Essay on Auto and Insurance Industry

602 Words Sep 8th, 2011 3 Pages
More than one million Americans are employed in manufacturing motor vehicles, equipment and parts. With the development of the 3 big manufacturers, the effects have changed the structure and location of the U.S. motor vehicle industry. Whatever changes are occurring globally or within the domestic market, production and sales in the U.S. remain at historically higher levels. Gross output in the U.S. automotive manufacturing sector in 2004, including motor vehicle parts, trailers, bodies, and heavy trucks was $424 billion. That was the largest output of any durable goods manufactured product measured by the Commerce Department Bureau of Economic Analysis (BEA). Real output has increased 55% since 190, compared to 35% for manufacturing …show more content…
The insurance industry provides protection against financial losses resulting from a variety of hazards. The recent financial crisis has resulted in large losses for the insurance industry. Industry conditions remain weak as many companies will continue to experience declining revenues, investment losses, and credit rating downgrades, which can have an affect on the insurer’s ability to pay a higher interest rate. Insurance carriers now sell products associated with other financial institutions, such as banks and securities firms. Many workers in the insurance industry work a 5 day, 40 hour work week. Those that are in executive and managerial positions will often put in more than 40 hours. These jobs tend to be in customers’ homes or places of business where they can offer new products or services. Most employees spend most of their time on the phone working in call centers providing info to current or prospective customers.
The insurance industry had about 2.3 million wage and salary jobs in 2008. Insurance carriers accounted for 61 percent of jobs while insurance agencies, brokerages, and providers make up the other 39 percent of jobs. Weekly earnings of nonsupervisory workers in the insurance industry averaged $857 in 2008. The method by which insurance sales agents are paid varies greatly. Sales agents who are employees of an agency may be paid a salary, salary plus commission, or a salary plus bonus.

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