Life Insurance Carriers Industry Overview

Excerpt from Life Insurance Carriers Report

Companies in this industry underwrite life insurance and related products including annuities, long-term care, disability, and accidental death and dismemberment policies. Major companies in the US include Aetna Life Insurance, AIG, and MetLife, as well as AEGON (the Netherlands), AXA (France), Nippon Life (Japan), and Prudential (UK).

Competitive Landscape

Demand is driven by demographics and the economy. The profitability of individual companies depends on effective marketing and investment strategies and on the ability to accurately estimate future payments. Large companies take advantage of economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by providing specialized services to communities and organizations, such as current and former military personnel, church affiliations, and fraternal organizations. The industry is highly concentrated: the largest 50 firms generate 90 percent of industry revenue.

Products, Operations & Technology

Life insurance is organized into three categories: individual, group, and credit life insurance, which guarantees payment of long-term debt such as mortgages, in the face of a death. Individual insurance policies make up more than 50 percent of the life insurance market, according to the American Council of Life Insurers.