Property & Casualty Insurance Carriers

The 2,578 property and casualty insurance carriers in the US underwrite insurance policies that protect policy holders against losses that may occur as a result of property damage or liability. Major types of policies include vehicle property and liability; property and liability; and general liability. Other types of policies sold include health, life, and accident insurance. Large firms may offer reinsurance policies, which limit the amount insurers can lose.

Uncertainty Related to Risk and Losses

Success in the property and casualty insurance business is dependent on a firm’s ability to underwrite and price risk accurately and estimate losses.

Natural Disasters and Other Catastrophes

Damage and destruction due to natural disasters and other catastrophes expose property and casualty insurers to the financial burden of covering massive losses.

Oct 5, 2026 - Stronger Underwriting Lifts Insurance Industry Profits

• US property and casualty insurers nearly tripled their net underwriting income to about $31 billion in the first half of 2026, according to AM Best, as the business of writing insurance became considerably more profitable. The industry’s combined ratio improved four percentage points to 92.5, meaning insurers kept a healthier cushion between the premiums they collected and what they spent on claims and expenses. That helped push overall net income up more than 50% to roughly $78 billion. What makes the results more striking is that premium growth actually slowed: net written premiums increased just 2.1%, compared with 5.2% a year earlier. The newfound breathing room is already bringing more competition to commercial property, where insurers have more capacity and pricing has begun to fall. Commercial auto and umbrella coverage remain tougher territory as claims costs stay elevated.
• Auto insurers are increasingly closing claims without making payments, particularly for liability and medical coverage, according to the Wall Street Journal. In 2025, 45% of resolved auto liability and medical claims resulted in no payment, up from 35% in 2016, based on analysis of regulatory filings. Liability and medical claims are more complex, costly and prone to disputes than vehicle-damage claims, which have maintained stable payment rates. Insurers attribute rising nonpayment rates to fraud, litigation, higher deductibles and tighter claim controls, while consumer advocates say carriers are becoming more aggressive in limiting payouts. Insurers are also increasing scrutiny of policy requirements, such as whether all regular or household drivers have been disclosed. State Farm recently strengthened its policy language after estimating that undisclosed driver accidents cost the company nearly $1.5 billion annually. Nonpayment rates vary by insurer and state, reflecting differences in policy terms, deductibles, regulations and litigation environments.
• Global insured losses from natural catastrophes reached approximately $129 billion in 2025, according to Gallagher Re, marking the sixth consecutive year that insured catastrophe losses exceeded $100 billion worldwide. The US accounted for roughly $100 billion (78%) of the global total. The costliest event was the January Los Angeles wildfire outbreak, which generated an estimated $41 billion in insured losses. Severe thunderstorms remained the dominant loss driver, producing about $60 billion in insured losses globally, including roughly $51 billion in the US. Losses were heavily concentrated in the first half of 2025, while a notably quiet Atlantic hurricane season and relatively calm second half helped keep annual losses below the recent 10-year average. Catastrophic losses remained manageable for the insurance industry, despite continued pressure from growing exposure and climate-related risks.
• In 2025, the US property and casualty insurance industry stayed largely profitable, continuing the momentum from 2024’s strongest underwriting results in over a decade. Homeowners insurance hovered near breakeven, with combined ratios around 99-100%, as disciplined pricing and careful underwriting helped offset losses from major catastrophes, especially California wildfires early in the year. Personal auto lines fared better, posting solid underwriting gains, while overall industry margins were supported by relatively calm catastrophe activity in the latter part of the year. Still, insurers like State Farm faced significant losses from wildfire claims, prompting rate hikes in hard-hit areas. These moves sparked customer frustration and drew regulatory attention, highlighting the ongoing tension between covering growing risks and keeping insurance affordable.

Industry size & Structure

The average property and casualty insurance carrier employs about 235 workers and generates $339 million annually.

• The property and casualty insurance industry consists of about 2,575 firms that employ 610,600 workers and generate almost $875.1 billion annually.
• The industry is highly concentrated; the top 50 companies account for about 84% of industry revenue.
• Large firms include State Farm, Berkshire Hathaway, and Liberty Mutual.