Overview

Saving up: Rising premiums and higher interest rates will improve industry revenue prospects

IBISWorld’s Property, Casualty and Direct Insurance market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Rising premiums and higher interest rates will significantly improve the industry’s revenue prospects
  • Industry operators benefited from improving conditions in financial markets
  • Rising interest will make auto loans more expensive

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    Industry Analysis & Industry Trends

    Revenue for the Property, Casualty and Direct Insurance industry benefited from a hardening price cycle that coincided with the beginning of the period. Numerous catastrophic losses led to poor profit margins, pushing the industry into a hard-pricing cycle to try to improve margins and rebuild balance sheets. Not only did profit margins expand over the five years to 2017 as a result of the hardening price cycle, but also because of bull markets in multiple asset classes in which industry operators invest. Industry revenue is forecast to increase at over the five years to 2022. Technological changes, including systems upgrades and the increased use of cloud computing, will enable industry operators to decrease operational expenses and more effectively manage risk...

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    Industry Report - Industry Locations Chapter

    The distribution of industry establishments is largely determined by population trends. Larger and more populated states tend to have more industry establishments than their smaller counterparts. Population density is also an important indicator of the number of establishments in each state. States with low density tend to have more establishments per individual than densely populated regions. In contrast, densely populated regions have fewer establishments but larger offices.

    In addition to population, the distribution of industry establishments is also influenced by regulatory requirements and premium prices. States with higher premiums and less regulation tend to have more establishments. However, higher premiums are often associated with greater risk. For..

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    Additional Insights for the Property, Casualty and Direct Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Property, Casualty and Direct Insurance Industry are

  • Ability to effectively manage risk
  • Offer a range of insurance products
  • Management of a high quality assets portfolio
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicle registrations and Homeownership rate in the Property, Casualty and Direct Insurance industry impact industry performance..

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    Industry Products

    What is the Property, Casualty and Direct Insurance Industry?

    Operators in this industry are primarily engaged in underwriting insurance policies that protect individuals, businesses and agencies against losses that occur as a result of property damage, liability or other risks. Industry participants also protect real estate owners or creditors against losses sustained as a result of any title defect to real property. This industry does not include insurance coverage for life, disability, accidental death, dismemberment or health risks.

    Industry Products
    Private passenger auto
    Commercial auto
    Homeowners multiple peril
    Other liability
    Workers compensation
    Commercial multiple peril
    Fire
    Industry Activities
    Directly underwriting automobile insurance
    Directly underwriting homeowners' insurance
    Directly underwriting title insurance
    Directly underwriting workers' compensation insurance
    Directly underwriting medical malpractice insurance
    Reinsuring policies from other insurance companies

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of motor vehicle registrations
  • Homeownership rate
  • Natural disaster index
  • Yield on 10-year Treasury note
  • Regulation for the Property, Casualty and Direct Insurance Industry
  • S&P 500

  • Current Performance
  • Property and casualty coverage
  • Hardening pricing cycle and improved investment income
  • Demand falls and enterprises decline
  • Chart: Revenue Growth

  • Industry Outlook
  • Ownership rates decline
  • Investment conditions improve
  • Technology and consolidation
  • Uncertain catastrophes
  • Table: Property, Casualty and Direct Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Property, Casualty and Direct Insurance Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Mining
  • Wholesale Trade
  • Information
  • Educational Services
  • Consumers

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Reinsurance Carriers
  • Third-Party Administrators & Insurance Claims Adjusters

  • Products & Services
  • Private passenger auto
  • Other
  • Homeowners multiple peril
  • Other liability
  • Workers compensation
  • Commercial multiple peril
  • Commercial auto
  • Fire
  • Chart: Property, Casualty and Direct Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other commercial market
  • Private vehicle market
  • Other private market
  • Commercial vehicle market
  • Other insurance carriers
  • Chart: Major Market Segmentation for the Property, Casualty and Direct Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Loss and loss adjustment expenses
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Property, Casualty and Direct Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Property, Casualty and Direct Insurance Industry

  • Industry Globalization
    Major Companies
    State Farm Mutual Automobile Insurance CompanyBerkshire Hathaway Inc.Liberty Mutual Insurance GroupAllstate Insurance CompanyThe Travelers Companies Inc.
  • Table: State Farm Mutual Automobile Insurance Company - financial performance
  • Table: Berkshire Hathaway Inc. - financial performance
  • Table: Liberty Mutual Insurance Group - financial performance
  • Table: Allstate Insurance Company - financial performance
  • Table: The Travelers Companies Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Property, Casualty and Direct Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Property, Casualty and Direct Insurance Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of Motor Vehicle Registrations (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Capacity
  • The supply of insurance or the maximum amount of insurance a company or market can underwrite, which is determined by a firm's financial strength or surplus.
  • Cede
  • The action of an insurer passing risk to a reinsurer. The cedent purchases a contract, indemnifying them for specific losses realized in assuming liability through the issuance of insurance policies.
  • Combined Ratio
  • A measurement of a firm's underwriting performance and profitability; it equals the loss ratio plus the expense ratio.
  • Expense Ratio
  • Underwriting or operation expenses as a percentage of earned premiums, indicating the percentage of premium income that was consumed in writing insurance business.
  • Loss Ratio
  • The percentage of premiums earned that were paid out as claims; it equals loss-incurred and loss-adjusted expenses (LLAE) divided by earned premiums.
  • Policyholder Surplus
  • The difference between an insurer's liabilities and its assets; this is the financial cushion that protects policyholders in case of unexpectedly high claims.
  • Title Insurance
  • Indemnity insurance that protects against financial loss from defects in title to real property and from invalidity of mortgage liens.
  • Underwriting
  • The process where insurers assess the risks to insure and decide how much to charge for those risks.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Property, Casualty and Direct Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Property, Casualty and Direct Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Property, Casualty and Direct Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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