Life and Non-Life insurance market in United States - Growth, Trends, and Forecasts (2020 - 2025)

The Life and Non-life Insurance Market in United States is segmented by Insurance Type (Life Insurance and Non-life Insurance) and Distribution Channel (Direct, Agency, Banks, and Other Distribution Channels).

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

CAGR:

6 %

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Market Overview

The life and non-life insurance market in the United States is estimated to register a CAGR of approximately 6%, during the forecast period.

For the first six months of 2019, the life insurance industry reported an increase of 5% (USD 22 billion) in direct written premiums and deposits to USD 472 billion. Net written premiums and deposits increased by 14% (USD 53 billion) to USD 437 billion, due to a fall in ceded premiums of 26% (USD 43 billion). Life insurance premiums increased by 12% (USD 15 billion) to USD 143 billion, largely due to an increase of 35% in the assumed premiums, while ceded premiums increased by 15% (USD 8 billion) to USD 61 billion, as compared to the second quarter 2018. Net life insurance premiums increased to USD 82 billion by 10% (USD 7 billion).

Improved underwriting discipline continued rate increases, lower catastrophe risks, and an improving commercial and personal auto market, in the first half of 2019. Moreover, these factors have led to strong underwriting success in the US property and casualty insurance industry. The industry recorded an underwriting gain of USD 6.5 billion, slightly lower than the gain of USD 7 billion in the previous year period, as net losses and LAE (loss adjustment expenses) rose at a higher rate than net received premiums. Combined with solid investment results, the underwriting benefit led to a net profit of USD 34.8 billion. Since factoring in unrealized capital gains, the consolidated policyholder surplus rose at an all-new high in June 2019, by 7.6% to USD 838.9 billion.

Scope of the Report

The report aims to provide a detailed analysis of the life and non-life insurance market in the United States. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Additionally, it analyses the key players and the competitive landscape in the market studied.

By Insurance type
Life Insurance
Individual
Group
Non-life Insurance
Home
Motor
Other Non-life Insurances
By Distribution Channel
Direct
Agency
Banks
Other Distribution Channels

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Key Market Trends

Growing Insurtech in the United States

  • Although the United States has historically dominated insurtech investment, a shift is gradually coming. 42% of all insurtech transactions in the United States took place in Q2 2019, a 4%-point decline from the previous quarter, demonstrating the growing importance of investment centers outside the country.
  • There were 11 deals in the United Kingdom and six in China, whereas Lebanon registered its first insurtech deal, since Q1 2017. Lemonade, a US renters and homeowners’ insurance startup, was priced at a pre-money valuation of over USD 2 billion, after raising USD 300 million from Allianz X, General Catalyst, Google Ventures, OurCrowd, Softbank Group, and Thrive Capital.

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Increase in Merger and Acquisition Activities

  • According to a report by GlobalData, merger and acquisition (M&A) deals in the US insurance sector increased by 51.2%, in Q3 2019, over the previous quarter. Overall, the industry’s global deals were valued at USD 4.17 billion, with the US market accounting for the lion’s share with 121 recorded transactions in Q3 2019, an increase of 4.3% than the previous four-quarter average.
  • The top merger and acquisition transactions of Q3 2019 include Prudential Financial’s acquisition of Assurance IQ for USD 3.5 billion, the USD 384.25 million acquisition of White Eagle Asset Portfolio by Jade Mountain Partners, the acquisition of The Hagerty Group by Markel for USD 212.5 million, and Aspida Financials’ acquisition of Pavonia Life Insurance for USD 75 million.

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Competitive Landscape

The report covers the major players operating in the life and non-life insurance market in the United States. The market is fragmented, and it is expected to grow during the forecast period, due to adoption of insurtech is increasing in the sector, along with several merger and acquisition activities and other factors.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Insurance type

      1. 5.1.1 Life Insurance

        1. 5.1.1.1 Individual

        2. 5.1.1.2 Group

      2. 5.1.2 Non-life Insurance

        1. 5.1.2.1 Home

        2. 5.1.2.2 Motor

        3. 5.1.2.3 Other Non-life Insurances

    2. 5.2 By Distribution Channel

      1. 5.2.1 Direct

      2. 5.2.2 Agency

      3. 5.2.3 Banks

      4. 5.2.4 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers and Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 Massachusetts Mutual Life Insurance Company

      2. 6.3.2 UnitedHealth Group Incorporated

      3. 6.3.3 Berkshire Hathaway Inc.

      4. 6.3.4 Cigna Corporation

      5. 6.3.5 Metlife Inc.

      6. 6.3.6 Prudential Financial Inc.

      7. 6.3.7 Aetna Inc.

      8. 6.3.8 Centene Corporation

      9. 6.3.9 American International Group Inc.

      10. 6.3.10 State Farm

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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