With over a trillion dollars in annual premiums and billions riding on everything from cyberattacks to catastrophic storms, the US insurance industry is a financial behemoth whose intricate statistics reveal our collective risks, protections, and priorities.
Key Takeaways
- In 2022, the total written premiums for the US property/casualty insurance industry reached $803.2 billion, marking a 5.5% increase from 2021.
- The US insurance industry is projected to grow at a CAGR of 5.2% from 2023 to 2030, driven by rising demand for cyber insurance and climate-related coverage.
- As of 2023, the US life insurance market size was valued at $1.27 trillion, with health insurance adding another $1.5 trillion in premiums.
- In 2022, net premiums written for all lines of business in the US P&C sector increased by 7.9% to $689 billion.
- Private passenger auto premiums grew 13.2% to $195 billion in 2022.
- Homeowners multiple peril premiums rose 14.3% to $112 billion in 2022.
- In 2022, incurred losses and loss adjustment expenses for US P&C insurers totaled $572 billion.
- Catastrophe losses for P&C reached $165 billion in 2022, highest on record.
- Auto physical damage claims averaged $5,288 per claim in 2022.
- The US insurance industry employed 1.6 million people in 2022.
- Insurance carriers accounted for 896,000 jobs in 2023.
- Insurance agencies and brokerages employed 481,000 in 2023.
- In 2022, 48 states mandated minimum coverage levels for auto insurance.
- NAIC solvency ratio average for P&C was 240% in 2022.
- 92% of Americans have some form of health insurance coverage in 2023.
The US insurance industry grew significantly in 2022 while facing record losses from disasters.
Claims and Losses
- In 2022, incurred losses and loss adjustment expenses for US P&C insurers totaled $572 billion.
- Catastrophe losses for P&C reached $165 billion in 2022, highest on record.
- Auto physical damage claims averaged $5,288 per claim in 2022.
- Liability claims in auto averaged $22,692 per claim in 2022.
- Homeowners claims payouts totaled $75 billion in 2022.
- Average homeowners claim was $14,825 in 2022.
- Workers' comp benefits paid $64 billion in 2021 (latest full data).
- Medical malpractice claims averaged $375,000 per paid claim in 2021.
- Life insurance benefits paid out $1.05 trillion in 2022.
- Health insurance claims expenses were $1.1 trillion in 2022.
- Fraudulent insurance claims cost the industry $80 billion annually.
- Cyber claims reached 3,200 incidents in 2022, costing $1.2 billion.
- Hurricane Ian caused $50-65 billion in insured losses in 2022.
- Winter storms caused $50 billion in catastrophe losses in 2021-2022.
- Wildfire losses totaled $20 billion in 2022.
- Flood claims under NFIP paid $9.2 billion from 2020-2022.
- Disability claims paid $50 billion in long-term benefits in 2022.
- Pet insurance claims averaged $243 per claim in 2022.
- Denied claims rate for health insurance was 17% in 2022.
- Auto claim frequency was 11.7 claims per 100 insured vehicles in 2022.
- Loss ratio for P&C was 77.7% in 2022.
- Medical loss ratio for health insurers was 87.2% in 2022.
- Average workers' comp claim cost rose to $41,857 in 2022.
- Litigation costs added $10 billion to malpractice claims in 2022.
- P&C reserves for losses were $900 billion at year-end 2022.
- Life insurance claims denial rate was 2.5% in 2022.
- 42 states experienced billion-dollar disasters in 2022, driving claims.
Claims and Losses Interpretation
If you ever wondered why your insurance premiums feel like a second mortgage, it's because the industry paid out nearly two trillion dollars in claims last year while grappling with record catastrophes, soaring litigation costs, and the quiet, expensive hum of everyday accidents and illnesses.
Employment and Workforce
- The US insurance industry employed 1.6 million people in 2022.
- Insurance carriers accounted for 896,000 jobs in 2023.
- Insurance agencies and brokerages employed 481,000 in 2023.
- Average annual wage in insurance carriers was $127,840 in 2023.
- Claims adjusters and examiners numbered 340,100 in 2022.
- Insurance sales agents totaled 372,300 jobs in 2023.
- Actuaries employed: 30,600 in 2023, average salary $125,770.
- Underwriters: 124,100 jobs in 2023, average $81,360 salary.
- Insurance appraisers: 11,000 jobs in 2023.
- Top employment states: California (156,000), Texas (112,000), Florida (95,000) in 2022.
- Women comprise 58% of the insurance workforce in 2023.
- 15% of insurance employees are over age 55 in 2023.
- Insurtech firms employed 45,000 people in the US in 2023.
- Remote work adoption in insurance reached 35% of workforce post-2022.
- Turnover rate in insurance sales was 12.5% in 2022.
- Diversity: 22% of executives are women in insurance in 2023.
- Projected job growth for insurance occupations: 6% by 2032.
- Customer service reps in insurance: 215,000 jobs in 2023.
- IT specialists in insurance: 120,000 in 2023.
- Compliance officers: 25,000 in insurance sector 2023.
- Training hours per employee averaged 45 annually in 2022.
- Gig economy insurance roles grew 20% to 50,000 jobs in 2023.
- P&C sector workforce shrank 1.2% in 2022 due to automation.
- Life/health sector added 2.5% jobs, reaching 550,000 in 2022.
- Average tenure of insurance employees: 8.7 years in 2023.
- 28% of insurance jobs require bachelor's degree or higher.
- Overtime pay in claims processing averaged $5,000 per adjuster in 2022.
- Union membership in insurance: 4.2% of workforce in 2023.
Employment and Workforce Interpretation
The US insurance industry, a massive ecosystem where nearly half a million agents and brokers sell the policies that over 300,000 claims adjusters will inevitably have to process, offers solid careers—especially for women who make up most of the workforce but still hit a glass ceiling at the executive level—while cautiously embracing remote work, automation, and even the gig economy, all while somehow maintaining an average employee tenure of nearly nine years.
Market Size and Growth
- In 2022, the total written premiums for the US property/casualty insurance industry reached $803.2 billion, marking a 5.5% increase from 2021.
- The US insurance industry is projected to grow at a CAGR of 5.2% from 2023 to 2030, driven by rising demand for cyber insurance and climate-related coverage.
- As of 2023, the US life insurance market size was valued at $1.27 trillion, with health insurance adding another $1.5 trillion in premiums.
- The penetration rate of insurance in the US stands at 11.8% of GDP in 2022, higher than the global average of 7.1%.
- Direct premiums written by US insurers grew by 8.1% to $1.48 trillion in 2022, per NAIC data.
- The US P&C insurance sector's net premiums earned increased to $677 billion in 2022 from $642 billion in 2021.
- Health insurance premiums in the US totaled $1.2 trillion in 2022, representing 33% of total industry premiums.
- By 2025, the US insurtech market is expected to reach $25.6 billion, up from $11.4 billion in 2020.
- The US auto insurance market was valued at $320 billion in premiums in 2022.
- Commercial lines premiums in P&C grew 10.8% to $352 billion in 2022.
- Personal lines premiums rose 2.6% to $451 billion in 2022 amid inflation pressures.
- The US reinsurance market ceded premiums reached $68 billion in 2022.
- Group life and health premiums accounted for $678 billion in 2022.
- Individual life insurance premiums were $164 billion in 2022.
- US homeowners insurance premiums totaled $121 billion in 2022.
- Workers' compensation premiums were $59.6 billion in 2022.
- The US insurance brokerage market size was $45 billion in 2022.
- Cyber insurance premiums in the US exceeded $7 billion in 2022, up 50% YoY.
- US pet insurance market grew to $4.4 billion in premiums in 2023.
- Disability income insurance premiums were $10.2 billion in 2022.
- The US flood insurance market through NFIP had $3.6 billion in premiums in 2022.
- Long-term care insurance premiums totaled $12.5 billion in 2022.
- US credit insurance market size was $2.8 billion in 2022.
- Parametric insurance adoption grew premiums to $1.5 billion in the US by 2023.
- US usage-based insurance market projected at $8 billion by 2025.
- The total assets of US property/casualty insurers were $1.2 trillion as of year-end 2022.
- Life insurers' total assets reached $8.9 trillion in 2022.
- Health insurers held $1.8 trillion in assets in 2022.
- Combined ratio for P&C industry was 102.1% in 2022, indicating underwriting losses.
- Return on average equity for P&C insurers was 9.8% in 2022.
Market Size and Growth Interpretation
The American insurance industry, a trillion-dollar behemoth fueled by our collective fear of everything from fender benders to cyberattacks, continues its relentless growth even as it occasionally trips over its own profitability metrics.
Premiums and Revenues
- In 2022, net premiums written for all lines of business in the US P&C sector increased by 7.9% to $689 billion.
- Private passenger auto premiums grew 13.2% to $195 billion in 2022.
- Homeowners multiple peril premiums rose 14.3% to $112 billion in 2022.
- Commercial multiple peril premiums increased 11.5% to $76 billion in 2022.
- Workers comp net premiums written were $53.4 billion in 2022, up 4.2%.
- Commercial auto premiums totaled $42 billion in 2022, growing 8.7%.
- Fire and allied lines premiums reached $25 billion in 2022.
- Medical malpractice premiums were $3.8 billion in 2022.
- Other liability premiums hit $62 billion in 2022.
- Individual annuity premiums were $385 billion in 2022, dominating life sector.
- Group health premiums totaled $626 billion in 2022.
- Accident and health premiums reached $92 billion in 2022.
- Credit life premiums were $1.2 billion in 2022.
- Average employer-sponsored family health premium was $22,463 in 2022, up 5%.
- Medicare Advantage premiums averaged $14,000 per enrollee annually in 2022.
- Marketplace individual health premiums averaged $7,246 for a family in 2023.
- Average annual premium for auto insurance was $2,014 in 2023.
- Homeowners insurance average premium was $1,544 in 2023.
- Life insurance average annual premium for term policies was $499 for $250k coverage in 2023.
- P&C insurers' net investment income rose 21% to $68 billion in 2022.
- Life insurers' premium plus annuity considerations were $1.3 trillion in 2022.
- Top 10 P&C groups wrote 52% of total premiums in 2022.
- UnitedHealth Group led health insurers with $287 billion in revenue in 2022.
- Berkshire Hathaway's insurance operations generated $90 billion in premiums in 2022.
- State Farm wrote $80 billion in P&C premiums in 2022.
- Allstate's P&C premiums were $51 billion in 2022.
- Progressive's net premiums earned $50.4 billion in 2022.
Premiums and Revenues Interpretation
In 2022, America made a nervous habit of paying through the nose, watching our cars, homes, and health become such expensive propositions that insurers, while lamenting the risks, gleefully banked our premiums and a 21% investment windfall.
Regulatory and Consumer Statistics
- In 2022, 48 states mandated minimum coverage levels for auto insurance.
- NAIC solvency ratio average for P&C was 240% in 2022.
- 92% of Americans have some form of health insurance coverage in 2023.
- Uninsured rate dropped to 7.7% under ACA in 2023.
- Medical loss ratio requirement: 80-85% for large group health plans since 2011.
- 35 states allow prior authorization for Medicare Advantage in 2023.
- Auto insurance complaint index averaged 1.1 per 1,000 policies in 2022.
- 15 states have no-fault auto insurance laws in 2023.
- Rate approval process: 43 states use prior approval for P&C rates.
- Cyber risk disclosure mandated in California for public companies since 2023.
- 87% consumer satisfaction with insurance claims process in 2023.
- 65 million Americans enrolled in Medicare/Medicaid in 2022.
- Surprise billing protections covered 99% of cases under No Surprises Act 2022.
- Insurance fraud convictions: 1,800 in 2022 per FBI.
- Telemedicine claims rose 154% under regulatory expansions post-COVID.
- 28 states cap non-economic damages in malpractice suits.
- ESG reporting required for insurers in 12 states by 2023.
- Consumer complaints to NAIC rose 15% to 65,000 in 2022.
- 76% of consumers shopped for insurance online in 2023.
- Policy renewal rates averaged 84% for P&C in 2022.
- 44% of millennials have no life insurance in 2023.
- Average claims settlement time: 14 days for auto, 40 days for property in 2022.
- Regulatory capital held by P&C insurers: $550 billion in 2022.
Regulatory and Consumer Statistics Interpretation
Despite appearing as a tightly-regulated fortress of compliance and consumer satisfaction on paper, the American insurance industry reveals itself as a complex ecosystem where robust financial stability, widespread digital adoption, and new protections coexist with rising complaints, generational coverage gaps, and a web of bureaucratic processes that still, by design or delay, profoundly shape the customer experience.
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