1.4. North America Life and Non-Life Insurance Market Size by Value,

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2 TABLE OF CONTENTS 1. North America Insurance Market 1.1. North America Insurance Market Introduction 1.2. North America Insurance Market Drivers 1.3. North America Insurance Market Restraints 1.4. North America Life and Non-Life Insurance Market Size by Value, North America Life and Non-Life Insurance Density, Premium per Capita, USD, North America Life and Non-Life Insurance Penetration, Premium in % of GDP, North America Insurance Market Segmentation By Geography, 2009 and By Product, 2009 and 1.8. North America Insurance Market Recent Trends and Developments 1.9. North America Insurance Market Future Outlook The US Insurance Market The US Insurance Market Introduction The US Life and Non-Life Insurance Market Size by Value, The US Life and Non-Life Insurance Density, Premium per Capita, USD, The US Life and Non-Life Insurance Penetration, Premium in % of GDP, The US Insurance Market Segmentation by Product, 2009 and The US Non-Life Insurance Market The US Insurance Competitive Landscape The US Life Insurance Competitive Landscape, The US Non-Life Insurance Competitive Landscape, The US Insurance Market Future Outlook Canada Insurance Market Canada Insurance Market Introduction Canada Life and Non-Life Insurance Market Size by Value,

3 Canada Life and Non-Life Insurance Density, Premium per Capita, USD, Canada Life and Non-Life Insurance Penetration, Premium in % of GDP, Canada Insurance Market Segmentation by Product, 2009 and Canada Non-Life Insurance Market Canada Insurance Competitive Landscape Canada Life Insurance Competitive Landscape, Canada Non-Life Insurance Competitive Landscape, Canada Insurance Market Future Outlook 2. Appendix 2.1. Market Definition 2.2. Abbreviations 2.3. Disclaimer 3

4 LIST OF FIGURES Figure 1: North America Market Size by Value of Life and Non-Life Insurance Market in USD Million, on the basis of Gross Insurance Premium Written, Figure 2: North America Life and Non Life Insurance Density, Premium per Capita, in USD, Figure 3: North America Life and Non Life Insurance Penetration, Premium as a Percentage of GDP, Figure 4: North America Insurance Market Segmentation by Countries, in Percentage, 2009 Figure 5: North America Insurance Market Segmentation by Countries, in Percentage, Figure 6: North America Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, 2009 Figure 7: North America Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, Figure 8: The US Market Size by Value of Life and Non-Life Insurance Market in USD Million, on the basis of Gross Insurance Premium Written, Figure 9: The US Life and Non Life Insurance Density, Premium per Capita, in USD, Figure 10: The US Life and Non Life Insurance Penetration, Premium as a Percentage of GDP, Figure 11: The US Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, 2009 Figure 12: The US Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, Figure 13: The US Non-Life Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, 2009 Figure 14: The US Market Share of Major Life Insurers on the basis of Gross Insurance Premium Written, in Percentage, 2008 Figure 15: The US Market Share of Major Non-Life Insurers on the basis of Gross Insurance Premium Written, in Percentage, 2008 Figure 16: Canada Market Size by Value of Life and Non-Life Insurance Market in USD Million, on the basis of Gross Insurance Premium Written, Figure 17: Canada Life and Non Life Insurance Density, Premium per Capita, in USD, Figure 18: Canada Life and Non Life Insurance Penetration, Premium as a Percentage of GDP,

5 Figure 19: Canada Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, 2009 Figure 20: Canada Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, Figure 21: Canada Non-Life Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, 2009 Figure 22: Canada Market Share of Major Life Insurers on the basis of Gross Insurance Premium Written, in Percentage, 2007 Figure 23: Canada Market Share of Major Non-Life Insurers on the basis of Gross Insurance Premium Written, in Percentage,

6 LIST OF TABLES Table 1: North America Market Size by Value of Life and Non-Life Insurance Market in USD Million, on the basis of Gross Insurance Premium Written, Table 2: North America Life and Non Life Insurance Density, Premium per Capita, in USD, Table 3: North America Life and Non Life Insurance Penetration, Premium as a Percentage of GDP, Table 4: North America Insurance Market Segmentation by Countries, in USD Million, 2009 Table 5: North America Insurance Market Segmentation by Countries, in USD Million, Table 6: The US Market Size by Value of Life and Non-Life Insurance Market in USD Million, on the basis of Gross Insurance Premium Written, Table 7: The US Life and Non Life Insurance Density, Premium per Capita, in USD, Table 8: The US Life and Non Life Insurance Penetration, Premium as a Percentage of GDP, Table 9: The US Market Share of Major Life Insurers on the basis of Gross Insurance Premium Written, in USD Million, 2008 Table 10: The US Market Share of Major Non-Life Insurers on the basis of Gross Insurance Premium Written, in USD Million, 2008 Table 11: Canada Market Size by Value of Life and Non-Life Insurance Market in USD Million, on the basis of Gross Insurance Premium Written, Table 12: Canada Life and Non Life Insurance Density, Premium per Capita, in USD, Table 13: Canada Life and Non Life Insurance Penetration, Premium as a Percentage of GDP, Table 14: Canada Market Share of Major Life Insurers on the basis of Gross Insurance Premium Written, in USD Million, 2007 Table 15: Canada Market Share of Major Non-Life Insurers on the basis of Gross Insurance Premium Written, in USD Million,

7 NORTH AMERICA INSURANCE MARKET NORTH AMERICA LIFE AND NON-LIFE INSURANCE MARKET SIZE BY VALUE, North America Insurance market is the second largest market in the world after Europe. The market has witnessed consistent growth in the gross insurance premium until 2008 when economic recession hit the economy. The gross insurance premium declined from USD ~ million in 2008 to USD ~ million in 2009, showcasing a decline of ~%. The market is now in the recovery stage with the expected growth of ~% in 2010 in the gross insurance premium. The market is expected to return back to its long term trend growth not before 2011 and It is expected to reach USD ~ million in from USD ~ million in 2009, registering a 6 year CAGR of ~%. Figure: North America Market Size by Value of Life and Non-Life Insurance Market in USD Million, on the basis of Gross Insurance Premium Written, ,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 Gross Insurance Premium Written (USD million) Life Insurance Non-Life Insurance Source: Swiss Re, AM Mindpower Solutions 7

8 NORTH AMERICA LIFE AND NON-LIFE INSURANCE DENSITY, PREMIUM PER CAPITA, USD, People usually spend more on non-life insurance products than on life insurance products in North America. Approximately USD ~ per individual was spent on non-life insurance product vis a viz USD ~ per capita on life insurance in Life insurance premium per capita was around USD ~ in 2001, which has witnessed an incline of ~% till 2009 to reach USD ~ in It is expected that with the growing population, the life insurance premium per capita will increase to USD ~ in. Figure: North America Life and Non Life Insurance Density, Premium per Capita, in USD, ,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Premium per capita (USD) Life Insurance Density Non-Life Insurance Density Source: AM Mindpower Solutions NORTH AMERICA INSURANCE MARKET SEGMENTATION BY GEOGRAPHY, 2009 AND 8

9 It is expected that Canada insurance market will grow at a higher rate than the matured market of the US. This will result in a decrease in the market share of the US to ~% in from ~% in 2009 and an increase the market share of Canada from ~% in 2009 to ~% in. Figure: North America Insurance Market Segmentation by Countries, in Percentage, US Canada Source: AM Mindpower Solutions THE US INSURANCE MARKET THE US LIFE AND NON-LIFE INSURANCE PENETRATION, PREMIUM IN % OF GDP, Life insurance sector have continued to show consistent growth over time. Life insurance penetration in the US was ~% in 2001 which decreased to ~% in 2008 and ~% in It is expected that the market share of life insurance market in the GDP will decrease further to ~% in, registering a negative 6 year CAGR of ~% The US insurance sector contributed approximately ~% of the GDP in 2009 which decreased from ~% in It is expected that the insurance sector will underperform and will account for ~% in. 9

10 Figure: The US Life and Non Life Insurance Penetration, Premium as a Percentage of GDP, % Premium as % of GDP 8.00% 6.00% 4.00% 2.00% 0.00% Life Insurance Penetration Non-Life Insurance Penetration Source: AM Mindpower Solutions THE US INSURANCE COMPETITIVE LANDSCAPE THE US LIFE INSURANCE COMPETITIVE LANDSCAPE, 2008 The US life insurance market is highly fragmented with top 10 players just accounting for ~% of the market in The life insurance market is dominated by MetLife Inc with market share of ~% and gross insurance premium written of USD ~ million in It is followed by Prudential Financial and ING group which accounted for a market share of ~% and ~% respectively. Prudential Financial is facing stiff competition from ING group and Aegon with gross insurance premium written of USD ~ million and USD ~ million respectively in The fifth largest player, Manulife Financial Corp with gross insurance premium written of USD ~ million in 2008 is providing stiff competition to Aegon at the fourth place with insurance premium written of USD ~ million. 10

11 Figure: The US Market Share of Major Life Insurers on the basis of Gross Insurance Premium Written, in Percentage, MetLife Inc Prudential Financial Inc. ING Groep N.V AEGON N.V. Manulife Financial Corp. New York Life Insurance American International Hartford Financial Services Lincoln National Corp. Principal Financial Group Others Source: Insurance Information Institute, III.org CANADA INSURANCE MARKET CANADA INSURANCE MARKET SEGMENTATION BY PRODUCT, 2009 AND The outlook for both life and non-life insurance has remained positive. However, the growth in the non-life insurance sector is expected to outperform the growth in life insurance sector. Therefore, the market size of non-life insurance market will increase to ~% by, resulting in a decline in the market share of life insurance market by ~% to ~%. The gross insurance premium of life and non-life insurance market will reach to USD ~ million and USD ~ million respectively in. Figure: Canada Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, 11

12 Life Non-Life Source: AM Mindpower Solutions CANADA NON-LIFE INSURANCE MARKET Canada non-life insurance sector is dominated by Motor insurance with the market share of ~%. Basic motor insurance is compulsory throughout Canada with the government of each province determining the benefits available as minimum auto insurance coverage and for additional coverage. Property insurance also commanded a demanding market share of ~% in the non-life insurance market with the size of USD ~ million in Liability, Accidents & Sickness and various financial insurance lines also accounted for ~%, ~% and ~% share respectively. Figure: Canada Non-Life Insurance Market Segmentation by Product in Percentage on the basis of Gross Insurance Premium Written, Motor Property Liability Accidents & Sickness Financial lines Others Source: OSFI 12

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