types of insurance companies in usa

types of insurance companies in usa
types of insurance companies in usa

Insurance companies have a general characteristic as financial institutions, and they are classified into two main types: insurance companies according to the variety of insurance activities, according to the legal form, and a breakdown of each type follows.
According to the insurance activities
 Companies implement insurance on various aspects of life, and each company specializes in the quality of these insurance activities that they offer, as they can be classified into 4 types, which are:

 Life insurance companies:

These companies are interested in providing insurance to the subscriber with regard to his life or death, and some offer two types, so they are called mixed insurance companies.

General insurance companies:

 These companies specialize in insuring the subscriber's property, providing him with compensation in cases of fire and theft, as well as providing insurance for all types of transportation, in addition to providing insurance for civil liability of subscribers against others, such as car accidents.

Social security funds:

These companies specialize in the treatment aspects of the subscriber, because when the subscriber needs treatment, he pays a small amount, and the insurance company pays the remaining treatment costs.

 Comprehensive companies:

 Where these companies insure life and death, and provide property insurance, transportation, and against others, and treatment, as these companies are comprehensive of the previous three types of insurance companies.

 According to the legal form

Insurance companies are classified according to the legal form into two types:

Joint-stock companies:

These companies are formed by the owners of the shares, and their ownership belongs to them, so they benefit from the profits that the company makes, and they also assign a board of directors to take charge of the company and manage its affairs.

Fund companies:

 These companies differ from their predecessors by being huge and devoid of shares, as the ownership of the companies belongs to the policyholders, and a team of experts specialized in managing the company is assigned.