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Automobile Insurance: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Automobile Insurance Market Research Report | NAICS OD4765 | Aug 2016

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

IBISWorld’s Automobile Insurance market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Industry Statistics & Market Size
Revenue
$228bn
Annual Growth 11-16
2.8%
Annual Growth 16-21
Annual Growth
Profit
Profit
Employment
224,705
Businesses
5,420
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
  • ... purchase 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... ... purchase to read more

Industry Report - Industry Products Chapter

Personal and commercial liability insurance

Liability insurance products offered to downstream consumers and corporate customers account for the largest portion of industry revenue. Bodily injury liability insurance covers the medical and legal expenses associated with an accident that causes the injury or death of an individual. Alternatively, property damage liability insurance covers the damages caused by an individual's car to the property of others. Liability insurance is typically required of a driver; moreover, some states, including California, have mandated minimum liability coverage amounts. According to the latest available data from the Insurance Information Institute and IBISWorld estimates, private-passenger liability coverage is expected to increase from 52.9% o.. ... purchase 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... purchase to read more

     


    Industry ProductsRelated Reports

    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 insurancePersonal collision/comprehensive insuranceCommercial liability insuranceCommercial collision/comprehensive insurance
     
    Industry Activities
    Directly underwriting private passenger liability insuranceDirectly underwriting private passenger collision/comprehensive insuranceDirectly underwriting commercial liability insuranceDirectly 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 Companies
    Progressive 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
  • Includes:
  • 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 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.

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