USA Insurance Market Intelligence: 2011 Edition
The US insurance sector is regarded as one of the best markets in the world, given its wide range of products and excellent customer service. The total US insurance gross premiums decreased in 2009 due to aftereffects of the recession and crisis in the financial system. High unemployment and declining payrolls also affected the overall US insurance market. Both life and non-life insurance premiums fell in 2009. Even though P&C segment witnessed a decline in premiums in 2009, its underwriting results improved due to lower catastrophe losses, reduced losses related to mortgage insurers and financial guarantors. Life insurance segment was affected by lower premiums from annuity considerations that account for a major portion of premiums share in this sector.
The P&C sector is highly fragmented with a number of companies operating in the market. State Farm Group is the largest insurer and the leading writers of health insurance include United Health Group, Wellpoint, Kaiser, Aetna, Humana Group, HCSC Group and American Family Corp Group. The largest life insurer is Metlife Inc followed by New York Life and AIG.
The signing of the health care reform on 21 March, 2010 is expected to make health care more affordable, health insurers more accountable, health coverage expanded to all Americans, health system sustainable, stabilizing family budgets, the Federal budget, and the economy. CBO (Congressional Budget office) has projected that growth in real GDP will accelerate after 2011, spurred by stronger business investment and residential construction. Improving economy, expected rise in disposable income and savings rate, demand for health and auto insurance policies will be driving the US insurance market in coming years.
The P&C sector is highly fragmented with a number of companies operating in the market. State Farm Group is the largest insurer and the leading writers of health insurance include United Health Group, Wellpoint, Kaiser, Aetna, Humana Group, HCSC Group and American Family Corp Group. The largest life insurer is Metlife Inc followed by New York Life and AIG.
The signing of the health care reform on 21 March, 2010 is expected to make health care more affordable, health insurers more accountable, health coverage expanded to all Americans, health system sustainable, stabilizing family budgets, the Federal budget, and the economy. CBO (Congressional Budget office) has projected that growth in real GDP will accelerate after 2011, spurred by stronger business investment and residential construction. Improving economy, expected rise in disposable income and savings rate, demand for health and auto insurance policies will be driving the US insurance market in coming years.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Insurance Regulation Fragmented Among State Authorities
1.1.2 Supervision of Insurance Market by NAIC
1.1.3 Classification of Insurance Companies According to SIC Codes
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 High unemployment and declining payrolls declined demand for insurance
1.2.1.2 Both Life insurance and P&C insurance premiums declined
1.2.2 Market Segments
1.2.2.1 Increase in overall profitability of P&C insurers in 2009
1.2.2.2 Net investment income of life insurers hit a five year low in 2009
1.2.2.3 Non-Life Segment Dominated by Automobile Insurance, homeowner's multi peril and Workers' Compensation
1.2.2.4 Decline in combined ratio in 2009
1.2.3 Market Density & Penetration
1.2.3.1 Decreasing Trend of Insurance Penetration
1.2.3.2 Increased jobless rate affecting insurance density
1.2.4 Market Share
1.2.4.1 Highly fragmented nature of P&C insurance sector
1.2.4.2 State Farm Mutual as top writer of private passenger auto insurance
1.2.4.3 United Health Group remained as top health insurer
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Health Care Reform Bill Passed
American National Insurance Focus on Medicare Supplement
HCC Life Insurance Company to Provide Short-term Health Insurance
Wells Fargo Insurance Services Acquired Kinney Agency Inc
Eastern Insurance Enters Tennessee Workers' Compensation Market
Quebec's Industrial Alliance signs Deal to Acquire Texas-based Insurer
Extension of the National Flood Insurance Program
ING Lowers Rates and Updates Term Life Insurance Products
2.2 Market Drivers
Resilient Economy
Growing Disposable Personal Income
Demand for Health Insurance Policies
Demand for Auto Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Slow economic recovery leads to slower growth in overall premiums in 2010
4.2 Significant decline in commercial lines segment's premium base
1.1 Industry Structure
1.1.1 Insurance Regulation Fragmented Among State Authorities
1.1.2 Supervision of Insurance Market by NAIC
1.1.3 Classification of Insurance Companies According to SIC Codes
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 High unemployment and declining payrolls declined demand for insurance
1.2.1.2 Both Life insurance and P&C insurance premiums declined
1.2.2 Market Segments
1.2.2.1 Increase in overall profitability of P&C insurers in 2009
1.2.2.2 Net investment income of life insurers hit a five year low in 2009
1.2.2.3 Non-Life Segment Dominated by Automobile Insurance, homeowner's multi peril and Workers' Compensation
1.2.2.4 Decline in combined ratio in 2009
1.2.3 Market Density & Penetration
1.2.3.1 Decreasing Trend of Insurance Penetration
1.2.3.2 Increased jobless rate affecting insurance density
1.2.4 Market Share
1.2.4.1 Highly fragmented nature of P&C insurance sector
1.2.4.2 State Farm Mutual as top writer of private passenger auto insurance
1.2.4.3 United Health Group remained as top health insurer
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Health Care Reform Bill Passed
American National Insurance Focus on Medicare Supplement
HCC Life Insurance Company to Provide Short-term Health Insurance
Wells Fargo Insurance Services Acquired Kinney Agency Inc
Eastern Insurance Enters Tennessee Workers' Compensation Market
Quebec's Industrial Alliance signs Deal to Acquire Texas-based Insurer
Extension of the National Flood Insurance Program
ING Lowers Rates and Updates Term Life Insurance Products
2.2 Market Drivers
Resilient Economy
Growing Disposable Personal Income
Demand for Health Insurance Policies
Demand for Auto Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Slow economic recovery leads to slower growth in overall premiums in 2010
4.2 Significant decline in commercial lines segment's premium base
LIST OF CHARTS:
Annual Premium – US Insurance Industry: 2002-2009
US Insurance Premium Share (%) by Segment – 2009
US Insurance premium by segment – 2002-2009
US Life Insurance Premium Share (%) by Segment – 2009
US Non-Life Insurance Premium Share (%) by Segment – 2009
Combined Ratio (%) – USA P&C Insurance Industry
Combined Ratio (%) By Lines- US P&C Insurance Industry
US Insurance Density (US$): 2002 – 2009
US Insurance Penetration: 2002 – 2009
US: Major P&C Insurer’s Market Share: (2009)
US Top Writers of Private Passenger Auto Insurance by Direct Premiums Written (2009)
US Top Writers of Health Insurance by Direct Premiums Written (2009)
US Major Life Insurer’s Market Share: (2009)
GDP Growth of the US: 2002 – 2009
Disposable Personal Income in the US (2002 - 2009)
Personal Saving As a % of Disposable Personal Income (2002-2009)
Household Consumption Expenditure on Health Care: 2002 – 2009
Auto and Light Truck Sales in the US (2002-2011F)
Forecast: The US Insurance Industry: 2009A - 2013F
Forecast: US Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – US Insurance Industry: 2002-2009
US Insurance Premium Share (%) by Segment – 2009
US Insurance premium by segment – 2002-2009
US Life Insurance Premium Share (%) by Segment – 2009
US Non-Life Insurance Premium Share (%) by Segment – 2009
Combined Ratio (%) – USA P&C Insurance Industry
Combined Ratio (%) By Lines- US P&C Insurance Industry
US Insurance Density (US$): 2002 – 2009
US Insurance Penetration: 2002 – 2009
US: Major P&C Insurer’s Market Share: (2009)
US Top Writers of Private Passenger Auto Insurance by Direct Premiums Written (2009)
US Top Writers of Health Insurance by Direct Premiums Written (2009)
US Major Life Insurer’s Market Share: (2009)
GDP Growth of the US: 2002 – 2009
Disposable Personal Income in the US (2002 - 2009)
Personal Saving As a % of Disposable Personal Income (2002-2009)
Household Consumption Expenditure on Health Care: 2002 – 2009
Auto and Light Truck Sales in the US (2002-2011F)
Forecast: The US Insurance Industry: 2009A - 2013F
Forecast: US Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Key Macroeconomic Indicators: (2009 – 2014F)
Key Macroeconomic Indicators: (2009 – 2014F)
