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

Property, Casualty and Direct Insurance industry revenue is expected to increase over the five years to 2018. Numerous catastrophic events that occurred just prior to the period led to poor profit margins, pushing the industry into a hard-pricing cycle to try to improve margins and rebuild balance sheets over the five years to 2018. Excess reserves and profit margins were once again hampered by numerous natural disasters in 2017, including Hurricane Irma and Hurricane Maria. Despite difficult underwriting conditions as a result of these natural disasters, industry profit margins were supported during the period by stable investment income generated by operators...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Most property and casualty premiums are obtained through the renewal of policies that relate to existing risks
  • Industry operators invest for numerous reasons, including to cover a potential loss on underwriting
  • The Property, Casualty and Direct Insurance industry is expected to grow at a slightly slower pace
  • Industry Report - Starting a New Business Chapter

    The Property, Casualty and Direct Insurance industry has high barriers to entry. A new entrant must conform to stringent state and federal regulations to establish property and casualty (P&C) and title insurance operations. The P&C market is highly competitive. Both markets are highly saturated and contain a large number of well-established brands. The industry is also highly complex, as some of the nation's largest state markets are also the riskiest with regards to losses (e.g. Florida and California). Furthermore, perhaps the highest barrier to overcome, a prospective entrant must raise an enormous amount of capital to start operations...purchase to read more.

    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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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Premium pricing conditions
  • 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

  • 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
  • Workers compensation
  • Other liability
  • 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
    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
    State Farm Mutual Automobile Insurance Company, Berkshire Hathaway Inc., The Allstate Corporation, Liberty Mutual Insurance Group, The Travelers Companies Inc.,
  • Table: State Farm Mutual Automobile Insurance Company - financial performance
  • Table: Berkshire Hathaway Inc. - financial performance
  • Table: The Allstate Corporation - financial performance
  • Table: Liberty Mutual Insurance Group - financial performance
  • Table: The Travelers Companies Inc. - financial performance

  • 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
    Table: Industry Data for the Property, Casualty and Direct Insurance Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of Motor Vehicle Registrations (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Property, Casualty and Direct Insurance provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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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