Towering at $1.2 trillion in direct premiums and wielding $8.2 trillion in assets, the U.S. insurance industry is not just a financial giant but a fundamental pillar of the American economy, as revealed by the latest 2022 data that paints a picture of robust growth, evolving risks, and immense societal impact.
Key Takeaways
- In 2022, the U.S. property/casualty insurance industry wrote $787 billion in net premiums earned, marking a 5.5% increase from 2021.
- The U.S. insurance industry held $8.2 trillion in total assets as of year-end 2022.
- U.S. life insurers' cash and invested assets reached $5.5 trillion in 2022.
- Direct premiums written for auto insurance in the U.S. increased 13.8% in 2022 to $314 billion.
- Private passenger auto insurance accounted for 27% of all P&C premiums in 2022.
- U.S. homeowners insurance direct premiums written rose 12.1% to $128 billion in 2022.
- U.S. individual annuity premiums written were $379 billion in 2022.
- Group life insurance premiums reached $50 billion in 2022.
- U.S. individual life insurance new annualized premium was $14.4 billion in 2022.
- The U.S. insurance industry employed 1,588,000 people in 2022.
- Insurance carriers sector (NAICS 5241) had 988,000 employees in 2022.
- Agencies, brokerages, and service employed 600,000 in 2022.
- U.S. insurers' invested assets totaled $6.8 trillion in 2022.
- Bonds comprised 72% of U.S. insurers' invested assets in 2022.
- Stocks made up 18% of invested assets for insurers in 2022.
The U.S. insurance industry grew robustly in 2022, holding trillions in assets and employing millions of Americans.
Employment & Workforce
1The U.S. insurance industry employed 1,588,000 people in 2022.
Verified2Insurance carriers sector (NAICS 5241) had 988,000 employees in 2022.
Verified3Agencies, brokerages, and service employed 600,000 in 2022.
Verified4Average annual wage in insurance carriers was $126,630 in 2022.
Directional5Claims adjusters, examiners, and investigators: 340,000 employed, mean wage $76,450.
Single source6Insurance sales agents: 372,000 employed, average wage $69,080 in 2022.
Verified7Actuaries: 28,500 employed, highest wage at $120,000 average.
Verified8Underwriters: 122,000 employed, mean wage $81,460 in 2022.
Verified9Insurance appraisers, auto damage: 11,000 employed, wage $69,400.
Directional10Top paying state for insurance: Connecticut, average $145,000 in carriers.
Single source11Women comprised 58% of insurance industry workforce in 2022.
Verified12Insurance occupations grew 5% from 2021-2022.
Verified13Customer service reps in insurance: 215,000 employed.
Verified14Financial examiners in insurance: 65,000, wage $89,790.
Directional15Compliance officers: 42,000 in insurance, average wage $78,500.
Single source16IT support in insurance: 120,000 employed.
Verified17Management occupations in insurance: 180,000, highest paid group.
Verified18Labor productivity in insurance carriers rose 2.1% in 2022.
Verified19Union membership rate in insurance: 2.8% in 2022.
Directional20New hires in insurance: 450,000 in 2022.
Single source21Separations rate: 3.5% monthly average in insurance 2022.
Verified22Job openings in insurance averaged 150,000 per month in 2022.
Verified23Quit rate: 1.8% in insurance sector 2022.
Verified24Layoffs low at 0.4% in insurance 2022.
DirectionalEmployment & Workforce Interpretation
While navigating the labyrinth of claims, policies, and actuarial tables, America's 1.6 million insurance professionals manage to both guard our collective peace of mind and secure their own, with the industry's steady growth and low layoffs suggesting we're all betting on a future worth insuring.
Financials & Investments
1U.S. insurers' invested assets totaled $6.8 trillion in 2022.
Verified2Bonds comprised 72% of U.S. insurers' invested assets in 2022.
Verified3Stocks made up 18% of invested assets for insurers in 2022.
Verified4Cash and short-term investments: 4% of total assets.
Directional5Mortgage loans: 9% of insurers' portfolios in 2022.
Single source6Net investment income for P&C insurers: $65 billion in 2022.
Verified7Unrealized capital gains for life insurers: $150 billion in 2022.
Verified8Policyholder surplus growth: 5.8% to $1.1 trillion in P&C 2022.
Verified9Leverage ratio for P&C: 2.6:1 in 2022.
Directional10Life insurers' surplus: $550 billion in 2022.
Single source11P&C insurers' net income from investments: 12% of total income.
Verified12Corporate bond holdings: $3.2 trillion by U.S. insurers 2022.
Verified13U.S. Treasuries held: $1.1 trillion.
Verified14Municipal bonds: $500 billion in portfolios.
Directional15Common stocks value: $800 billion end-2022.
Single source16Preferred stocks: $150 billion.
Verified17Schedule BA assets (non-standard): $400 billion.
Verified18Investment yield for P&C: 3.2% in 2022.
Verified19Total return on invested assets for life: 4.1%.
Directional20Impairment charges low at 0.5% of assets.
Single source21Derivatives use: 20% of large insurers hedged in 2022.
Verified22U.S. P&C insurers' cash flow from operations: $120 billion positive in 2022.
Verified23Dividends paid by insurers: $40 billion in 2022.
Verified24Net cash from investments: $50 billion.
Directional25Life insurers' separate account assets: $2.1 trillion in 2022.
Single sourceFinancials & Investments Interpretation
While the industry would have you believe their fortune-telling skills are unmatched, the $6.8 trillion truth is that they’ve mastered the rather less mystical art of cautiously parking a mountain of cash in bonds, patiently watching it grow just enough to pay your claim while quietly building a colossal safety net.
Life & Health Insurance
1U.S. individual annuity premiums written were $379 billion in 2022.
Verified2Group life insurance premiums reached $50 billion in 2022.
Verified3U.S. individual life insurance new annualized premium was $14.4 billion in 2022.
Verified4Health insurance premiums for employer-sponsored plans averaged $8,435 for single coverage in 2022.
Directional5Family coverage health premiums averaged $23,968 in 2022.
Single source6Medicare Advantage enrollment reached 29 million in 2022.
Verified7Medicaid managed care enrollment was 75 million in 2022.
Verified8Individual health insurance market premiums averaged $7,188 annually in 2022.
Verified9U.S. life insurance ownership rate was 52% among adults in 2022.
Directional10Term life insurance initial death benefit averaged $196,000 in 2022.
Single source11Whole life face amount purchased totaled $12 billion in 2022.
Verified12Universal life new annualized premium was $4.1 billion in 2022.
Verified13Long-term care insurance policies in force numbered 7.2 million in 2022.
Verified14Critical illness sales reached $1.2 billion in premiums in 2022.
Directional15Dental insurance covered 74 million people under individual plans in 2022.
Single source16Vision insurance enrollment was approximately 80 million in 2022.
Verified17Disability income insurance claims paid totaled $10 billion in 2022.
Verified18U.S. health insurers processed 5.2 billion claims in 2022.
Verified19Life insurance benefits paid out $1.05 trillion since 2020 cumulatively, with 2022 at $200 billion.
Directional20Medicare Supplement policies in force: 12.5 million in 2022.
Single source21Uninsured rate in U.S. dropped to 8.4% or 28 million in 2022.
Verified22Employer-sponsored health coverage rate: 53.3% of population in 2022.
VerifiedLife & Health Insurance Interpretation
This avalanche of numbers reveals a nation obsessively, expensively, and contradictorily insuring itself against every conceivable peril except perhaps the most certain one of all: the bill.
Market Overview
1In 2022, the U.S. property/casualty insurance industry wrote $787 billion in net premiums earned, marking a 5.5% increase from 2021.
Verified2The U.S. insurance industry held $8.2 trillion in total assets as of year-end 2022.
Verified3U.S. life insurers' cash and invested assets reached $5.5 trillion in 2022.
Verified4The U.S. insurance sector employed 1.6 million people in 2022, representing 1.1% of total U.S. employment.
Directional5Direct premiums written for all lines of insurance in the U.S. totaled $1.2 trillion in 2022.
Single source6The U.S. P&C insurance market share held by the top 10 writers was 45.2% in 2022.
Verified7U.S. health insurance premiums grew by 5.1% to $1.3 trillion in 2022.
Verified8The combined ratio for U.S. P&C insurers improved to 100.0% in 2022 from 102.5% in 2021.
Verified9U.S. insurance industry policyholder surplus reached $1.1 trillion at year-end 2022.
Directional10Personal lines accounted for 52% of U.S. P&C direct premiums written in 2022, totaling $452 billion.
Single source11Commercial lines P&C premiums in the U.S. reached $414 billion in 2022.
Verified12U.S. insurers' net income after taxes for P&C was $81 billion in 2022.
Verified13The U.S. insurance industry's return on equity was 10.2% in 2022.
Verified14Life/annuity segment represented 52% of total U.S. insurance premiums in 2022.
Directional15P&C segment made up 48% of U.S. insurance premiums in 2022.
Single source16U.S. P&C loss and LAE reserves stood at $907 billion as of 2022.
Verified17The number of U.S. property/casualty insurance companies was 2,866 in 2022.
Verified18U.S. life/health insurers numbered 715 in 2022.
Verified19Total U.S. insurance premiums grew 7.0% in 2022 to approximately $1.5 trillion.
Directional20U.S. insurance penetration rate (premiums as % of GDP) was 7.2% in 2022.
Single source21U.S. insurance density (premiums per capita) reached $4,500 in 2022.
Verified22The U.S. P&C market saw a 9.4% increase in net premiums written in 2022.
Verified23Catastrophe losses for U.S. P&C insurers totaled $165 billion before reinsurance in 2022.
Verified24U.S. insurers paid $837 billion in benefits to policyholders in 2022.
Directional25The U.S. insurance industry contributed $1.1 trillion to GDP in 2021 (latest chained data).
Single source26Market Size and Revenue: U.S. insurance premiums to hit $1.6 trillion by 2023.
Verified27Premiums and Revenues: P&C net premiums earned $787B in 2022.
VerifiedMarket Overview Interpretation
While a cool $1.5 trillion flowed in to soothe America’s collective anxiety, over 2,800 insurers proved they're not just betting against disaster but are, in fact, a towering $8.2 trillion fortress of financial reassurance—even if it cost us each $4,500 to feel this secure.
Property & Casualty Insurance
1Direct premiums written for auto insurance in the U.S. increased 13.8% in 2022 to $314 billion.
Verified2Private passenger auto insurance accounted for 27% of all P&C premiums in 2022.
Verified3U.S. homeowners insurance direct premiums written rose 12.1% to $128 billion in 2022.
Verified4Commercial multiperil premiums grew 10.7% to $85 billion in U.S. P&C in 2022.
Directional5Workers compensation premiums in the U.S. increased 7.3% to $54 billion in 2022.
Single source6Medical malpractice premiums written totaled $3.5 billion in 2022, up 4.2%.
Verified7U.S. P&C insurers' incurred losses and loss adjustment expenses were $592 billion in 2022.
Verified8The average annual premium for full coverage auto insurance was $2,014 in 2023 (reflecting 2022 trends).
Verified9Homeowners insurance average annual premium rose to $1,544 in 2023 from 2022 data.
Directional10Commercial casualty insurance premiums increased 8.9% to $72 billion in 2022.
Single source11Fire and allied lines premiums totaled $45 billion in U.S. P&C 2022.
Verified12Allied lines premiums were $82 billion, up 11.2% in 2022.
Verified13Ocean marine premiums written reached $3.1 billion in 2022.
Verified14Aircraft premiums totaled $3.9 billion in U.S. P&C 2022.
Directional15Boiler and machinery premiums were $1.7 billion in 2022.
Single source16P&C reinsurance premiums written in the U.S. grew to $25 billion in 2022.
Verified17U.S. P&C personal property catastrophe losses were $170 billion in 2022.
Verified18Auto physical damage premiums increased 14.5% to $96 billion in 2022.
Verified19Liability premiums in P&C totaled $140 billion in 2022.
Directional20Other liability occurrence premiums were $28 billion.
Single source21Products liability premiums stood at $5.2 billion in 2022.
Verified22Federal flood insurance premiums totaled $3.6 billion in 2022.
VerifiedProperty & Casualty Insurance Interpretation
Americans in 2022 discovered, at a steep premium, that they were living in an expensive and perilous world where their cars, homes, and businesses all seemed to be racing toward catastrophe.
Sources & References
- Reference 1IIIiii.orgVisit source
- Reference 2NAICnaic.orgVisit source
- Reference 3LIMRAlimra.comVisit source
- Reference 4SWISSREswissre.comVisit source
- Reference 5AHAaha.orgVisit source
- Reference 6SPGLOBALspglobal.comVisit source
- Reference 7IBISWORLDibisworld.comVisit source
- Reference 8BROOKINGSbrookings.eduVisit source
- Reference 9KFFkff.orgVisit source
- Reference 10AHIPahip.orgVisit source
- Reference 11DELTAdelta.orgVisit source
- Reference 12VSPGLOBALvspglobal.comVisit source
- Reference 13SOAsoa.orgVisit source
- Reference 14CENSUScensus.govVisit source
- Reference 15BLSbls.govVisit source