Article Abstract:
Independent insurance agents have been caught between insurers that are trying to cut costs as much as possible and consumers who are shopping for the best prices. The result is that agent commissions are being eroded and business is getting harder to come by. Property and casualty insurers paid over 40% of their underwriting costs to agents as commissions in 1993, and life and health insurers pid over 35%. Direct insurance writers have a cost advantage over companies using agents, and their market share is growing.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The top 500 life/health insurers saw net premiums increase by 4.8% in 1995, comparable to the growth rate seen in 1994. The biggest insurer, Prudential Insurance Company of America, which wrote $20.51 billion worth in net premiums, experienced a 10.8% decline in net premiums relative to 1994, equal to $2.42 billion. The stagnant growth in insurance premiums is being attributed to changing demographics, rising competition from banks and other financial sectors, and several other factors.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Tougher capitalization standards, healthcare reforms, rising interest rates, and falling profits contributed to acquisitions and corporate failures among life and health insurers in 1994. Data provided from state insurance departments show that insolvencies, dissolutions, and mergers resulted in the retirement of 37 insurance companies during the year. Some 21 companies were newly licenses, 20 changed names, and 12 redomesticated.
User Contributions:
Comment about this article or add new information about this topic: