89 Insurance Statistics You Should Know

Top 10 Insurance Industry Statistics

1. $1,771 is the average automobile insurance premium cost per year, which is $148 per monthly payment.
2. The average household spends 2.57% of yearly income on car insurance.
3. Car insurance rates have been steadily rising, with a 5% increase from 2017 to 2018, and a 1% boost between 2018 and 2019.
4. About 215 million motorists have auto insurance in the United States.
5. Drivers without insurance account for 6% of all motorists on the road.
6. As of 2022, the car insurance market is valued at $316 billion.
7. Automobile crashes cause up to $1 trillion in costs per year, based on data observed in 2010.
8. There are 10 million unreported automobile crashes in a single year.
9. In 2019, 92% of Americans had health insurance.
10. In America, over 50% of the population has health insurance through their employer.

How Big Is The Insurance Industry?

The entire insurance industry contributed 3.1% to the overall GDP of the United States in 2017.

In 2017, net premiums made for the American insurance market totaled $1.2 trillion, with 52% for annuity and life and the rest, 48%, coming from casualty and property segments.

The number of insurance employees in the American insurance industry was 2.7 million in 2018, with 1.5 million working directly with insurance companies and the other 1.2 million as agents, brokers, and related positions.

Number Of Insurance Companies In America

• In the United States, there are a total of 5,954 insurers.
• 2,509 American insurers are in the property and casualty sector.
• 852 American insurers are in life and annuity, and 907 are in the health sector.
• The US has 82 fraternal insurance companies, 240 risk retention organizations, and 58 title insurers.

How Many Insurance Agents Are In The U.S?

There are 1.1 million insurance agents in the United States. This includes service employees and brokers.

Insurance agency jobs increased from 2016 to 2018 by 10%.

The U.S. insurance industry employs 2.86 million insurance employees, encompassing various roles across life, non-life, and reinsurance sectors.

Insurance Industry Revenue

Current revenue data reveals that private health insurance premiums had revenue of $867.5 billion. The Insurance Information Institute reports significant data on life insurance claims statistics, highlighting total insurance benefits and claims for 2022.

Health insurance has $670.1 billion in revenue earnings, with $190.8 billion coming from the life and annuity sector. $6.5 billion is listed property and casualty annuities.

In the United States, net premiums totaled $1.2 trillion in 2017.

Life and annuity insurers had 52% of net premiums in 2017, with property and casualty insurance having 48%.

Based on recent statistics, newer markets had 43% growth between 2010 and 2017.

Japan, Asia-Pacific, and North America had a 73% growth in the insurance industry from 2010 to 2017.

Employment In Insurance, 2012-2021

General Insurance Statistics

• Being the biggest insurance company in America for assets, Prudential Financial has an asset value totaling $896.55 billion.
• Berkshire Hathaway has assets totaling $817.73 billion.
• Metlife has assets worth $740 billion, and AIG amounts to $525.06 billion.
• The biggest insurance company for direct premiums is State Farm Group, with nationwide premiums totaling $65.6 billion.
• Berkshire Hathaway Group follows second after State Farm with $46.1 billion in direct premiums.
• Progressing Group has the third highest total of premiums, written with $39.2 billion.
• The fastest-growing insurer for casualties and properties is the Integrity Specialty Insurance Company, with 818.52 year-over-year growth in written direct premiums.
• Cimarron Insurance Company is the second fastest growing, having 426.32% year-over-year. Trisura Specialty Insurance has 379.62%, and Root Insurance with 324.04%.
• As for life insurers, the fastest growing is the Texas Republic Life Insurance Company, with 570.22% in year-over-year growth. Second to this is the Independent Life Insurance Company, with 442.30%. The third is SILAC, with 338% and 232.81% for Investors' Preferred Life Insurance.
• Property premiums in 2019 totaled $637.7 billion. However, life and annuity premiums done in America that same year were $678.7 billion.
• $1.32 trillion is the value of all American insurance premiums.
• American and Canadian insurance brokers had an NPS of 17% in 2020. This is lower than the overall NPS in 2019, which was 28%. Still, the score for insurance brokers has been trending since 2014.

The Cost Of Insurance

• In 2019, homeowners insurance had a net premium value of $92.97 million.
• The average yearly premium for US health insurance sponsored by employers was $7,470 for individual coverage.
• The average American cost for family coverage is $21, 342.
• Yearly deductibles for health insurance from employers are $1,644.
• Artificial intelligence underwrote premiums that were worth $1.3 billion in 2019. In 2024, it's forecast to rise in worth to $20 billion.

Life Insurance Statistics

16% of American consumers, 41 million people, need life insurance but don’t have a policy in place. Life insurance companies play a significant role within the broader insurance industry, highlighting the importance of life insurance ownership. In the last 10 years, life insurance ownership has decreased to 54%, a 9% drop. Life insurance coverage is closely related to age, impacting premiums and the ability to qualify for coverage. In 2020, 36% of Americans were seeking to purchase a life insurance policy within a year.

35% of Americans don’t believe that life insurance is affordable for them. There is a notable gap between the number of people who have life insurance and those who have not purchased insurance due to perceived costs and financial priorities. 52% of Americans without life insurance don’t consider it to be affordable. 17% of Americans don’t think they require life insurance, 15% don’t know what policy is right for them, and 12% don’t know what coverage is necessary for them.

55% of American customers in 2020 had single-payer life insurance, with 27% relying on group life insurance. Understanding life insurance policies is crucial, as there are common misconceptions regarding their features. 18% of Americans have group and individual life insurance, with 41% of customers preferring to buy life insurance on the internet. Direct premiums for life insurance totaled $160 billion in 2019. Understanding risk factors is essential to navigate life insurance options effectively across different age groups and health conditions.

Health Insurance Statistics

• 26.1 million Americans, accounting for 8% of the nation's population, had no health insurance in 2019.
• 14.7% of people without health insurance were adults aged 18 to 64, with Hispanics making up the largest demographic, representing 29.7% of uninsured people.
• 21.2% of people without health insurance live in states where Medicaid eligibility isn't expanded.
• 68% of America's coverage is from private health insurance companies.
• 34.1% of Americans use public providers for health coverage.
• There are 55.4% of Americans get health insurance from their employer.
• Preferred Provider Organization, or PPO, is the most population health plan for Americans, accounting for 47% of all 2020 enrollments.
• High deductible plans with options for saving are the second most popular, with 31% of Americans enrolled. This is followed by health maintenance organization plans at 13%, point-of-service plans at 8%, and conventional plans at 1%.

Car/Auto Insurance Statistics

• State Farm is the top Canadian and American insurer for private passenger car insurance, with direct premiums totaling $40 billion. Berkshire Hathaway is second, with $34 billion. The third is Progressive Group with $31 billion.
• Based on a survey, the car insurance industry has an NPS of 43, with life insurance scoring 32, home and contents at 43, and health insurance at 19.
• The United States Services Automobile Associate, also known as USAA, had an NPS of 73 in 2020, the second-highest when compared to leaders in the industry among all consumer sectors.
• 61% or 3 out of 5 car insurance customers compare prices to other companies before the date of their next renewal, with 39% not comparing prices.

Which Auto Insurance Claims Are Most Expensive?

Bodily injury claims are the most expensive, at an average of $16,260 per loss. That's followed by property damage at $3,729, then collision at $3,278, and comprehensive at $1,690.

Cost Of Auto Insurance Claims By Type

Source: Triple-I

Which Auto Insurance Claims Are Most Common?

Collision claims are the most commonly filed auto insurance claims, at an average of 5.8 claims per 100 years of insured coverage on a vehicle. The second most frequent auto insurance claims are property damage at 3.7, comprehensive at 2.8, and bodily injury at .95 claims per 100 car years.

Frequency of Auto Insurance Claims By Type

Source: Triple-I

How Common Are Collisions?

The Insurance Research Council (IRC) reports that 79% of all claimed economic losses in auto insurance claims in 2017 covered a variety of medical expenses. On a positive note, data indicates that there are less injuries over time taking place.

Why Do People Get In Car Accidents?

Car insurance claims are commonly the result of numerous factors, as indicated by the Triple-I in the following chart representing 2019:

Who Pays For Insurance Claims?

Source: NHTSA

Average Annual Cost Of Auto Insurance

Home Insurance Statistics

• 27% of American homeowners in 2020 had flood insurance. The most recorded in over 10 years.
• About 25% of homeowners believe that floods can cause damage to their homes.
• 23% of homeowners in America had insurance for earthquakes in 2020.
• The largest concentration of Americans with earthquake insurance is in the West, accounting for 28% of homeowners.
• 25% of Americans living in the Southern US have earthquake insurance, with 21% of customers living in the Northeast. In the Midwest, 16% have earthquake insurance.
• People with rental insurance has risen exponentially in the last decade, with 57% of Americans in 2020 having it, a 15% increase from 2019.
• The largest insurer for multiple peril insurance State Farm when predicated on nationwide paid premiums in America and Canada. In the first quarter of 2020, State Farm had $18 billion in direct premiums that were written. Allstate Insurance Group follows with $8.7 billion in direct premiums written, and USAA is third with $6.8 billion in written direction premiums.
• USAA was the largest home and contents insurer in the 2020 insurance market and has an NPS of 72, ranking third among all  American consumer sectors.
  

Business Insurance Statistics

• 3,282 deals made from around the world had insurance for representations and warranties. Still, 241 harbored tax insurance, with 35 holding insurance for litigations.
• Representation and warranties insurance is anticipated to increase by 70% of companies, with 63% anticipating litigation and contingent insurance increases.
• North America has the greatest increase in mergers and acquisitions insurance, with a 78% rise in underwritten policies from insurance companies. Asia-Pacific is second, with Europe, the Middle East, and Africa has an 11% rise in 2019 insurance policies.
• The Berkshire Hathaway Group remains the largest insurer for medical liabilities, based on direct premiums done in America and Canada.
• In the beginning quarter of 2020, Berkshire Hathaway had $1.6 billion in written direct premiums. Second to this was The Doctors Company with $700 million written. The third was CNA Insurance Group, having over $500 million.
• The largest provider of insurance for worker's compensation is The Travelers Group with $4.2 billion in written direct premiums, based on comparisons made in the United States and Canada. Hartford Fire and Gas follows with $3.3 billion, and Zurich Insurance with $2.6 billion.
• In 2025, cyber insurance volume is anticipated to be between $15 and $20 billion.

Insurance Industry Trends

The insurance industry is constantly evolving, driven by technological advancements, changing consumer behaviors, and shifting regulatory landscapes. Some of the key trends shaping the industry include:

• Digital Transformation: Insurers are investing heavily in digital technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT). These innovations are enhancing customer experience, reducing operational costs, and improving risk management. For instance, AI is being used to streamline claims processing, while IoT devices help in real-time risk assessment and prevention.
• Personalization: With the advent of data analytics and machine learning, insurers can now offer personalized policies and services tailored to individual customers’ needs and risk profiles. This trend is transforming the way insurance products are designed and marketed, making them more relevant and appealing to consumers.
• Cybersecurity: As the insurance industry becomes increasingly digital, cybersecurity has emerged as a major concern. Insurers are investing in robust security measures to protect customer data and prevent cyber attacks. This includes implementing advanced encryption technologies and conducting regular security audits.
• Sustainability: There is a growing focus on sustainability and environmental, social, and governance (ESG) factors within the insurance industry. Many insurers are incorporating ESG considerations into their investment decisions and risk management strategies, reflecting a broader commitment to sustainable business practices.

Insurance Regulation and Compliance

The insurance industry is heavily regulated, with insurers subject to a range of laws and regulations governing their operations, products, and services. Some of the key regulatory trends and compliance issues include:

• Solvency II: The European Union’s Solvency II directive sets out capital requirements for insurers, ensuring they have sufficient capital to cover potential losses. This regulation aims to enhance the financial stability of insurers and protect policyholders.
• GDPR: The General Data Protection Regulation (GDPR) imposes strict rules on the handling of personal data. Insurers must implement robust data protection measures to comply with GDPR, including obtaining explicit consent from customers and ensuring data security.
• AML/KYC: Anti-money laundering (AML) and know-your-customer (KYC) regulations require insurers to implement thorough customer due diligence and monitoring procedures. These measures are designed to prevent financial crime and ensure the integrity of the insurance industry.
• Climate Risk: Insurers are increasingly required to disclose their exposure to climate-related risks and incorporate climate risk into their risk management strategies. This trend reflects the growing recognition of the financial impact of climate change on the insurance industry.

Insurance and the Economy

The insurance industry plays a critical role in the economy, providing financial protection to individuals and businesses against a range of risks. Some of the key ways in which insurance contributes to the economy include:

• Risk Management: Insurance helps manage risk, enabling businesses and individuals to invest and grow with confidence. By transferring risk to insurers, companies can undertake new projects and expand their operations without fear of financial ruin.
• Economic Growth: The insurance industry is a significant contributor to economic growth. Insurers invest in a range of assets, including stocks, bonds, and real estate, providing capital that fuels economic development.
• Job Creation: The insurance industry is a major employer, providing jobs for millions of people around the world. From underwriters and claims adjusters to agents and brokers, the industry offers a wide range of career opportunities.
• Tax Revenue: Insurers generate significant tax revenue for governments. Premiums and investment income are subject to taxation, contributing to public finances and supporting essential services.

Insurance and Demographics

The insurance industry is influenced by demographic trends, with changing population demographics and behaviors driving demand for insurance products and services. Some of the key demographic trends shaping the industry include:

• Aging Population: The aging population is driving demand for life insurance and annuity products, as well as health insurance and long-term care insurance. As people live longer, they seek financial security and healthcare coverage in their later years.
• Urbanization: Urbanization is increasing demand for insurance products and services, particularly in emerging markets. As more people move to cities, there is a growing need for property, health, and auto insurance.
• Digital Natives: The growing number of digital natives is driving demand for online insurance products and services. Insurers must adapt to changing consumer behaviors and preferences, offering digital solutions that cater to tech-savvy customers.
• Diversity and Inclusion: Insurers are increasingly focusing on diversity and inclusion, both within their organizations and in their customer base. Many are implementing initiatives to improve diversity and inclusion, ensuring they can better serve diverse populations and meet the needs of all customers.

COVID-19’s Impact On The Insurance Industry

• In the earliest quarter of 2020, the volume and value of deals with mergers and acquisitions fell by 30%, indicative of the heavy toll that the COVID-19 pandemic had on the insurance industry.
• Income for premiums worldwide fell by 3.8% in 2020, largely from the COVID-19 pandemic. 2.9% was the fall for casualty and property premiums, with life insurance premiums decreasing by 4.4%
• Based on info obtained from insurance regulators, 83% of policies on business interruptions have exclusions to viruses, with 98% of them including a requirement for property damage.
• 2 out of every 5 Americans furloughed in 2020 had health insurance through their employee.
• 1 out of 5 Americans in 2020 had no health insurance due to losing the coverage they had with their employee.
• One of the major insurance charities in the United States gave $280 million to charity during the 2020 pandemic.
• In 2020, $150 million was donated to charity by international insurers.
• Car insurance companies gave back over $14 billion to their customers in the United States due to less time spent by motorists at the height of the pandemic.
• 60% of car insurance customers, or 3 or of 5, were given credit on their bills in 2020, or a partial refund.
• The COVID-19 pandemic has led to more interest in customers getting insured, with 15% of people in a survey considering a life insurance policy.

Sources

1. https://www.iii.org/fact-statistic/facts-statistics-industry-overview
2. https://financesonline.com/insurance-statistics/
3. https://www.bankrate.com/insurance/car/auto-insurance-statistics/
4. https://policyadvice.net/insurance/insights/insurance-industry/
5. https://www.zippia.com/advice/insurance-industry-statistics/