Brief Excerpt from Industry Overview Chapter:
Companies in this industry underwrite insurance policies and annuities that are paid out in the case of death, illness, injury, or damage to property. Major companies include AIG, Anthem, MetLife, Prudential Financial, State Farm, and UnitedHealthcare (all based in the US), along with Allianz (Germany), Assicurazioni Generali (Italy), AXA (France), and Ping An Insurance (China).
Demand is driven by demographics and commercial transactions, as well as by legal or financial requirements affecting customers. Consumers are usually required by states to buy auto insurance and by lenders to buy homeowners insurance, for example. Life insurers face an aging population, which could result in rising claims. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future payments. Large companies have big economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by specializing in particular products or industries. The US industry is concentrated: the 50 largest companies generate about 65% of revenue. Concentration is higher in some industry segments.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include health and medical insurance, generating the majority of industry revenue, followed by life, property and casualty insurance. Other products include title insurance and reinsurance.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook