Posts

Building new businesses: How insurers can leap ahead

Image
  New insurance business ideas can have an outsize impact on enterprise value, but many insurers struggle to build and scale them. A new approach can help improve their success rate. Successful new-business builds  contribute disproportionately to enterprise value. Our analysis shows that across sectors, they generate on average more than twice the revenues of their parent companies’ core businesses. Not surprisingly, leading companies are increasingly turning to new-business building to drive growth. In a 2022 McKinsey survey, 1  24 percent of insurers named business building as their top priority and 65 percent saw it as one of their top three priorities, up from just 27 percent in 2017. Backing conviction with action, more than half of the insurers we surveyed launched four or more new businesses in the past decade. Unfortunately, most of these efforts have yet to bear fruit. In fact, our research shows that only 19 percent of newly launched insurance businesses have ...
Post a Comment
Read more

How U.S. Health Insurance Works

Image
  Health care in the United States can be very expensive.  A single doctor’s office visit may cost several hundred dollars and an average three-day hospital stay can run tens of thousands of dollars (or even more) depending on the type of care provided. Most of us could not afford to pay such large sums if we get sick, especially since we don’t know when we might become ill or injured or how much care we might need. Health insurance offers a way to reduce such costs to more reasonable amounts. The way it typically works is that the consumer (you) pays an up front premium to a health insurance company and that payment allows you to share "risk" with lots of other people (enrollees) who are making similar payments. Since most people are healthy most of the time, the premium dollars paid to the insurance company can be used to cover the expenses of the (relatively) small number of enrollees who get sick or are injured. Insurance companies, as you can imagine, have studied risk e...
Post a Comment
Read more

8 Biggest Life Insurance Companies

Image
  By J. WILLIAM CARPENTER Full Bio J. William Carpenter is an economist who writes financial topics. He is an author of published works for higher education and business clients. Learn about our editorial policies Updated September 29, 2023 Reviewed by EBONY HOWARD Fact checked by VIKKI VELASQUEZ The life insurance market in the United States is both massive and highly competitive. Though bigger may not mean better, either for consumers or for investors, it does imply a degree of longevity and financial stability in the life insurance business. Life insurance is a policy or contract that guarantees the customer or the insured's beneficiaries a sum of money outlined in the insurance policy. In exchange, the customer agrees to pay periodic premiums or payments to the life insurance company. The best life insurance policies and companies can be helpful since they can provide a measure of security for a policyholder's loved ones by providing financial support to pay for funeral...
Post a Comment
Read more