Soaring to a staggering $2.8 trillion in premiums amidst a landscape of escalating catastrophes and transformative risks, the global Property & Casualty insurance industry displayed both robust growth and profound adaptation in 2023.
Key Takeaways
- In 2023, the global P&C insurance market size reached $2.8 trillion in gross written premiums, reflecting a 4.2% year-over-year growth driven by rising catastrophe losses and inflation
- U.S. P&C direct premiums written totaled $831 billion in 2023, up 8.1% from 2022 amid hardening rates
- The European P&C market grew by 5.3% to €450 billion in 2023, fueled by motor and property lines
- Global P&C net premiums written reached $2.5 trillion in 2023, up 3.9%
- U.S. P&C net premiums written were $806 billion in 2023, growing 7.8%
- Auto physical damage premiums in U.S. hit $180 billion in 2023, up 11.2%
- U.S. P&C incurred losses totaled $650 billion in 2023, up 10.5% YoY due to nat cats
- U.S. private passenger auto claims $220 billion in 2023
- Homeowners insurance claims U.S. $80 billion in 2023, driven by wildfires and hurricanes
- U.S. combined ratio for P&C was 101.1% in 2023
- U.S. personal lines combined ratio 102.5% in 2023 due to auto losses
- Commercial lines U.S. combined ratio 98.7% in 2023
- Climate risk exposure in P&C portfolios rose 15% globally 2023
- Cyber attack frequency up 28% YoY in 2023 for P&C insureds
- U.S. social inflation drove 12% increase in severe liability claims 2023
Global P&C insurance grew strongly in 2023 despite record losses, hardening rates, and rising digital adoption.
Claims and Losses
- U.S. P&C incurred losses totaled $650 billion in 2023, up 10.5% YoY due to nat cats
- U.S. private passenger auto claims $220 billion in 2023
- Homeowners insurance claims U.S. $80 billion in 2023, driven by wildfires and hurricanes
- Commercial multi-peril losses $120 billion U.S. in 2023
- Workers' comp claims payments $55 billion U.S. in 2023
- Global natural catastrophe insured losses $120 billion in 2023, highest on record
- U.S. Hurricane Ian claims exceeded $50 billion in 2023 residuals
- Auto physical damage claims severity rose 15% YoY to $5,200 per claim U.S. 2023
- Liability claims frequency U.S. commercial lines up 3% in 2023
- U.S. medical malpractice claims $12 billion paid in 2023
- Cyber claims global $4 billion in 2023, up 50% YoY
- U.S. property claims frequency increased 4.2% in 2023
- Workers' comp lost-time claims 0.85 per 100 workers U.S. 2023
- Global flood claims $25 billion in 2023
- U.S. wildfire insured losses $20 billion in 2023
- Commercial auto claims severity $28,000 per claim U.S. 2023, up 12%
- U.S. P&C loss adjustment expenses $70 billion in 2023
- Personal injury protection claims $15 billion U.S. auto 2023
- Earthquake claims global $10 billion in 2023 Turkey/Syria
- U.S. products liability claims $8 billion in 2023
- Hailstorm claims U.S. $15 billion in 2023
- U.S. P&C unpaid losses $550 billion reserves end-2023
- Disability claims workers' comp $20 billion U.S. 2023
- Winter storm claims U.S. $12 billion in 2023
- U.S. P&C litigation claims costs up 20% to $40 billion in 2023
- Global severe convective storm losses $50 billion insured 2023
Claims and Losses Interpretation
The insurance industry's bill for 2023 makes it painfully clear that Mother Nature, litigious drivers, and innovative hackers have teamed up for an expensive year of unfortunate firsts and costly repeats.
Emerging Risks and Trends
- Climate risk exposure in P&C portfolios rose 15% globally 2023
- Cyber attack frequency up 28% YoY in 2023 for P&C insureds
- U.S. social inflation drove 12% increase in severe liability claims 2023
- Parametric insurance adoption grew 40% in P&C 2023
- AI usage in underwriting reached 65% of U.S. P&C firms in 2023
- Wildfire risk non-renewals up 25% in California P&C 2023
- Supply chain disruption claims $30 billion global P&C 2023
- ESG integration in 80% of P&C investment portfolios 2023
- Flood risk recategorization affected 15 million U.S. properties 2023
- D&O liability demand surged 20% amid litigation trends 2023
- Autonomous vehicle potential 30% reduction in auto premiums by 2030 projected 2023 studies
- Biodiversity risk emerging in 25% of P&C risk assessments 2023
- Usage-based insurance penetration 35% in personal auto U.S. 2023
- Pandemic-related business interruption claims settled $5 billion residual 2023
- Geopolitical risks added $10 billion to marine war premiums 2023
- Climate migration impacting 10% rise in coastal property risks 2023
- Blockchain claims processing reduced time by 50% in pilot P&C programs 2023
- Nuclear verdict frequency doubled in liability cases U.S. 2023
- Space risk insurance premiums up 15% with satellite launches 2023
- Mental health claims in workers' comp rose 18% U.S. 2023
- Quantum computing cyber threats flagged by 70% P&C leaders 2023
- Microinsurance growth 22% in emerging markets P&C 2023
- Active shooter risks led to 10% premium hikes in event insurance 2023
- RegTech adoption 55% in P&C compliance 2023
- Transition risk from net-zero policies 12% portfolio impact projected 2023
- Drone-related claims doubled to $500 million U.S. P&C 2023
- Generative AI hallucination risks new liability exposure 2023 surveys
- Peer-to-peer insurance models trialed by 15% P&C startups 2023
Emerging Risks and Trends Interpretation
The property and casualty industry is currently juggling a fiery cocktail of escalating climate losses, cyberattacks, and nuclear verdicts, all while racing to adopt AI and parametric solutions just to keep its head above the rising, socially-inflated waters.
Market Size and Growth
- In 2023, the global P&C insurance market size reached $2.8 trillion in gross written premiums, reflecting a 4.2% year-over-year growth driven by rising catastrophe losses and inflation
- U.S. P&C direct premiums written totaled $831 billion in 2023, up 8.1% from 2022 amid hardening rates
- The European P&C market grew by 5.3% to €450 billion in 2023, fueled by motor and property lines
- Asia-Pacific P&C premiums hit $1.1 trillion in 2023, with China contributing 40% of regional growth at 7.8%
- U.S. commercial P&C lines premiums reached $380 billion in 2023, growing 9.5% due to workers' comp and liability surges
- Global P&C market penetration stood at 3.8% of GDP in 2023, up from 3.5% in 2020
- U.S. personal lines P&C premiums were $451 billion in 2023, with auto comprising 55%
- Latin America P&C market expanded 6.7% to $120 billion in 2023, led by Brazil's 8.2% growth
- Middle East and Africa P&C premiums grew 4.9% to $85 billion in 2023, driven by UAE and Saudi Arabia
- Canadian P&C market size was CAD 85 billion in 2023, up 7.4% YoY
- U.S. P&C industry employed 1.2 million people in 2023, supporting 2.8 million jobs indirectly
- Global P&C insurtech investments reached $15 billion in 2023, boosting market digitalization
- U.S. P&C market share of top 10 insurers was 52% in 2023
- Worldwide P&C premium growth projected at 5.1% CAGR from 2024-2028
- U.K. P&C gross written premiums hit £55 billion in 2023, up 6.8%
- Australian P&C market totaled AUD 45 billion in 2023, growing 5.9%
- U.S. P&C net premiums earned rose 7.2% to $780 billion in 2023
- Global non-life insurance density averaged $1,200 per capita in 2023 in advanced markets
- Japan's P&C premiums were ¥12 trillion in 2023, flat YoY due to earthquake provisions
- India P&C market grew 12.5% to INR 2.5 lakh crore in FY2023
- U.S. P&C surplus capital hit $1.1 trillion in 2023, up 5.4%
- European P&C combined ratio improved to 95.2% in 2023 from 97.8% in 2022
- Global P&C market CAGR 2018-2023 was 4.8%
- U.S. homeowners insurance market $120 billion in 2023
- Cyber P&C segment grew 25% to $15 billion globally in 2023
- U.S. auto P&C premiums $300 billion in 2023, up 10%
- Workers' comp P&C premiums $55 billion U.S. in 2023
- Global P&C loss ratio averaged 62% in 2023
- U.S. P&C market concentration ratio (CR5) was 28% in 2023
- Worldwide P&C premium per capita $800 in 2023
Market Size and Growth Interpretation
The P&C industry’s 2023 growth to $2.8 trillion, while impressive, feels less like a celebration and more like a global community begrudgingly paying up for a planet that’s increasingly on fire, both literally and financially.
Premiums and Revenues
- Global P&C net premiums written reached $2.5 trillion in 2023, up 3.9%
- U.S. P&C net premiums written were $806 billion in 2023, growing 7.8%
- Auto physical damage premiums in U.S. hit $180 billion in 2023, up 11.2%
- Commercial multi-peril premiums U.S. $95 billion in 2023
- Homeowners premiums U.S. $110 billion in 2023, rising 12% due to catastrophe exposure
- Workers' compensation earned premiums U.S. $60 billion in 2023
- Liability premiums U.S. P&C $140 billion in 2023, up 8.5%
- Fire and allied lines premiums global $450 billion in 2023
- U.S. private passenger auto liability premiums $120 billion in 2023
- Commercial auto premiums U.S. $45 billion in 2023, growing 9.1%
- Allied lines premiums U.S. $70 billion in 2023
- Ocean marine premiums global $35 billion in 2023, up 4.5%
- U.S. farmowners premiums $12 billion in 2023
- Medical malpractice premiums U.S. $15 billion in 2023
- Boiler and machinery premiums U.S. $8 billion in 2023
- Aircraft premiums global $20 billion in 2023
- U.S. other liability premiums $200 billion in 2023, up 7.2%
- Inland marine premiums U.S. $25 billion in 2023
- Fidelity/surety premiums U.S. $18 billion in 2023
- Glass premiums U.S. $2.5 billion in 2023
- Burglary/theft premiums U.S. $1.8 billion in 2023
- Collision premiums U.S. auto $65 billion in 2023
- U.S. P&C investment income $85 billion in 2023, up 15%
- Global motor P&C premiums $900 billion in 2023
- U.S. property premiums $250 billion in 2023
- Commercial casualty premiums U.S. $180 billion in 2023
- U.S. P&C ceded premiums $120 billion in 2023
- Personal auto premiums global $700 billion in 2023
- U.S. P&C assumed premiums $90 billion in 2023 from reinsurance
- Global catastrophe premiums $100 billion in 2023
Premiums and Revenues Interpretation
The data reveals a world so vigorously bumping, burning, and suing itself that the global insurance industry, now a cool $2.5 trillion in size, essentially functions as civilization's slightly exasperated financial airbag.
Profitability and Underwriting
- U.S. combined ratio for P&C was 101.1% in 2023
- U.S. personal lines combined ratio 102.5% in 2023 due to auto losses
- Commercial lines U.S. combined ratio 98.7% in 2023
- U.S. auto insurance underwriting loss $25 billion in 2023
- Property underwriting profit margin U.S. -2.1% in 2023
- Global P&C return on equity 8.5% in 2023
- U.S. P&C pre-tax operating profit $65 billion in 2023
- Expense ratio U.S. P&C averaged 92.5% in 2023
- Homeowners combined ratio U.S. 105.3% in 2023
- Workers' comp combined ratio 95.2% U.S. 2023
- U.S. P&C net underwriting gain/loss -$18 billion in 2023
- Investment yield U.S. P&C 4.2% in 2023
- Liability lines combined ratio 97.8% U.S. 2023
- U.S. surplus lines underwriting profit $5 billion in 2023
- Policyholder dividend ratio 2.1% U.S. P&C 2023
- Commercial casualty combined ratio 99.5% U.S. 2023
- U.S. P&C leverage ratio 2.8:1 in 2023
- Quick liquidity ratio U.S. P&C 150% end-2023
- Net margins U.S. P&C 6.2% in 2023
- Expense ratio personal auto 28.5% U.S. 2023
- Loss ratio commercial property 65% U.S. 2023
- ROA U.S. P&C 5.8% in 2023
- Combined ratio excluding cats 96.5% U.S. 2023
- U.S. P&C dividend payout ratio 35% in 2023
- Underwriting cycle index U.S. P&C at peak hardening phase Q4 2023
- Reserve development favorable $12 billion U.S. P&C 2023
- Global P&C underwriting profit $150 billion in 2023
- U.S. cyber combined ratio 65% in 2023, profitable
Profitability and Underwriting Interpretation
While the auto and property sectors are hemorrhaging cash like a burst pipe, the P&C industry as a whole is somehow still leaning on its investment float to sip a modestly profitable cocktail, proving that for insurers, losing money on the core business is often just a character-building prelude to the main event of making it all back on Wall Street.
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