| SIC Codes: | 6311 |
| NAICS Codes: | 524113 |
The US life insurance carriers industry includes about 900 companies with annual revenue of about $450 billion. Major companies include MetLife, New York Life, and Northwestern Mutual Life, as well as the life insurance operations of Aetna and The Hartford. The industry is highly concentrated: the largest 50 firms generate 90 percent of industry revenue.
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 capital-intensive: average annual revenue per worker is more than $1 million.
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.
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