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
ALEX.fyi
AXA Advisors, LLC
Alvarez & Marsal
Arbiter Partners Capital Management LLC
Arbol Inc.
BNP Paribas S.A.
Berkshire Hathaway
Bone Fide Wealth
Capital Group
Fulcrum Financial Group, LLC
Goldman Sachs Personal Financial Management
Guardian Life
HSBC
Loews Corporation
MGO Wealth Advisors
Massey & Associates, Inc.
Montag & Caldwell
Napkin Finance
National Association of Personal Financial Advisors
Polish Financial Supervision Authority
Simone Zajac Wealth Management Group
Société Générale
Steven Van Metre Financial
Truist Financial
Wellington Management
Wells Fargo
oXYGen Financial

Entity Types

Bank
Financial Services

Events

Mortgage Market Collapse

Industries

Asset Management
Banking
Drones
Financials

People

Alice Schroeder
Andrew Tobias
Anna Manning
Carl Delfeld
Chris Sullivan
Dan Glaser
David Kabiller
David Siegel
Dean McClelland
Dennis Chen
Jane Quinn
Jeff Massey
Jim Blankenship
John Williams
Kelly King
Michael Kitces
Monika Zahler
Oliver Swing
Paul Mladjenovic
Russell Wild
Simon Hamilton
Steven Van Metre

Positions

A Medicare Owner's Manual
An Economic Theorist's Book of Tales
Barbara Friedberg Personal Finance
Buffett
Finance and the Good Society
Financial Risk Analytics
Good Financial Cents
Invisible Bankers
Labor's Capital
Look Before You LIRP
Moneywise
Personal Finance After 50 For Dummies
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 Ultimate Retirement Guide for 50+
Wealth Pilgrim
You've Earned It, Don't Lose It

Strategies

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