Overview

You're covered: Industry operators are expected to enter a softening price cycle

IBISWorld’s industry research report on Property, Casualty and Direct Insurance in Texas 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.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Industry operators are expected to begin competing for market share by competitively pricing premiums
  • Industry operators take a portion of the premiums they underwrite and invest them in asset classes
  • Operators are expected to have the confidence needed to enter a softening price cycle

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    Industry Analysis & Industry Trends

    Over the five years to 2017, industry revenue has increased, and industry operators have benefited from a hardening price cycle. This led industry operators to generate more revenue from premiums underwritten. Additionally, investment income generated by industry operators has increased as a result of appreciating asset prices in financial markets over the period. While industry revenue is expected to continue to increase over the five years to 2022, it is expected to do so at a slightly slower rate than the prior period. After having bolstered balance sheets and profit margins over the hardening price cycle, industry operators are expected to begin to compete for market share by competitively pricing premiums...

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    Industry Report - Starting a New Business Chapter

    One of the largest barriers to entry new operators in the Property, Casualty and Direct Insurance industry in Texas deal with is the large amount of capital that is needed to successfully operate in the industry. While obtaining a license to underwrite insurance in Texas is relatively easy, having enough capital to underwrite a portfolio of insurance that is required to mitigate risk is much more difficult. Being able to spread risk associated with underwriting also enables operators to competitively price premiums at or near market rates. This is another barrier to entry new operators experience. Furthermore, new entrants must comply with rules set by the Texas Department of Insurance. Ent..

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

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

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    Industry Products

    What is the Property, Casualty and Direct Insurance in Texas 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 auto insurance
    Commercial auto insurance
    Homeowners multiple peril insurance
    Commercial multiple peril insurance
    Workers' compensation insurance
    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
  • Homeownership rate in Texas
  • Number of businesses in Texas
  • Unemployment Rate in Texas
  • Yield on 10-year Treasury note
  • Natural disaster index

  • Current Performance
  • Premium prices and investment income
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Premium price cycles
  • Investment income
  • Industry landscape
  • Table: Property, Casualty and Direct Insurance in Texas Industry Revenue Outlook

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

  • Major Markets
  • Private market
  • Commercial market
  • Other insurance providers
  • Chart: Major Market Segmentation for the Property, Casualty and Direct Insurance in Texas 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 Texas

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

  • Major Companies
    State Farm Mutual Automobile Insurance CompanyAllstate Insurance CompanyFarmers Insurance GroupBerkshire Hathaway Inc.Texas Mutual Insurance Company
  • Table: State Farm Mutual Automobile Insurance Company - financial performance
  • Table: Allstate Insurance Company - financial performance
  • Table: Farmers Insurance Group - financial performance
  • Table: Berkshire Hathaway Inc. - financial performance
  • Table: Texas Mutual Insurance Company - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Property, Casualty and Direct Insurance in Texas 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 Texas Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Homeownership rate in Texas (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.
  • 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 in Texas:
    • 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 Texas 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 Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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