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US insurance market PDF

US insurance market

The United States is a state in North America. Area 9629091 km2. It occupies the 4th place in the world in terms of territory size (after Russia, Canada and China). Total land area 9158960 km2, territorial waters 131 km2.The population is 293.6 million people. the Capital is Washington, DC.

The United States is the world's leading economic power. GDP (at current prices) 10.48 trillion. doll. (37,6 thousand dollars. per capita – 2nd in the world after Luxembourg) (2002).

3.1 Characteristics of the us insurance market

Modern American society is impossible to imagine without a widely developed insurance system. Traditionally, the high demand for insurance services in this country is due to the developed private sector of the economy and the high standard of living of its citizens. But insurance is more than a part of the U.S. economy, it's an American lifestyle.

In the minds of Americans, insurance is directly associated with the quality of life and for many is synonymous with safety.

The United States, which has a highly developed insurance market and about 3 thousand different types of insurance, today is the only real competitor to the insurance system of the United Europe.

American insurance monopolies control approximately 50 % of the entire insurance market of industrialized countries.

The U.S. insurance market consists of two markets: life insurance and other types of insurance, which means all types of insurance except life insurance (property, liability, etc.). Division is caused by economic features of various types of insurance activity: life insurance is carried out on a long – term basis, other types-on the short-term.

The structure of the us insurance market is as follows: life insurance accounts for 20% of the insurance market, property – 80 %.

American insurers are constantly expanding the scope of their services, because only this way they can fight against stiff competition in the insurance market. Great development in the United States has received personal insurance. It is divided into:

– life insurance;

- insurance against diseases or accidents;

- annuity or pension insurance.

Life insurance in turn is divided into:

– case of death;

- insurance-Deposit.

Death insurance can be concluded for a certain period or for life. This type of insurance in the United States accounts for ¾ of all life insurance contracts.

Insurance-the Deposit is made for a certain period and the insurance amount is paid when the insured person reaches a certain age (stipulated in the contract). Often this type of insurance is carried out in combination with death insurance.

In addition, the States have public and private health insurance, but about 50 million people are uninsured, mostly middle-class people dissatisfied with low-quality public and expensive private health care. In the USA since the end of 60th there are two state social programs in the sphere of health care:

- Medicare-the state insurance program for pensioners and disabled people.

- Medicaid-the state social program of support of low-income segments of the population.

In addition, social insurance is sufficiently developed, the most developed type of which is injury insurance at work. In the whole country, about 90% of the employed population is covered by occupational injury insurance. The law on social insurance was adopted in 1935 (with subsequent amendments). The first pensions were paid in 1937.

The second most important type of insurance in the United States was the insurance of the credit and financial sector, which is largely due to the wide spread in the country of credit settlements in the sphere of trade and services.

In the United States, the activities of private insurers are carried out in specific organizational and legal forms. The peculiarity of the American insurance market is the absence of state insurance companies.

Depending on the chosen form of insurance, some insurers pursue commercial benefits, others build their activities on a non-commercial basis.

On a commercial basis there are two types of insurance organizations:

- joint-stock insurance companies, the shares of which can be purchased by both individuals and legal entities. Owners of shares receive profit in the form of dividends;

- Lloyd's American syndicates.

All other forms of Association of insurers are non-commercial. These include:

- mutual insurance companies-each member of the insurance company (policy holder) pays an insurance premium in advance, the amount of which, as a rule, should be slightly larger than the amount necessary to cover the individually expected insured event (loss), plus its share in covering administrative costs;

- fraternal income distribution organizations-sometimes called mutual benefit societies-each member of the organization assists in insuring other members and receives insurance from them himself;

- the joint contribution organization is an Association of citizens or individuals United for the purpose of mutual insurance.

A characteristic feature of the us insurance system is the participation of various intermediaries in the insurance process, i.e. the insurance policy is accepted through an insurance agent or broker. Their total number in the country reaches 0.5 million people (about 2 % of the total population).

Insurance agents ("subscribers") usually operate under a long – term contract with one insurer, selling policies on its behalf.

Independent agents (brokers) are instructed by the client to conclude an insurance contract on certain conditions, and then look for a suitable insurer. Brokerage is engaged in both individuals and large specialized firms.

For example, one of the largest life insurance companies is Prudential. From independent brokerage firms can be called "Maris-Mclenns", "Alexand & Alexander", "Fran Hall", and others. In addition, there is an Institute of underwriters.

The most important feature of the development of the American insurance business is its further internationalization.

 

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0 #1 US insurance market 2019-12-03 09:02
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