General Liability Insurance - United States

The projected market size (gross written premium) of the General Liability Insurance market market in the United States is expected to reach US$178.40bn by 2024.
In the same year, the average spending per capita in this market is estimated to be US$521.80.
Looking ahead, the gross written premium is forecasted to experience an annual growth rate (CAGR 2024-2029) of 4.06%, leading to a market volume of US$217.60bn by 2029.
In a global context, the United States is anticipated to generate the highest gross written premium in 2024, amounting to US$178.40bn.
The United States General Liability Insurance market is experiencing a surge in demand due to increasing litigation risks and the need for comprehensive coverage.

Definition:

General liability insurance is a type of coverage that offers protection to businesses and individuals against financial losses resulting from third-party claims of bodily injury, property damage, or personal injury. When you have general liability insurance, you pay regular premiums to an insurer, and in return, the insurer helps cover legal costs, settlements, and damages if you or your business are found liable for causing harm to others. This insurance is vital for shielding individuals and businesses from the financial repercussions of legal claims and liabilities arising from accidents or incidents that occur on their premises or as a result of their actions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Liability insurance booked for individuals and businesses

Motor vehicles liability
Aircraft liability
Liability for ships
Reinsurance

The General Liability Insurance market in United States is experiencing significant growth and evolution driven by various factors.

Customer preferences: Customers in the United States are increasingly looking for comprehensive General Liability Insurance coverage that not only protects their businesses from potential risks and liabilities but also offers additional benefits such as cyber liability and professional indemnity coverage. There is a growing demand for customizable insurance policies that can be tailored to specific industry needs and company sizes.

Trends in the market: One key trend in the General Liability Insurance market in the United States is the rise of Insurtech companies offering innovative digital solutions for purchasing and managing insurance policies. These Insurtech firms are leveraging technology to streamline the insurance process, provide real-time risk assessment, and offer competitive pricing. Additionally, there is a noticeable trend towards more transparent pricing models and simplified policy language to enhance customer trust and understanding.

Local special circumstances: The regulatory environment in the United States plays a significant role in shaping the General Liability Insurance market. Each state has its own set of insurance regulations and requirements, leading to a diverse and fragmented market landscape. This can impact pricing, coverage options, and distribution channels, making it essential for insurance providers to navigate the complex regulatory framework effectively.

Underlying macroeconomic factors: The overall economic conditions in the United States, such as GDP growth, interest rates, and unemployment rates, can influence the General Liability Insurance market. A growing economy typically correlates with increased business activities and higher demand for insurance coverage. Conversely, economic downturns may lead to cost-cutting measures by businesses, affecting their insurance purchasing decisions. Moreover, changes in litigation trends, legal precedents, and societal attitudes towards liability can also impact the General Liability Insurance market in the United States.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.