Squeeze on independent agents tightens, with no end in sight
Article Abstract:
Independent insurance agents have been caught between insurers that are trying to cut costs as much as possible and consumers who are shopping for the best prices. The result is that agent commissions are being eroded and business is getting harder to come by. Property and casualty insurers paid over 40% of their underwriting costs to agents as commissions in 1993, and life and health insurers pid over 35%. Direct insurance writers have a cost advantage over companies using agents, and their market share is growing.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Volatile market conditions trimmed premiums in 1995
Article Abstract:
The top 500 life/health insurers saw net premiums increase by 4.8% in 1995, comparable to the growth rate seen in 1994. The biggest insurer, Prudential Insurance Company of America, which wrote $20.51 billion worth in net premiums, experienced a 10.8% decline in net premiums relative to 1994, equal to $2.42 billion. The stagnant growth in insurance premiums is being attributed to changing demographics, rising competition from banks and other financial sectors, and several other factors.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Corporate changes: mergers, profit downturns fueled changes in 1994
Article Abstract:
Tougher capitalization standards, healthcare reforms, rising interest rates, and falling profits contributed to acquisitions and corporate failures among life and health insurers in 1994. Data provided from state insurance departments show that insolvencies, dissolutions, and mergers resulted in the retirement of 37 insurance companies during the year. Some 21 companies were newly licenses, 20 changed names, and 12 redomesticated.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The GREITtm Plan: deferred compensation with income and estate tax savings. "Regulatory frenzy" - employee welfare benefit fund
- Abstracts: Group term life insurance benefits: a forgotten planning tool. Planning for globalization of employee benefits: is there "harmony" or a "GAAP" in the future?
- Abstracts: Squeeze play. Insurance plan verifies agent's important role. Keep yourself afloat in sea of information
- Abstracts: Special delivery for PC agents: life products. Putting a new lid on cleanup costs. A love affair with rural agents
- Abstracts: Banks face sales barriers as agents lobby states. The devil is in the details. Agents' worst nightmare: banks are gaining the edge to sell insurance in a big way