Full Coverage: a hardening premium price cycle will cause revenue to spike

Operators in the Property, Casualty and Direct Insurance industry in Florida provide consumers and businesses with protection in case of a variety of events including, but is not limited to, car accidents, natural catastrophes, work-place injuries and medical malpractice. By underwriting an array of similar insurance policies, industry operators can effectively minimize their risk by spreading the risk over the pool of premiums. This makes the industry a vital part of the larger economy's risk management. Over the five years to 2017, industry revenue in Florida is expected to increase. Industry revenue growth can be attributed to a hardening premium price cycle as industry operators looked to bolster their excess reserves and improve profit margins...purchase to read more.

Industry Statistics & Market Size
Revenue
$50bn
Annual Growth 12-17
4.3%
Forecast Growth 17-22
x.x%lock
Profit
x.x%lock
Employment
37,083
Businesses
1,281
Market Share of Companies

Industry Threats & Opportunities

  • Industry profit margins have been tested by natural disasters and hurricanes in Florida
  • As interest rates rise, industry operators in Florida to place an emphasis on debt securities
  • The Federal Reserve is expected to continue their gradual process of normalizing interest rates

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    Industry Report - Starting a New Business Chapter

    New entrants to the Property, Casualty and Direct insurance industry in Florida face high and increasing barriers to entry. In order to adequately spread risk, industry operators underwrite a portfolio of insurance policies. Underwriting a large portfolio of insurance policies requires a large amount of capital up front, which can prevent new entrants from joining the industry. Additionally, to gain market share, new entrants must competitively price premiums, which require operators have excess capital in the event they underwrite the premiums at a loss. Furthermore, new entrants will have to comply with guidelines set by the Florida Office of Insurance. Regulation varies between lines of insurance, which can deter new entrants from providing certain lines of insurance...purchase to read more.

    Additional Insights for the Property, Casualty and Direct Insurance in Florida Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Property, Casualty and Direct Insurance in Florida 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 Homeownership rate in Florida and Number of businesses in Florida in the Property, Casualty and Direct Insurance in Florida industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Property, Casualty and Direct Insurance in Florida 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
  • Commercial multiple peril
  • Workers' compensation
  • Allied lines
  • 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

    • Related Reports

    Similar Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Reinsurance Carriers
  • Workers' Compensation & Other Insurance Funds
  • Life Insurance & Annuities in California
  • Health & Medical Insurance in California
  • Property, Casualty & Direct Insurance in California
  • Life Insurance & Annuities in New York
  • Health & Medical Insurance in New York
  • Property, Casualty & Direct Insurance in New York
  • Property, Casualty and Direct Insurance in Illinois
  • Life Insurance & Annuities in Illinois
  • Health & Medical Insurance in Illinois
  • Property, Casualty and Direct Insurance in Texas
  • Health & Medical Insurance in Florida
  • Property, Casualty and Direct Insurance in Massachusetts
  • Life Insurance & Annuities in Massachusetts
  • Health & Medical Insurance in Massachusetts
  • Property, Casualty and Direct Insurance in Ohio
  • Health & Medical Insurance in Ohio
  • Property, Casualty and Direct Insurance in Pennsylvania
  • Life Insurance & Annuities in Pennsylvania
  • Health & Medical Insurance in Pennsylvania
  • Property, Casualty and Direct Insurance in New Jersey
  • Life Insurance & Annuities in New Jersey
  • Health & Medical Insurance in New Jersey
  • Property, Casualty and Direct Insurance in Georgia
  • Life Insurance & Annuities in Georgia
  • Health & Medical Insurance in Georgia
  • Property, Casualty and Direct Insurance in Michigan
  • Life Insurance & Annuities in Michigan
  • Health & Medical Insurance in Michigan
  • Property, Casualty and Direct Insurance in Wisconsin
  • Life Insurance & Annuities in Wisconsin
  • Health & Medical Insurance in Wisconsin
  • Property, Casualty and Direct Insurance in Washington
  • Life Insurance & Annuities in Washington
  • Health & Medical Insurance in Washington
  • Property, Casualty and Direct Insurance in Virginia
  • Life Insurance & Annuities in Virginia
  • Health & Medical Insurance in Virginia
  • Property, Casualty and Direct Insurance in Tennessee
  • Life Insurance & Annuities in Tennessee
  • Health & Medical Insurance in Tennessee
  • Property, Casualty and Direct Insurance in Missouri
  • Life Insurance & Annuities in Missouri
  • Property, Casualty and Direct Insurance in North Carolina
  • Life Insurance & Annuities in North Carolina
  • Health & Medical Insurance in North Carolina
  • Property, Casualty and Direct Insurance in Minnesota
  • Life Insurance & Annuities in Minnesota
  • Health & Medical Insurance in Minnesota
  • Property, Casualty and Direct Insurance in Maryland
  • Life Insurance & Annuities in Maryland
  • Health & Medical Insurance in Maryland
  • Property, Casualty and Direct Insurance in Colorado
  • Life Insurance & Annuities in Colorado
  • Health & Medical Insurance in Colorado
    • 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
  • Homeownership rate in Florida
  • Number of businesses in Florida
  • Unemployment rate in Florida
  • Yield on 10-year Treasury note
  • Natural disaster index

    • Current Performance
  • Florida landscape
  • Investment income
  • Industry participation
  • Chart: Revenue Growth

    • Industry Outlook
  • Pricing Cycle
  • Investment conditions
  • Table: Property, Casualty and Direct Insurance in Florida Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Property, Casualty and Direct Insurance in Florida 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
  • Homeowners multiple peril
  • Other
  • Allied lines
  • Workers' compensation
  • Commercial multiple peril
  • Commercial auto
  • Fire
  • Chart: Property, Casualty and Direct Insurance in Florida Industry Products and Services Segmentation

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

    • Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Loss and loss adjustment expenses
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Property, Casualty and Direct Insurance in Florida

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

    • Major Companies

    Berkshire Hathaway Inc., Progressive Corp., State Farm Mutual Automobile Insurance Company, Allstate Insurance Company, Citizens Financial Group Inc.,
  • Table: Berkshire Hathaway Inc. - financial performance
  • Table: Progressive Corp. - financial performance
  • Table: State Farm Mutual Automobile Insurance Company - financial performance
  • Table: Allstate Insurance Company - financial performance
  • Table: Citizens Financial Group Inc. - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Property, Casualty and Direct Insurance in Florida 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 in Florida Industry
    Includes:
  • Industry Revenue (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

    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 and 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?

    The Property, Casualty and Direct Insurance in Florida industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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 in Florida:
    • 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 in Florida 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 in Florida, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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