government subsidies provided. The meltdown has shrunk the economy and made trade movements slower resulting in a decrease in market growth and profitability.

HDFC Standard Life, one of the top insurers in India, is experiencing a decline of 30-60% annual growth due to the current crisis. The meltdown had a profound effect on the company bringing down sales because consumers are fleeing to safety. HDFC expected an estimated growth margin of 50% but instead got a devastating 20%.

HDFC might have a lower growth rate compared to its usual 50% but they’re proud to say that it did not stop or worse, went negative. They are grateful for their clients who continually support them and those potential policyholders who trust them enough to invest their hard earned money in an insurance saving. Because of this, the security firm plans to launch a new product offer featuring a new health security product and called it SurgiCare. Also, the firm is eyeing an opportunity for opening a new health saving plans for the next fiscal year.

While insurers in India are surviving the critical meltdown, insurance companies from other parts of the globe are having a hard time coping with it. The American International Group Inc (AIG) is once again in need for government subsidy to rescue it from its sunken state. Last Monday, the administration gave a $30 billion bailout but the company declared that it has lost twice the amount, $62 billion, over a period of three months.

The insurance firm offers multiple security policies (i.e. homeowners, life, travel, etc) with over 30 million policyholders in the United States. It also provides leases to aircrafts through its International Lease Finance Corporation although the market for such has gotten smaller.

The US government will continually give its support to AIG for fear that if it collapses every industry in the United States or even beyond, would go down with it. It is believed that if AIG falls, it would set a chain reaction amongst the different financial markets in the world and so the US administration is sustaining it in full force before the economy could go into depression. From the first bailout to the current one, a total of $170 billion has been shelled out just to rescue the company.

AIG is combating the setbacks laid upon it with the help of the administration and its subsidy. But many believe that this particular corporation seems to be stagnating, if not, even going deeper into the pit and so many investors are uncertain if they should pour out their money into the firm. There are still people though who think that it will rise against the economic crisis. Hopefully, it will bounce back..