Gain fresh consumer-led insights into the US P&C insurance market. What the most important factors impacting consumers’ insurance choices? What are the levels of P&C insurance ownership in the US? Answer these questions and more with this market report.
This Report Looks at the Following Areas:
- Market factors impacting the P&C insurance category
- P&C insurance ownership
- Bundling and switching behaviors
- Drivers to switching insurers
- Most important factors in the choice of insurer
- Attitudes toward P&C insurance
US P&C Insurance Market – Current Landscape
Increases in business costs over the past few years for carriers have triggered successive premium hikes for policyholders, prompting some customers to reconsider their coverage and explore more cost-effective options from a wider range of carriers.
- US P&C insurance market size: The P&C insurance industry in the US wrote a total of nearly $860 billion in net written premiums in 2023 – growing 10% from the preceding year.
US Property & Casualty Insurance Market Trends
Despite the rise in premiums, the tried-and-tested bundle deal has remained resilient, with the rate of consumers who hold multiple policies with one provider rising since last year. While the cost of owning P&C insurance has no doubt increased, consumers may have found minimal cost savings across multiple providers that would deem it worthwhile to break the convenience of bundling.
Retention should remain top-of-mind for carriers; particularly among younger demographics exhibiting the highest appetite of shopping around the market. The growing interest and adoption of telematics products remains a timely solution that can curb customer attrition – also particularly with younger audiences.
Nearly 40% of Gen Zers and Millennials have already engaged with a behavioral-based insurance program, with a third of customers showing a readiness to share auto/home information for a policy discount – further reinforcing to carriers how harnessing the power of telematics offerings can be an effective avenue in driving higher customer loyalty.
Purchase the full report for a complete analysis of the US P&C insurance market, including market dynamics and consumer insights. Readers of this report may also be interested in Mintel’s US Innovations in Insurance Market Report.
More About This Report
This report covers only P&C insurance – auto, homeowner/condo and renters insurance. It does not include any information about health or life insurance. If you are looking for more information on these segments, take a look at Mintel’s US Health Insurance Market Report or US Life Insurance Market Report.
Meet The Expert
This report was written by Amr Hamdi, Mintel’s Senior Financial Services Analyst. Amr joined Mintel in 2021 with a background in economics and previous work experience at the Federal Reserve. In his role, he leverages consumer research, competitive marketing analysis, and industry trends to provide detailed consumer reports around diverse topics such as banking, fintech, insurance, and investments.
Carriers must continue leaning into incentives and cost-efficient offerings to mitigate customer turnover, as the cost of owning P&C coverage continues to rise.
Amr Hamdi
Senior Analyst – Financial Services
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Executive Summary
- What you need to know
- Consumer trends: key takeaways
- Multicultural consumers have coverage gaps across home and auto insurance
- Graph 1: P&C insurance ownership, by race and ethnicity, 2024
- Foster stronger bonds with the diverse communities that you serve
- Younger consumers place higher importance on life events when contemplating a provider switch
- Graph 2: motivators to switching providers, by generation, 2024
- Demonstrating awareness of prospects’ lifestages is key to effective engagement
- Older consumers are driven by the bundle deal when seeking a provider, while younger generations place a higher importance on sign-up discounts
- Graph 3: importance of discounts when choosing a provider, by generation, 2024
- Leverage the power of the sign-up discount to stimulate behavioral-based insurance adoption
- Market predictions
- Opportunities
- Smart home devices can drive value for both carriers and customers
- Graph 4: adoption and interest in smart home devices, 2024
- Adoption of smart home devices for policy discounts is growing, and so are interest levels
- Graph 5: % of consumers who have used a smart home device to receive a discount on their insurance, 2023-24
- Raising awareness of the cost savings associated with smart home devices should be a priority, with the payoff of boosting customer retention
- Embedded opportunities are only growing stronger for carriers
- Unlock new revenue streams through strategic partnerships
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Market Dynamics
- Market context
- Market drivers
- The housing market remains challenging for both insurers and consumers
- Rising premiums could challenge carriers’ retention rates
- Graph 6: prices for motor vehicle insurance, 2022-24
- Traffic volume has normalized back to 2019 levels
- Graph 7: vehicle miles travelled over time, 2019-24
- Market size
- The P&C insurance industry wrote a total of nearly $860 billion in net written premiums in 2023 – growing 10% from the preceding year
- State Farm continues to hold the crown of being the largest provider of property and casualty insurance in the US
- State Farm has been able to capture a substantial share of both sides of the income spectrum
- Graph 8: P&C carriers consumers currently use, by household income, 2024
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Consumer Insights
- Consumer fast facts
- P&C insurance ownership
- Auto insurance is the most widely owned P&C insurance policy
- Graph 9: P&C insurance ownership, 2024
- Consumers’ lifestage plays a crucial role in their choice of P&C insurance purchase
- Graph 10: P&C insurance ownership, by generation, 2024
- Carriers must be flexible to adapt to younger consumers’ needs as they navigate life’s changes
- Urban dwellers are less likely to have auto insurance
- Graph 11: P&C insurance ownership, by region, 2024
- Switching behaviors
- Despite the rise in auto premiums, less than 20% have switched carriers, as well as plan on shopping around for a new policy
- Consumers with higher claims volumes are more likely to plan switching providers
- Graph 12: likelihood to switch auto insurers, by generation, 2024
- Carriers must prioritize engaging with younger demographics to continue raising the adoption of their usage-based insurance programs
- Graph 13: interest in using a device that provides data on driving behaviors to get a policy discount, by generation, 2024
- Millennials lead in switching appetite across home insurance
- Graph 14: likelihood to switch home insurers, by generation, 2024
- Nearly a quarter of renters plan to switch carriers within the next year
- Graph 15: likelihood to switch renters insurers, by age, 2024
- Bundling habits
- Compared to 2023, the number of consumers that bundled their P&C policies has rebounded – sitting at its highest level since 2020
- Graph 16: bundling habits over time, 2020-24
- Despite increasing premiums, the bundle deal continues to showcase its value to customers
- Bundling rates are up across all generations, especially Millennials
- Graph 17: consumers that have multiple types of policies with one company, by generation, 2021-24
- Providers still have a significant opportunity to capture Millennials as bundled customers
- Purchase channels used
- The preference for buying an auto policy via an agent continues to supersede solely digital channels
- Graph 18: auto insurance purchase channels, 2024
- Consumers prefer online channels for renters, while agents remain critical to the home insurance purchase journey
- Graph 19: homeowners and renters insurance purchase channels, 2024
- Agents must better engage with digital solutions to capture the attention of younger prospects
- Graph 20: homeowners insurance purchase channels, by age, 2024
- P&C insurance behaviors
- Mobile usage across a wide range of insurance behaviors continues to rise
- Graph 21: mobile app usage over time, 2020-24
- Younger consumers continue to lead in usage and interest levels of insurtechs
- Graph 22: insurtech usage and interest over time, by generation, 2022-24
- Insurtechs can help accelerate legacy carriers’ future growth
- Three in 10 consumers have used a behavioral-based insurance program
- Graph 23: UBI and BBI adoption over time, 2021-24
- Younger consumers are split in usage between UBI and BBI, while older consumers prefer the latter
- Graph 24: UBI and BBI adoption, by generation, 2024
- Attitudes toward switching providers
- To no surprise, price remains the top driver of consumer switching
- Graph 25: causes of switching providers in the past, 2024
- Beyond price, poor claims experiences and customer service would prompt customers to switch providers
- Graph 26: motivators to switching providers, 2024
- A monthly rate increase of $50-199 is most probable to lead to customers switching
- Graph 27: monthly rate increase amount that would lead to switching providers, by households income, 2024
- AAA ensures customer loyalty through personalized service and extra cost savings
- Promotional sign-up offers can stimulate acquisition among younger consumers
- Graph 28: motivators to switching providers, by generation, 2024
- Most important factors when choosing a provider
- Customer service and brand reputation are key acquisition drivers
- Graph 29: most important factors in choice of provider, 2024
- A seamless digital experience is an expectation of providers at this point – particularly from younger consumers
- Graph 30: importance of the digital experience when choosing a provider, 2024
- Attitudes toward P&C insurance
- Bundle consideration is significantly tied to age
- Graph 31: consideration of bundle discounts when buying multiple policies, by generation, 2024
- Over a third are satisfied with their carrier’s mobile app, with State Farm and USAA customers driving the bulk of this satisfaction
- Graph 32: consumer satisfaction with insurer’s mobile app, by generation, 2024
- Graph 33: consumers who are satisfied with their insurer’s mobile app, by carriers used, 2024
- Carriers must continue investing in their digital capabilities
- A third would share personal home/auto data if it meant getting a discount on their policies
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Innovation and Marketing strategies
- Marketing and advertising
- The Hartford says that there’s more to just price when choosing a carrier
- AAA speaks to its world class claims handling expertise via paid Facebook ads
- Amica leverages direct mail to highlight its award-winning customer service to prospects
- Since late 2023, Allstate has consistently outspent other top carriers when it comes to marketing its BBI program
- Graph 34: behavioral-based insurance marketing spend over time, 2023-24
- Allstate promotes Drivewise by highlighting how the best rates are the ones based on the customer
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Appendix
- Market definition
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations and terms
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