The most important types of
insurance across the world
The insurance industry is one of the most
lucrative markets in the world and the top
worldwide insurance companies are detailed on
websites listing international statistics. As of
April 2018 the top 10 companies in terms of
billions of U.S. dollars and by market
capitalisation are as follows:
1. Berkshire Hathaway ($350.5 billion)
2. China Life Insurance- China ($164.1 billion)
3. Ping an Insurance - China ($130.9 billion)
4. AIA Group - Hong Komg ($80.5 billion)
5. Allianz - Germany ($78.7 billion)
6. American International Group - US ($76.4
billion)
7. Prudential PLC - UK ($65.6 billion)
8. AXA - France ($61.2 billion)
9. ING Group - Netherlands ($59.3 billion)
10. Metlife - US ($57.8 billion)
1. Health Insurance
Insurance policies are very important, as
evidenced by the fact the industry is so lucrative
for insurance companies. Insurance is bought for
protection against risks in many different walks of
life and the main types of insurance people take
out are:
The increasing costs of medical treatment and
care make health insurance a mandatory
requirement for most people. In some countries,
even a visit to a doctor can incur costs and
hospital treatment, especially if involving a
lengthy stay, can cost a small fortune. Then, if
surgery's required, costs are multiplied several
times over. Health insurance doesn't come
without a price but, for many people, the costs
are a necessary burden to bear for the peace of
mind and financial benefits this brings. Statistics
available for the US combined life and health
insurance industry show that it produces a
revenue of roughly $748 billion a year, with a 5%
growth rate.
2. Live Insurance
Life insurance protects those who depend on
someone financially in the event of their death
and it can be either a term insurance over a
specified number of years or a whole of life
policy. The premiums to a term policy are less
expensive because the company may not have to
pay out if the covered life doesn't die within the
term of the policy whereas a whole of life policy
always has to pay out because we all die at some
time.
Typical examples of those who would benefit
from life insurance in the event of the death of the
insured person are spouses, parents, children
and/or other loved ones or named beneficiaries.
Life insurance is the top selling insurance in the
world and there's a good reason for this to cover
the financial gap that would be left in the event of
a death. These would be replaced by the policy
making a payment in the form of a lump sum,
which could cover paying off a mortgage and/or
other debts. Life insurance can also cover funeral
and burial expenses. The statistics for life
insurance and health insurance are combined
(see above) but, in 2014, Nippon Life Insurance
was the top performing company in the world
with annual revenues of around $67.4 billion.
3. Car Insurance
Most countries require car insurance at a certain
level by law, usually a minimum of third party, fire
and theft. In the event of an accident with injury to
a third party and damage to a third party's car, a
claim could arise leading to huge costs, in many
cases unable to be afforded by the perpetrator.
Accidents can and do happen, sometimes quickly
and often with tragic consequences. Having
appropriate insurance cover saves time, money
and worry and, for those who want to protect their
own cars, the added benefit of comprehensive car
insurance removes the burden of losing a
valuable asset or having to pay expensive repair
bills. The annual US car insurance revenue is
around $220 billion with a growth rate of around
2%.
5. Long-term Disability Insurance
5. Long-term Disability Insurance
For some people, the prospect of becoming
disabled for the rest of their life is a real and
terrifying prospect so they take out long-term
disability insurance in case they should become a
victim of this terrible and life-changing situation.
Everyone harbours the hope that nothing will
happen to them, sometimes relying on blind faith
to protect their earnings and future welfare but, for
many, this is investing in false hope. It's important
to choose a disability policy to continue with
whatever lifestyle is currently enjoyed in case
working ability is changed or curtailed. The annual
US disability insurance revenue is estimated at
$26 billion with a growth rate of 0.5%.
4. Homeowners Insurance
4. Homeowners Insurance
In the worst case scenario, replacing a home is an
extremely expensive prospect but having the right
insurance in place helps to alleviate the burden.
Typical disasters that home insurance protects
against are damage by fire, flood, theft, adverse
weather, natural disasters and unforeseen events,
as well as accidental and malicious damage. The
best policies are those that cover replacing the
structure of a home in addition to the contents
and the expense of alternative accommodation
while a damaged or destroyed home is repaired or
rebuilt. The annual US home insurance revenue is
estimated at an $77 billion with a growth rate of
around 4%.