Top 5 Best Insurance Companies in America
The insurance industry is one of the most challenging and competitive business environments in the world. The constant threat of new entrants, coupled with a volatile and fluctuating regulatory environment, means that standing out from the crowd is no easy task for insurers. That being said, numerous top-notch insurance companies are operating in the United States today. In this article, we take a look at some of the best insurance companies in America right now.
AIG
AIG stands for American International Group, Inc., and is a leading global insurance company. Founded in 1919, this New York-based firm is focused on serving the insurance needs of individuals and businesses around the world. Its products and services include life insurance, health insurance, property and casualty insurance, retirement and asset management, financial services, and reinsurance. AIG’s customer base is primarily made up of commercial, corporate, and institutional clients. Headquarters: New York, NY Top executives: Brian S. Maurer (Chairman and CEO), Jay W. Olson (President and COO), Brian S. Gross (CFO) Investment breakdown: 42% stocks, 31% bonds, 26% cash
USAA
USAA, formerly United Services Automobile Association, is a financial services company that was founded in 1922 to serve military officers and their families. Today, this Fortune 500 firm is one of the largest organizations of its kind in the country, with a customer base that includes members of the military and their families, as well as select groups of other professions. USAA provides a wide assortment of financial products and services, including life insurance, disability insurance, health insurance, car insurance, homeowners insurance, and investment products. This company’s customer base is extremely loyal and engaged, which is largely due to its unique business model. USAA is able to provide lower rates than most of its competitors because it operates as a financial cooperative, meaning that it is owned by its members and is not a publicly traded company. Headquarters: San Antonio, TX Top executives: David H. Melcher (Chairman, President, and CEO), Robert G. Davis (COO), Timothy T. Reason (CFO) Investment breakdown: 54% stocks, 36% bonds, 10% cash
Travelers
Travelers is one of the largest property and casualty insurance providers in the United States. This Hartford, Connecticut-based company was founded in 1875, and today it serves more than 50 million customers. Travelers’ product offerings include personal insurance, business insurance, specialty insurance, and re-insurance. The company has a strong track record of profitability, and has maintained an A+ credit rating from Standard & Poor’s since 2002. Travelers’ parent company is the multinational investment management firm The Travelers Companies, Inc. Headquarters: Hartford, CT Top executives: Jay S. Fishman (CEO), Brian MacGillivray (CFO) Investment breakdown: 53% stocks, 27% bonds, 20% cash
GEICO
GEICO (Government Employees Insurance Company) is one of the largest auto insurance providers in the United States. It was founded in 1936, and is now a wholly owned subsidiary of Berkshire Hathaway, Inc. GEICO has grown to become one of the most recognizable brands in the insurance industry. Its business model is primarily focused on serving the needs of the underserved auto insurance market. It offers lower rates than many of its competitors, and it is able to do so because it uses advanced technologies and a data-driven approach to underwriting to more accurately assess customer risk. Headquarters: Washington, DC Top executives: David S. Fuller (CEO), Jeffrey R. Immlet (CFO) Investment breakdown: 50% stocks, 33% bonds, 17% cash
Mercury Insurance
Mercury Insurance Company is a California-based insurance company focused on providing coverage for homes and cars. Established in 1939, this company is one of the largest providers of private passenger automobile insurance in the United States. It has a strong track record of profitability, and its products and services are offered in all 50 states. Mercury’s parent company, Mercury Colony Insurance Company, was founded in California in 1926 and is still headquartered there today. Headquarters: San Jose, CA Top executives: David R. Buchholz (CEO), Michael J. Hanley (CFO) Investment breakdown: 50% stocks, 35% bonds, 15% cash
Amica Mutual Insurance
Amica Mutual Insurance is a mutual company based in Lincoln, Nebraska. Founded in 1913, this firm provides property and casualty insurance products to individuals, businesses, and agricultural customers. Amica has a strong focus on serving the needs of seniors, and it has a reputation for providing excellent customer service. It is a member of the Berkshire Hathaway Group. Headquarters: Lincoln, NE Top executives: Brad K. Mott (President and CEO), Michael J. Pratt (Executive Vice President and CFO) Investment breakdown: 46% stocks, 37% bonds, 17% cash
Conclusion
These are some of the best insurance companies in America right now. While each of these companies is unique in its own way, they do have a few things in common. For starters, they each have strong leadership teams, which is essential to success in the insurance industry. Additionally, each of these firms has a strong focus on technology and data, which allows them to more accurately assess customer risk and offer lower rates.
