Five Characteristics of the U.S. Insurance Market

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1. Insurance Market in the United States

The U.S. insurance industry ranks first in the world in terms of the number of insurance companies, the type of business or the volume of business. The insurance industry in the United States has been developing rapidly since the Second World War and has been among the world's leading companies. The U.S. insurance market can be divided into non-life insurance market and life insurance market. The non-life insurance market mainly includes the insurance market such as property insurance and accident insurance market. Life insurance companies are composed of joint-stock companies and mutual companies, the vast majority of which are joint-stock companies, but mutual companies generally have a long history and a larger scale. The U.S. reinsurance market is also one of the world's largest.

2. Monopoly competitive insurance market model

In the Insurance Market in the United States, there are a large number of insurance companies, including large companies, but also a large number of small and medium-sized companies, they coexist in one market, and fierce competition. In this competition, a small number of large companies are in an advantage and monopoly position. For example, there are more than 2,000 property liability insurers in the United States, with the top 10 accounting for nearly 50 per cent of the market;

3. Fierce competition, mergers and acquisitions accelerated

In recent years, the U.S. insurance market competition is becoming increasingly fierce, the wave of mergers and acquisitions is booming. In November 1988, California adopted the '103' proposal, which pioneered allowing banks to operate insurance businesses, and then the states followed suit, thus creating a mix edion of insurance and banking in the U.S. market today, promoting the innovation and development of insurance business. In April 1998, the $70 billion merger of Citibank and Travelers Group not only set a record for scale, but also represented an important step in the strategic alliance between the Insurance and Banking Industry. Now, the U.S. insurance industry is trying to adopt new strategic tactics, seek to expand the new insurance market, strive to meet special market requirements, and take various positive measures to solve the problems faced, such as the liability insurance crisis caused by the excessive amount of liability insurance compensation, in an effort to maintain the position of the world's number one insurance market.

4.A wide variety of insurance products

After years of development, in the insurance market in the United States, insurance products adapted to the needs of the market, such as life insurance, auto insurance, health insurance, liability insurance, etc. are all-encompassing, insurance has become an indispensable element in people's lives.

(i) Unique life insurance

U.S. life insurance, a wide variety of products, summarized in the following three main.

(1) Temporary life insurance. Their insurance increases with age, and the contract provides for coverage under the age of 70.

(2) Life savinglife. It requires a fixed monthly premium until his death.

(3) General life insurance. It requires monthly contributions, and premiums can also be paid in one lump sum, starting from $100,000.

For many years, the United States has been among the best in the world in total life insurance premiums, as well as insurance density and depth. The main reasons for the development of the insurance industry in the United States are twofold: first, the economy is highly developed, the living standard of the residents is high, so there is a strong sense of insurance, and second, the legal environment of society has promoted the strong development of the insurance industry, especially the life insurance industry.

(ii) Enforced car insurance

The United States car insurance is also very developed, the main reasons for the following.

(1) The United States has the largest number of motor vehicles in the world, the automobile insurance market capacity or market potential is naturally very broad.

(2) U.S. law makes it illegal not to participate in auto insurance for any reason. Severe punitive measures, such as revocation of driving licence, full liability for damage in the event of a collision, and the right of the victim's lawyer to check the total amount of the perpetrator's property and to make a claim for compensation accordingly.

(3) For insurance vehicles out of insurance compensation is generous. In addition to the basic compensation, some insurance companies are responsible for the loss of wages after the accident, the costs of the court and the crash investigators, the theft of the interior of the car, and the car anchor trailer.

(4) Car insurance has formed an effective risk control mechanism. Where the premium varies according to the age, occupation, time of receipt of the driving licence and the area of residence of the insured person, persons aged 18 or under, those who have a new driving licence, those who have a record of violations, those with poor safety conditions in their homes, those with smoking habits and expensive vehicles are subject to higher insurance premiums, and the court shall only hold the owner liable for the loss of the vehicle in the event of a risk-taking injury, regardless of the driver. This series of measures, so that the U.S. auto insurance market is orderly, for the stability of social and family life has played a role in ensuring.

(iii) Specialized insurance known for its characteristics

Given the diversity and complexity of customer insurance needs, there are also many specialized insurance companies emerging in the United States. For example, the cost of medical care in the United States is very high, and the demand for health insurance is very strong. Because of the technical complexity of health insurance, the difficulty of risk control and the complexity of related aspects, in order to improve the management and service level of health insurance, there are also many insurance companies in the United States specializing in health insurance business. For example, Caesar's Hospital Insurance is a medical insurance run by Caesar's Hospital, where policyholders can receive free treatment when they visit the hospital; This specialized or specialized marketing approach has led to healthy development of the U.S. health insurance market.

(iv) Widespread and widespread housing insurance

The United States has long been commercialized housing, individuals own their own homes. Housing for individuals in the United States also faces a number of risks, such as unpredictable natural disasters, various legal disputes related to their homes caused by third-party injuries, and so on. These risk threats pose an urgent need for insurance coverage for homeowners. To this end, many insurance companies in the United States to carry out home insurance business. After the customer buys housing insurance, all kinds of natural and man-made disasters caused by the loss of housing, such as housing fire, snow crushed roof, thieves damage disrepair doors and windows furniture, naughty children play ball to break the glass, etc. , can be timely compensation from insurance companies, so that people can live and work.

(v) Well-developed liability insurance

The western insurance industry calls liability insurance the third stage of the development of the whole insurance industry after marine insurance, fire insurance and life insurance, that is, the insurance industry extends from the loss of insured material interests to the underwriting life risk, and then extends to the underwriting of various legal risks. Thus, the status of liability insurance is extraordinary. Liability insurance originated in 19th-century Europe and the United States, the 20th century accounted for 45% of the entire non-life insurance business. Visible liability insurance in the U.S. insurance market occupies a pivotal position. The reason why the responsibility insurance of the United States is developed, in addition to the developed economic environment and other factors, the complete legal system and the people's legal awareness, risk awareness is strong, but also an important reason for the development of liability insurance.

5. Insurance innovation in full swing

The increasingly fierce competition in the insurance market has first promoted the innovation of insurance products. In the area of property liability insurance, such as nuclear liability insurance and other insurance products for special risks, in life insurance has also launched a variety of new products. Insurance innovation in the United States has permeated all aspects and fields of insurance management. For example, the widespread use of insurance agents in the United States in the United States insurance marketing 279 is in itself a breakthrough in the traditional direct selling model, but also shows the development trend of the division of insurance professional division. For example, in the United States, the integration of risk management and insurance industry, many insurance companies have risk management department or engineering department, through the risk identification of the subject matter of insurance, risk assessment, on the one hand to the policyholder to provide disaster prevention and damage prevention advice and guidance, on the other hand to provide relevant information to the contractor, proposed the measures to be taken when underwriting, in order to avoid blind underwriting. In addition, the major Insurance Companies in the United States through affiliated investment companies, participate in credit activities, through insurance investments, to bring substantial profits for the company, enhance the competitiveness of the company.

The innovation activities of the insurance industry promote the innovation of the organizational structure of the insurance industry in the United States. The innovation of the organizational structure of the Insurance Industry in the United States is the tendency of banks and insurance companies to combine. Insurance policies have been sold on bank counters in the United States, and some insurance companies offer many uninsured financial services. This form of silver insurance union is a "win-win" choice. On the one hand, it allows banks to expand the new space of business, on the other hand, it also enables insurance companies to take advantage of the traditional advantages and resources of banks, expand their own business areas, enhance their competitiveness. The development of new insurance types, such as the combination of the organization form and the savings, makes the functions of insurance companies from simple dangerous transfer, organization of economic compensation, began to transform into comprehensive financial companies.