Industry Analysis & Industry Trends
An intensified focus on financial positions and net premium growth for liability insurance products have aided the Automobile Insurance industry over the five years to 2016. Over the five years to 2021, industry revenue is forecast to increase due to continued improvements in the macroeconomic landscape, which are anticipated to benefit investment conditions for auto insurers. Given that the majority of auto insurer assets are invested in bonds, forecast increases in interest rates will likely boost investment gains. Despite this trend, consolidation in the industry is expected to continue, with larger operators viewing strategic acquisitions as a lucrative method to expand their share of the market.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Automobile Insurance industry is in the mature stage of its economic life cycle; this stage is characterized by relatively few changes in product lines, stable major markets and intensified merger and acquisition activity. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 3.1% over the 10 years to 2021. In contrast, US GDP is projected to grow at an annualized rate of 2.1% during the same period. Typically, an industry is considered to be in the mature phase of its life cycle when growth in IVA trends with GDP growth over a 10-year period.
The industry offers a range of automobile coverage options, including liability, collision and comprehensive insurance products... purchase to read more