Property Insurance - United States

The Property Insurance market market in the United States is projected to reach a market size (gross written premium) of US$240.40bn in 2024.
The average spending per capita in the Property Insurance market market is expected to amount to US$703.30 in 2024.
Furthermore, the gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 7.26%, resulting in a market volume of US$341.30bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$240.40bn in 2024.
The property insurance market in the United States is experiencing a surge in demand due to an increase in natural disasters and climate-related risks.

Definition:

The property insurance market encompasses insurance products that protect individuals and businesses from financial losses related to damage or loss of property, such as homes, commercial buildings, or personal belongings. Policyholders pay regular premiums to insurance providers, and in return, these insurers offer coverage for events like fire, theft, natural disasters, and other property-related risks. Property insurance is crucial for safeguarding assets and providing financial assistance to repair or replace property damaged or lost due to covered incidents.

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.

Insurance for all damage or loss of property caused by fire and natural forces
Insurance for all damage or loss of property caused by crime

All other insurance types, such as life insurance and health insurance
Reinsurance

Over the past few years, the Property Insurance market in United States has experienced significant growth and evolution. Customer preferences in the United States have been shifting towards more comprehensive property insurance coverage, including protection against natural disasters such as hurricanes, wildfires, and floods. Customers are increasingly seeking policies that offer not only financial reimbursement for property damage but also additional benefits such as temporary accommodation and liability coverage. One of the prominent trends in the Property Insurance market in United States is the increasing adoption of technology and data analytics. Insurers are leveraging advanced analytics to assess risks more accurately, customize policies based on individual needs, and streamline claims processing. This trend is driven by the need for greater efficiency, improved customer experience, and better risk management in an evolving market landscape. Another trend shaping the Property Insurance market in United States is the rise of green and sustainable initiatives. Insurers are developing products that promote environmentally friendly practices, such as offering discounts for energy-efficient homes or providing coverage for eco-friendly upgrades. This trend reflects the growing awareness of climate change and sustainability among both insurers and customers. Local special circumstances in the United States, such as the increasing frequency and severity of natural disasters, have had a significant impact on the Property Insurance market. Insurers are facing challenges in underwriting properties in high-risk areas prone to hurricanes, wildfires, and flooding. This has led to changes in pricing strategies, coverage options, and risk assessment methodologies to adapt to the changing landscape of property risks. Underlying macroeconomic factors, such as low interest rates and economic uncertainty, have also influenced the Property Insurance market in United States. Insurers are facing pressure on investment returns, which has implications for pricing and profitability in the insurance sector. Economic conditions and regulatory changes play a crucial role in shaping the competitive dynamics and market trends in the property insurance industry.

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.

Berkshire Hathaway, State Farm, and Progressive Corp are just some of the biggest property and casualty insurance companies in the world - all of which hail from the United States. Property and casualty insurance is a type of insurance which covers risks related to loss or damage of property. This type of insurance has two major areas: protection of physical objects and protection against legal liability. In total, the value of gross premiums written by the U.S. property and casualty insurance sector exceeded 850 billion U.S. dollars in 2022. In the same year, 35 percent of the U.S. P&C premiums were written by private passenger auto insurance companies.