How big is the property and casualty insurance market?
Market Size & Trends
Property & Casualty Insurance Market size was valued at USD 1.8 trillion in 2023 and is estimated to register a CAGR of over 5.5% between 2024 and 2032.
The global property and casualty insurance market size is anticipated to grow from USD 700 billion to USD 1036.17 billion in 10 years. The market will experience rapid growth due to technological advancements in property and casualty insurance during the forecast period.
US P&C underwriting outlook
In the realm of underwriting, the industry is witnessing an increase in the combined ratio forecast for 2023, revised to 102%. The industry net combined ratio surged to 107.3% in Q2 2023, with natural catastrophes adding 11.8 percentage points, well above the 10-year average of 6.3%.
Property Insurance - United States
The market size (gross written premium) of Property Insurance market is projected to reach US$214.70bn in 2024. The average spending per capita in the Property Insurance market amounts to US$0.63k in 2024.
1. State Farm. State Farm is the industry's biggest player, both in the US and overseas. The Bloomington, Illinois-based P&C insurance giant wrote almost $78 billion worth of premiums in the past year.
Alera Group's recent P&C Market Outlook shows that prices will continue to go up in 2024, with most lines of business likely to experience a 1%-10% increase.
There are 3,623 Property, Casualty and Direct Insurance businesses in the US as of 2023, an increase of 0.2% from 2022.
- Loss payments arising from claims – this constitutes the major expense category for most insurers. For P&C insurers, loss payments often represent 70 percent to 80 percent of their total costs.
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
What do the top P&C insurance agents make?
Most of the remainder is held as cash and short-term securities. The primary source of investment earnings for insurers is interest from bonds. Other sources of investment earnings are dividends paid on stocks and capital gains. Capital losses can also occur, which reduce overall investment performance.
1752 The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire, the oldest insurance carrier in continuous operation in the United States, was established. 1759 Presbyterian Ministers Fund, the first life insurance company in the United States, was founded.
Property and Casualty:
Mainland China accounted for the next-largest share of premiums, at 12.4%, and it is also home to the world's second-largest property and casualty (P&C) insurer: The People's Insurance Co. (Group) of China Ltd.
The US remains the largest insurance market in the world, with total premiums (non-life and life) of USD 2.8 trillion. Next are China and Japan. The three markets together accounted for almost 56% of the global premiums, slightly less than in 2023 (57%).
| Rank | Health insurance company | Total health plan enrollment in 2021 |
|---|---|---|
| 1 | Kaiser Permanente | 8,228,765 |
| 2 | Elevance Health (Anthem) | 4,670,236 |
| 3 | HCSC (including BCBS plans) | 4,419,293 |
| 4 | UnitedHealth Group | 4,306,492 |
Currently, the largest car insurance company in America is State Farm. Major auto insurance companies offer financial stability and a variety of coverage plans.
| Rank | Company | Net premiums written (US$ Billion) |
|---|---|---|
| 1 | UnitedHealth Group | 201.5 |
| 2 | Ping An Insurance | 118.8 |
| 3 | China Life Insurance | 111.2 |
| 4 | Centene Corporation | 107.4 |
State Farm is the biggest auto insurance company in the country by market share, while Progressive, Geico and Allstate are the next three.
A hard market is the upswing in the insurance market cycle, when premiums increase, coverage terms are restricted, and capacity for most types of insurance decreases.
What is the loss ratio in insurance industry?
Loss ratio is used in the insurance industry, representing the ratio of losses to premiums earned. Losses in loss ratios include paid insurance claims and adjustment expenses. The loss ratio formula is insurance claims paid plus adjustment expenses divided by total earned premiums.
According to the December earnings release, Progressive's total policies in force jumped 9% year-over-year to $29.7 million. Growth remained consistent across business segments: Personal Lines Policies Grow 9% – Auto policies expanded 9% to $19.5 million, while special lines were up 7%.
- #1: United Health Group (UNH)
- #2: Berkshire Hathaway Inc. ( BRK.B)
- #3: CVS Health Corp Group (CVS)
- #4: The Cigna Group (CI)
- #5: Elevance Health Inc. ( ELV)
- #6: Centene (CNC)
- #7: Ping An Insurance (PNGAY)
- #8: Allianz (ALIZY)
Property-casualty insurance includes two major categories: commercial lines and personal lines. Commercial lines include insurance products designed for businesses. Risks and hazards covered under commercial lines include malpractice insurance, professional liability, and builder's risk.
New Mexico leads the ranking, followed by Utah and Oklahoma. The exorbitant number of 77 540 insurance companies is reached by simple math.
