U.S. Insurance Market

The insurance tradition in the United States has one hundred and fifty years, it seems that everything is insured. As the American Institute of Insurance Information (Insurance Information Institute), a leader in the insurance market is the U.S. auto insurance by individuals, in terms of insurance premiums by almost 4 times faster than homeowners insurance.
The total volume of premiums collected in 2002 in the U.S. totaled about $ 1 trillion, but the U.S. share in the global market is steadily decreasing due to more rapid development of insurance markets in Asia, Latin America and Europe. The share of the U.S. life insurance somewhat inferior to Japan (29.7 and 31.4% global market share, respectively), for other types of insurance, primarily property and casualty, took 1st place in the world (46% of the world market).
Insurance in the United States is divided into two categories: life insurance and other insurance. The largest insurer in the U.S. is a company State Farm Group, which occupies 18% of their units auto insurance market and 23% of life insurance, and the market in general - 12%. This figure is twice the market share of the company «Allstate Insurance Group», which occupies the 2nd place. The share of the company «American Insurance Group» (AIG) has about 4% of the market other types of insurance. Total U.S. there are more than five thousand insurance companies.
According to U.S. insurers, most types of insurance, bring a stable income.Overall, however, the market situation is not so good, although in recent years has changed for the better insurers. According to the latest data, was relatively successful in 2002 According to the results of the net income of all insurance companies in the U.S. (after tax) totaled $ 2.9 billion, while the previous year, insurers lost $ 7 billion Although the $ 2.9 billion - very little for the U.S. market, because in 1998 the insurance companies have earned more than $ 30 billion
Occur in the U.S. market and qualitative changes associated naturally with the development progress. Insurance policies have been sold almost exclusively to the agents - captive, ie represent one insurance company or independent, that is,representing several companies. But since the late 90s. the last century, insurers are increasingly using communications and other sales channels: the Internet, "insurance malls," direct sales in professional organizations and workplaces.However, Internet sales make up a very small part of all policies sold.
As the popularity of different types of insurance, the situation in the U.S. is fundamentally different from Russia. The organization of independent insurance agents and brokers of America {The Independent Insurance Agents & Brokers of America) said that in 2000 insurance policies against accidents yielded 53% of the revenue agencies. Commercial insurance (property companies and other risks for legal persons) provided 39% of income, life and health insurance - about 5, and insurance against job loss - about 3%.
Characteristically, in the U.S. market is growing concentration of insurers, though, of course, far from being just before the appearance of monopolies, but even any noticeable oligopoly. As the data «Insurance Services Office Inc.», Index of market concentration (by the method of "Herfindahl") increased from 229 in 1980 to 312 in 2002, U.S. Department of Justice classifies any market with the index below 1,000 as unconcentrated. The level of monopoly is achieved at around 10,000.
The state social security system in the U.S. include two forms of social insurance (due to the tax on social security) and public assistance (through the budget).Social insurance is carried by the contributions of workers and employers and includes pension insurance and unemployment insurance. Superannuation provides retirement benefits upon reaching retirement age (in 2002 it planned to increase from 65 to 67 years), payments for loss of a breadwinner (if the deceased was entitled to state pension), disability benefits to persons under 65 years of age. The system of social insurance are included and those not working for hire (doctors, lawyers, etc.), paying total contributions as employees and as employers.
Unemployment insurance is regulated by the laws of the state and financed by a tax on employers in a certain percentage of the earnings of the employee.