Property/Casualty Insurance Carriers
Brief Excerpt from Industry Overview Chapter:
Companies in this industry underwrite insurance policies such as homeowners and automotive insurance to protect consumers and businesses against loss and liability. Major companies include Nationwide Mutual, State Farm, and the property/casualty arms of AIG and The Hartford Financial Services Group (all based in the US), and Allianz (Germany), AXA (France), People's Insurance Group of China Co. (China), Tokio Marine (Japan), and Zurich Insurance (Switzerland).
Demand is driven by demographics, consumer spending, 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. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future claim payments and maintain adequate reserves. Large companies benefit from 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 highly concentrated: the 50 largest firms account for more than 80% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include vehicle property insurance, which account for about 70% of the industry's revenue. This is followed by home owners multiple peril insurance, accounting for more than 10% of the industry revenue. Other products include workers' compensation insurance, commercial vehicle property insurance, property and liability insurance, and fire insurance.
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