Industry Analysis & Industry Trends
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. In the five years to 2014, industry revenue declined as investment income plummeted and premium prices softened. The next five years will feature strong revenue gains. Demand for insurance will grow, hardening premium prices, and investment income will pick up as investor confidence returns to global markets... read more
Starting a New Business
The Global Direct General Insurance Carriers industry has medium barriers to entry. To compete as an insurer, most markets require conformity with state and/or federal legislation. Furthermore, new entrants must adhere to stringent capital requirements and must report detailed financial information to regulators. Maintaining adequate capital and effectively managing risk present the largest barriers to entry; however, once these barrier are overcome, insurers have the ability to cede some risk to reinsurers, which can increase their capacity to grow.
The market is highly competitive across all product lines and in some state markets substantial over-capacity exists. As a result, new entrants must have significant capital to be able to price premiums at or near market rates... read more