BHARATI VIDYAPEETH

(DEEMED TO BE UNIVERSITY), PUNE, INDIA

INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP DEVELOPMENT, PUNE

Research Project on Company

Award of degree of Master of Business Administration
2021-2023

Submitted by : Guided by:

Siddhartha Anwekar Dr. Pramod Pawar
Roll No.: 141
Division: D
 Contents
S. No. Title Page No.

1 Industry Study

1.1 Insurance sector

2 Industry Overview

3 Scope

4 Profile of Company
 Industry study
1.1 Insurance industry
Insurance in the United States refers to the market for risk in the United States, the
world's largest insurance market by premium volume. Insurance is a means of
transferring insurable risk from the insured to the insurer by paying a premium.
The insurance market in the United States is one of the largest in the world, leading the
industry with high premium volumes and employee numbers, as well as insurance
company revenues.
The insurance sector is made up of companies that offer risk management in the form of
insurance contracts. The basic concept of insurance is that one party, the insurer, will
guarantee payment for an uncertain future event. Meanwhile, another party, the insured
or the policyholder, pays a smaller premium to the insurer in exchange for that
protection on that uncertain future occurrence.
Not all insurance companies offer the same products or cater to the same customer
base. Among the largest categories of insurance companies are accident and health
insurers; property and casualty insurers; and financial guarantors. The most common
types of personal insurance policies are auto, health, homeowners, and life. Most
individuals in the United States have at least one of these types of insurance, and car
insurance is required by law.
Life insurance companies mainly issue policies that pay a death benefit as a lump sum
upon the death of the insured to their beneficiaries. Life insurance policies may be sold
as term life, which is less expensive and expires at the end of the term or permanent,
which is more expensive but lasts a lifetime and carries a cash accumulation
component. Life insurers may also sell long-term disability policies that replace the
insured's income if they become sick or disabled.

Insurance is broadly categorized into two verticals:

1) Life, Health

1.1) Health (dental, vision, medications, others)

1.2) Life (long-term care, accidental death and dismemberment, hospitality indemnity)

2) Property, casualty
2.1) Property (flood, earthquake, home, auto, fire, boiler, title, pet)
2.2) Casualty (errors and omissions, worker’s compensation, disability, liability)
It is becoming increasingly difficult for people to afford.
Insurance works on the concept of pooling of risks/insurance pool.
For example An insurer sells about 1000 policies a year and collects premium of $100,000
in the insurance pool. That year, the insurer received 100 claims and had to pay out
$90,000 towards those claims from the insurance pool.
 Industry Overview
Insurance market in the United States is one of the largest in the world, leading the industry
with high premium volumes and employee numbers, as well as insurance company
revenues. 
Insurance premiums written in the U.S. exceed one trillion U.S. dollars annually. MetLife is
one of the largest global insurers and is headquartered in New York. In 2021, their total
revenue from U.S. business operations amounted to almost 30 billion U.S. dollars at the
time.
P/C insurance consists primarily of auto, homeowners and commercial insurance. Net
premiums written for the sector totaled $715.9 billion in 2021.
The life/annuity insurance sector consists of annuities, accident and health, and life
insurance. Net premiums written for the sector totaled $635.8 billion in 2021.
The U.S. insurance industry employed 2.8 million people in 2021, according to the U.S.
Department of Labor. Of those, 1.6 million worked for insurance companies, including life
and health insurers (911,400 workers), P/C insurers (628,600 workers) and reinsurers
(26,900 workers). The remaining 1.2 million people worked for insurance agencies,
brokers and other insurance-related enterprises.

Insurance companies base their business models around assuming and diversifying risk.
The essential insurance model involves pooling risk from individual payers and
redistributing it across a larger portfolio. Most insurance companies generate revenue in
two ways: Charging premiums in exchange for insurance coverage, then reinvesting those
premiums into other interest-generating assets.
Revenue model specifics vary among health insurance companies, property
insurance companies, and financial guarantors. The first task of any insurer, however, is to
price risk and charge a premium for assuming it.

Suppose the insurance company is offering a policy with a $100,000 conditional payout. It
needs to assess how likely a prospective buyer is to trigger the conditional payment and
extend that risk based on the length of the policy.

This is where insurance underwriting is critical. Without good underwriting, the insurance

company would charge some customers too much and others too little for assuming risk. This
could price out the least risky customers, eventually causing rates to increase even further. If a
company prices its risk effectively, it should bring in more revenue in premiums than it spends
on conditional payouts.
 Scope in Future
The insurance industry is using new technologies to redefine itself and establish a new
roadmap to the future. A digital transformation helps change business models and the
customer experience to better benefit policy holders in their daily lives.
Never has it been more critical to invest in the future. The most successful players will:

• Challenge the outdated perception of insurance by creating innovative

products that meet the needs of underserved markets
• Thrive in the changing industry ecosystem with effective partnerships, a flexible
business strategy and a culture of innovation
• Combine the power of next generation technologies with diverse talent to create
frictionless customer experiences
by 2024, 33% of the premium insurance volume will come from brand new
propositions. That means that the industry is rapidly shifting from product-led to
service-led offerings that deliver a holistic experience to customers.
It also means that cutting-edge technologies are quickly maturing. While AI, IoT and
big data have been buzzwords until recently, today, it is difficult to imagine the future
of insurance without these technologies.
But where there is a challenge, there is an opportunity. And all the sources of
disruption mentioned above can be harnessed to become a source of growth.
As the traditional business model of insurance firms is disrupted by both external and
internal forces, insurers are facing increasing pressure to innovate and adapt. The
following major trends could shape and upend the insurance industry over the
coming years, with profound implications for both policyholders and insurers.
Customers of today are fundamentally different from their parents and grandparents.
Not only did their needs, knowledge and expectations expand exponentially over the
past decade, but the blending of technology with our everyday lives has created a
new kind of consumer: a digital native. 
Customers became the disruptive force in the insurance industry. With so much
focus on instant gratification, endless choice and consistent change are omnipresent.
With comparison sites, ratings and testimonials a click away, customers are quick to
abandon sign-up processes as soon as they encounter friction.
 Profile of the Company
Allstate Corporation
The tagline of Allstate is You're In Good Hands.
The Allstate Corporation is an American insurance company, headquartered
in Northfield Township, Illinois, near Northbrook, since 1967.  Founded in 1931 as part
of Sears, Roebuck and Co., it was spun off in 1993, but was still partially owned by Sears
until it became completely an independent company in June 1995. The company also has
personal lines insurance operations in Canada.
Allstate is a large corporation, and with 2018 revenues of $39.8 billion, it ranked 79th in
the 2019 Fortune 500 list of the largest United States corporations by total revenue. Its
long-running advertising campaign, in use since 1950, asks, "Are you in good hands?",
and the recognizable logo portrays a suburban-style dwelling cradled protectively in a pair
of giant human hands.
United by Our Shared Purpose
We're a purpose-driven company powered by purpose-driven people. We're transforming
for our customers, communities and each other.
Our Shared Purpose is the "why" and "how" behind everything we do. In an unpredictable
world, Our Shared Purpose provides clarity and lights the path forward.
We are the Good Hands
We provide affordable, simple and connected protection that empowers customers to
achieve their hopes and dreams.
We add economic value for shareholders, create opportunities for our teams and work
with local and national partners to improve communities.
Allstate India