Insurance companies may be classified into two groups:
Life insurance companies, which sell life insurance,
annuities and pensions products.
- Non-life or property/casualty insurance companies, which sell other types of insurance.
- General insurance companies can be further divided into these sub categories.
- Standard lines
- Excess lines
In most countries, life and non-life insurers are
subject to different regulatory regimes and different tax and accounting rules.
The main reason for the distinction between the two types of company is that
life, annuity, and pension business is very long-term in nature coverage for life assurance or a pension can
cover risks over many decades.
By contrast, non-life insurance cover usually
covers a shorter period, such as one year.
Insurance companies are generally classified as either
mutual or proprietary companies. Mutual companies are owned by the
policyholders, while shareholders (who may or may not own policies) own
proprietary insurance companies.
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