JM GetMoore Insurance
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U.S. Insurance Trends

Insurance makes up a global industry and studies reveal that the insurance premiums throughout the world totaled approximately USD$4.270 trillion in the year 2008. This is an increase of about 6.3% as compared to 2007 when the insurance premiums totaled USD$4.061 trillion.

 

In United States, the insurance sector provided employment to about 2.31 million individuals in 2008. The gross insurance premiums were USD$1.13 trillion in 2008 which made United States the largest insurance market in the world. The life insurance firms in the US held assets worth USD$4.51 trillion approximately in 2008. This data was provided by the Federal Reserve Bank. There are about 4,500 insurance underwriting firms in the country. However, only the prominent ones are known in this field.

 

In the US, insurance is primarily regulated at the state level which is in sharp contrast to the investment as well as banking services which are regulated by SEC or Securities and Exchange Commission (not entirely though). This indicates that the regulations differ from one state to another. As such there are very few insurance underwriters that offer their insurance products in all the states. So, not all underwriters do business in all the states.

 

One of the biggest changes in the insurance sector is the bailout of American International Group or AIG in 2008. The main reason for the downfall can be attributed to the CDs or credit default swaps that totaled several hundred billion dollars. A very small division of AIG risked writing these CDs.

 

The health insurance industry is expecting changes too. Since health care costs in United States are skyrocketing with every passing day, Obama Administration is planning to bring about changes that can offer quality health insurance to Americans, something that the Americans are being deprived of currently.

It has been observed that health care costs have risen over the years but the quality of service hasn’t improved. Another complaint from people is about the rising costs which make it impossible for everyone to access health insurance. This has resulted in increase in Medical bankruptcy over the years.

 

Since the premiums determined on per capita basis usually remain low in most parts of the world, it offers ample opportunity for the growth of various insurance products world over. Statistics reveal that per capita premiums the world over amounted to USD$646 in the year 2008. On the other hand, in North America alone this figure recorded was USD$2,990.

 

 Contributed by: AmPmInsure community