Property and casualty insurance?
Property and casualty insurance, commonly referred to as P&C insurance, is a broad term that refers to various types of insurance. In simple terms, it's insurance coverage that helps protect your assets, including the property you own.
Property and casualty insurance, commonly referred to as P&C insurance, is a broad term that refers to various types of insurance. In simple terms, it's insurance coverage that helps protect your assets, including the property you own.
- Complete a Prelicensing Course. The first step is to complete a prelicensing education course. ...
- Get Fingerprinted. The State of California and CDI require fingerprint impressions from all unlicensed applicants. ...
- Pass a Licensing Exam. ...
- Apply for License. ...
- Plan for Continuing Education.
If you are an outgoing self-starter with an eye for detail, working as an agent for a property and casualty insurer may be a good career path. Insurance sales agents help customers understand insurance coverage, sift through plans and find the right fit.
For instance, life insurance covers the expenses associated with death (funeral and burial, lost income support for dependents, etc.) while P&C insurance focuses on damage to/loss of property or someone determined to have caused a loss of/damage to property.
Casualty insurance is a broad category of insurance coverage for individuals, employers, and businesses against loss of property, damage, or other liabilities. Casualty insurance includes vehicle insurance, liability insurance, and theft insurance.
Casualty insurance refers to insurance that covers the legal responsibility of individuals and businesses for losses stemming from damage to another's property or an injury to another person. This protection addresses the financial liability that a business or an individual may be legally required to satisfy.
Taking the P&C insurance license exam can be the most challenging step in the licensing process. The overall pass rate for the insurance exam is 60%, according to the National Association of Insurance Commissioners (NAIC). The insurance exam is not one to take lightly and requires preparation and planning.
| Annual Salary | Hourly Wage | |
|---|---|---|
| Top Earners | $63,655 | $31 |
| 75th Percentile | $53,800 | $26 |
| Average | $42,809 | $21 |
| 25th Percentile | $37,000 | $18 |
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
How do P&C insurers make money?
Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets. Like all private businesses, insurance companies try to market effectively and minimize administrative costs.
US P&C underwriting outlook
In the realm of underwriting, the industry is witnessing an increase in the combined ratio forecast for 2023, revised to 102%. The industry net combined ratio surged to 107.3% in Q2 2023, with natural catastrophes adding 11.8 percentage points, well above the 10-year average of 6.3%.
1. State Farm. State Farm is the industry's biggest player, both in the US and overseas. The Bloomington, Illinois-based P&C insurance giant wrote almost $78 billion worth of premiums in the past year.
Types of P&C insurance are homeowners insurance, condo insurance, co-op insurance, HO4 insurance, liability insurance, pet insurance, and car insurance. P&C insurance does not include other types of insurance coverage such as life insurance, health insurance, and fire insurance.
Property/casualty insurance can be broken down into two major categories: commercial lines or types of insurance and personal lines. Personal lines, as the term suggests, include coverages for individuals—auto and homeowners insurance.
Property insurance refers to a series of policies that offer either property protection or liability coverage. Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance, among other policies.
Another person's medical expenses (and potentially pain and suffering) if they are injured in an accident you cause. Another person's vehicle repairs if you cause an accident. Fixing someone else's property (like a wall or fence) if you cause an accident. Legal costs if you get sued because of an accident.
Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.
Casualty insurance is often known as liability insurance and provides insurance protection against the "other guy." Casualty insurance protects an insured from legal liability arising from injury or damage to the property of others.
Key risk factor: Economic and political instability
Even if there is a soft landing and mild recession, the P&C industry is left with prices that have risen significantly — especially in materials and labor costs for repairs and replacements of vehicles and property and in escalating medical costs.
What risk is managed through property casualty insurance?
Examples of things covered by casualty insurance would be third-party property loss (e.g., as the result of burglary), vehicle damage or total loss, workers' compensation (where applicable), and liability claims against companies.
Life insurance will help provide financially for your survivors. Health insurance protects you from catastrophic bills in case of a serious accident or illness. Long-term disability protects you from an unexpected loss of income. Auto insurance prevents you from bearing the financial burden of an expensive accident.
Each insurance licensing exam presents its own challenge. Between Life and Health, students say that the Health insurance exam is the more difficult. Health insurance policies are simply more complicated than life insurance policies. The Property insurance exam is easier than the Casualty insurance exam.
California requires 40 hours of pre-license education for both property and casualty insurance license applicants. You also must complete 12 hours of ethics and California Insurance Code to satisfy the state's 52-hour pre-licensing education requirement.
In California, a candidate that fails any insurance licensing examination ten times within a 12 month period is barred from taking the same exam for 12 months.
