Overview

Home safe: The industry is poised for moderate growth as the number of households rise

IBISWorld’s Homeowners' 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

  • Further housing market recovery and increasing interest rates will boost industry performance
  • Low interest rates hindered investment income growth, despite rising stock market values
  • Increases in investment income are expected to deter the downside of catastrophic events

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    Industry Analysis & Industry Trends

    Over the past five years, the Homeowners' Insurance industry has benefited from the economy's low postrecessionary base following a severe financial crisis and record natural disaster losses that weakened industry demand and profitability. Demand for homeowners' insurance has increased in conjunction as a higher number of homes need insurance coverage and assets affiliated with homeownership increase in value, heightening the need to protect them. The industry is poised for moderate growth in the coming five years. The economy is expected to maintain momentum as unemployment continues to decline, boosting housing starts and driving up home prices. Additionally, investment income is expected to increase its contribution to revenue...

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    Industry Report - Starting a New Business Chapter

    The Homeowners' Insurance industry faces moderate and increasing barriers to entry. Prospective firms must obtain a Certificate of Authority from state insurance regulators to enter this industry. This industry is also subject to higher operating costs in comparison to other insurance providers because homeowners' insurance premiums are typically lower than other insurance policies, while administrative and processing costs are similar. Overall losses on claims are also high and volatile, due to the unpredictability of natural disasters. Consequently, industry operators face higher volatility and lower profitability than other insurance providers, making it difficult for new entrants to succeed in this industry.

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    Additional Insights for the Homeowners' Insurance Industry

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

  • Ensure pricing policy is appropriate
  • Superior financial management and debt management
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Number of households and House price index in the Homeowners' Insurance industry impact industry performance..

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    Industry Products

    What is the Homeowners' Insurance Industry?

    This industry includes insurers that underwrite (e.g. assume and manage risk) homeowners’ insurance policies. Homeowners’ insurance protects households against property damage or losses due to catastrophic disasters, theft and other causes. These policies also protect against personal liability that may arise from bodily injury that occurs on one’s property.

    Industry Products
    HO-3
    HO-5
    HO-2
    HO-1
    HO-8
    Industry Activities
    Assuming and managing property damage risks due to losses from catastrophic weather, fire, theft and other causes
    Assuming and managing household personal and legal liabilities from bodily injury and property damage
    Assuming and managing identity theft, credit card and other household risks

    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 households
  • House price index
  • S&P 500
  • Natural disaster index
  • Regulation for the Property, Casualty and Direct Insurance Industry
  • Yield on 10-year Treasury note

  • Current Performance
  • Weak demand and underwriting losses force higher prices
  • Investment conditions
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Catastrophic losses and profitability
  • Greater government involvement
  • Further consolidation
  • Table: Homeowners' Insurance Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Private Equity, Hedge Funds & Investment Vehicles
  • Real Estate Investment Trusts
  • Reinsurance Carriers
  • Stock & Commodity Exchanges
  • Venture Capital & Principal Trading

  • Products & Services
  • HO-3
  • HO-5
  • HO-2
  • HO-1
  • HO-8
  • Chart: Homeowners' Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 25 to 34
  • Consumers aged 35 to 44
  • Consumers aged 45 to 54
  • Consumers aged 55 to 64
  • Consumers aged 65 and older
  • Consumers aged under 25
  • Chart: Major Market Segmentation for the Homeowners' Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • LLAE ratio
  • Expense ratio
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Homeowners' Insurance

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

  • Industry Globalization
    Major Companies
    State Farm Insurance CompaniesAllstate Insurance CompanyLiberty Mutual Insurance GroupFarmers Insurance Group
  • Table: State Farm Insurance Companies - financial performance
  • Table: Allstate Insurance Company - financial performance
  • Table: Liberty Mutual Insurance Group - financial performance
  • Table: Farmers Insurance Group - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Homeowners' 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 Homeowners' Insurance Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of households (2007-2021)

  • 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.
  • 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.
  • 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 Homeowners' 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 Homeowners' 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 Homeowners' Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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