United States Property and Casualty Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The United States Property and Casualty Insurance Market is segmented by Insurance Type (Home, Motor, and Other Insurance Types) and Distribution Channel (Direct, Agents, Banks, and Other Distribution Channels).

Market Snapshot

Study Period:

2016 - 2026

Base Year:

2020

CAGR:

6 %

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Market Overview

The US property and casualty insurance market is expected to register a CAGR of approximately 6% during the forecast period.

  • Nine months of 2019 delivered solid underwriting gains and brought the industry surplus to a new record. Net written premium growth seems small when compared against the unusually high nine months 2018 level, but the two-year average growth rate is the strongest in years. The US property and casualty insurance industry saw its net underwriting gains increase to USD 5.4 billion in the first nine months of 2019 from USD 4.7 billion a year earlier. The industry’s surplus grew in every quarter of 2019 so far, reaching a new all-time-high value of USD 812.2 billion as of September 30, 2019, after USD 802.2 billion as of June 30, 2019 and USD 742.1 billion as of December 31, 2018.
  • In the first nine months of 2019, earned premiums grew by 4.7% to USD 463.2 billion, while LLAE (Losses and loss adjustment expenses) grew 5.5% to USD 327.1 billion; other underwriting expenses grew by 2.3% to USD 129.2 billion, and policyholders’ dividends increased to USD 1.6 billion from USD 1.5 billion a year earlier. As a result, the industry reported a USD 5.4 billion net underwriting gain, up from the USD 4.7 billion net underwriting gain for nine months in 2018.
  • Net written premiums rose to USD 481.3 billion in nine months of 2019 from USD 468.4 billion in nine months of 2018. Net written premium growth slowed to 2.7% from 11.4% for nine months in 2018. Net earned premium growth was 4.7% in nine months of 2019, slowing from 9.3% for nine months in 2018.

Scope of the Report

This report aims to provide a detailed analysis of the property and casualty insurance market in the United States. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Additionally, it analyzes the key players and the competitive landscape in the property and casualty insurance market in the United States.

By Insurance Type
Home
Motor
Other Insurance Types
By Distribution Channel
Direct
Agency
Banks
Other Distribution Channels

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Key Market Trends

RPA is Expected to Help in Quick Process

For insurance, RPA (robotic process automation) is described as the implementing software robots that can be customized for each device, without using code. These software robots support their real-life knowledge-workers with monotonous and repetitive tasks in insurance work, such as data input. Adoption of the RPA in the insurance has specific benefits, including faster claims processing, easier policy cancelation, simplified new business on-boarding, and easy transition.

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Increase in Net Premiums Written in the P&C Sector

The property and casualty (P&C) sector is building on a strong 2018, in which the industry saw a net income increase of 66% to USD 60 billion, also 10.8% boost in the net premiums written and nearly breaking even on underwriting (after losing USD 23.3 billion the year before). The US insurance industry declined a bit but remained positive in the first half of 2019, with the industry posting an underwriting gain of USD 5.4 billion (down from USD 6.1 billion for the same period in 2018) and a profitable combined ratio of 97.3 (up from 96.2).

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Competitive Landscape

The report covers the major players operating in the property and casualty insurance market in the United States. The market is fragmented. The property and casualty markets continue to present "soft rates" (i.e., lower insurance premiums), and despite the recent increase in the federal fund rate, interest rates remain near historically low levels. The foregoing factors have adversely impacted revenue and profitability of P&C insurers, which may encourage consolidation among larger property and casualty insurers, due to diminished opportunities for the organic growth.

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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 Home

      2. 5.1.2 Motor

      3. 5.1.3 Other Insurance Types

    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 Berkshire Hathaway Inc.

      2. 6.3.2 American International Group Inc.

      3. 6.3.3 Liberty Mutual Holding Company Inc.

      4. 6.3.4 The Progressive Corporation

      5. 6.3.5 The Travelers Companies Inc.

      6. 6.3.6 United Services Automobile Association

      7. 6.3.7 Farmers Group Inc.

      8. 6.3.8 American Family Mutual Insurance Company S.I.

      9. 6.3.9 W. R. Berkley Corporation

      10. 6.3.10 American Financial Group Inc.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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