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Insurance Franchising

Nowadays, franchising could be the answer for some investors. Why? Because it is effective. It is a network of interdependent business relationships that allows a number of people to share a proven brand and successful business strategy. The best thing is that you can use developed marketing and distribution system. In short, franchising is a strategic
alliance between groups of people who have specific relationships and responsibilities with a common goal to dominate markets. If you are in the insurance business and you are planning a startup, maybe you should consider franchise strategy. There are so many companies in this sector these days. It would be very difficult to establish a new brand and conquer the market. Ot the other hand, you can look for a franchisor who is growing faster than the competitors and join him. As a franchisee you own the assets of your company, but you use the brand and the operating system of the franchisor. You own your money, but you are licensed to operate someone else's business system. It's a win-win situation.

Let's take a look at the top worldwide franchised brands ahead of the game:

1)Berkshire Hathawa

Berkshire Hathaway Inc. (BRK.A) was founded in 1889 and is associated with Warren Buffet, who has transformed it into one of the largest companies in the world. 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, the Guard Insurance Group are subsidiaries of the group. 

Revenues (FY13): $ 182 Billion
Net Profit (FY13): $19.5 Billion
Market Cap (Q1-14): $308 Billion



2) China Life Insurance

China Life Insurance (Group) Company is one of China’s largest state-owned insurance and financial services companies. The origin of the company goes back to 1949 when the People's Insurance Company of China (PICC) was formed. PICC (Life) Co Ltd was renamed as China Life Insurance Company in 1999. 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.

Revenues (FY13): $ 67.9 Billion
Net Profit (FY13): $4 Billion
Market Cap (Q1-14): $80 Billion

3) Allianz

Allianz SE is a German multinational financial services company headquartered in Munich.
The company was founded in 1890, with product portfolio of marine and accident policies. With operations in more than 70 Countries, it employs more than 1, 48,000 people worldwide. The company is ranked 27 in Forbes Global 2000 list, with rank of 77 for World’s most valuable brands for 2014.

Its services include property and casualty insurance, life and health insurance and asset management, with customer base of around 83 million. Allianz is leading property-casualty insurance provider globally and ranks among the top five in life/health insurance business. It offers private individual insurance including family insurance, health insurance, car & motorbike insurance, house & home insurance and retirement planning benefits.

Revenues (FY13): $ 127.2 Billion
Net Profit (FY13): $8 Billion
Market Cap (Q1-14): $76.8 Billion


4) American International Group (AIG)


American multinational Insurance Corporation is an American multinational, headquartered in New York, US. AIG serves in more than 130 countries, with around 64000 employees globally. The company is a provider of property casualty insurance, life insurance and retirement services, and mortgage insurance. The company operates through two segments: AIG Property Casualty and AIG Life and Retirement. The AIG Property Casualty segment provides insurance products for commercial, institutional and individual customers. The AIG Life and Retirement segment provides life insurance and retirement services in the United States. The company is ranked 42 in the Forbes’s Global 2000 list.

Revenues (FY13): $ 68.7 Billion
Net Profit (FY13): $9.1 Billion
Market Cap (Q1-14): $72.3 Billion

5) Ping An

Ping An Insurance Company of China is an insurance and financial services company, headquartered in Shenzhen. Ping An Insurance is ranked 62 in the Forbes 2000 list for 2014. The company operates through the segments: Life Insurance, Property & Casualty, Banking, Securities and Corporate. The Life Insurance segment offers life insurance products such as term, whole-life, endowment, annuity, investment-linked, universal life, and healthcare insurance. The Property & Casualty Insurance segment offers insurance products, including automobile, non-automobile, and accident and health insurance.

Revenues (FY13): $ 69 Billion
Net Profit (FY13): $4.6 Billion
Market Cap (Q1-14): $65.6 Billion

Source: http://www.mbaskool.com/