Industries

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

FMG Suite
Financial Sense Wealth Management
M&G Investments
2050 Wealth Partners
AE Wealth Management
AGL Credit Management
ALEX.fyi
AXA Advisors, LLC
AlphaCat Managers
Alvarez & Marsal
Ameriprise Financial
Andrew Marshall Financial
Arbiter Partners Capital Management LLC
Arbol Inc.
Artifex Financial Group
Ashurst
Aviva Investors
BNP Paribas S.A.
Bank Policy Institute
Berkshire Hathaway
Bleakley Financial Group
Bone Fide Wealth
Boston Consulting Group
Brenton Point Wealth Advisors
Brouwer & Janachowski
California Alternative Investments Association
Capgemini
Capital Group
Capital Wealth Advisors
Cassaday & Company, Inc.
Citrin Cooperman
ClearBridge Investments
Clocktower Technology Ventures
Cohen & Co
Conning
CrescoFin
D.B. Root & Company
Define Financial
Dorr Asset Management
EisnerAmper
Epiq
Fairpoint Wealth Management
Family Office Networks
Federal Financial Analytics
Federal Reserve Bank of Boston
Fidelity Investments
Fidelity National Information Services
FinTech Collective
Financial Select Sector SPDR Fund
First Citizens Bank
First Republic
Fort Washington Investment Advisors
Fox Business
Fulcrum Financial Group, LLC
Gitterman Wealth Management
Global Retirement Partners
Goldman Sachs Personal Financial Management
Groupe BPCE
Guardian Life
Guggenheim Partners
HSBC
Hayden Royal
Heritage Financial Services
Invesco
Investment Management Due Diligence Association
JK Investment Group
Johnson Investment Counsel
Jones Day
Julex Capital Management
KKR
Leede Jones Gable
Life Planning Partners
Loews Corporation
Longford Capital
MG&A Wealth
MGO Wealth Advisors
Mariner Wealth Advisors
Massey & Associates, Inc.
Montag & Caldwell
Napkin Finance
National Association of Personal Financial Advisors
National Securities Corporation
Natixis
NaviPlan®
Nephila Capital
Neuberger Berman
Newport Harbor Wealth Management
Newton Investment Management
NexPoint
Objective Capital Management
Odyssey Capital Advisors
Pathstone
Pence Wealth Management
Polish Financial Supervision Authority
RBC Wealth Management
RLJ Companies
Ribbit Capital
Royal Bank of Canada
Royal Crown Wealth Management
Ruffer
SEB Group
Schechter Wealth
SeaBridge Investment Advisors
Simone Zajac Wealth Management Group
Simons Financial Network
Sixth Street
Snowden Lane Partners
SoFi
Société Générale
St. James's Place Wealth Management
Steven Van Metre Financial
Sun Hung Kai Properties
TSG Wealth Management
Truist Financial
Tycuda Group
Wealth Enhancement Group
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
Aaron Hodari
Abraham Cecena
Alice Schroeder
Andrew Hinkle
Andrew Tobias
Andy Schwartz
Angelo Robles
Anna Manning
Austin Campbell
Barry Glassman
Bill King
Bill Winterberg
Bob Froehlich
Bob Stone
Brad Sherman
Bruce Burrows
Carl Delfeld
Charles Noble III
Chris Blasi
Chris Sullivan
Contessa Brewer
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
Eric Chemi
Gene Luciani
George Peacock
Gerry Klingman
Gordon Pape
Henry Ma
Ivan Barretto
James Dondero
James Lange
Jane Quinn
Jared Bibler
Jeff Massey
Jeffrey Werdesheim
Jerremy Newsome
Jim Blankenship
Jim Puplava
Joe Montgomery
John Nance
John Williams
Jon Gray
Jonathan Wellum
Jordan Waxman
Joseph Calandro Jr
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
Noel Quinn
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 Jenkin
Ted Snow
Ted Truscott
Todd Battaglia
Tony Bremness
Vicki Ellis
Wade Pfau

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
Get Good with Money
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 Aftershock Investor
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
Financial Planning
Investment Management
Personal Finance

Aaron Crowley

Aaron Hodari

Abraham Cecena

Alice Schroeder

Andrew Hinkle

Andrew Tobias

Andy Schwartz

Angelo Robles

Anna Manning

Austin Campbell

Barry Glassman

Bill King

Bill Winterberg

Bob Froehlich

Bob Stone

Brad Sherman

Bruce Burrows

Carl Delfeld

Charles Noble III

Chris Blasi

Chris Sullivan

Contessa Brewer

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

Eric Chemi

Gene Luciani

George Peacock

Gerry Klingman

Gordon Pape

Henry Ma

Ivan Barretto

James Dondero

James Lange

Jane Quinn

Jared Bibler

Jeff Massey

Jeffrey Werdesheim

Jerremy Newsome

Jim Blankenship

Jim Puplava

Joe Montgomery

John Nance

John Williams

Jon Gray

Jonathan Wellum

Jordan Waxman

Joseph Calandro Jr

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

Noel Quinn

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 Jenkin

Ted Snow

Ted Truscott

Todd Battaglia

Tony Bremness

Vicki Ellis

Wade Pfau

MORE ABOUT THE INDUSTRY

  • 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 earn most profits from the investing side.

    • From 1979 to 2003 there were few underwriting profits earned.

  • Times of low interest rates compel 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