Auto Insurance industry analysis

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Topics: Insurance
Automobile insurance Industry- Environmental Analysis
The motor vehicle insurance, refers to a kind of commercial insurance that offer liable for compensation to life or personal injury or property damage caused by motor vehicles due to natural disasters or accidents. Car insurance is a kind of property insurance. In the field of property insurance, motor insurance belongs to the young categories of insurance. This is because the car insurance comes and develops with the emergence and popularity of the car and.
Strategically Relevant Factors in the Macro-Environment-PESTEL Analysis
PESTEL analysis focuses on the six principal components of strategic significance in the macro-environment: political factors, economic conditions, sociocultural forces, technological factors, (natural) environmental forces, and legal/regulatory factors. These are the significance factors of one industry varies and management will focus primarily on those with the greatest effect on their company. The most important factor in the vehicle insurance industry is Economic Factors.
Political and legal factors
The Automobile Insurance industry does not receive any direct assistance from the federal government in the form of tariffs. However, the National Association of Insurance Commissioners (NAIC) provides a forum for the development of uniform policy. The federal law prohibits companies to make contributions in the political activities and federal candidates.
Economic Factors
For auto insurance industry, people are always attracted by a higher return. So compared to this, the lower return policy is not attractive to the customers. The main reasons for the economic factor are the inflation rate in today’s market. High inflation rate will tend to reduce the insurance business, as the money paid to the policyholders, during the time of maturity, will be less, and it would be less attractive for the investor. In the next five years, increased interest rates and increased investment



References: (2014) Industry Report od4765: Automobile Insurance in the US. IBIS World. (2014) Industry Report od5917: Commercial Auto Insurance in the US. IBIS World. An Analysis Of The U.S. Personal Automobile Insurance Market. (2013). Retrieved October 11, 2013, from https://www.ohioinsurance.org/factors-that-affect-auto-insurance-from-a-company-standpoint-4/ Team 7 State Farm Tarter, B., Caravella, M. (2014). Allstate Insurance: Building Relationships through Email Campaigns. International Journal of Integrated Marketing Communications. Spring2010, Vol. 2 Issue 1, p71-79. 9p. 4 Doran, R., (2010)

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