Insurance Industry Prospects 2015

Fitch Ratings global ranking institutions assess the prospects for both the life insurance and losses in 2015 will stabilize at a sustainable premium income and strengthening regulations that support the industry.

As quoted by the Asia Insurance Review, Fitch has provided an assessment of a stable outlook for the insurance industry in 2015. It is driven by the increasing prosperity in the world, which is very less market penetration, and increasing awareness of the risk of catastrophe.

The impact of the minimum capital policy, the number of players because the insurance industry will shrink smaller and weaker will join with other companies to meet the new capital requirements or forced out of the market. Over the long term, this will help insurance companies develop a greater awareness of the risks and enhance their ability to manage capital resources.

Fitch also considered foreign ownership in the world market could rise because of the growth of the insurance market in the United States, Japan and South Korea are fast.

However, Fitch noted it is still negative as the insurance industry's growth prospects in the world that is plagued with limited institutional transparency, minimal public disclosure, and risk management needs to be strengthened. Fitch, however, believe that stakeholders in the insurance industry will improve by strengthening regulatory requirements and increasing interest of foreign investors.

In addition, Fitch also notes the industry emphasizes stable outlook may come under pressure from potential catastrophe losses due to risk reduction. 

Farmers Insurance Group

Farmers Insurance Group (informally Farmers) is an American insurance and financial services company headquartered in Los Angeles, California and a wholly owned subsidiary of Zurich Insurance Group. It provides home, auto, commercial and life insurance and other financial services throughout the United States.

Farmers is the third-largest provider of both private passenger auto and homeowners insurance in the U.S., servicing over 10 million households with more than 20 million individual policies. It has around 24,000 employees and 50,000 exclusive and independent agents.

Operations   

• The Farmers Exchanges, headquartered in Los Angeles, CA, are three reciprocal insurers or inter-insurance exchanges (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange) owned by their policyholders. The Farmers Exchanges, directly or through their subsidiaries and affiliates, offer homeowners insurance, auto insurance, commercial insurance, and financial services throughout the United States. Farmers Group, Inc. (dba Farmers Underwriters Association) and its subsidiaries, Truck Underwriters Association and Fire Underwriters Association, provide certain non-claims administrative services for the Farmers Exchanges as their attorneys-in-fact. The Farmers Exchanges do not hold an ownership interest in Farmers Group, Inc., and neither Farmers Group, Inc. nor its ultimate parent, Zurich Financial Services Ltd., a Swiss company, holds an ownership interest in any of the Farmers Exchanges.
• The Foremost Insurance Group, headquartered in Grand Rapids, Michigan, is a group of companies that primarily insure specialty products such as mobile homes, motor homes, travel trailers and specialty dwellings, motorcycles, off-road vehicles, boats and personal watercraft. It was founded in 1952 and was acquired by the Farmers Exchanges in March 2000. The Foremost companies are subsidiaries of the Farmers Exchanges.
• The Bristol West Insurance Group became a part of Farmers in July 2007. In 1973, it began providing private passenger auto insurance to residents in Florida and now provides liability and physical damage insurance - focusing exclusively on private passenger vehicles - across the United States. The Bristol West companies are subsidiaries of the Farmers Exchanges.
• 21st Century Insurance, headquartered in Wilmington, Delaware, became a part of Farmers in July 2015. Using the internet and direct response marketing channels, 21st Century markets personal auto insurance to consumers throughout the United States. The 21st Century Insurance companies are subsidiaries of the Farmers Exchanges.
• Farmers New World Life Insurance Company started as Catholic Life Insurance Company in Spokane, Washington in 1910. Later that year it was renamed New World Life Insurance Company. In 1953, it was acquired by Farmers Group, Inc. In 1954, its name was changed to the current Farmers New World Life Insurance Company. Farmers New World Life Insurance Company is now based in the Seattle suburb of Mercer Island, Washington. It offers flexible universal life insurance, traditional term life insurance, whole life insurance and annuities. Farmers New World Life Insurance Company is a subsidiary of Farmers Group, Inc.
• Farmers Financial Solutions, LLC. was created by the Farmers Exchanges in 2000 to provide financial products to customers.

Farmers' products and services include:

• auto insurance;
• home insurance, including homeowners, condominium and renters insurance, mobile and manufactured home insurance, specialty home insurance, including landlord and rental properties, seasonal homes, and vacation homes, and flood insurance through the National Flood Insurance Program;
• motorcycle insurance;
• life insurance, including term, whole and universal life insurance;
• recreational insurance, such as insurance for boats, ATVs, RVs, and travel trailers;
• business insurance for small and medium sized businesses, such as liability and property insurance, commercial auto and workers compensation insurance for apartment and commercial property owners, artisan contractors, condominium homeowner associations, offices, religious organizations, educational and non-profit organizations, and other businesses in the light manufacturing, service, restaurant, retail, wholesale, and auto service & repair industries; and
• financial services and products, such as mutual funds and variable annuities.

Things you should know about business insurance

Before you take out an insurance policy for your business, take care of these things.

It is worthwhile asking your competitors which insurance agency and broker they use. When you take out insurance with someone, you want to be sure that they have experience in insuring people in your field. They may even know better than you about the risks and challenges your business faces. The last thing you want is to be paying your insurance company for years and years and then encounter a disaster that you aren't insured against.

Don't confuse risk management with insurance, they aren't the same thing.

Use a broker to get the best deal.

You can often include your own and your workers' health insurance on your business insurance policy. This could save you a lot of money.

Think very carefully about the risks that your business faces and discuss them with other people in the company before you take out insurance. Business interruption insurance, liability, and equipment are all essential.

What Is Business Insurance? A Detailed Guide to Insurance for Businesses

Business insurance is a comprehensive type of policy that may include a number of different types of coverage. In general, companies select the types and amounts of coverage they need in line with their size, the nature of the operations and the products or services they offer. You should definitely consider getting such type of a policy, after you learn more about it.

There are different types of business insurance coverage. You can buy a package only with the covers you actually need. Still, it is worth looking at all available types.

Property coverage is usually included in every policy. It covers your company's property and its contents against damage and loss. It is worth pointing out that standard coverage may not cover your property against all possible perils. Much like with home policies, you can cover your property and its contents at actual cash value or at replacement cost.

Casualty business insurance coverage is often bundled with property coverage. It covers your company against any claims from people who suffer from an injury or any other kind of condition due to an accident that has occurred on your company's premises.

Liability coverage covers you when claims for negligence on the part of your company or its employees are made against you. For instance, if a product made by you causes an injury, the policy will cover the compensation. You can choose from product and service liability coverage, depending on what your company produces.

Business interruption insurance covers you in case the cash flow and/or profit of your company is damaged due to an interruption your company's operations. Commercial auto coverage covers the vehicles used by your company.

Workers' compensation coverage, life and disability coverage and health insurance can also be part of a business insurance package. The first one is designed to compensate workers in case of injury at the work place. The second one protects your company in case a valuable employee dies or gets permanently disabled and can no longer work. More companies now purchase health insurance to offer as part of the benefit package to their employees.

This type of policy works just like traditional ones. You get to pay a premium annually on in installments. When you make a claim, the insurer evaluates it and issues compensation.

Now you know what business insurance is. You can readily purchase the types and amounts of coverage you need. Just make sure you shop around to find the best deal.