The Property and Casualty (P&C) Insurance Industry includes auto, home and commercial insurance through a wide variety of policies.
With an already large market share, the industry is set for a period of continued growth through 2021, preceded by a softening hard market.
WaterStreet Company is a provider of P&C Policy Administration Software, supporting insurers through policy and claims administration, document management, third-party connections and more.
Market Share of P&C Insurance
According to Statistica, the market size for P&C and Direct insurance is at an all time high, up to $694.27 billion in 2020, and up by $4 billion from the previous year. The highest industry growth occurred between 2017 and 2018, up from $629.33 billion to $682.98 billion between these years.
Property and Casualty insurers account for 48% of written premiums in the United States. Net premiums written in 2019 by the P&C industry topped $634 billion along with $370 billion in incurred losses.
The largest P&C insurer today is Statefarm Group with 9.27% market share followed by Berkshire Hathaway with 6.51% market share.
Employee Base of P&C Insurance
The P&C industry employs more people today than in the previous decade with an estimated 647,000 employees across the sector in 2019 compared to 923,000 in health insurance and 285,000 in reinsurance. A total of 843,000 insurance agents and brokers exist across the US insurance industry.
P&C Insurance Growth for 2021
Many large-scale loss events occurred throughout 2020 during a hard market with quickly piling and unpredictable challenges to the industry. This has set insurers to raise premiums, improve risk assessment, and discontinue risky policies.
The COVID-19 pandemic has pushed insurers to assess their technological capabilities and adapt to a more virtual world of online insurance sales as well. Reinvesting in technology has placed Big Data at the center of gaining a competitive edge.
As the market softens, insurers will continue to have many challenges and opportunities looking ahead. Deloitte estimates a 3% growth in 2021 for the P&C insurance industry despite challenges with the ongoing pandemic. Vaccination efforts as well as both offensive and defensive strategies will allow insurers to thrive in a softer market despite a negative economic outlook.
Deloitte describes a “25% probability of facing a ‘no end in sight’ scenario where a vaccine is delayed, resulting in protracted weakness in the economy.” Despite the probability, insurers should feel empowered to hit the ground running with innovation to jump start the industry once again, but this time with wisdom of modern risk assessment.
Reach out to WaterStreet Company today to request a consultation and demo of our solutions.