Industries

Insurance - Industry

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.

Industries

Healthcare
Property and Casualty

Mentioned by the Following

Asset Classes

Catastrophe Bond

Entities

M&G Investments
AE Wealth Management
AGL Credit Management
ALEX.fyi
AXA Advisors, LLC
AlphaCat Managers
Alvarez & Marsal
Ameriprise Financial
Arbiter Partners Capital Management LLC
Arbol Inc.
Aviva Investors
BNP Paribas S.A.
Berkshire Hathaway
Bleakley Financial Group
Bone Fide Wealth
Brouwer & Janachowski
Capital Group
Capital Wealth Advisors
Cassaday & Company, Inc.
Clocktower Technology Ventures
Cohen & Co
Conning
CrescoFin
Federal Reserve Bank of Boston
Financial Select Sector SPDR Fund
First Republic
Fulcrum Financial Group, LLC
Goldman Sachs Personal Financial Management
Groupe BPCE
Guardian Life
Guggenheim Partners
HSBC
Hayden Royal
Heritage Financial Services
Invesco
JK Investment Group
KKR
Loews Corporation
Longford Capital
MG&A Wealth
MGO Wealth Advisors
Massey & Associates, Inc.
Montag & Caldwell
Napkin Finance
National Association of Personal Financial Advisors
National Securities Corporation
Natixis
Nephila Capital
Neuberger Berman
Odyssey Capital Advisors
Pence Wealth Management
Polish Financial Supervision Authority
RBC Wealth Management
Royal Bank of Canada
Royal Crown Wealth Management
SEB Group
Simone Zajac Wealth Management Group
Sixth Street
Snowden Lane Partners
Société Générale
Steven Van Metre Financial
TSG Wealth Management
Truist Financial
Weiss Ratings
Wellington Management
Wells Fargo
oXYGen Financial

Entity Types

Bank
Financial Services

Events

Mortgage Market Collapse

Industries

Asset Management
Banking
Drones
Financials

People

Aaron Crowley
Abraham Cecena
Alice Schroeder
Andrew Tobias
Andy Schwartz
Anna Manning
Barry Glassman
Bill King
Bob Froehlich
Bruce Burrows
Carl Delfeld
Charles Noble III
Chris Sullivan
Dan Glaser
Dante Disparte
David Copeman
David Kabiller
David Siegel
David Tawil
Dean McClelland
Dennis Chen
Don d'Adesky
Edward Symons
Elaine Meyers
George Peacock
Gerry Klingman
Gordon Pape
Jane Quinn
Jeff Massey
Jeffrey Werdesheim
Jerremy Newsome
Jim Blankenship
Joe Montgomery
John Nance
John Williams
Jordan Waxman
Josh Malkin
Judith McGee
Kelly King
Laila Pence
Lewis Johnson
Mark Cortazzo
Mark Vannoy
Mark Walter
Mary Mullin
Micah Wakefield
Michael Kitces
Mike Abrams
Mike Boyd
Mike Ricca
Mike Sawyer
Mohamed Eldawy
Monika Zahler
Moss Crosby
Nathalie Le Prohon
Nicolas Namias
Oliver Swing
Paul Mladjenovic
Paul Ried
Rob Siracusano
Robert Sharratt
Russell Wild
Ryan Sprowls
Scott Wilson
Shane Oliver
Shawn Rubin
Simon Hamilton
Steven Van Metre
Susan Williams
Ted Snow
Ted Truscott
Todd Battaglia
Tony Bremness

Publications

A Medicare Owner's Manual
An Economic Theorist's Book of Tales
Barbara Friedberg Personal Finance
Buffett
Fight For Your Money
Finance and the Good Society
Financial Risk Analytics
Financial Secrets of My Wealthy Grandparents
Good Financial Cents
Invisible Bankers
Killing the Host
Labor's Capital
Look Before You LIRP
Make Yourself a Millionaire
Moneywise
Personal Finance After 50 For Dummies
Personal Finance Desk Reference
Personal Finance at Your Fingertips
Personal Finance for Dummies
Personal Finance in Your 50s All-in-One For Dummies
Real Life, Real Money
Smart and Simple Financial Strategies for Busy People
Suze Orman's Financial Guidebook
The 250 Eldercare Questions Everyone Should Ask
The Beginners Guide to Saving and Investing for Canadians
The Infographic Guide to Personal Finance
The Money Deception
The New Financial Order
The Only Other Investment Guide You'll Ever Need
The Primal Prescription
The Road to Wealth
The Truth About Money
The Truth About Your Future
The Ultimate Retirement Guide for 50+
Wealth Pilgrim
What Every Fidelity Investor Needs to Know
You've Earned It, Don't Lose It

Terms

Continuing Jobless Claims
Financial History
Investment Management
Personal Finance

  • 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