GITNUX MARKETDATA REPORT 2024

U.S. Insurance Industry Statistics: Market Report & Data

Highlights: The Most Important U.S. Insurance Industry Statistics

  • As of 2018, US Insurance industry's net premiums written totaled $1.22 trillion.
  • The US insurance industry’s total assets were $8.5 trillion in 2021.
  • Life/health (L/H) insurers accounted for 52% of the US insurance industry's total assets in 2020.
  • The property/casualty (P/C) sector accounted for 48% of premiums written in 2018.
  • In 2019, the U.S. insurance industry employed 2.8 million people.
  • In 2020, the U.S. had 5,929 insurance companies (including life/annuities and P/C).
  • The top three expenses of insurers in 2019 were 61.1% for Benefits and losses, 25.3% for Operating expenses, 8.1% for Taxes, licenses & fees.
  • Health insurance had the highest premiums, making up 41.2% of the insurance premiums in 2020.
  • In 2019, direct premiums written totaled $1.32 trillion in the insurance industry.
  • Approximately 90% of premiums in the personal lines segment was from auto and homeowners insurance in 2020.
  • As of 2018, the largest US life/health insurer was Metropolitan group with total assets of $717.97 billion.
  • The largest property/casualty insurer in the US was State Farm Group in 2019.
  • In 2020, 97 companies specialized in health insurance.
  • As of 2019, the US insurance penetration rate was 11.6% of GDP.
  • The US insurance industry contributed to 3.1% of the Gross domestic product (GDP) in 2020.
  • In 2019, the insurance sector's share of the financial services market was 29.2% in the US.
  • The net income of the US insurance industry was $60.7 billion in 2020.
  • Insurance agents and brokers in the U.S. earned around $179.3 billion in revenue in 2020.
  • Direct loss due to fires in the U.S. cost the insurance industry $14.8 billion in 2020.
  • In 2020, about 11% of drivers in the U.S. were uninsured.

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Delve into the dynamic world of U.S. Insurance Industry Statistics in this comprehensive blog post. As a major pillar of the U.S. economy, the insurance industry is teeming with fascinating figures and trends that highlight its growth, challenges, and significant role in safeguarding individual and business interests. The insights shared here are crucial not only for industry players, who need to stay ahead of market movements, but also for consumers who are keen to understand the landscape in order to make informed decisions about their insurance needs. So whether you’re an professional economist, an insurance broker, or a policyholder, you’re sure to find the statistics presented here both enlightening and actionable.

The Latest U.S. Insurance Industry Statistics Unveiled

As of 2018, US Insurance industry’s net premiums written totaled $1.22 trillion.

Shining a spotlight on the magnitude of the U.S. insurance industry, the quantifiable figure of $1.22 trillion in net premiums written as of 2018 narrates a compelling story of the sector’s vast economic foothold. The astronomical sum beckons attention to the sheer breadth of transactions within the industry, serving as a testament to the omnipresence of insurance in the lives of American citizens and businesses. Within the framework of deciphering industry statistics, this towering figure provides a useful barometer of the industry’s financial health and the role it plays in the U.S. economy as a whole. Consequently, it sets the stage for insightful discussions and analyses revolving around the industry’s trends, challenges, and opportunities.

The US insurance industry’s total assets were $8.5 trillion in 2021.

With an intimidating $8.5 trillion of total assets in 2021, the U.S. insurance industry’s robust financial position firmly cements it as a significant player in the national, and indeed global, economic arena. This colossal figure not only illustrates the industry’s large-scale ability to manage risk, but also underlines its integral role in underpinning the stability and advancement of U.S. socioeconomic activities. In the grand narrative of U.S. insurance industry statistics, this provides a striking testament to its growth and its capacity to forge ahead, impacting everything from individual livelihoods to large corporations and government institutions.

Life/health (L/H) insurers accounted for 52% of the US insurance industry’s total assets in 2020.

Highlighting that Life/Health (L/H) insurers held 52% of the US insurance industry’s total assets in 2020 underscores their significant role within the industry. This metric serves as a testament to the substantial financial strength and marketplace influence of L/H insurers. Moreover, it provides a clear depiction of the industry landscape, hinting at the concentration of wealth and power, and allows readers to apprehend the key players dictating the dynamics of the insurance sector. Consequently, with more than half of the assets, L/H insurers emerge as a vital component in understanding financial trends, risk management strategies, and overall future trajectory of the U.S. insurance industry.

The property/casualty (P/C) sector accounted for 48% of premiums written in 2018.

Highlighting that the Property/Casualty (P/C) sector was responsible for nearly half of the premiums written in 2018 underscores the significant role this sector plays within the larger frame of the U.S. insurance industry. It serves as a revealing barometer to understand market distribution, indicating a substantial concentration of policies in this particular area. The scale of P/C insurance premiums directly influences industry trends, market stability, and growth potential, offering valuable insight to investors, insurers, and policyholders alike. Therefore, such a statistic helps navigate and forecast the complex landscape of the U.S. insurance industry, providing a vital perspective for blog readers.

In 2019, the U.S. insurance industry employed 2.8 million people.

An intriguing highlight in the realm of U.S. insurance industry statistics is the substantial figure of 2.8 million individuals finding gainful employment in this sector in 2019. This number signifies a few key elements that warrant undivided attention. First, it underlines the industry’s critical role as a major contributor to job creation in the U.S. economy. Second, it points to the extensive network of professionals required to sustain the complex operational dynamics of the insurance world, thus reflecting the sector’s infrastructure might. Lastly, this figure provides insight into the critical mass of human resources nurturing the continuing growth and innovation in the sector, shaping the industry’s footprint on the national economic blueprint. Therefore, it’s not merely a statistic but a testament to the sector’s strength and influence.

In 2020, the U.S. had 5,929 insurance companies (including life/annuities and P/C).

Envision a landscape layered with 5,929 insurance companies, each vying for their sliver of the US market in 2020 – a staggering total, embedding life, annuities, and property/casualty sectors. This vibrant panorama, teeming with diversity and competition, underscores the enormity and dynamism of America’s insurance industry. The clear magnitude of industry players signals not only a stable sector but also the environment of perpetual competition, influencing industry rates, consumer choice, and service quality. As we journey deeper into the jigsaw of U.S. Insurance Industry Statistics, hold this number close to gauge the scale, complexities, and nuances in a sector that intertwines with every aspect of the American lifestyle.

The top three expenses of insurers in 2019 were 61.1% for Benefits and losses, 25.3% for Operating expenses, 8.1% for Taxes, licenses & fees.

Peeking into the fiscal expenditure jar of the insurance industry purveys a vivid snapshot of the sector’s dynamics. The statistic that trots out that in 2019, a lion’s share of 61.1% was doled out for Benefits and losses undeniably underlines the intrinsic aim of insurance – risk transference. The substantial 25.3% attributed to Operating expenses reaffirms the industry’s dependence on manpower, technology, and infrastructure for execution of its services. The modest yet non-trivial allocation of 8.1% for Taxes, licenses & fees underpins the industry’s acknowledgement of its regulatory responsibilities. Collectively mirroring these financial forays provide readers with hard data to view the internal priorities of insurers, broadening an essential understanding of the U.S. Insurance landscape.

Health insurance had the highest premiums, making up 41.2% of the insurance premiums in 2020.

In the vast tableau of U.S. insurance industry statistics, the note that health insurance commanded a lion’s share of 41.2% of insurance premiums in 2020 stands out like an incandescent beacon. It underscores not just the critical role that health insurance plays in the economic machinery of the industry, but also exposes the sector’s dynamic positioning in the larger context of national health concerns. Amid a challenging year dominated by a health crisis, this figure provides a clear testimony to the unprecedented demand for health coverage, which in turn, could shape strategies of insurers, influence policy decisions, and affect the pocketbooks of premium payers nationwide.

In 2019, direct premiums written totaled $1.32 trillion in the insurance industry.

And therein lies the thunderous power of the figure – a staggering $1.32 trillion in direct premiums were written in 2019 for the insurance industry. The magnitude of this statistic underlines the immense scale and significant role of the insurance sector within the U.S economy. It sheds light on the massive trust consumers place in insurance entities and dramatically illuminates the industry’s vast potential for continuous growth and profit. This figure not just conveys the insurance industry’s monetary significance but also sets the stage for a deeper analysis of trending insurance products, consumer behaviors and market dynamics.

Approximately 90% of premiums in the personal lines segment was from auto and homeowners insurance in 2020.

Highlighting that approximately 90% of premiums in the personal lines segment were garnered from auto and homeowners insurance in 2020 gives a significant insight into the dynamics of the U.S. Insurance Industry. It captures the market dominance of these two insurance categories over others, demonstrating a pronounced consumer focus toward insuring cars and homes. This trend implies the critical role of these insurance types in driving industry profits, policy sales, and consumer interaction, thereby shaping the industry’s strategic trajectory. The statistic; therefore, plays an instrumental role in unraveling the competitive landscape of the personal lines segment, guiding stakeholders’ decision-making and policy formulation.

As of 2018, the largest US life/health insurer was Metropolitan group with total assets of $717.97 billion.

The eye-popping figure of $717.97 billion held by Metropolitan Group not only exemplifies the immense financial clout vested within the U.S. life/health insurance industry, but also underscores the influential role of market leaders in shaping the industry’s trajectories. In the U.S. Insurance Industry statistical panorama, such figures serve as vital indicators of industry scale, competitiveness, and market consolidation trends. A deep dive into these figures can reveal intriguing narratives about the monetary flows that ultimately fuel one of the most significant sectors of the U.S. economy. With the Metropolitan Group leading the pack, it’s a statement of the opportunities and challenges that lie within this dynamic market space.

The largest property/casualty insurer in the US was State Farm Group in 2019.

Highlighting that State Farm Group was the largest property/casualty insurer in the US in 2019 serves as a vivid illustration of the scope, scale, and competitive landscape of the US insurance industry. This key fact demonstrates the market leadership of a dominant player in a critical segment of the insurance industry. Understanding the performances of leading organizations like State Farm Group provides readers with a comprehensive perspective on various trends, financial health, and market dynamics within the industry. This insightful piece of data, therefore, lays crucial groundwork for exploring further dimensions of the U.S. insurance industry statistics.

In 2020, 97 companies specialized in health insurance.

“Delving into the sea of U.S. Insurance Industry Statistics, one may uncover an impressive jewel: The presence of 97 companies specializing in health insurance as of 2020. A testament to the dynamic and varied nature of this vital sector, this figure reveals both the competition and choice accessible to consumers. Beyond consumer choice, it also indicates the economic vitality and scale of the health insurance industry itself. The contribution of these companies to economic activity, especially within the healthcare sector, is immeasurable, as they facilitate access to necessary medical care for millions across the United States. Furthermore, this concentration of companies signals possible innovation and evolution in the approach to health insurance, as each seeks to differentiate its offerings and approach amidst a crowded field.”

As of 2019, the US insurance penetration rate was 11.6% of GDP.

In unraveling insights on the U.S. Insurance Industry, the statistic revealing an insurance penetration rate of 11.6% of the GDP in 2019 carves a significant mark. A critical cog in the wheel of the nation’s economy, this rate serves as a barometer gauging the depth of insurance industry’s reach within the economy’s broad expanse. This figure, juxtaposed against GDP, heightens its relevance, offering a profound perspective on the industry’s role in cushioning risks, promoting growth, and dictating consumer behavior across the American landscape. Hence, any discourse on U.S. insurance industry statistics would remain incomplete without acknowledging and analyzing this pivotal indicator.

The US insurance industry contributed to 3.1% of the Gross domestic product (GDP) in 2020.

Exploring the critical role of the US insurance industry from a fiscal perspective, the colossal contribution of 3.1% towards the Gross Domestic Product (GDP) in 2020 is an undeniable marker of its prominence. This ratio not only underscores the industry’s potent influence on the US economy but also signifies its unstinting robustness even amidst the economically challenging times. Weaving the narrative of a potent industry, this indicator sets the stage for a thorough examination of the insurance industry as it plays a substantial part in driving US economic growth and stability.

In 2019, the insurance sector’s share of the financial services market was 29.2% in the US.

Showcasing the formidable segment of the financial services market commanded by the insurance sector underscores its powerful impact on the U.S. economy. From the substantial figure of 29.2% in 2019, it’s clear the insurance industry plays a crucial role in the nation’s financial health, an element vital to weave into a blog post on U.S. Insurance Industry Statistics. This strong position bears implications for policy, investment, and career opportunities, affecting everything from individual financial planning to the country’s broader economic strategies.

The net income of the US insurance industry was $60.7 billion in 2020.

In the realm of U.S. Insurance Industry Statistics, the staggering $60.7 billion net income in 2020 stands as a testament to the industry’s resilience amidst economic uncertainties. This figure, impressive in its magnitude, serves as a pulse check, indicating that the insurance domain continues to be a critical, thriving component of the nation’s financial skeleton. By manifesting how the industry has effectively weathered the storm, it offers insights on important trends, industry health, and its substantial contribution to the U.S economy, fundamentally shaping our understanding of the sector’s overall business climate and potential for future growth.

Insurance agents and brokers in the U.S. earned around $179.3 billion in revenue in 2020.

Peeking into the robust economic panorama of the U.S. Insurance Industry, the reported revenue of around $179.3 billion for insurance agents and brokers in 2020 serves as a testament to the industry’s vitality and profound impact. This colossal figure not only underscores the essential role of brokers in bridging the gap between insurance companies and clients but also reflects the high level of trust and reliance that consumers place in these vital industry players. The revenue generated adds to the industry’s economic propulsion and signals potential growth trends and opportunities within the industry, thereby shaping the narrative on the overall health and direction of the U.S. Insurance Industry.

Direct loss due to fires in the U.S. cost the insurance industry $14.8 billion in 2020.

The staggering figure of $14.8 billion in direct loss incurred by the U.S. insurance industry due to fires in 2020 magnifies the significant financial implications the industry faces, painting a vivid reflection of the changing patterns and vulnerability in the insurer’s risk landscape. This hefty financial burden underscores the far-reaching and profound effect of unforeseen calamities on the industry’s bottom line, further necessitating the adoption of aggressive risk management strategies. In the grand tapestry of U.S. Insurance Industry Statistics, this number serves as a stark reminder of the need for continual adaptation to contend with evolving risk scenarios.

In 2020, about 11% of drivers in the U.S. were uninsured.

Shining a light on the darker underbelly of the U.S Insurance Industry is the significant figure – in 2020, an astonishing 11% of drivers in the U.S. remained uninsured. This isn’t mere trivia – instead, it forms a critical commentary on the scope of coverage and the accessibility of insurance in the country. In the intricate web of U.S Insurance Industry Statistics, these uninsured drivers illustrate not only the potential risk on the roads, but also the vast untapped market for insurers. Informing strategies for policy reach and formulation, this data challenges the industry to bridge this gap and safeguard more of America’s drivers.

Conclusion

The U.S. Insurance Industry, as demonstrated by the statistics, is a robust and vital component of our economic structure. The continuous growth in insurance premiums underscores its steady demand, pointing towards an increasingly conscious population about asset and health protection. While there’s also a noticeable rise in claim payouts – a testament to unforeseen circumstances like natural calamities and health emergencies – insurers have demonstrated financial resilience. Catering to a diverse range of coverage from life to property and health, the industry continues to evolve with technology, offering more personalization and accessibility to customers. As such, insurance statistics provide crucial insights that stimulate strategic actions not only to benefit the industry but also for the welfare of the nation’s insured populace.

References

0. – https://www.www.iii.org

1. – https://www.www.statista.com

2. – https://www.www.naic.org

3. – https://www.fic.wharton.upenn.edu

4. – https://www.www.bls.gov

FAQs

What is the estimated total revenue of the U.S. insurance industry?

According to the Insurance Information Institute, the U.S. insurance industry's net premiums written totaled $1.32 trillion in 2019, with premiums recorded by life/health (L/H) insurers accounting for 54%, and premiums by property/casualty (P/C) insurers making up 46%.

How many people are employed in the U.S. insurance industry?

The U.S Insurance industry provides employment opportunities to approximately 2.8 million people approximately as per the U.S. Department of Labor's statistics for 2020.

Which is the largest sector within the U.S. insurance industry?

The two primary segments of the insurance industry in the U.S. are Life/Health (L/H) insurance and Property/Casualty (P/C) insurance. As of 2019, the L/H insurance sector slightly surpassed P/C insurance in net premiums written, making it the larger sector.

What growth trends are observed in the U.S. insurance industry?

Traditionally, the insurance industry in the U.S. grows at about the same rate as the economy. However, sectors such as cyber insurance are experiencing faster growth due to increased demand. Also, the insurance tech (InsurTech) sector is rapidly growing due to technological advancements and digitalization.

What are some of the major challenges facing the U.S. insurance industry?

The U.S. insurance industry faces several challenges, including regulatory changes, technological disruption, low-interest rates affecting investment returns, increased severity of natural disasters due to climate change, and competition from new entrants and alternative models of insurance.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

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