Insurance Industry Analysis Essay

3315 Words Oct 18th, 2014 14 Pages
JOHNSON & WALES UNIVERSITY
Providence, Rhode Island

ENVIRONMENTAL ANALYSIS:
Automobile insurance Industry

Course: MGMT 6800

Yimeng Zhang
October 4, 2014

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.

1. Strategically Relevant Factors in the
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In the next five years, increased interest rates and increased investment in new activities will promote the vehicle insurance industrial. c. Social-cultural factors
Accident frequency and severity affects make up the portion of customers’ premium that covers losses. Until recently, when determining liability premiums, vehicle make and model were not consideration. In the year 2000, there are over two auto insurers planned to raise liability rates on large size vehicles like SUVs, pickups and vans. This is based on vehicle safety and claims experience. A larger vehicle can cause injury and property damage; especially in the weight of car a ton or more could change the crash.
Men and women show different driving behaviors that affect their attitudes, safety and insurance risk. There is plenty of evidence to illuminate that men tend to be more aggressive than women (in all known cultures), which encourage more hostile behavior and competition, leading to higher probabilities of crashing.
Recently, using an “insurance score” as tool to determine risk is popular. The insurance score is used to foresee the likelihood of filing a claim or the level of risk. It is based on some of the information in ones credit report. d. Technological Factors
The technology that Automobile Insurance industry relies on to maintain customer records and process