Property & Casualty Insurance Carriers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,400 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.
Industry size & Structure
The average property and casualty insurance carrier employs about 245 workers and generates $295 million annually.
- The property and casualty insurance industry consists of about 2,400 firms that employ 588,000 workers and generate almost $708 billion annually.
- The industry is highly concentrated; the top 50 companies account for about 82% of industry revenue.
- Large firms include State Farm, Berkshire Hathaway, and Liberty Mutual.
Industry Forecast
Property & Casualty Insurance Carriers Industry Growth
Recent Developments
May 8, 2023 - Property Insurance Prices Increase
- Property insurance pricing increased in most regions of the world during the first quarter of 2023, according to the Global Insurance Market Index published by insurance broker Marsh. The US led all regions with a 17% increase, compared to an 11% increase in the prior quarter. Global property insurance pricing was up an average of 10% in Q1 2023, compared to a 7% increase in Q4 2022. Q1 marked the 22nd consecutive quarter in which composite pricing rose, continuing the longest run of increases since the inception of the index in 2012, said Marsh.
- The combination of ongoing climate change and increased commerce along inland waterways could result in greater workers’ compensation exposures, according to Risk & Insurance Magazine. Seamen and other maritime laborers who work daily — often with heavy or dangerous equipment in high-risk environments like tugboats, barges, fishing boats, drilling rigs, and platforms on inland waterways — face a host of workplace hazards. These include diving and dredge accidents, falls, heavy machinery malfunctions, or exposure to toxic chemicals such as asbestos or benzene. Climate change, which is causing extreme rain and flooding and contributing to higher water levels on rivers in some areas while causing drought and low water levels in others, will intensify those risks. Flooding and high-water marks are now happening in more places and more regularly than before, almost without warning, according to Risk & Insurance Magazine.
- On the other side of the climate change coin, drought is leading to lower water levels and a different set of workers’ compensation exposures. “Historically low water levels in the central US led to extensive delays in transport, barges ran aground and were stuck for weeks, and the transportation supply infrastructure was hobbled,” said Joe Paduda, principal of Health Strategy Associates. “Barges had to be off-loaded while still in transit to enable them to get by shallow areas, increasing potential injuries due to nonstandard loading and unloading operations. “These issues likely led to higher payroll costs and thus higher workers’ comp premiums. It is possible additional injuries occurred,” Paduda said.
- Property and casualty policyholders are losing faith in digital applications and are preferring the old one-on-one interactions with their insurers, according to a J.D. Power survey. The data analytics, software, and consumer intelligence company found a sharp rise in the number of customers contacting their insurer for information while, for the first time, saw a declining use of digital claims reporting usage. “This is a worrying sign for the industry, as digital tools are apparently not meeting customer needs,” said Mark Garrett, director, insurance intelligence at J.D. Power.
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