How Big is the Property Casualty Market? | WaterStreet Company (2024)

FAQs

How big is the P&C market? ›

Report Outlook. Property and Casualty Insurance Market size was valued at USD 1,848.47 billion in 2023. The market is anticipated to grow from USD 2,000.05 billion in 2024 to USD 3,794.81 billion by 2032, exhibiting a CAGR of 8.3% during the forecast period.

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.

There are 3,623 Property, Casualty and Direct Insurance businesses in the US as of 2023, an increase of 0.2% from 2022.

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The market size, measured by revenue, of the Property, Casualty and Direct Insurance industry was $888.0bn in 2023. What was the growth rate of the Property, Casualty and Direct Insurance industry in the US in 2023? The market size of the Property, Casualty and Direct Insurance industry increased 0.7% in 2023.

The US P&C insurance industry enters 2024 with strong momentum. Profitability was below insurers' cost of capital last year, but strong premium increases, easing claims cost inflation and higher investment returns began to boost industry results by 2H23.

Some of the most prominent names in the US insurance market are Elevance Health Inc. (NYSE:ELV), The Progressive Corporation (NYSE:PGR), and UnitedHealth Group Inc. (NYSE:UNH).

Insurance companies make money in two main ways: Charging premiums to the insured and investing the insurance premium payments.

State Farm is the biggest auto insurance company in the country by market share, while Progressive, Geico and Allstate are the next three.

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.

What is the largest expense most P&C insurers face? ›

- 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.

Different companies and different lines of insurance have different acceptable loss ratios, but 60-70% is common.

Market size

While estimates can vary, most sources put the figure at around 5.5 trillion U.S. dollars of insurance premiums written in 2021.

The United States is the largest insurance market globally by a wide margin. In 2022, the highest value of life and non-life direct premiums was written on the U.S. insurance market. China was the second largest market, though the U.S. market was more than four times the size of the Chinese market.

Insurance market size in the U.S. 2009-2022

In 2022, insurance premiums written in the United States amounted to 1.48 trillion U.S. dollars, which includes property/casualty premiums in addition to life/annuity premiums.

Rate increase, capacity improvement variations. 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.