Insurance Carriers Industry Overview

Excerpt from Insurance Carriers Report

Companies in this industry underwrite insurance policies and annuities that are paid out in the case of death, injury, or damage to property. Major companies include AIG, Hartford Financial Services Group, MetLife, and Prudential Financial (all based in the US), along with Allianz (Germany), Assicurazioni Generali (Italy), AXA (France), and Japan Post Insurance Company.

Competitive Landscape

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. 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 industry is concentrated: the 50 largest companies generate about 60 percent of revenue. Concentration is higher in some industry segments.

Products, Operations & Technology

Major products include property and casualty (P/C) insurance and life insurance. (Group health insurance, though included in calculations of industry size, is discussed in the Health Insurance Carriers profile.)