Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 2.9 % over the past five years, to reach an estimated $288.3bn in 2025.
Trends and Insights
Ongoing shifts in labor markets alter insurance premium bases and risk exposure
- When unemployment trends higher, insurers write fewer new policies and observe reductions in exposure across lines such as workers’ compensation, liability and commercial auto. Agencies and carriers often adjust by focusing on hiring sectors and broadening coverage options for clients less impacted by the labor cycle, helping to stabilize business volume.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Steady economic growth will keep demand for the industry’s services stable
- Sustained economic growth is projected to support steady demand for coverage, as rising consumer spending drives business sales expansion and higher corporate profit. With improved profitability, companies will likely allocate more resources toward risk management and insurance, while positive economic sentiment may encourage entrepreneurship and increase the pool of potential clients in the market.
Biggest companies in the Business Insurance in the US
| Company | Market Share (%)
2025 | Revenue ($m)
2025 | Profit ($m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
Chubb Ltd | 20,485.0 | 7,713.2 | 37.7 | |
State Farm Mutual Automobile Insurance Co | 13,521.7 | -0.2 | 0.0 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including General and professional liability coverage, Workers' compensation coverage and Commercial multiple peril coverage. General and professional liability coverage is the largest segment of the Business Insurance in the US.
Trends and Insights
General and professional liability coverage is becoming more essential
- General and professional liability insurance covers claims arising from bodily injury, property damage, personal injury and business disruptions, including issues such as cyberattacks. This coverage stands out as essential for protecting business assets and reputations in the face of accidents, errors or external claims. Companies use these policies as a core element of their risk management strategies, helping them avoid serious financial consequences linked to liability events.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry underwrites (i.e. assuming the risk and assigning premiums) business insurance, which is used to protect businesses from losses due to events that may occur during the normal course of operations.
What's included in this industry?
Products and services covered in the Business Insurance industry in the United States include Directly underwriting workers' compensation insurance, Directly underwriting general liability insurance, Directly underwriting professional liability insurance and Directly underwriting commercial multiple peril insurance.Companies
Companies covered in the Business Insurance industry in the United States include Chubb Ltd and State Farm Mutual Automobile Insurance Co.Purchase this report to view all 2 major companies in this industry.
Related Terms
Related terms covered in the Business Insurance industry in the United States include combined ratio, expense ratio and underwriting.Industry Code
NAICS 524126 - Business Insurance in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Fluctuations in unemployment and interest rates raised premiums and policy strategy. Insurance companies are experiencing fluctuations in their premium volumes and risk expos...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
General and professional liability insurance has become a cornerstone for businesses, providing protection against a wide range of potential incidents. As technology continue...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Southeast is a thriving hub for business insurance companies. Rapid economic and population growth in states like Florida, South Carolina and North Carolina is fueling de...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The business insurance market thrives on specialization due to the diverse needs of various industries, ranging from cyber to liability insurance. This array of needs encoura...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Chubb created a new North America Small & Lower Mid-Market division to focus on serving small businesses and lower middle-market commercial clients. The division combines Chu...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of Chubb Ltd's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of State Farm Mutual Automobile Insurance Co's performance by revenue, market share and profit margin from 2019 through 2025
Detailed analysis
- Description and key data for Chubb Ltd, and factors influencing its performance in the industry
- Description and key data for State Farm Mutual Automobile Insurance Co, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The National Association of Insurance Commissioners (NAIC) plays a crucial role in standardizing and regulating the insurance industry across the US. Founded in 1871, it aids...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profitability for insurers is up because of higher premiums and more precise risk management. By raising prices faster than costs and refining their risk models, insurers are...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Business Insurance industry in the United States in 2025?
The market size of the Business Insurance industry in the United States is $288.3bn in 2025.
How many businesses are there in the Business Insurance industry in the United States in 2025?
There are 1,343 businesses in the Business Insurance industry in the United States, which has grown at a CAGR of 3.4 % between 2020 and 2025.
How may import tariffs affect the Business Insurance industry in the United States?
The Business Insurance industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Business Insurance industry in the United States?
The Business Insurance industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Business Insurance industry in the United States grown or declined over the past 5 years?
The market size of the Business Insurance industry in the United States has been growing at a CAGR of 2.9 % between 2020 and 2025.
What is the forecast growth of the Business Insurance industry in the United States over the next 5 years?
Over the next five years, the Business Insurance industry in the United States is expected to grow.
What are the biggest companies in the Business Insurance industry in the United States?
The biggest companies operating in the Business Insurance industry in the United States are Chubb Ltd and State Farm Mutual Automobile Insurance Co
What does the Business Insurance industry in the United States include?
Directly underwriting workers' compensation insurance and Directly underwriting general liability insurance are part of the Business Insurance industry in the United States.
Which companies have the highest market share in the Business Insurance industry in the United States?
The company holding the most market share in the Business Insurance industry in the United States is Chubb Ltd.
How competitive is the Business Insurance industry in the United States?
The level of competition is high and increasing in the Business Insurance industry in the United States.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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