The USA is the country with the most developed insurance market in the world. American insurance business has immense and unparalleled scales. American insurance monopolies control about 50% of the total insurance market in developed countries. More than 8000 property insurance companies and 2000 life insurance companies operate in the USA.
Each state has its own insurance legislation as well as supervisory body. There is no single federal insurance law too. Each state imposes its own requirements on the minimal amount of capital and insurance types, controls the activity of insurance companies and issues insurance licenses.
Types of the insurance companies in USA
There are two types of insurance companies in the US:
- joint stock companies;
- mutual insurance companies.
State insurance companies are absent at all. The shares of insurance company can be purchased by both physical and legal person.
Assets of insurance companies are about S1.6 trillion. The assets of an average insurance company are about $950 million while twelve largest companies account for $45 billion.
Electronic database of insurance companies is widely used in the US and allows to divide the companies according such indicators as risk level, premium size, number of clients, etc.
Insurance companies enjoy a very high rate of citizens’ confidence. Billions of dollars that belong to various pension funds are transferred to their accounts for storage. The main objective of insurance companies in this situation is to ensure the growth of entrusted funds by means of a sound investment policy. Insurance companies charge a commission for keeping these funds. Usually it is 0.1% but considering large amounts such rate provides really high profits.
Immense investment resources transform insurance companies into one of the most influential external centers of financial control over industrial corporations.
The largest US insurance companies are financial conglomerates. Establishing subsidiaries they provide loans, organize check customer service, issue credit cards, perform real estate operations or manage property and capital on behalf of its clients. There are many companies in the insurance market. We present a list of insurance companies in USA with rating.
Top insurance companies in USA
State Farm Mutual Automobile Insurance Company
This is the largest multinational property insurance company founded in 1922. The company concludes various types of insurance contracts: individual and collective agreements, vehicle insurance, insurance against damage or destruction of citizens property resulting from accident, fire, explosion, storm, etc, aviation insurance, reinsurance and so on. This insurer operates in the US and Canada.
American International Group
It’s the largest insurer of commercial and industrial risks in the US, which operates since 1919. The holding company headquarters is in New York. The company controls 44 subsidiaries all over the world.
All-State Insurance Company
It’s one of the largest multinational corporations engaged in property insurance. It was founded in 1931 in Illinois and now has a network of 15 subsidiaries. The company insures against fire, flood, earthquake, road accidents, etc.
It’s the fourth largest US insurance corporation, founded in 1853. It is a highly diversified corporation with a staff of 16500 employees. It provides a wide range of insurance services in almost 100 countries specializing in transport insurance and reinsurance.