Stuart Rogers
University of Phoenix
Environmental Scanning
Economic pressures have forced the car amends constancy to faces many difficult tasks over the past tense few years. However, these economic pressures have presented opportunities for growth in the industry that should allow the industry to operate more efficiently.
Macroeconomic Variables
ii macroeconomic variables that directly impact the railroad car insurance securities industry ar gross domestic product (GDP) and GDP per head. As the thriftiness continues to grow and consumers acquire more possessions, the demand for superfluous insurance increases. Additionally, as information gathering becomes easier for consumers, insurance companies entrust feel continued pressure to make their products as emulous as affirmable. One of the main ways that insurance companies can make their product as competitive as possible is to streamline their processes in ways that generate more tax per employee.
The expansion of the United States miserliness means that more goods and work are being produced. As more goods and function are produced, consumers are acquiring more of those goods and services. Along with the acquisition of those goods and services comes the need to insure those goods and services.
Therefore, one would expect and expansion of the economy to lead to an increase in the purchasing of insurance. The chart infra shows the correlation between the growth in the United States economy and the expansion of the insurance industry. United States macroeconomic data was interpreted from the Economic Intelligence Unit. Insurance industry data was interpreted from the IBISWorld Industry Report.
The second macroeconomic variable that impacts the auto insurance industry is GDP per head. As the economy, in general, becomes more efficient, the auto insurance industry is forced to follow suit. This means getting more production out of each employee. The chart below shows the...If you want to get a full essay, order it on our website: Orderessay
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