The insurance industry status quo

The insurance industry status quo
American insurance industry status quo, problems and development trend of American insurance industry situation of life insurance and health insurance business points (including personal accident insurance, property and casualty insurance two kinds big.As of the end of 1997, the national territory has 7900 insurance companies, insurance from personnel of course of 2.3 million, total assets of $3.4 trillion in insurance industry.The insurance industry occupies an important position in the U.S. economy.It provide risk-averse guarantee for individuals and groups, and large investment funds.The insurance industry occupies the important proportion in financial assets, such as: life insurance assets amounted to $1997 in 1 trillion, a quarter of the private pension.The light of the main risks are: personal and family life, pensions, health, car and housing.In view of the groups main risks: fire, staff of inductrial injury, product liability, staff member of the family health and pension.America's insurance market in the world.In 1997 the premium income of $688.5 billion.Many industry analysts believe that now the American insurance market has become saturated, the future of the premium income growth is limited.Although environmental disaster compensation degree of severe natural disasters could have some influence on property and disaster risk management benefit, but on the whole, the management benefit of the insurance industry is better.The American insurance market competition is very fierce.Some performance in Banks and financial institutions, as well as foreign companies have entered the U.S. market.Intense competition to practitioners through the application of information technology, reduce costs, provide special services such as means to maintain market share.In addition, the insurance agent distribution cost reduction is very important to improve the competitiveness.Future us insurance will come mainly from the growth of overseas markets.American insurance company for insurance market continuously invest faster-growing countries and regions, the overseas market is more profitable than domestic market.The international insurance market continuously open and break monopoly, provides the insurance companies in the United States its highly mature markets cannot provide opportunities for development.Bilateral and multilateral trade agreement (such as: the WTO financial services agreement in December 1997) has a direct impact on the development of insurance, and to reinforce the trend of open markets.Similarly, Europe and other places of the insurance company, insurance market through mergers and acquisitions and other means to enter the United States, the practitioners of competition with the United States.Life insurance according to the end of 1997, the United States has 1620 life insurance companies, reduce by 3.5% over the previous year.Most of the life insurance company is a joint-stock company, more than the other is a mutual company.The above two properties of the company account for 98.2% of the total number of life insurance company.The company's business including pension insurance, accident, health, pension and trust management.Pension insurance and the traditional life insurance project is the biggest difference lies in the annuity can get regular income after retirement insurance, and the traditional life insurance is after the death of the insured by insurance company paid a claim the money.Over the past few years, the U.S. life insurance market demand for pension is very popular, because many of the "baby boom" generation born in succession from traditional life insurance changed to buy an annuity insurance.Source of income comes mainly from two aspects of life insurance companies.One is policy-holder to deliver premium.Secondly, the investment activities.Since 1990, has been a steady rise in premium income.The premium income of $469.19 billion in 2000.Premium income comes mainly from three businesses: life insurance, annuity insurance and health insurance.Since 1987, annuity income growth trend,

Life insurance income is on the decline.In 1987, the annuity income accounted for 42%, life insurance 36%, health insurance, accounting for 22%.In 1997, annuity income accounted for 49% ($197.5 billion), the life insurance ($115 billion), 29% 23% health insurance ($92.7 billion).In 1997, 401 (K) pension insurance group annuity insurance an increase of 11% over the previous year, the amount of $107.4 billion.401 (K) personal pension insurance increases by 10%, the amount of $90.2 billion.Since 1996, the new pension insurance premiums grew by 15%, renewal revenue growth of 10%.In 1997, 3.4% of disposable personal income to the pension insurance, mainly to the 401 (K) pension insurance.That is, from traditional life insurance to pension and endowment insurance.From the perspective of management, from the original life insurance management to manage investment risk.Formed the life insurance and banking, securities, mutual funds, direct competition situation.In recent years, has been a steady rise in the life insurance company's assets.In 1997, total assets of $2.6 trillion, up 11% from 1996.Characterized by the integration of life insurance funds of $199.9 billion, accounting for 14% of the total national capital market, in third place (commercial Banks to raise $457 billion to fund $421 billion).Life insurance assets mainly in four aspects: the government and corporate bonds (56%), stock (23%), mortgage and real estate holdings (8%, 2%), policy loans (4%).In 1986, bonds accounted for 46%, mortgages accounted for 23%, shares 11%, other 10%, 6% policy loans, real estate has a 4% stake.The main reason for the change is the improvement of solvent and money for venture capital increase rapidly.In 1997, 561900 personnel engaged in life insurance.Personnel engaged in health insurance, 347400, a year-on-year increase of 20000 people.Property and casualty insurance property and casualty insurance non-life insurance.For the individual, group, avoid damage to property or the third party causes losses to provide insurance.Companies such as fire, Marine insurance and other disasters.Company has more than 3300 population, most of the shareholding system, more than the rest of the system of mutual aid.Property and disaster risks including individual and group automobile, housing, community property (disaster), medical accident, Marine insurance.In 1997, the property and disaster insurance premium income of $276.1 billion, an increase of 3% over the previous year.A major contribution to growth from auto insurance (+ 5%), housing insurance (6%), farmers (9%), the United States has a perfect system of crop insurance.In 1997, an increase of 65.2% over the previous year net cover damages.Property and disaster risks and losses of the volatile, the main reason is that some irresistible natural disasters brought claims.But investment, surplus account expires at the end of the loss reserves, premium reserves allows insurance companies to win a certain percentage of their income to sustain its operations.In 1997, and disaster insurance (property) company of the total investment of $766.1 billion, 88% of the total assets of 870.1 billion.Money into stocks and bonds, hope to have more stable returns in the short term.Because of the property and disaster risk need to be ready to cash for claims.On fixed income project (bonds) accounting for 67% of the total investment of funds, equities of 23% (15% in 1987), the other to mortgage, mortgage, real estate and other short-term investments.In 1997, the property and disaster insurance professionals 610000, an increase of 1.5% over the previous year.The main problems and the role of the government

According to the ministry of commerce, a senior insurance experts, in the past decade, the main problem facing in the development of the insurance industry is to ensure the solvency of insurance practitioners, to protect the rights and interests of clients.The problem well solved, now basically free also ability do not exist.To solve this problem is a magic weapon states ia institution has a set of effective mechanism of "alarm".Is responsible for the management of insurance by the states in the United States, that power is not the federal government.The insurance company must be on a quarterly and annual financial report to the state institutions that keep watch, financial statements by the insurance regulatory information system for statistical processing.In the process, there are problems in quality analysis phase, automatic rating result is given.In addition, coupled with the implementation of "early warning technology" and "on-site inspection system" can be problematic in the company, to focus on monitoring, prevention.Property and casualty insurance aspects of the biggest problems is big disasters happen frequently.Hurricanes, floods, and storms often happen, to people's life, such as agricultural management caused direct economic losses, influence the insurance company management benefit.Problems to insurance, state insurance regulators used more careful and strict management.On the one hand, strict management, the market orderly.And the market, on the other hand, pipe die too, that it appeared later relax market regulation.At present, the whole insurance industry is relatively mature, the enterprise self-discipline ability is very strong, can work closely with ia agencies, to protect the interests of the customer together.Deep understanding to the insurance company, insurance regulatory challenges, will be accompanied the face being punished.Five factors influencing the future U.S. insurance growth (1) the integration of financial markets as the financial sector to the relaxation of the interest rate control and the reform of the capital market itself, since the 1930 s, of legislation regulating the banking, securities, insurance industry gradually along with the market changes or broken by regulators, courts and the legislature.Life insurance industry from traditional life insurance coverage to the pension insurance and investment projects.Banking industry to expand the scope of business, for customers to provide more broader financial services.Including investment projects, pension insurance and asset management services.Life insurance companies, Banks, securities companies, and mutual funds competition heats up.For the management of individuals and groups savings and investment.The banking sector by operating insurance services to increase their income.In the banking sector the cross-industry expanding higher operating costs for the insurance company formation pressure.Banking into the trend of the insurance industry, by the Supreme Court "no more than a solitary employee of national bank can be engaged in insurance business" decision support.Is responsible for managing the national bank of the federal Treasury currency audit office push Banks to engage in insurance business.In 1997, the 106th congress and the federal administration approved the "financial services competition law", abolished in 1933 through the act of a glass steger, limiting the terms of the manage ment in bank, securities, and insurance.The insurance industry to bring more intense competition.2. With the economic globalization of economic globalization, also in insurance and financial market globalization.In many parts of the world, people of collecting and saving up, who is also looking at how the insurance to protect the interests of their own.This provides the life insurance industry market opportunities.Multinational corporations and international trade and investment activities to promote the growth of the various risk of non-life insurance companies and the development of the insurance agent.Insurance companies all over the world more and more internationalized.Apart from providing insurance, the insurance industry to create jobs, promote capital accumulation, transfer of services and technologies, such as: claim adjustment, risk management, insurance statistics and investment services, the application of information technology and foreign markets.Internationalization makes most countries insurance market more and more open.Economic globalization, the insufficient resources of local insurance business and trade

Easy liberalization for many countries to speed up the insurance market reform, state-owned insurance privatization and open to foreign insurers.The United States believes that private insurance market was proved to be solve some governments face the effective solution to the problem of difficult economic and social.Including providing annuities and pensions, funding and provide health insurance, worker safety and protect the environment.Multilateral and bilateral trade agreements, such as the 1997 general agreement on trade in services and financial services, has lifted restrictions on foreign insurance market barriers of access.To adapt to the internationalization, reduce barriers, the government of a country, insurance legislation institutions and insurance companies should strengthen cooperation, perfecting laws and regulations, strengthen supervision and improve the market environment.These efforts are supported by the international association of insurance commissioners, such as: formulate unified standards, how to deal with the company, there is a problem to prevent fraud and fraud.Market access barriers still exist.Some national insurance market is not open to foreign or government implements control for insurance, for foreign insurers can't equally.The United States believes that India and China all have this kind of situation.Some countries have restrictions to foreign ownership, domestic companies can enjoy government procurement and tax incentives, government regulations, a lack of transparency.3. Merger and it is well known that in the past few years in the new global competition environment, and the pursuit of benefits, driven by financial sector mergers occur repeatedly.This trend continues.Foreign companies continue to come into the U.S. market.In the first half of 1999, has a commitment to buy $29.6 billion of foreign capital financial companies in the United States, more than 1998 JianBingE 50%;6 times more than the first half of 1998.In the insurance industry has not in the international market place, it does not have the consensus of the competitive advantage.Involved in insurance and financial companies merger wave.Cross-combination mergers examples are: the Netherlands global group (Aegon NV) for $10.8 billion acquisition of companies TransAmerica, Ace Cigna companies for $3.4 billion to purchase property and disasters.According to the personage inside course of study analysis, foreign insurers look good the United States is the main reason for this is the world's largest and benefit is good market.In March 2001, British putian announced $22.3 billion in buying general insurance company.On the contrary, American companies also continue to develop overseas insurance market.In the first half of 1999 U.S. financial companies to invest in overseas merger and acquisition (m&a) $12 billion.The number of company mergers has 14.

4. The development of technology information and communication technology, greatly influences the development of insurance industry.Insurance industry spent a great deal of money on information technology, and reduce the operating costs.Competition in the insurance industry, especially the personal insurance lower operating costs, providing customers with the quality and excellent service.Ia institutions actively use information technology and reduce the regulatory costs and reduce the cost of the supervision object, such as: the United States has "insurance regulatory information system", to protect regulator from the objects found in the regulatory objects need to be monitored, provided effective means of risk aversion.Information technology's influence on insurance industry structure adjustment and operation is extremely profound.Advances in technology have made the insurance company to adapt to market competition both at home and abroad, consolidate the market share, reduce operating costs, and constantly develop new service project.5. The growing use of electronic commerce and the Internet the Internet is the insurance company is an effective way to reduce costs.Use the Internet to obtain information and becoming more and more widely used as tools for doing business.The insurance company has its own web site and online sales part of the insurance program.The development of the Internet can effectively release the insurance information, marketing products and services.In a word, the insurance company fully realize the potential of the Internet

Can, and continuously improve the existing service projects, the development of new projects.By 2002, 60% of the insurance company will provide insurance services online.Future us growth forecasts in general insurance industry, insurance industry growth and economic growth.But it is also affected by the insurance industry over the past few years operating conditions.Mature and competitive American insurance market decreased insurance costs, profit margins narrow.The insurance industry should always focus on the consumer demand.Insurers will provide financial services, to further exploit and manage ment in the international market, in order to realize the expected turnover and profit.Further in 1999, the life insurance premium growth, but growth rate is only 3%, property and disaster premium growth of 1% to 1%.Life and non-life insurance revenue growth in 2000 to maintain the momentum of the.Predicts 2004, the prospect of the insurance industry is still bullish.Life and non-life insurance premiums will grow, life insurance premium income of $538 billion, the life insurance premium income of $300 billion.Investment income will also increase.In the long run, the influencing factors of risks have people income increases and the accumulation of wealth, changes in population and labor, the diversification of housing ownership.Early postwar "baby boom" generation is gradually entering its reach, the insurance business for this generation, such as: pensions, health insurance has been put on the agenda.Out of consideration for health care costs, it is necessary to develop in the direction of management of health insurance.Insurance market competition will become more and more intense.With the implementation of competition law on financial services, insurance, financial and securities manage ment in will.Banks, mutual funds and other financial institutions to provide investment and saving project, directly compete with insurance and pension insurance program.The bank will strengthen auto and housing insurance business.A foreign insurance company continued to expand business in the United States.The American company to further explore those rapidly growing markets overseas.Insurance practitioners will continue to take advantage of new information and communication technology to improve insurance distribution, investment, insurance and the benefit of the internal management.Distributors are still under pressure to reduce costs.Can reduce costs, such as the Internet and electronic commerce technology will be widely used.

The international insurance market profile of the premium income $2.13 trillion worldwide in 1997, excluding inflation, an increase of 4.5% over the previous year.Life insurance accounting for 58% of the total, non-life insurance accounted for 42%.Sustained growth life insurance, non-life insurance almost at the end of the growth.In 1997, the world's largest insurance market is the United States.It accounts for 32% of the world's premium of $688.5 billion.Japan's second, the premium of $490.6 billion, accounting for 23% of the world's premium.English, German, French listed in the next, with respectively 7.4%, 6.4% and 7.4% of the world's premium.Premium growth rates vary across continents.The growth rate of up to 11.6% of Latin America.Brazil, Argentina, Mexico, Chile, Colombia and venezuela in Latin America column top six insurance market scale, these countries account for 90% of the continent premium.The growth rate of Argentina, Brazil, Mexico, Paraguay, up to two digits.Get rid of Ecuador, el Salvador and Guatemala, premiums are growing in other countries.A 11.1% increase in Oceania.Australia's growth rate was 12%, the premium account for 90% of the whole continent.A 5% increase in New Zealand

A 6% increase in Europe.Central and eastern Europe is growing rapidly, up 15% non-life insurance, life insurance growth of 9%.Growth of two digits are: Luxembourg 49% 49% 49% 49%, Latvia, Poland, Ireland, Turkey, Slovakia, Ukraine, 16% to 11% 20%.Five countries negative: a 8% Austria, a Swedish 7%, Iceland a 3%, a 1%, Romania Bulgaria 35%.Asian growth rate of 4%.China's growth rate up to 35%, 20% 20%, South Korea, Singapore and Taiwan 14% 13% 13%, Syria, Indonesia, Thailand, 13% 5% one 5%, Pakistan and the united Arab emirates (uae).Japan almost no growth.Asia excluding Japan, non-life insurance cost increases by 7%, the life insurance premium growth of 25%.The lowest premium growth rates in North America is only 3.3%.The American market accounted for 94% of the premium growth of 2.6%.Canada's 7% growth.According to Swiss reinsurance company in 1999, the international insurance market share: 37%, 31% 31% in Europe, Asia, America, Africa, Oceania 2% to 1%