Insurance companies in the USA
Nowadays health insurance is very active not only with TV advertisements and billboards on the roads. The number of insured clients is constantly increasing. It operates on the principle ‘Don’t talk about yourself, let people say’. Insurance companies attract new clients who share information about the benefits of insurance with their friends and relatives. This is how public opinion is formed and the number of insured people multiplies.
The American insurance business is huge and unmatched in the world. American insurance monopolies control about 50% of the entire insurance market in the industrialized countries of the world. Insurance in the United States is divided into two branches: life insurance and other types of insurance. The largest insurance companies provide all types of services, with property insurance being one of the most popular among the population.
Types of American insurance companies in the US
Today, the number of insurance companies and the services they provide in the United States is simply enormous. Large firms include only those firms whose capital exceeds a billion. There are two types of insurance companies in the United States:
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- joint-stock companies (JSC);
- mutual insurance companies (MIA).
There are no state insurance firms. Shares of joint-stock companies can be purchased by both an individual and a legal entity. The regime for the creation and functioning of AO is quite tough. Historically, in the United States, insurance companies were mainly represented by mutual insurance companies. They are traditionally smaller in size than joint-stock companies, but the mode of operation of the OVS is more liberal. As a result, OBCs have become widespread in the United States in life insurance. OBCs carry out more than 40% of sales of insurance policies.
Types of services provided
Insurance companies provide three types of insurance:
- benefits (life and health insurance, medical, pensions, savings, etc.);
- commercial insurance (wide range);
- personal insurance (meaning insurance of buildings, cars, and other property of citizens). The legislation provides for the specialization of insurance companies in carrying out operations on life and property insurance.
The insurance industry in the United States is the only one that is not subject to antitrust laws. The activities of all US insurers are carefully analyzed by three rating agencies: A.M. Best, Moody S, Standart & Poor’s. They analyze the state of insurance companies and publish quarterly catalogs where they publish official ratings of insurance companies in terms of their reliability and data on the state of their solvency. Some companies, especially brokerage companies, have special divisions to analyze the activities of other companies.
In this case, the main factors for which the analysis is carried out are:
- financial position;
- claims payments and service level;
- safety and loss prevention;
- flexibility in the work of the company;
- cost of services (minimum tariff rates).
Loss rate, income, and return on investment ratio, and level of receivables are considered as criteria for the performance of the insurer. In the United States, an electronic databank is widely used for all insurance companies, which makes it possible to distribute companies by risk, premiums, etc.
Here is a small list of the largest companies:
- Aetna Life Ins. Co;
- New York Life Ins. Co;
- John Hancock Mutual Life Ins. Co;
- Northwestern Mutual Life Ins. Co;
- Equitable Life Assurance Soc. US;
- Teachers Ins.& Annuity Assoc. America;
- Metropolitan Life Ins. Co;
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