Companies that provide coverage on assets and liability insurance for accidents, injuries, and damage to other people or their belongings
What are Property and Casualty (P&C) Insurers?
Property and casualty (P&C) insurers are companies that provide coverage on assets (e.g., house, car, etc.) and also liability insurance for accidents, injuries, and damage to other people or their belongings.
Summary
- Property and casualty (P&C) insurers are companies that provide coverage on assets, as well as liability insurance for accidents, injuries, and damage to others or their belongings.
- P&C insurers cover a number of things, including auto insurance, home insurance, marine insurance, and professional liability insurance.
- Customers pay P&C insurers an insurance premium for their desired coverage.
Coverage for Property and Casualty Insurers
Outlined in the Canadian Institute of Actuaries, property and casualty insurers focus on risks that result in losses to property and possessions. Examples include:
- Auto insurance: Covering losses to individuals and properties arising from auto accidents and other unforeseen auto events.
- Home insurance: Covering losses to residences and property arising from extreme weather, fire, theft, or other incidents. In addition, covering liability to third parties from actions by the insured.
- Marine insurance: Covering losses to shipping vehicles.
- Professional liability insurance: Covering losses to professional clients arising from negligence.
Scenarios That Property and Casualty Insurers Cover
The following are several scenarios in which property and casualty insurance provide coverage:
1. A visitor fractures their leg on your property due to your negligence
Josh, an insured individual, forgets to shovel his front yard after a snowy day and causes a stranger to fall and fracture their leg. The property and casualty insurer can help John cover the medical costs related to the stranger, as well as damages for pain and suffering.
2. Property is vandalized and damaged
Tim, an insured individual, comes home to find his property vandalized. The property and casualty insurer can help Tim cover the cost related to repairing the damage done to the property.
3. Property is damaged from extreme weather
Dan, an insured individual, lives in Florida, and his property was damaged due to a hurricane recently. The property and casualty insurer can help Dan cover the costs related to damage to the property.
How Does Property and Casualty Insurance Work?
Property and casualty insurers offer insurance to customers for risks, up to a certain coverage amount, in exchange for insurance premiums. Insurance premiums are cash outflows made by the customer in exchange for insurance coverage.
Similar to other insurers, when property and casualty insurers offer coverage to a customer, they must determine an insurance premium the customer will pay by looking at the riskiness of the customer. An insurer would commonly look at the likelihood of the customer making a claim and the potential amount of the claim when calculating the amount of insurance premium they should charge. A diagram is provided below to outline the process:
More Resources
CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ certification program, designed to help anyone become a world-class financial analyst. To keep advancing your career, the additional CFI resources below will be useful:
FAQs
Complete an Exam Prep Course
A.D. Banker offers prelicensing courses that will prepare you to successfully pass your licensing exam on your first attempt. Online courses include videos, practice exams, audio, activities, and key facts.
Is the Texas P&C test hard? ›
Whether you're going for your Property and Casualty license in Texas or your Life and Health insurance license in Texas, the exams are challenging. Put yourself on a strict schedule as you do your exam prep work.
Who is the largest property and casualty insurer? ›
State Farm Mutual Automobile Insurance Co. is the largest global property and casualty insurer with $77.59 billion of direct premiums written, according to a new ranking by S&P Global Market Intelligence.
Is property casualty insurers a good career path? ›
The job outlook for insurance agents is very good, with 6% growth expected between 2021 and 2031. The median pay for an insurance sales agent is around $24 an hour or $50,000 a year, but many people make more than this. There is plenty of money-making potential, especially for more experienced P&C agents.
How many times can you take the certification exam on ad banker? ›
All exams may be taken as many times as needed while the product is active. Upon finishing the course, you will receive a certificate of completion* on screen, confirming you have completed all required actions. Our online course is designed to ensure you pass your state exam on your first attempt.
How many times can you take the comprehensive exam on ad banker? ›
Throughout your course, you will encounter quizzes and exams; each fulfilling a key purpose for your course. All exams are presented as multiple choice and pull from the relevant chapter, section or course content. Unlimited attempts are allowed for quizzes and exams within the online course.
What state has the hardest P&C exam? ›
In fact, the Nevada property and casualty exam has the highest pass score requirement, and is widely known as the most difficult exam to pass.
Which insurance test is hardest? ›
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.
How much does a P&C insurance agent make in Texas? ›
Property And Casualty Insurance Agent Salary in Texas
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $60,091 | $5,007 |
| 75th Percentile | $50,800 | $4,233 |
| Average | $40,516 | $3,376 |
| 25th Percentile | $34,900 | $2,908 |
1. Warren Buffett. Buffett once again secures the top spot on the list of the country's wealthiest insurance tycoons. The man known as the “Oracle of Omaha” currently sits in the tenth spot of Forbes' overall rankings with a net worth of $103.6 billion.
World's largest insurance companies by net non-banking assets
| Ranking | Insurance Company Name | 2022 Net Non-Banking Assets (US $ 000) |
|---|
| 1 | Allianz SE | 1,050,762,471 |
| 2 | Ping An Ins (Group) Co of China Ltd. | 960,678,448 |
| 3 | Berkshire Hathaway Inc. | 948,452,000 |
| 4 | China Life Insurance (Group) Company | 885,019,438 |
21 more rowsState Farm is the biggest auto insurance company in the country by market share, while Progressive, Geico and Allstate are the next three.
How do P&C insurers make money? ›
Insurance companies make money in two main ways: Charging premiums to the insured and investing the insurance premium payments.
What do the top P&C insurance agents make? ›
Is P&C insurance growing? ›
Property & Casualty Insurance Market size was valued at USD 1.8 trillion in 2023 and is estimated to register a CAGR of over 5.5% between 2024 and 2032.
Is ad banker good for SIE? ›
"I'm very satisfied with the course... The Comprehensive exam did a very good job of highlighting the areas that were most necessary. I will use A.D. Banker again for my Series 63. I have recommended to two other people who have already purchased from you, and my partner is going to use you for his Series 63 now.
How to study for a licensing exam? ›
What is the best way to prepare for my national licensing exam?
- Focus your exam prep material.
- Use study aids.
- Phone a friend.
- Brush up on test taking strategies.
- Use an appraisal license exam prep program.
We offer a guarantee* to refund the cost of your materials, if you don't pass the state exam on the first attempt. If you do not pass the state licensing exam within 3 days after scoring an 80% on our Guarantee Exam, send us a copy of your state exam results, and we will refund the cost of your materials.
How to pass the NYS property and casualty exam? ›
Try this:
- Go through the quizzes – just click pass the course material.
- Answer the same set of questions 3-5 times in a row. If you get an answer wrong, start the set over.
- Give yourself time. ...
- Try not to practice the night before.
- Get a good night's rest before your exam (keep in mind test times are as early as 8 am)
