Road to recovery: Providers will benefit from more car purchases and higher interest rates

The Automobile Insurance market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.


Industry Threats & Opportunities

  • The industry’s bodily injury and property damage liability products have driven sales
  • Liability insurance products have grown as a share of revenue in recent years
  • The improving economy will bring consumers back into car dealerships, boosting demand

  • shopping_cartBUY NOW TO READ MORE

    Industry Analysis & Industry Trends

    An intensified focus on financial positions and net premium growth for liability insurance products have aided the Automobile Insurance industry over the five years to 2016. Over the five years to 2021, industry revenue is forecast to increase due to continued improvements in the macroeconomic landscape, which are anticipated to benefit investment conditions for auto insurers. Given that the majority of auto insurer assets are invested in bonds, forecast increases in interest rates will likely boost investment gains. Despite this trend, consolidation in the industry is expected to continue, with larger operators viewing strategic acquisitions as a lucrative method to expand their share of the market...

    shopping_cartBUY NOW TO READ MORE

    Industry Report - Industry Locations Chapter

    The Automobile Insurance industry is concentrated in the Southeast, Great Lakes and Mid-Atlantic regions. The distribution of industry establishments closely follows domestic population trends, particularly urbanization trends. Providers charge higher premiums in locations where there are more cars on the road, largely because this increases the likelihood of accidents. Auto insurance is also more expensive in urban regions because of the higher probability of theft or vandalism. For consumers, the most expensive cities to insure a car include Detroit, Philadelphia, and New Orleans.

    The Southeast region accounts for the largest share of industry establishments, estimated at 26.4% of the total, while also accounting for the highest portion of the total US population. The..

    shopping_cartBUY NOW TO READ MORE

    Additional Insights for the Automobile Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Automobile Insurance Industry are

  • Ability to effectively manage risk
  • Management of a high quality assets portfolio
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicle registrations and Number of vehicle accidents in the Automobile Insurance industry impact industry performance..

    shopping_cartBUY NOW TO READ MORE

    Look under the hood?

    Download a FREE sample report

    Industry Products

    What is the Automobile Insurance Industry?

    This industry underwrites, or assumes the risk and assigns premiums for, auto insurance policies. Car insurance provides financial protection against physical damage to automobiles and bodily injuries resulting from traffic collisions. Automobile insurance can also protect against resulting liability.

    Industry Products
    Personal liability insurance
    Personal collision/comprehensive insurance
    Commercial liability insurance
    Commercial collision/comprehensive insurance
    Industry Activities
    Directly underwriting private passenger liability insurance
    Directly underwriting private passenger collision/comprehensive insurance
    Directly underwriting commercial liability insurance
    Directly underwriting commercial collision/comprehensive insurance

    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
  • Number of vehicle accidents
  • Per capita disposable income
  • Regulation for the Property, Casualty and Direct Insurance Industry
  • Natural disaster index

  • Current Performance
  • Renewals and market cycles
  • Product trends and consumer risk
  • Online dominance and concentration
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment conditions improve
  • Product lines and market changes
  • Table: Automobile Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Automobile Insurance Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Transportation and Warehousing
  • Consumers

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

  • Products & Services
  • Personal liability insurance
  • Personal collision/comprehensive insurance
  • Commercial liability insurance
  • Commercial collision/comprehensive insurance
  • Chart: Automobile Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Drivers aged 24 and under
  • Drivers aged 25 to 34
  • Drivers aged 45 to 54
  • Drivers aged 35 to 44
  • Commercial market
  • Drivers aged 55 to 64
  • Drivers aged 65 to 74
  • Drivers aged 75+
  • Chart: Major Market Segmentation for the Automobile 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 costs
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Automobile Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Automobile Insurance Industry

  • Industry Globalization
    Major Companies
    State Farm Insurance CompaniesProgressive Corp.Berkshire Hathaway Inc.Allstate Insurance Company
  • Table: State Farm Insurance Companies - financial performance
  • Table: Progressive Corp. - financial performance
  • Table: Berkshire Hathaway Inc. - financial performance
  • Table: Allstate Insurance Company - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Automobile 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 Automobile Insurance Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of motor vehicle registrations (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Combined Ratio
  • The sum of incurred losses and expenses divided by earned premium.
  • Deductible
  • A specified amount of money the insured party must pay before its insurance company will pay a claim.
  • Expense Ratio
  • Underwriting or operating expenses as a percentage of earned premiums, indicating the percentage of premium income that was consumed in writing insurance business.
  • Hard Market
  • A cyclical occurrence in the auto insurance industry when premiums and profit rise.
  • Insurance Premium
  • A payment made by the insured party to the insurance company for coverage. Often simply called a premium, it is made in increments and is determined at the beginning of the policy term.
  • Liability
  • The insuring company's contractual obligation to the policyholder.
  • 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.
  • Soft Market
  • A cyclical occurrence in the auto insurance industry when premiums and profit decline.
  • 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 Automobile 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 Automobile 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 Automobile Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Join IBISWorld today

    Contact Us

    Want to speak to a representative? Call us.