Property/Casualty Insurance Carriers
Companies in this industry underwrite insurance policies such as homeowners and automotive insurance to protect consumers and businesses against loss and liability. Major companies include Nationwide Mutual, State Farm, and the property/casualty arms of AIG and The Hartford Financial Services Group (all based in the US), and Allianz (Germany), AXA (France), People's Insurance Group of China Co. (China), Tokio Marine (Japan), and Zurich Insurance (Switzerland).
The global insurance market and demand is expected to reach about 5% in 2023, according to Swiss Re. Although global premiums remain the same as, emerging markets were able to stay afloat, as a result of the strong demand in China.
The US property/casualty (P/C) insurance carriers industry consists of about 13,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $555 billion. Insurance agents and brokers are covered in a separate industry profile.
Competitive Landscape
Demand is driven by demographics, consumer spending, and commercial transactions, as well as by legal or financial requirements affecting customers. Consumers are usually required by states to buy auto insurance and by lenders to buy homeowners insurance, for example. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future claim payments and maintain adequate reserves. Large companies benefit from economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by specializing in particular products or industries. The US industry is highly concentrated: the 50 largest firms account for more than 80% of revenue.
Property/casualty insurance companies have struggled to maintain strong margins due to sluggish premium growth, low interest rates, increasing competition, rising catastrophe losses, and regulatory changes over the past decade.
Products, Operations & Technology
Major products include vehicle property insurance, which account for about 40% of the industry's revenue. This is followed by personal vehicle insurance,
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