Recently released market study: United States Insurance Report Q1 2011

Dec. 14, 2010 - PRLog -- One of the challenges revolves around the way in which accident and health insurance is treated. In most countries whose insurance sectors are surveyed by BMI, health insurance is considered part of the nonlife segment. In the US, however, only a small proportion of the entire health insurance sector is provided by property/casualty insurers, which are broadly analogous to non-life or general insurers in other countries. A larger proportion of health insurance is provided by life/health insurers, which, but for their involvement in accident and health insurance, would be broadly analogous to life insurers in other countries. However, the majority of health insurance coverage is provided by specialist health insurance plans, which are considered generally (and by us) to lie outside the mainstream insurance sector.

In order to determine a data series for the US non-life segment that is consistent with those calculated for other countries, we have used as a starting point the property and casualty direct premiums disclosed by the Insurance Information Institute (III) in its 2010 Insurance Fact Book. We have added the net health insurance premiums identified by the American Council of Life Insurers (ACLI) in its annual statistical publications. Accordingly, we consider that non-life premiums rose from US$598.83bn in 2005 to US$637.20bn in 2006, US$651.08bn in 2007 and US$654.65bn in 2008. These figures include health premiums written by life insurers that rose from US$118.69bn in 2005 to US$141.20bn in 2006, US$151.46bn in 2007 and US$165.03bn in 2008. In relation to 2009, we have assumed that gross premiums contracted by 2%. The III's review of the Property & Casualty insurers' 2009 results noted that net premiums shrunk by 3.7%.

Net premiums in Q110 were 1.3% lower than they had been in the previous corresponding period. 2010 marks the first occasion since the Great Depression of the 1930s that net premiums have fallen for three consecutive years. For the time being, we are looking for another 4% contraction in premiums in 2010. Meanwhile, life premiums (actually mostly contributions to individual and group annuities, together with premiums for individual and group life insurance, together with minor lines), rose from US$447.30bn in 2005 to US$478.48bn in 2006, US$515.26bn in 2007 and US$520.92bn in 2008. It appears to us that the health plans wrote around US$437bn in 2008. This is not included in our figures.

However, 2009 was a particularly challenging year for the life segment. A study of the top 25 life/health insurance companies by AM Best, which was published in March 2010, found that net premiums of these organisations contracted by 17.9% to US$465bn in 2009. In its annual review of the global insurance industry, Swiss Re indicated that life premiums in the US fell by 15%. This slump was 'unprecedented', as 'weakening consumer demand and capacity constraints adversely impacted new business in all major business lines.' Unsurprisingly, given the volatility of global financial markets in Q408, savings and equity-linked products suffered the most.

For the time being, we are looking for life premiums to contract by another 1% over 2010 as a whole. Nevertheless, we recognise that sales of particular products may contract by much more than this. According to figures published by Beacon Research and the Insured Retirement Institute, and cited by Best's Insurance News, sales of individual fixed annuities in Q110 fell by 52% - relative to the previous corresponding period - to US$16.7bn or so.

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Partial Table of Contents:

Executive Summary
- Table: US Insurance Sector At A Glance
- Key Insights On The US Insurance Sector
- Issues To Watch
SWOT Analysis
- US Insurance Industry SWOT
- US Political SWOT
- US Economic SWOT
- US Business Environment SWOT
Developed States Insurance Overview
- Table: Developed States' Non-Life Segment - Premiums
- Table: Developed States' Life Segment - Premiums
MetLife's Acquisition Of ALICO
- Table: ALICO At A Glance
- Table: ALICO's Pre-Tax Profits By Segment And Region Contribution, Year To November 30 2009 (%)
- Table: ALICO - A Market Leader In Japan
- Table: MetLife's Acquisition Of ALICO
- Table: MetLife And ALICO Combined
Projections And Forecasts
- Table: Insurance Premiums, 2008-2015
- Projections And Drivers Of Growth
- Table: Growth Drivers, 2008-2015
Country Update
- Macroeconomic Outlook
- Table: US Economic Activity, 2006-2015
- Political Outlook
- Foreign Policy
Insurance Business Environment Ratings
- Table: US Insurance Business Environment Rating
- Table: Developed States Insurance Business Environment Ratings
Developed States Context
- Table: Non-Life Premiums In A Regional Context, 2009
- Table: Life Premiums In A Regional Context, 2009
Key Players In The US Insurance Market
- Regulator And Trade Associations
- Numbers At A Glance
- Non-Life Segment - Lines And Shares
- Table: Principal Non-Life Lines, 2008 (US$mn)
- Table: Top 10 Property And Casualty Insurers By Gross Written Premiums, 2008
- Table: Top 10 Health Insurers By Gross Written Premiums, 2008
- Life Segment - Lines And Shares
- Table: Principal Life Lines, 2008 (US$mn)
- Table: Top 10 Life Insurers By Gross Written Premiums, 2008
- Reinsurance And International Links
Company Profiles
- ACE Group
- AEGON
- Aetna Group
- Aflac
- Allianz
- Allstate
- American Family Insurance Group
- AXA
- Berkshire Hathaway
- Chartis
- Chubb Group
- CNA Insurance Group
- Hartford Group
- ING
- John Hancock
- Liberty Mutual
- Lincoln National
- MassMutual
- MetLife
- Nationwide
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Full Table of Contents is available at:
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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.