US Homeowner's Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

US Homeowner's Insurance Market- Segmented by Insurance Type and Distribution channels- - Growth, Trends, and Forecast (2019 - 2024)

Market Snapshot

market Summery
Study Period: 2016 - 2026
Base Year: 2020
CAGR:

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Market Overview

The US homeowners' premiums moderately increasing since USD 89 billion in 2015, USD 91 billion in 2016, and reached USD 94 billion in 2017. In 2018 it has registered 104 billion and expected to reach approximately USD 125 billion by 2024 with a CAGR of 5.7%.

In 2016, HO-3 was the most common policy form among homeowner’s policyholders and it accounted for 58.6 percent of all policy exposures.

Countrywide, 65.1 percent of dwelling fire and homeowners owner-occupied policies were written for insurance coverage amounts between USD 50,000 and USD 300,000 in 2016. The average cost of homeowners insurance to be USD 1,083 nationwide in 2019. 

The U.S. insurance industry employed 2.7 million people in 2018, of those, 1.5 million worked for insurance companies, including life and health insurers (870,600 workers), P/C insurers (621,800 workers) and reinsurers (29,100 workers). The remaining 1.2 million people worked for insurance agencies, brokers and other insurance-related enterprises.

Scope of the Report

The US Homeowner's Insurance Market is segmented by countrywide mostly available homeowner's insurance type like Ho-1, HO-2, HO-3, HO-5, HO-8 and by the distribution channels operated in the US Homeowner's insurance sector.

BY TYPE OF HOME INSURANCE
Dwelling Fire
HO-1
HO-2
HO-3
HO-5
HO-8
BY CHANNEL OF DISTRIBUTION
Independent Advisers
Affiliated Agents
Direct Response
Others
Online Channels

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Key Market Trends

Rising Insured Losses due to simultaneous Environment and Catastrophic Damages in the US.

According to the National Oceanic and Atmospheric Administration, in 2018, 14 different natural disasters, from wildfires in California to devastating hurricanes in Florida, cost the United States USD 91 billion, It was the eighth consecutive year with at least eight disasters in the billion-dollar range. About 1.8 million acres were burned in 2018 compared with 2.3 million in 2017. Only the H1-2018 had 24,760 wildfires compared to 25,699 in the same period in 2017.

In 2017, It is observed that insured losses for catastrophes in the United States were USD 21.7 billion which soared 370 percent to USD 101.9 billion in 2017. Insured losses in 2017 were recorded the highest since 1949. The number of catastrophes rose to 46 in 2017 from 42 in 2016, the highest number of catastrophes for years with an industry loss event threshold of USD 25 million.

The biggest earthquake stroked the country was a magnitude 6.9 quake that occurred on July 27 southwest of Umnak Island, Alaska in 2016. There was no damage due to the remote location. In addition in September, a 5.8 magnitude quake struck Pawnee, Oklahoma State. Damage from the quake was minimal.

Trend-1

Largest Market for Insurance Industry

The insurance industry in the United States is the largest in the world in terms of revenue. Since 2011, the annual revenue of the industry, known as insurance premiums, exceeded the USD 1.2 trillion mark. Insurance premiums have grown at a modest pace after a dip in 2009 due to the financial crisis, which the industry was able to navigate in a resilient manner. U.S. insurance industry net premiums written totaled USD 1.2 trillion in 2017, with premiums recorded by life/health (L/H) insurers accounting for 52 percent, and premiums by property/casualty (P/C) insurers accounting for 48 percent.

Despite its high premium volume, the United States falls short of the top ten countries in terms of insurance density, measured as premiums paid per capita of population toward insurance. This could be indicates room for growth for the industry.

Insurance companies are an important part of the financial services sector in the United States. The industry contributes close to 40% GDP of the financial institutions and employs more than 2 million people.

trend-2

Competitive Landscape

The US HomeOwner's Insurance Market is highly competitive, with the presence of major international players. The US HomeOwner's Insurance Market presents opportunities for growth during the forecast period, which is expected to further drive market competition. With a few players holding a significant share, the US HomeOwner's Insurance Market has an observable level of consolidation.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Market

    2. 1.2 Market Definition

    3. 1.3 Executive Summary

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Study Deliverables

    2. 2.2 Study Assumptions

    3. 2.3 Analysis Methodology

    4. 2.4 Research Phases

  3. 3. MARKET INSIGHTS

    1. 3.1 US Current Economic and Banking Industry Scenario

    2. 3.2 Impact of Government Regulations and Initiatives on the Insurance Industry

    3. 3.3 Impact of Global Insurance Market on US Industry

    4. 3.4 Key Trends in US Insurance Industry

    5. 3.5 Impact of US Environmental Changes/Hurrricanes/Wildfires on the US HomeOwner's Insurance

    6. 3.6 Impact of InsurTech on the US Inusrance Industry

    7. 3.7 Review and Commentary on US Non-Life and Home Insurance Market Scenario

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

    2. 4.2 Restraints

    3. 4.3 Opportunities

    4. 4.4 Porter's Five Forces Analysis

    5. 4.5 Industry Structure Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 BY TYPE OF HOME INSURANCE

      1. 5.1.1 Dwelling Fire

      2. 5.1.2 HO-1

      3. 5.1.3 HO-2

      4. 5.1.4 HO-3

      5. 5.1.5 HO-5

      6. 5.1.6 HO-8

    2. 5.2 BY CHANNEL OF DISTRIBUTION

      1. 5.2.1 Independent Advisers

      2. 5.2.2 Affiliated Agents

      3. 5.2.3 Direct Response

      4. 5.2.4 Others

      5. 5.2.5 Online Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Strategies Adopted by Major Players

  7. 7. COMPANY PROFILES

    1. 7.1 State Farm

    2. 7.2 Allstate

    3. 7.3 Liberty Mutual

    4. 7.4 USAA

    5. 7.5 Farmers

    6. 7.6 Travelers

    7. 7.7 Nationwide

    8. 7.8 American Family

    9. 7.9 Chubb

    10. 7.10 Erie Insurance*

  8. *List Not Exhaustive
  9. 8. INVESTMENT ANALYSIS

  10. 9. MAJOR MERGERS AND ACQUISITIONS IN THE US INSURANCE INDUSTRY

  11. 10. FUTURE OF P&C AND HOME INSURANCE MARKET IN US

  12. 11. APPENDIX

    1. 11.1 US P&C Insurance Key Statistics

    2. 11.2 Number of Active Home InsurancePolicies 2015-2018

    3. 11.3 Gross & Net Home Insurance Written Premiums 2015-2018

    4. 11.4 Gross Home Insurance Claims Incurred during 2015-2018

  13. 12. DISCLAIMER

**Subject to Availability

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Frequently Asked Questions

The US Homeowner's Insurance Market market is studied from 2016 - 2026.

The US Homeowner's Insurance Market is valued at 5.7% in 2016.

State Farm, Allstate, Liberty Mutual, USAA, Farmers are the major companies operating in US Homeowner's Insurance Market.

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