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 2024, preceded by a softening hard market.
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 $843.63 billion, and up by $22 billion from the previous year in 2023. 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 53% of written premiums in the United States. Net premiums written in 2019 by the P&C industry topped $715.4 billion along with $500.6 billion in incurred losses.
The largest P&C insurer today is Statefarm Group with 8.89% market share followed by Berkshire Hathaway with 6.42% market share. Their market shares have declined slightly over the previous two years, followed by Progressive and Allstate.
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P&C Insurance Growth for 2024
Many large-scale loss events occurred throughout 2022 and 2023 during a hard market with quickly piling and unpredictable challenges to the industry. This has set insurers to adopt agile technology, compete with rising inflation as well as rising interest rates, and reduce losses.
The COVID-19 pandemic has pushed insurers to assess their technological capabilities and adapt to a more virtual world of online insurance sales, including mobile-friendly designs for easy communication and third-party data connections with robust APIs. Reinvesting in technology has placed Big Data at the center of gaining a competitive edge.
Deloitte recommends “insurers should start integrating their systems and data while leveraging cloud capabilities to achieve greater customer-centricity.” The continued need to adopt flexible technology and ensure a seamless customer journey extends into 2024.
WaterStreet Company’s cloud insurance software aims to keep up with today’s rapidly shifting insurance industry.
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