Top 5 Insurance Companies in USA
What is an Insurance Company?
Insurance companies are the entities that create, underwrite and sell insurance policies. They are tightly regulated to ensure they have the financial resources to pay claims for any disasters that may arise. They can be mutual or proprietary companies, and may sell their own policies, as well as those of other carriers. An insurance carrier can be a home or auto insurer, as well as an employer group or health insurer. An insurance agency, on the other hand, is a business that is licensed to sell policies for one or more of the nation’s top insurers. They are the people who help you get coverage that is right for your unique situation. A good agent will explain the difference between insurance carriers and agencies to make sure you have a clear understanding of your options.
Types of Insurers
There are many different types of insurance companies, including private and public insurers; life/health, property/casualty and financial guaranty insurance. The largest insurers tend to be groups, with holding companies that own multiple insurance and noninsurance businesses. There are also specialized insurers, such as companies that offer only automobile or homeowner’s insurance.
In the United States, most property/casualty insurers are large mutual insurers that operate over a wide geographic area and sell several lines of insurance. The most well-known of these is State Farm, which grew from an Illinois farmer’s co-op in 1922 to one of the country’s largest auto and homeowners’ insurers. There are also many direct sellers of property/casualty insurance, such as GEICO, Allstate and Allied. Some direct sellers are a part of an insurance group and may offer other kinds of insurance in addition to property/casualty or life/health. Most insurance groups are licensed to sell a wide range of insurance in multiple jurisdictions, and most participate in state guaranty pools to provide backup coverage in case of insolvency.
Insurance Companies in the U.S.
Shopping for a reliable and affordable insurance company can be a daunting task. A good insurance company should provide an excellent selection of policies, competitive premium rates and a variety of discounts. It should also have a strong financial base, reliable customer service and innovation.
GEICO is known for its cheap premiums and wide variety of discounts. The company provides car insurance, home insurance, renters’ insurance and commercial insurance. It is one of the largest and most popular insurers in the United States.
The US insurance industry comprises the biggest portion of the world’s market cap, with the top 10 companies accounting for about half. Among them are USAA, which is the number-one property/casualty insurance carrier in the country and Amica Mutual, which comes in second place for auto insurance. Other major players include Marsh, which is a global risk and insurance broker, Guy Carpenter, which offers specialty and global property and casualty reinsurance, and Oliver Wyman, a management consulting firm that caters to businesses worldwide.