Insurance Companies

Insurance Companies: Differences in services provided by:
- Life Insurance Companies
- Property and Casualty Insurance

Life Insurance Companies:
- Size, Structure and Composition of the Industry:
In 1988: 2,300 life insurance companies with aggregate assets of $1.12 trillion
In early 2000s: 1,500 companies / $3.4 trillion
4 largest wrote 19% of new premium business
Increasing involvement of commercial banks in insurance policy sales
- Large scale mergers

Life Insurance: Issues
- Demutualization
- Adverse selection
Insured have higher risk than general population
Alleviated by grouping of policyholders into risk pools
Life Insurance Products:
Ordinary life
Term life, Whole life, Endowment life.
Variable life, Universal life, Variable universal life.
Group life
Industrial life
Credit life

Other Life Insurer Activities
Annuities
Reverse of life insurance activities.
Private pension funds
Compete with other financial service companies.
Accident and health insurance
Morbidity insurance
Effects of growth in HMO enrollment