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.


Property and Casualty

Mentioned by the Following

Asset Classes

Catastrophe Bond


M&G Investments
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
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

Financial Services


Mortgage Market Collapse


Asset Management


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


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The Road to Wealth
The Ultimate Retirement Guide for 50+
Wealth Pilgrim
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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