Here are the 5 Largest Chinese Oil Companies (SNP)

China’s biggest crude oil companies are state-owned energy conglomerates with sprawling international operations in oil and gas exploration and production; petroleum and chemical processing; storage and transportation; and many other functions along the oil and gas supply chain. This list includes the top five Chinese producers of crude oil by volume, ranked according to gross revenues reported in 2014 consolidated financial statements.

China Petroleum & Chemical Corp.

China Petroleum and Chemical Corp. (NYSE: SNP), known as Sinopec, is an oil, gas and chemical giant with more than $440 billion in consolidated revenue. The company produced nearly 361 million barrels of crude oil in 2014. Domestic oil production amounted to roughly 311 million barrels, while production from overseas oil fields amounted to about 50 million barrels. Sinopec takes the top spot in this list on the basis of its consolidated revenue, but it is China’s second-biggest crude oil producer by volume.

Sinopec maintains vast operations along the full length of the oil supply chain, from exploration and drilling to retail sales at more than 30,000 gasoline service stations. Sinopec was established in 1998 after the reorganization of its predecessor company, China Petrochemical Corporation. Sinopec issued shares on the Hong Kong Stock Exchange in 2000. It has since been listed on the Shanghai Stock Exchange and the New York Stock Exchange.

China National Petroleum Corporation

China National Petroleum Corporation, or CNPC, is the second-biggest Chinese crude oil producer by consolidated revenue and the biggest by production volume. In 2014, the company reported more than $425 billion in consolidated revenue and production of nearly 1.2 billion barrels of crude oil. Domestic crude oil production amounted to about 830 million barrels, while overseas production topped 368 million barrels.

Like Sinopec, CNPC operates businesses along the full length of the oil supply chain, from initial exploration to retail. Most CNPC operations are organized under a subsidiary company, PetroChina. PetroChina was established in 1999 and listed on the New York Stock Exchange and the Hong Kong Stock Exchange in 2000. It was listed on the Shanghai Stock Exchange in 2007.

China National Offshore Oil Corporation

China National Offshore Oil Corporation, known as CNOOC, was established in 1982 to focus on oil and gas exploration and production in China’s offshore waters. It has since developed into an international company with operations in more than 40 countries. CNOOC posted more than $95 billion in consolidated revenue in 2014. Crude oil production topped 501 million barrels, with more than 289 million barrels from domestic oil fields and 212 million barrels originating overseas.

In addition to oil and gas exploration and production, CNOOC is also engaged in refining, power generation, retail marketing, and engineering and technical services. Most of the company’s primary operations are organized under its subsidiary, CNOOC Limited. CNOOC Limited was established in 1999 and listed on the New York Stock Exchange and the Hong Kong Stock Exchange in 2001.

Sinochem Group

Sinochem Group was established in 1950 during the reorganization of China’s largest international trading firm, China National Chemicals Import & Export Corporation. Sinochem Group remains the largest chemical company in the country but has expanded its operations to include energy, real estate, agriculture and financial services.

Sinochem Group reported consolidated revenue of more than $77 billion dollars in 2014. It began serious development of its oil and gas business in 2003 and has since acquired rights to 39 blocks of oil and gas reserves in 11 countries. It reported production of more than 25 million barrels of oil, making it China’s fifth largest crude oil producer by volume. Sinochem Group owns more than 300 subsidies. Three subsidiaries, Sinochem International, Franshion Properties and Sinofert, are listed on the Shanghai Stock Exchange.

Yanchang Petroleum

Yanchang Petroleum traces its history to 1905 and the first oil enterprise established in China, the Yanchang Oil Plant. The company engages in oil and gas exploration and production and refining operations in locations around the world. It reported consolidated revenue of nearly $2.9 billion in 2014. Crude oil production amounted to more than 91.5 million barrels. Most of Yanchang Petroleum’s primary operations are organized under its subsidiary Yanchang Petroleum International Limited, which is listed on the Hong Kong Stock Exchange.

Here are the 5 Largest Chinese Insurance Companies

The Chinese insurance market has grown at a furious pace in recent years. Between 2000 and 2014, the industry grew about 1,200% in size as measured by written premiums. During this same period, most of the largest Chinese insurance companies listed shares on the Hong Kong Stock Exchange and other exchanges as part of an effort to reform the industry by reducing government control, increasing transparency, and exposing the companies to the demands of the market and shareholders. Today, the biggest insurance companies in China rank among the largest companies in the world in terms of market capitalization.

China Life Insurance Co., Ltd.

With a market capitalization of about $107 billion, China Life Insurance Co., Ltd. (NYSE: LFC) is the biggest insurance company in China and one of the top insurance companies in the world. China Life traces its roots to the founding of the People’s Republic of China in 1949. It operates life insurance and property and casualty insurance businesses, and it also offers asset management services and other financial services.

China Life maintains a substantial nationwide service network, with nearly 750,000 dedicated agents and more than 60,000 service outlets. The company’s customer base approaches a combined 200 million people in individual and group life insurance policies, long-term health insurance policies and annuities. China Life is listed on the Shanghai Stock Exchange, the Hong Kong Stock Exchange and the New York Stock Exchange.

Ping An of China

Ping An of China was founded in 1988 and held its initial public offering (IPO) in 2004. While the company began as a property and casualty insurance company, it has since expanded into the life insurance, banking, online financial services and wealth management businesses with the stated goal of becoming a comprehensive financial services provider. It has a market capitalization of about $90 billion.

Ping An employs more than 225,000 full-time employees and partners with more than 625,000 sales agents across China. The company counts more than 89 million customers across its business units. Ping An is listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange.

China Pacific Insurance

China Pacific Insurance Group is an integrated insurance provider offering property and casualty insurance, life insurance and reinsurance products, as well as asset management and investment services. The company counts more than 300,000 agents across its businesses and serves about 80 million customers across the country. China Pacific Insurance traces its roots to 1991. It was listed on the Shanghai Stock Exchange in 2007 and the Hong Kong Stock Exchange in 2009. It has a market capitalization of more than $33 billion.

People’s Insurance Company of China Group

People’s Insurance Company of China Group was established in 1949. Today, its subsidiaries count more than 300 million customers in property and casualty insurance, life insurance, health insurance, and real estate. Its most substantial subsidiary is PICC Property and Casualty Company, which sells a wide variety of non-life insurance products, including auto, homeowners, commercial property and agricultural policies. People’s Insurance Company of China Group owns approximately 69% of outstanding PICC Property and Casualty shares. People’s Insurance Company of China Group is listed on the Hong Kong Stock Exchange. It has a market capitalization of about $21 billion.

New China Life Insurance

New China Life Insurance Company was founded in 1996 and has quickly grown into a top-five company in the industry. While its primary business remains life insurance, the company also has growing business interests in the investment industry and the health care industry. New China Life Insurance counts more than 26 million customers, 175,000 agents and 1,600 business locations across the country. The company was listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange in 2011. It has a market capitalization of more than $17 billion.

Best Tips – How To Buy Stock In Insurance Companies

Insurance companies offer products that most of us need and in doing so take on many of the risks that we don’t want. Insurance companies tend to be viewed as big, relatively boring financial institutions, but they are, in fact, in the business of protecting others from financial harm and risk management.

Historically, insurance companies were structured as mutual companies, owned by the policyholders and operated only for the benefit of policyholders. On the other hand, stock companies are owned by shareholders and they seek to maximize return to shareholders. In recent years, many mutual companies have converted into stock companies in a process called demutualization. Because mutual companies do not issue shares to the public, only stock companies can be invested in the stock market.

Insurance companies sell policies that promise to payout a benefit to the policyholder if a covered event occurs during the term of the policy. With life insurance, the covered event would be death of the insured. With homeowners insurance that might be a house fire, storm damage or theft.

In exchange for the insurance coverage, the policyholder pays the insurer premiums, which are invested to earn a profit for the company until they are needed to pay out claims

Investing in Insurance Companies
Insurance companies have unique circumstances that make their analysis different from other financial institutions such as banks or lenders.

All insurance companies have a set of future liabilities that they are contractually obliged to pay out given a qualifying event. As a result, they must invest premiums received conservatively in order to have a ready reserve of liquid assets on hand to pay out those claims. Insurance company portfolio managers utilize asset-liability management (ALM) by matching assets to liabilities; rather than the more familiar asset-only management that looks to maximize return while minimizing portfolio risk.

Insurance company portfolios are therefore largely made up of fixed-income securities like high-quality bonds issued by the U.S. government or AAA-rated bonds from large corporations.

Generally speaking, there are two general types of insurance companies outside the health sector: Life insurance and property and casualty insurance. Each has special considerations that investors should consider.

Life Insurance Companies
When evaluating life insurance companies, it is important to know that government regulation directs them to maintain an asset valuation reserve (AVR) as a cushion against substantial losses of portfolio value or investment income. Therefore, these companies tend to have less financial leverage at work than other kinds of financial institutions. This poses potential valuation problems since it implies that insurers value assets at market value but liabilities at book value.

Actuarial science has developed mortality tables that are very good at determining on average when life insurance claims will come due as policyholders pass away. The size of those liabilities are also known in advance because life insurance policies are issued with stated death benefits which do not adjust with inflation. Since both the amount and expected timing of liabilities are fairly well known, these companies seek to invest in portfolios that match the size and duration of those liabilities. The amount of excess return, or the amount by which assets exceed liabilities is referred to as the surplus. Maximizing surplus value and stability are the main objectives of life insurance portfolios. Because life insurance policies typically do not pay a benefit for many years, the investment portfolio of these companies tend to consist of high-quality bonds with maturities many years out.

Life insurance companies must also consider disintermediation risk when policyholders withdraw cash value (take loans against that cash value) from permanent policies causing increased demand for liquidity from the portfolio. This usually occurs during periods of high interest rates. At the same time, high interest rates cause the portfolios of insurers to decline since they are mainly invested in bonds, and the prices of bonds go down as interest rates go up. This combination of factors can lead to increased volatility of returns and greater risk during periods of high interest rates.

Some of the largest publicly listed life insurance companies are: MetLife (MET), Prudential (PRU), Genworth Financial (GNW), Lincoln National (LNC), AXA (AXAHY:OTC) and Aegon (AEG).

Investing in Property & Casualty Companies
Asset-liability management is crucial to property and casualty companies as well, but the risk exposures of these companies vary from life insurers in a number of areas. While the product offerings are more diverse – home, automobile, motorcycle, boat, liability, umbrella, flood etc. – the durations of these liabilities are much shorter: generally a year or less per policy. Therefore, the investment portfolios of these companies will tend to consist of high-quality bonds with maturities of a few months to a year.

Additionally, claims can take a long time to be resolved and paid out. The claims process can be contentious and possibly spend years in litigation before the claim is paid – if it is paid at all.

Many non-life policies also carry inflation risk, as the policies promise to fully replace the value of an item, even if that item is nominally more expensive in the future due to inflation. Taken together, both the timing and amount of liabilities are more uncertain than for life companies.

Property and casualty insurance companies also undergo an underwriting cycle or profitability cycle, which typically lasts 3-5 years. During period of intense business competition, prices on policies are reduced to retain business and capture market share (think of all the advertisements claiming to lower the cost of your car insurance). Frequently, prices of securities in the insurance company’s portfolio fall below sustainable levels and lead to losses as claims on policies are paid out. The company must then liquidate portfolio assets to supplement cash flow, and share prices may drop. Insurers are forced to raise the prices of policies and profitability begins to grow once again, opening the door for renewed competition. As a result, property casualty insurance companies will tend to invest in a portfolio of taxable bonds during the period of the cycle where losses occur and switch to non-taxable bonds such as municipal bonds during periods of positive profits.

Some of the largest property and casualty insurance companies listed on stock exchanges where investors can buy shares are: Allstate (ALL), Progressive (PGR), Berkshire Hathaway (which owns Geico and a number of other insurance companies), Travelers (TRV), and Zurich (ZURVY:OTC).

The Bottom Line
Knowing the special circumstances that insurance companies operate under helps in evaluating whether or not a listed insurance company is a good investment and whether the economic environment is conducive to profitability for these companies.

High interest rate environments can be detrimental to life insurance companies as they face disintermediation risk. Property and casualty insurance companies are subject to the ebbs and flows of the profitability cycle. Being able to recognize when the economics of these industries are changing might make for buy or sell signals accordingly. Also keeping in mind the duration and maturities of the bonds in the portfolios of different kinds of insurance companies can help determine how change in interest rates will effect each.

Insurance Premium

What is Insurance Premium

An insurance premium is the amount of money that an individual or business must pay for an insurance policy. The insurance premium is income for the insurance company, once it is earned, and also represents a liability in that the insurer must provide coverage for claims being made against the policy.

BREAKING DOWN Insurance Premium
The price of an insurance premium for a given insurance policy can vary and depends on a variety of factors. Among those factors are the type of insurance coverage, the likelihood of a claim being made, the area where the policyholder lives or operates a business, the behavior of the person or business being covered, and the amount of competition that the insurer faces. For example, the likelihood of a claim being made against a teenage driver living in an urban area may be higher or lower compared to a teenage driver in a suburban area. In general, the greater the risk associated with a policy, the more expensive the insurance policy will be.

Policyholders may choose from a number of options for paying their insurance premiums. Some insurers allow the policyholder to pay the insurance premium in installments, such as monthly or semi-annual payments, or may require the policyholder to pay the total amount before coverage starts.

Insurance premiums may increase after the policy period ends. The insurer may increase the premium if claims were made during the previous period, if the risk associated with offering a particular type of insurance increases, or if the cost of providing coverage increases.

Insurers use the insurance premium to cover the liabilities associated with the policies they underwrite. They may also invest the premium in order to generate higher returns and offset some of the costs of providing the insurance coverage, which can help an insurer keep prices competitive. Insurers will invest the premiums in assets with varying levels of liquidity and return, but they are required to maintain a certain level of liquidity. State insurance regulators set the amount of liquid assets required to ensure insurers can pay claims.

Actuaries, Artificial Intelligence and the Future of Insurance Premium Prices
Generally, insurance companies employ professionals known as actuaries to determine risk levels and premium prices for a given insurance policy. The emergence of sophisticated algorithms and artificial intelligence is fundamentally changing how insurance is priced and sold, and there is an active debate happening between those who say algorithms will replace human actuaries in the future and those who contend the increasing use of algorithms will require greater participation of human actuaries and send the profession into a “next level.”

Lawyer Salary

Salaries for lawyers starting out at firms have remained flat, with an annual pay of $160,000 continuing to be the top of the market, according to a new survey from the National Association for Law Placement.

Some 39 percent of the largest firms — those with 700 lawyers or more — reported paying that amount in the association’s 2015 law associates’ salary survey. This was up from last year, when only 27 percent of the big firms reported paying their new legal hires at the uppermost level.

But the percentage was still below 2009, when nearly two-thirds of the first-year salaries were at the top point of $160,000.

The reason is not that individual firms are paying less, said James G. Leipold, executive director of National Association for Law Placement, but “as more law firms have grown through acquisition and merger, the largest law firms are not as similar to one another as they used to be.”

Mr. Leipold added that there were many firms with more than 700 lawyers that have many smaller regional offices, many of which don’t pay the benchmark first-year salary of $160,000. As a result, he added, “a larger percentage of large law firm starting salaries fall below that mark.”

There are certainly exceptions, with some first-year associates making more than the $160,000 figure. But, for the most part, the ceiling seems to have been stuck at that amount since 2007, when some law firms began to increase starting salaries — a practice that soon began to wane as the economy turned down.

“The simple story is that $160,000 as a starting salary at large law firms is less prevalent than it was immediately prior to the recession,” Mr. Leipold explained. “At large law firms, starting salaries of $145,000 and $135,000, and even $110,000 are common in some markets, though $160,000 is still the dominant or modal salary in large markets.”

In the biggest legal markets — including Boston, Chicago, Los Angeles, New York and Washington — $160,000 is the most common salary at the largest firms that reported paying first years. Only about 60 percent of the largest firms with offices in Los Angeles and Washington said they paid the top amount now — a significant drop from 2009, when 90 percent of firms said they did so.

In New York, however, “the $160,000 starting salary is almost universal,” Mr. Leipold noted. About 85 percent of firms in the city with at least 250 lawyers are paying that amount; about 90 percent of firms with 700 or more lawyers paid first-year hires that amount.

Of course, a newly minted lawyer still can take home more than the top salary: Even first-year lawyers are eligible for annual bonuses that can be in the tens of thousands of dollars at elite firms.

The association said 556 law offices from across the country responded to the survey. Over all, the national median first-year salary at firms of any size was $135,000. That is a rise of $10,000 since 2014, but the association said that fewer smaller firms responded this year than in previous years.

Mortgage Insurance

What is Mortgage Insurance

Mortgage insurance is an insurance policy that protects a mortgage lender or title holder in the event that the borrower defaults on payments, dies or is otherwise unable to meet the contractual obligations of the mortgage. Mortgage insurance can refer to private mortgage insurance (PMI), qualified mortgage insurance premium (MIP) insurance or mortgage title insurance. What these have in common is an obligation to make the lender or property holder whole in the event of specific cases of loss. Mortgage life insurance, on the other hand, which sounds similar, is designed to protect heirs if the borrower dies while owing mortgage payments. It may pay off either the lender or the heirs, depending on the terms of the policy.

BREAKING DOWN Mortgage Insurance

Mortgage insurance may come with a typical pay-as-you-go premium payment, or it may be capitalized into a lump-sum payment at the time of mortgage origination. For homeowners who are required to have PMI because of the 80% loan-to-value ratio rule, they can request that the insurance policy be canceled once 20% of the principal balance has been paid off. Here are three types of mortgage insurance:

Private Mortgage Insurance

Private mortgage insurance (PMI) is a type of mortgage insurance a borrower might be required to buy as a condition of a conventional mortgage loan. Like other kinds of mortgage insurance, PMI protects the lender, not the borrower. PMI is arranged by the lender and provided by private insurance companies. PMI is usually required if a borrower gets a conventional loan with a down payment of less than 20%. A lender might also require PMI if a borrower is refinancing with a conventional loan and equity is less than 20% of home value.

Qualified Mortgage Insurance Premium

When you get an FHA mortgage, you will be required to pay a qualified mortgage insurance premium, which provides a similar type of insurance. MIPs have different rules, including that everyone who has an FHA mortgage must buy this type of insurance, regardless of the size of their down payment.

Mortgage Title Insurance

Mortgage title insurance protects against loss in the event a sale is later invalidated because of a problem with the title. Mortgage title insurance protects a beneficiary against losses if it is determined at the time of the sale that someone other than the seller owns the property.

Before mortgage closing, a representative, such as a lawyer or title company employee, performs a title search. The process is designed to uncover any liens placed on the property that would prevent the owner from selling. A title search also verifies that the real estate being sold belongs to the seller. Despite a thorough search, it isn’t hard to miss important pieces of evidence when information is not centralized.

Mortgage Protection Life Insurance

Borrowers are often offered mortgage protection life insurance when they fill out paperwork to start a mortgage. A borrower can decline this insurance when it is offered, but you may be required to sign a series of forms and waivers, verifying your decision. The intent of this extra paperwork is to prove you understand the risks associated with having a mortgage.

Payouts for mortgage life insurance can be either declining-term (the payout drops as the mortgage balance drops) or level, although the latter costs more. The recipient of the payments can be either the lender or the heirs of the borrower, depending on the terms of the policy.

Insurance Definition




What is Insurance

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.

Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party.

BREAKING DOWN Insurance

There are a multitude of different types of insurance policies available, and virtually any individual or business can find an insurance company willing to insure them, for a price. The most common types of personal insurance policies are auto, health, homeowners, and life. Most individuals in the United States have at least one of these types of insurance, and car insurance is required by law.

Businesses require special types of insurance policies that insure against specific types of risks faced by the particular business. For example, a fast food restaurant needs a policy that covers damage or injury that occurs as a result of cooking with a deep fryer. An auto dealer is not subject to this type of risk but does require coverage for damage or injury that could occur during test drives. There are also insurance policies available for very specific needs, such as kidnap and ransom (K&R), medical malpractice, and professional liability insurance, also known as errors and omissions insurance.

Insurance Policy Components

When choosing a policy, it is important to understand how insurance works. Three important components of insurance policies are the premium, policy limit, and deductible. A firm understanding of these concepts goes a long way in helping you choose the policy that best suits your needs.

A policy’s premium is its price, typically expressed as a monthly cost. The premium is determined by the insurer based on your or your business’s risk profile, which may include creditworthiness. For example, if you own several expensive automobiles and have a history of reckless driving, you will likely pay more for an auto policy than someone with a single mid-range sedan and a perfect driving record. However, different insurers may charge different premiums for similar policies; so, finding the price that is right for you requires some legwork.

The policy limit is the maximum amount an insurer will pay under a policy for a covered loss.  Maximums may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also known as the lifetime maximum.  Typically, higher limits carry higher premiums.  For a general life insurance policy, the maximum amount the insurer will pay is referred to as the face value, which is the amount paid to a beneficiary upon the death of the insured.

The deductible is a specific amount the policy-holder must pay out-of-pocket before the insurer pays a claim.  Deductibles serve as deterrents to large volumes of small and insignificant claims.  Deductibles can apply per-policy or per-claim depending on the insurer and the type of policy.

Policies with very high deductibles are typically less expensive because the high out-of-pocket expense generally results in fewer small claims. In regards to health insurance, people who have chronic health issues or need regular medical attention should look for policies with lower deductibles. Though the annual premium is higher than a comparable policy with a higher deductible, less expensive access to medical care throughout the year may be worth the trade-off.

What Is an Insurance Binder?

What Is an Insurance Binder?

The insurance binder represents the agreement between you and the insurance company and is a confirmation in writing that a policy will be issued and that you are insured.

Definition of Insurance Binder

An Insurance Binder is a temporary document issued by an authorized insurance representative that serves as proof of insurance for your home insurance, property or car. Your binder of insurance will outline the basic conditions, coverages, deductibles and named insureds that will appear ​in your insurance contract.

An insurance binder is subject to all the terms and conditions of the pending insurance contract.

What Information Is Included in an Insurance Binder?

The insurance binder should include all the necessary information about the insurance contract that has been purchased.

An Insurance Binder Will Include the Following 7 Key Elements:

1. The insurance binder should clearly identify the risk. The risk is that which is insured. For ​example, if the binder is for a car, the insurance binder should include the vehicle make, model and serial number of the car. If the insurance binder is for a property, the binder should include the insured risk address and the amount of insurance on the dwelling (dwelling value insured). If you are insuring a condo or apartment, it should also include the insured contents amount.

2. Liability Insurance amount. The insurance binder will indicate the amount of insurance for liability coverage on the “risk.”

3. Deductibles and Coverage Limits. The insurance binder should indicate the deductible for each section of insurance on the car, or for the home or property. The type of coverage and limit for each coverage should also be mentioned. This way the insurance binder serves as a true confirmation of the basis of the insurance contract, and limits of insurance that you can expect in the event of a claim. If there is a relevant insurance endorsement that is an important aspect of the coverage you purchased, the insurance binder may also include these coverages.

4. The insurance binder must specify the named insured and also specify additional named insureds. For example, the named insured is generally the owner of the property. The additional named insured could be an additional owner, like if a property is in one or more people’s names, or also the mortgagee or lienholder. In the case of a car, the finance and leasing company should appear on the binder of insurance.

5. The binder of insurance should clearly indicate the insurance company, and type of coverage. Since insurance has many different levels of coverage, in particular for homes, the coverage type must be defined on the binder to allow no room for error or misunderstanding.

6. The binder will clearly identify the term of the insurance, the day the insurance coverage becomes effective and the day the binder of insurance is valid until.

7. The binder must identify the insurance agent who authorizes the binder as well as usually a disclaimer that will indicate that the binder is subject to the terms and conditions of the policy wording.

Who Needs an Insurance Binder?

Any time you purchase insurance, you should ask for an insurance binder so that you have proof that a policy will be issued and more importantly, you can confirm that what you have asked to have covered is insured properly. When you get your binder of insurance check all details very carefully so that you do not have a problem. If you have a claim before the official insurance documents arrive the binder will be very important. Your binder will provide a basic summary of who and what is insured, as well as the deductible and basic policy limits.

Car Insurance: Binders of Insurance

A car insurance binder is often used to prove that you have obtained insurance on your vehicle and is may be a requirement of a car dealership or lease or finance company when purchasing a new car.

For a car policy, you should see a description of coverages such as Liability, Collision or Comprehensive coverage and deductibles. Mortgage clauses and clauses applying to the finance companies are also important.

Home Insurance: Binders of Insurance

A home insurance binder is used to prove that you have insurance coverage on your home and is most commonly used when signing for a new property in order to prove to the lender or mortgage that the property is insured.

For a home policy, you should see the amount of insurance on the building amount, the deductible and the named insured and policy term which will include the mortgage if applicable.

When Will an Insurance Binder Be Issued?

An insurance binder should be issued as soon as you request to have an insurance policy issued. This is your temporary proof of insurance.

An insurance binder is useful when the insurance policy documents, such as the declaration page and the contract wording are not available immediately. It is normal for it to take a few days for an insurance company to process all the paperwork required before an actual policy is issued, this is where the insurance binder becomes an important part of proving you are insured until you get your documents.

How Long Is a Binder of Insurance Good For?

The binder of insurance will usually be valid for a set term written on the binder of insurance. The binder is only valid until such time that the actual insurance policy documents are printed or issued. Once the official documents are issued, the binder is null and void and is replaced by the actual insurance contract.

What Happens If an Insurance Binder Expires?

Insurance binders usually indicate the maximum time limit for which they are valid. If you have not received your new policy documents and your binder is about to expire, make sure and follow up to ask for your documents or you may not be insured. You can read more about what to do in this case at the end of this article.

What Is Not Included in the Insurance Binder?

The insurance binder is a summary of insurance that is meant to give a general overview of the key coverages until such time the actual policy arrives.  The insurance binder will not typically include any policy wording or definition of coverages such as special limits on home policies. The policy wording and terms of your actual insurance contract will always take precedence over anything outlined in a binder.

Two Examples of When an Insurance Binder May Be Used as Proof of Insurance

1. Jack is buying a new home, he forgets to contact the insurance company until the last minute, and although he is able to obtain the quote and confirmation of an insurance policy for the residence, the insurance company can not process all the paperwork right away. His real estate agent advises him that at the signing for the home, he will need to have a proof of insurance coverage. He calls his insurance agent and asks for a binder of insurance. The binder is a legally binding document that will be sufficient proof for Jack to complete the signing for his home. Once the actual insurance policy arrives in the mail, Jack will disregard the binder, since the policy is the actual proof of insurance and contains the complete information.

2. Jennifer is purchasing a new car. Her dealership tells her that they can not let her pick up the car until they receive proof of insurance. Jennifer calls her insurance agent who explains she doesn’t have time to issue the documents on the spot, however has the authority to issue a binder of insurance that will prove Jennifer is covered until the documents get officially issued. Jennifer’s authorized insurance agent completed the paperwork and provides her with the binder of insurance.

What If I Never Receive the Insurance Policy? After an Insurance Binder Expires

It is extremely important to make sure you receive your insurance policy. A binder of insurance does not replace an insurance policy and is not meant to represent a long-term contract. If you have not received your insurance policy before the expiry of your binder there may be a major problem. It is your responsibility to follow up on your contract and make sure it gets issued. Even if you paid for the insurance, until you have a valid insurance contract in your hand, you are at risk once that binder has expired.

You have the right to have a copy of your contract.

Your Insurance Binder Will Not Insure You After It Has Expired

If you have trouble getting your contract issued and are unable to get help from the agent or insurance representative who issued your binder ,then you can also contact your state insurance commissioner to help you figure out what is going on. In most cases, your agent should be able to sort the matter out and get your insurance policy in your hands within a couple of weeks. Just remember, the binder is temporary, you need the contract once the term of the binder is finished.

Insurance Companies World’s Top 10

 Insurance Companies World’s Top 10

Insurance helps us to do exactly what this quote suggests. We all face many kinds of risks: risk of meeting with an accident, falling sick, being a victim of a natural disaster or fire, and above all risk of life. All these risks not only come with pain and suffering but also hurt financially. Insurance is one way of being prepared for the worst; it offers the surety that the economic part of the pain will be taken care of. In this article, we take a look at some of the top insurance companies. There are many criteria on the basis of which such a list can be prepared: premium collections, market capitalization, revenue, profit, geographical area, assets and more. The following list focuses on a number of factors and the insurance companies on it are in no particular order.

1) AXA

With over 102 million customers in 56 countries and an employee base of 157,000, AXA is one of the world’s leading insurance groups. Its main businesses are property and casualty insurance, life insurance, saving and asset management. Its origin goes back to 1817 when several insurance companies merged to create AXA. The company is headquartered in Paris and has a presence across Africa, North America, Central and South America, Asia Pacific, Europe and the Middle East.

In 2013, AXA as a move to increase its foothold in Latin America acquired 51% of the insurance operations of Colpatria Seguros in Colombia. During the same year, AXA became the largest international insurer operating in China as a result of its 50% acquisition of Tian Ping (a Chinese property and casualty insurer). In addition, the company acquired the non-life insurance operations of HSBC in Mexico. The AXA Group reported total revenues of €99 billion for fiscal year 2015.

2) Zurich Insurance Group

Zurich Insurance Group, a Switzerland-headquartered global insurance company, was founded in 1872. Zurich Group, together with its subsidiaries, operates in more than 170 countries, providing insurance products and services. The core businesses of Zurich include general insurance, global life and farmers insurance. With its employee strength of over 55,000, Zurich caters to the vast insurance needs of individuals and businesses of all sizes: small, mid-sized and large-sized companies and even multinational corporations.

Total revenues in 2015 were $60.568 billion.

3) China Life Insurance

China Life Insurance (Group) Company (LFC) is one of Mainland China’s largest state-owned insurance and financial services companies, as well as a key player in the Chinese capital market as an institutional investor. The origin of the company goes back to 1949 when the People’s Insurance Company of China (PICC) was formed. Its offshoot PICC (Life) Co. Ltd was created after parting ways with PICC in 1996. PICC (Life) Co. Ltd was renamed as China Life Insurance Company in 1999. The China Life Insurance Company was restructured in 2003 as China Life Insurance (Group) Company, which has seven subsidiaries. The businesses are spread across life insurance, pension plans, asset management, property and casualty, investment holdings and overseas operations.

The company is listed on the New York Stock Exchange, the Hong Kong Stock Exchange and the Shanghai Stock Exchange, and is the biggest public life insurance company in terms of market capitalization in the world.

4) Berkshire Hathaway

Berkshire Hathaway Inc. (BRK.A) was founded in 1889 and is associated with Warren Buffet, who has transformed a mediocre entity into one of the largest companies in the world. Berkshire Hathaway is now a leading investment manager conglomerate, engaging in insurance, among other sectors such as rail transportation, finance, utilities and energy, manufacturing, services and retailing through its subsidiaries.

It provides primary insurance, as well as reinsurance of property and casualty risks. Companies like Berkshire Hathaway Reinsurance Group, GEICO, Berkshire Hathaway Primary Group, and General Re, National Indemnity Company, Medical Protective Company, Applied Underwriters, U.S. Liability Insurance Company, Central States Indemnity Company and the Guard Insurance Group are subsidiaries of the group.

5) Prudential plc

Prudential plc (PUK) is an insurance and financial services brand with operations catering to 24 million customers across Asia, the U.S., the U.K and most recently Africa. Prudential was founded in United Kingdom in 1848. Prudential Corporation Asia, Prudential U.K., Jackson National Life Insurance Company and M&G Investments are the main businesses within the group. Jackson is a prominent insurance company in the United States, while Prudential U.K. is one of the leading providers of pension and life.

Prudential plc is listed on the stock exchanges of London, Hong Kong, Singapore and New York. It has approximately 22,308 employees worldwide, with assets under management worth £509 billion.

6) United Heath Group

The UnitedHealth Group Inc. (UNH) tops the list of diversified health care businesses in the United States. Its two business platforms – UnitedHealthcare for health benefits and Optum for health services – work together, serving more than 85 million people in every U.S. state and 125 countries. The UnitedHealth Group uses its experience and resources in clinical care to improve the performance of the health care services sector.

The company reported revenue of $157.1 billion in 2015. Fortune has featured UnitedHealth Group as the “World’s Most Admired Company” in the insurance and managed care sector six years in a row.

7) Munich Re Group

Founded in 1880, Munich Re Group operates in all lines of insurance and has a presence in 30 countries, with focus a on Asia and Europe. The company’s primary insurance operations are carried out by its subsidiary, ERGO Insurance Group, which offers a comprehensive range of insurance, services and provision. Munich Re Group’s home market is Germany, where ERGO is a leader in all areas of insurance. The group’s newest arm, Munich Health, parlays the group’s risk-management and insurance expertise into the health care field.

The group has around 45,000 employees worldwide, working in all businesses of insurance: life reinsurance, health reinsurance, accident reinsurance, liability business, motor reinsurance, property-casualty business, marine reinsurance, aviation reinsurance and fire reinsurance. The Munich Re Group reported a profit of €3.1 billion in 2015.

8) Assicurazioni Generali S.p.A.

Assicurazioni Generali, founded in 1831, is the Assicurazioni Generali Group’s parent company. The Generali Group is not only a market leader in Italy, but is also counted as a prominent player in the field of global insurance and financial products. The group, with a presence in more than 60 countries, is an international brand with dominance in Western, Central and Eastern Europe. The Generali Group’s prime focus has been life insurance, offering diverse products from family protection and savings polices to unit-linked insurance plans. It offers an equally diverse range of products in the non-life segment as well, such as coverage of car, home, accident, and health, along with coverage of commercial and industrial risk.

The group has 77,000 employees and a client base of 65 million people worldwide. It has €480 billion in assets under management and is one of the world’s 50 largest companies.

9) Japan Post Holding Co., Ltd.

The Japan Post Holding Co., Ltd. is a major state-owned conglomerate in Japan. The company has four primary divisions: Japan Post Service (for mail delivery), Japan Post Network (runs the post offices), Japan Post Bank (deals with banking functions), and Japan Post Insurance (provides life insurance). Japan Post Insurance operates within Japan Post Holding to provide insurance to its clients. The insurance arm makes use of the post offices nationwide network, in addition to its own sales offices, to reach out and provide services to the clients.

Japan Post Holding, which went public in 2015, reported consolidated after-tax profits of $3.84 billion from April through December of 2015. The group runs the largest insurer in Japan (Japan Post Insurance).

10) Allianz SE

Founded in 1890, Allianz SE is a leading financial services company, providing products and services from insurance to asset management. Allianz caters to customers in more than 70 countries with €1.8 billion in assets under management. Insurance products range from property and casualty products to health and life insurance products for corporate and individual customers. The company is headquartered in Germany.

In 2015, total revenues reached a new high of €125.2 billion euros.

The Bottom Line
Some of the other reputable names in the insurance business are ING Group (ING), Prudential Insurance Company of America (a subsidiary of Prudential Financial, Inc., PRU), AIA Group Ltd., Ping An Insurance Company of China, Ltd., American International Group, Inc. (AIG), Manulife Financial Corporation (MFC), and MetLife, Inc. (MET). Picking the right insurance company to invest in is important and should not be based on a company’s size alone. A few things on your check list should be the company’s rating, its financial strength, if the company specializes in any particular type of insurance, refusal of claims in the past, proximity of office, premium rates and discounts offered on multiple policies.