Insurance - Industry
The insurance industry consists of companies that offer risk management in the form of insurance contracts. One of the places for disruption with its slow claims process, and over-reliance on manual work, this sector uses analytics for all sorts of insurance products, such as life, property and casualty, healthcare, unemployment, and many more. As life insurance companies focus on legacy planning and replacing human capital value, health insurers cover medical costs, and property, casualty, or accident insurance is aimed at replacing the value of homes, cars, or valuables. Insurance companies can be structured either as a traditional stock company with outside investors, or mutual companies where policyholders are the owners.
Experts
Aaron Crowley
Aaron Hodari
Abraham Cecena
Alice Schroeder
Andrew Hinkle
Andrew Tobias
Andy Schwartz
Angelo Robles
Anna Manning
Barry Glassman
Bill King
Bill Winterberg
Bob Froehlich
Bob Stone
Brad Sherman
Bruce Burrows
Carl Delfeld
Charles Noble III
Chris Sullivan
Craig Stobo
Dan Arnold
Dan Glaser
Dante Disparte
Daren Alcantar
David Copeman
David Dorr
David Kabiller
David Scarpello
David Siegel
David Tawil
Dean McClelland
Dennis Chen
Don d'Adesky
Drew McMorrow
Ed Slott
Edward Symons
Elaine Meyers
Eli Rauch
Gene Luciani
George Peacock
Gerry Klingman
Gordon Pape
Henry Ma
Ivan Barretto
Jane Quinn
Jeff Massey
Jeffrey Werdesheim
Jerremy Newsome
Jim Blankenship
Jim Puplava
Joe Montgomery
John Nance
John Williams
Jordan Waxman
Josh Malkin
Judith McGee
Kelly King
Ken Boyd
Laila Pence
Lewis Johnson
Marc Schechter
Mark Cortazzo
Mark Vannoy
Mark Walter
Marty Bicknell
Mary Mullin
Matt Ran
Micah Wakefield
Michael Kitces
Mike Abrams
Mike Boyd
Mike Ricca
Mike Sawyer
Mitch Stein
Mohamed Eldawy
Monika Zahler
Moss Crosby
Nathalie Le Prohon
Nicolas Namias
Oliver Swing
Patrick Bet-David
Paul Mladjenovic
Paul Ried
Piers Ridyard
Preston Cherry
Rob Riedl
Rob Siracusano
Robert Sharratt
Royce Running
Russell Wild
Ryan Sprowls
Scott Wilson
Shane Oliver
Shawn Rubin
Shirl Penney
Simon Hamilton
Stephen Lee
Steve Grasso
Steven Van Metre
Susan Williams
Ted Snow
Ted Truscott
Todd Battaglia
Tony Bremness
Vicki Ellis
- Insurance Companies generally make money in two ways
- From underwriting insurance policies for more than the claims they pay out
- By investing the premiums they receive and earning interest before paying out claims
- During times of high interest rates, the industry tends to ear most profits from the investing side
- From 1979 to 2003 there were few underwriting profits earned
- Times of low interest rates impell companies to earn more on the underwriting side of the business
Underwriting Side of Business (Combined Ratio)
- Combined Ratio = (Net Claims, Commissions & Expenses) / (Net Earned Income)
- Ideally this should be < 100%
- The lower the ratio, the more profitable the underwriting business is