Insurance coverage brings peace of mind to citizens and businesses all over the world by shielding them from a range of unpredictable events. The Global General Insurance Carriers industry provides protection against the costs arising from a variety of property and casualty (P&C) events, such as auto accidents, natural catastrophes and medical malpractice. General insurers derive income from both insurance premiums and the investment of premiums in bonds, stocks and other asset classes. Most premiums are derived from the renewal of existing policies. Policy pricing tends to cycle from price cutting (softening) to price increasing (hardening). Generally, a hard market will lead to higher P&C premiums from one year to the next, without a change in risk coverage.
After suffering two consecutive years of contraction amid the global economic downturn, the industry returned to growth in 2010. In the five years through 2012, industry revenue declined at an annualized rate of 2.2% as investment income plummeted and premium prices softened. In 2012, industry revenue will grow about 2.8% to
The Global Direct Insurance Carriers industry exhibits a low level of concentration with the top four industry participants accounting for 12.9% of global industry revenue. A top four share below 40.0% is considered low. Importantly, no player commands an industry share of greater than 5.0%. Nonetheless, concentration levels do vary by region, country and product line. Many industry participants specialize in a particular segment, for instance
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IBISWorld industry Report Key Topics
<p>Businesses in this industry initially underwrite insurance policies relating to property, casualty, liability and other general risks. In underwriting insurance policies, general insurers earn premiums that they then invest to generate additional income. The underwriting of life, disability, health and medical insurance represents a separate industry, although many businesses compete in both insurance markets.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry