Insurance companies

Insurance companies may be classified into two groups:

• Life insurance companies, which sell life insurance, annuities and pensions products.
• Non-life, general, or property/casualty insurance companies, which sell other types of insurance.

General insurance companies can be further divided into these sub categories.

• Standard lines
• Excess lines

In most countries, life insurers and non-life are subject to different rules and different tax and accounting rules. The main reason for the difference between the two types of companies, life insurance, pension and retirement is the very long term in nature - coverage for life insurance or a pension can cover risks over several decades. Unlike non-life insurance, insurance is usually a shorter period, such as a year.

United States, the standard traditional insurance insurance online. These are companies that typically insure your car, home or business. They use pattern or "cookie-cutter" policies without variation from one person to another. They usually have lower premiums than excess lines and sell directly to individuals. They are governed by state laws limit the amount it costs for insurance.

Excess insurance companies online (aka Excess and Surplus known) generally provides that the risks are not covered by the standard lines market. They are widely used all insurance with unlicensed insurers appointed position. Unlicensed insurers are not in countries where the risk is approved. These companies have more flexibility and can react faster than standard insurance companies because they are not required to check the rates and forms as "admitted" carriers of the file. However, they still have substantial regulatory requirements placed upon them. State laws generally require insurance placed with agents and brokers, surplus line are not recognized by insurers are standard.

Insurers are generally classified as shared or businesses. Mutual companies are owned by the insured while the insurance of shareholders (who may or may not own policies) own stock. Demutualization of the insurance company to share a mutual, and the formation of hybrid, known as the common parent form, in some countries like the United States in the practice of late 20th century.

Other possible forms for an insurance company are reversed, where the customer in the allocation of risks to and fro, and Lloyds organizations.

Insurance companies are rated by various agencies such as AM Best. The value of the company has financial strength, ability to pay claims actions. Moreover, prices of financial instruments issued insurance, such as bonds, securitization and products.

Reinsurance companies are insurance companies who sell insurance to other insurance companies, allowing them to reduce risk and protect against significant losses. Reinsurance market is dominated by a few very large companies with large reserves. Reinsurance is also a direct writer of insurance risks as well.

Captive insurance companies may be defined as limited-purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups.. This definition is sometimes extended to a certain risk of the parent will be with customers. In short, it is internally self-insurance vehicle. The prisoners, body shape "pure" (that is a 100% subsidiary of parent company self-insured), by a prisoner "joint" (which causes the risk of members of the collective industry) and an association "" captive (which guarantees the risk of individual members of associations, professional, commercial or industrial). Prisoner commercial, economic and tax benefits of their sponsors, their costs and creating a simple management of the risks of assurance and flexibility for cash flows they generate. They can also cover the risk is not available or offered on the traditional insurance market at reasonable prices.

The nature of risks that could harm the prisoners of their parents, the public and product liability, professional liability, employee benefits, employer liability, motor and medical expenses suffering. The exposure of prisoners are limited by the use of reinsurance.

Prisoner a larger part of risk management and risk financing strategies of their parents. It is in the context of the following will be included:

• The weight and the increased cost of the premium of almost all lines of coverage;
• Difficulties in obtaining certain types of accidents;
• Differential coverage standards in different parts of the world;
• The evaluation of structures to market changes rather than individual loss experience into account;
• Easy credit for excess and / or reduce the control efforts.

There are also companies as an "insurance consultant" known. As a mortgage broker, these companies pay the cost of customers for the best insurance for many companies. As an insurance advisor, business "insurance" has been around for the best insurance for many businesses. But with insurance brokers, the cost is usually in the insurance contracts, rather than directly by the customer selected.

Insurance advisers and insurers are still safe for them in insurance transactions. TPA companies that perform underwriting and sometimes claims handling for insurance companies. These companies often have special skills that insurance companies do not have.

Financial stability and strength of an insurance policy is an important aspect when buying an insurance contract. Premium paid currently provides coverage for damage for many years in the future. For this reason, the viability of the insurer is very important. In recent years, some insurance companies are bankrupt, that their policyholders without coverage (or only supported by the state insurance pool or other arrangement with less attractive compensation for losses). A number of independent rating agencies provide information and the amount of the financial viability of insurance companies.