Non-life insurances - United States

The Non-life insurance market in the United States is projected to reach a market size (gross written premium) of US$2.50tn in 2024.
On average, each person the United States is expected to spend US$7.31k on non-life insurance in 2024.
The gross written premium is predicted to have an annual growth rate of 3.42% from 2024 to 2029, resulting in a market volume of US$2.96tn by 2029.
When compared globally, the United States is set to generate the highest gross written premium in 2024, amounting to US$2.50tn.
The United States is experiencing a surge in demand for non-life insurances, driven by an increasing awareness of the importance of financial protection in uncertain times.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Non-life insurances market in United States is experiencing a shift in customer preferences towards more personalized and tech-savvy solutions, driving significant trends in the industry.

Customer preferences: Customers in the United States are increasingly seeking customized non-life insurance products that cater to their specific needs and lifestyles. With the rise of digitalization, there is a growing demand for online platforms that offer quick and convenient access to insurance services. Additionally, customers are placing greater importance on transparency, flexibility, and value for money when choosing insurance providers.

Trends in the market: One of the prominent trends in the non-life insurance market in the United States is the adoption of Insurtech solutions. Insurtech companies are leveraging technology such as artificial intelligence, big data analytics, and blockchain to streamline processes, enhance customer experience, and offer innovative insurance products. This trend is reshaping the competitive landscape and driving traditional insurance companies to adapt and innovate to stay relevant. Another key trend is the increasing focus on cybersecurity insurance. With the rise in cyber threats and data breaches, businesses and individuals are recognizing the importance of protecting themselves against financial losses resulting from cyber incidents. As a result, there is a growing demand for cyber insurance coverage, creating new opportunities for insurers to develop specialized products in this niche segment.

Local special circumstances: The regulatory environment in the United States plays a significant role in shaping the non-life insurance market. State-specific regulations, such as auto insurance requirements and healthcare mandates, influence the product offerings and pricing strategies of insurance companies operating in different states. Additionally, the competitive landscape is characterized by a mix of national carriers and regional players, each catering to the unique needs of local markets.

Underlying macroeconomic factors: The overall economic conditions in the United States, including GDP growth, employment rates, and interest rates, have a direct impact on the non-life insurance market. A strong economy typically leads to higher consumer spending and increased demand for insurance products. Conversely, economic downturns can result in reduced purchasing power and a slowdown in the insurance sector. As such, insurers closely monitor macroeconomic indicators to assess market opportunities and risks.

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.