Comparing the current results to its competitors, Emc Insurance Group Inc reported Revenue increase in the 2 quarter 2019 by 12.16 % year on year. The revenue growth was below Emc Insurance Group Inc's competitors' average revenue growth of 15.8 %, achieved in the same quarter.
Emc Insurance Group Inc's Comment on Competitors and Industry Peers
Property and Casualty Insurance
The property and casualty insurance marketplace is very competitive. The pool
participants compete in the United States insurance market with numerous insurers,
many of which have substantially greater financial resources. Competition in
the types of insurance in which the pool participants are engaged is based on
many factors, including the perceived overall financial strength of the insurer,
industry ratings, premiums charged, contract terms and conditions, services
offered, speed of claim payments, reputation and experience. Because the pool
participants’ insurance products are marketed exclusively through independent
agencies, they face competition to retain qualified agencies, as well as competition
within the agencies. The pool participants also compete with direct writers,
who utilize salaried employees and generally offer their products at a lower
cost; exclusive agencies, who write insurance business for only one company;
and to a lesser extent, internet-based enterprises. Employers Mutual’s
decentralized network of 16 branch offices allows the pool participants to enhance
business relationships with agents and customers and develop products, marketing
strategies and pricing parameters targeted to individual territories. The pool
participants also utilize a company-paid trip for qualified agents and a profit-sharing
plan as incentives for the independent agencies to place high-quality insurance
business with them.
Reinsurance
Employers Mutual, in writing reinsurance business through its HORAD operation,
competes in the global reinsurance market with numerous reinsurance companies,
many of which have substantially greater financial resources. Competition for
reinsurance business is based on many factors, including the perceived financial
strength of the reinsurer, industry ratings, stability in products offered and
licensing status. There is a segment of the market that favors large, highly-capitalized
reinsurance companies who are able to provide “mega” line capacity
for multiple lines of business.
While reinsurer competition for national and regional company business is growing,
the Company believes that MRB has a competitive advantage in the smaller mutual
company market that it serves due to its low operating costs. MRB understands
the needs of the smaller company market and operates at a very low expense ratio,
enabling it to offer reinsurance coverage (on business that generally presents
less risk) to an under-served market at lower margins. However, due to growth
in the reinsurance intermediary marketplace, the size of this under-served market
has declined.