Description

Stay ahead of the curve in the US property and casualty insurance market and future-proof your business with Mintel’s comprehensive market report. Our full report is packed with consumer-led market intelligence, the latest consumer attitudes towards P&C insurance, and the market trends affecting your industry. Get information on P&C insurance market size, market drivers and forecasted growth to help you align your strategy with what your audience demands. This report covers auto, homeowner/condo and renters insurance markets.

This Report Provides Information and Insights On:

  • P&C insurance ownership.
  • Bundling and switching behaviors.
  • Drivers to switching insurers.
  • Consumer attitudes toward P&C insurance.

Overview of the US P&C Insurance Market

Households have been burdened with elevated inflation and rising interest rates for the better part of a year now and this has heavily strained the budgets of many consumers. In the short term, the P&C market is likely to feel the effect of this. Buying rates across cars and homes are expected to decelerate, leading to slower growth in P&C insurance ownership. 

Furthermore, consumers are more likely to shop around for more affordable rates. Four in 10 consumers have switched providers due to premium hikes, illustrating the price-driven nature of P&C insurance customers.

P&C Insurance Market – Consumer Trends

The purchase of property and casualty insurance is greatly impacted by a consumers’ lifestage. Older consumers with greater wealth are more likely to own a car or home and therefore have a greater need for home and auto insurance. The opposite is true of younger generations. Gen Z, for example, are typically not homeowners, therefore have no need for that type of insurance.

But there is one factor that is important to all consumers when choosing an insurance carrier: price. In the last year, four in 10 consumers have switched insurance providers due to premium hikes. Barring price, quality customer service is the most important factor, cited by nearly 60% of consumers.

P&C Insurance – Secure Your Future Growth

It is vitally important for brands to recognize the different needs of different generations when it comes to P&C insurance. Providing tailored solutions and incentives can help to build lifelong loyalty as younger consumers age and require broader coverage.

To discover more market opportunities that will help to future-proof your business, purchase our full US Property and Casualty Insurance Market Report. Looking for more information on the market, browse our comprehensive insurance market research.

Brands Discussed in this Report

This report covers leading insurance companies like State Farm, Berkshire Hathaway, Progressive, Allstate Insurance, Liberty Mutual, and more, including their respective market share and net premiums written.

Expert Analysis from a Specialist in the Finance Sector

This report, written by Amr Hamdi, a senior analyst in the Finance sector, delivers in-depth commentary and analysis to highlight current trends in the US property and casualty insurance market and add expert context to the numbers.

With an economic downturn possible in 2023, this year is shaping up to be an extension of the carriers’ headwinds faced in 2022. Elevated inflation has boosted the costs of repairs and replacement parts, leading to larger claim pay-outs from insurers. Homeowners have been especially constricted by the Federal Reserve’s interest rate hikes, with mortgage and housing demand stifled consequently. While inflation is projected to cool throughout 2023, interest rates will remain elevated, limiting new business growth across auto and home insurance lines. As such, retention becomes even more critical for insurance, and leaning into incentives and cost-efficient offerings is pertinent to sustain customer loyalty amid a 2023 rife with pronounced open switching.

Amr Hamdi, Finance AnalystAmr Hamdi
Senior Finance Analyst

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas:
        • Definition
          • Market context
          • Executive Summary

              • Top takeaways
                • Consumer trends
                  • P&C insurance ownership is largely tied to lifestage
                    • Figure 1: Current property and casualty insurance ownership, by generation, 2023
                  • Minorities are less likely to hold auto and homeowners policies
                    • Figure 2: Current property and casualty insurance ownership, by race and ethnic origin, 2023
                    • Figure 3: Nationwide diversity and inclusion partnerships, 2023
                  • Providers still have a wellspring of opportunity with Millennials that do not bundle policies
                    • Figure 4: Bundling habits over time, by generation, 2021-23
                    • Figure 5: Progressive UBI paid Instagram ad, 2023
                  • Customer acquisition remains heavily tied to quality customer service
                    • Figure 6: Top factors when choosing a P&C Insurer, 2023
                    • Figure 7: The Hartford direct mail piece, 2023
                  • Competitive strategies
                    • Insurers showcased the benefits of their usage-based offerings – from savings to greater customer autonomy
                      • Figure 8: UBI marketing spend across top four carriers, 2023
                      • Figure 9: USAA SafePilot paid Facebook ad, 2023
                      • Figure 10: Progressive snapshot paid Facebook ad, 2023
                      • Figure 11: Allstate paid Facebook video ad, 2023
                    • Getting insured in a little over a minute with Lemonade
                      • Figure 12: Lemonade paid Facebook ad, 2023
                    • Amica shows off its award-winning claims chops, strikes partnership with Canopy Weather
                      • Figure 13: Amica paid Facebook ad, 2023
                      • Figure 14: Amica desktop display ad, 2023
                      • Figure 15: US tornadoes between January and February, 2008-23
                    • Market predictions
                      • Figure 16: Category outlook, 2023-28
                    • Opportunities
                      • Home insurers can boost retention via the growing adoption of smart home devices
                        • Figure 17: Ownership and interest in smart home devices, 2023
                        • Figure 18: Use of smart home device for a discount, 2023
                        • Figure 19: Hippo paid Facebook ad, 2022
                        • Figure 20: State Farm and Ting partnership, 2023
                      • As weather-related catastrophes keep rising, the parametric insurance opportunity only grows stronger
                      • Market Size

                        • P&C insurance carriers experienced significant growth in 2021
                          • Figure 21: P&C insurance industry income analysis, in current dollars, 2016-21
                        • State Farm remains the king of P&C insurance
                          • Figure 22: Top 10 writers of property and casualty insurance, by direct premiums written, 2022
                      • Market Drivers

                        • Rising rates and inflationary pressures remain headwinds for carriers
                          • Figure 23: Federal funds effective rate, 2022-23
                          • Figure 24: Vehicle miles traveled, year-to-date, 2017-23
                        • Weak housing demand will threaten new acquisition in 2023
                          • Figure 25: 30-year fixed mortgage rate, 2008-23
                          • Figure 26: Home purchase time line, 2022
                      • Competitive Strategies and Market Opportunities

                        • Lemonade makes insurance purchase as quick as ordering pizza
                          • Figure 27: Lemonade paid Facebook ad, 2023
                        • Carriers spotlighted their usage-based offerings in a variety of ways
                          • Figure 28: State Farm paid Facebook video ad, 2023
                          • Figure 29: Progressive snapshot paid Facebook ad, 2023
                          • Figure 30: Allstate paid Facebook video ad, 2023
                        • Amica highlighted its best-in-class claims handling across homeowners
                          • Figure 31: Amica paid Facebook ad, 2023
                        • The embedded insurance opportunity remains ripe for auto insurers
                        • The P&C Insurance Consumer – Fast Facts

                          • Insurance Ownership

                            • Auto insurance is the most popular P&C policy
                              • Figure 32: Current P&C insurance ownership, 2023
                            • Auto insurance is less commonly owned among those residing in urban areas
                              • Figure 33: Current P&C insurance ownership, by area, 2023
                            • P&C insurance ownership is largely tied to lifestage
                              • Figure 34: Current property and casualty insurance ownership, by generation, 2023
                          • Switching Behaviors

                            • Auto
                              • Twenty-seven percent of consumers switched auto insurers in the past two years
                                • Figure 35: Likelihood to switch auto policies, 2023
                                • Figure 36: Farmers insurance paid Facebook ad, 2023
                              • Gen Zers are the group most likely planning to switch auto insurers
                                • Figure 37: Likelihood to switch auto policies in the past two years, by generation, 2022 and 2023
                                • Figure 38: Interest in UBI, by generation, 2023
                                • Figure 39: State Farm Drive Safe and Save paid Facebook ad, 2023
                              • Home
                                • Homeowners policyholders are the least likely to switch providers, but Millennials are the least loyal
                                  • Figure 40: Likelihood to switch home/condo policies, by generation, 2023
                                • Renters
                                  • Nearly 40% of renters have switched providers in the past two years
                                    • Figure 41: Likelihood to switch renters policies in the past two years, 2022 and 2023
                                • Bundling Habits

                                  • Sixty-five percent of consumers hold multiple policies with a single provider
                                    • Figure 42: Bundling habits over time, 2020 to 2023
                                • Attitudes toward Switching Providers

                                  • Unsurprisingly, price remains king when it comes to P&C switching
                                    • Figure 43: Causes of P&C switching, 2023
                                  • Claims handling and customer service satisfaction are critical motivators in switching providers
                                    • Figure 44: Motivators to switch P&C providers in the future, 2023
                                    • Figure 45: USAA paid twitter ad, 2023
                                  • Younger generations place a higher importance on life events and economic conditions when considering a provider switch
                                    • Figure 46: Motivators to switch P&C providers in the future, by generation, 2023
                                    • Figure 47: State Farm Simple Insights, renter to homeownership transition, 2023
                                • P&C Insurance Purchase Channels

                                  • Auto coverage is most likely purchased with an agent over the phone or in person
                                    • Figure 48: Auto insurance purchase channel, 2023
                                  • Homeowners lean heavily on agents, while renters are prefer digital channels
                                    • Figure 49: Homeowners and renters insurance purchase channel, 2023
                                  • Gen Z and Millennials lean on mobile apps for their insurance needs
                                    • Figure 50: Homeowners insurance purchase channel, by generation, 2023
                                    • Figure 51: Geico live agent chat email, 2022
                                • Mobile Usage for P&C Insurance

                                  • Mobile app adoption continues to grow year after year
                                    • Figure 52: P&C mobile usage over time, 2020 to 2023
                                    • Figure 53: Geico paid Facebook ad, 2023
                                • Interest in Nontraditional Providers

                                  • Younger consumers’ interest and adoption of insurtechs continues to grow
                                    • Figure 54: Insurtech usage and interest, by generation, 2022 and 2023
                                  • Nearly thirty percent of consumers would buy P&C coverage from a tech company
                                    • Figure 55: Interest in buying insurance from a tech company, by age, 2022 and 2023
                                    • Figure 56: Amazon Pharmacy direct mail piece, 2023
                                • Telematics Interest and Adoption

                                  • Mileage-based insurance usage grew while behavior-based slightly declined, and the opportunity to further adoption remains strong
                                    • Figure 57: Usage-based insurance adoption over time, 2021-23
                                  • Gen Zers lean more toward mileage-based insurance, older generations prefer behavior-based
                                    • Figure 58: Usage and interest in UBI, by generation, 2023
                                • Factors When Choosing a P&C Insurer

                                  • Nearly half consider bundle discounts when seeking an insurer, but Gen Zers place a higher importance on sign-up discounts
                                    • Figure 59: Importance of discounts when choosing a P&C Insurer, by generation, 2023
                                    • Figure 60: USAA paid Facebook ad, 2023
                                  • Despite digital solutions not being a priority, providing them is an expectation at this point – especially for younger generations
                                    • Figure 61: Importance of digital claims and purchasing processes, by generation, 2023
                                • Attitudes toward P&C Insurance

                                  • Younger consumers are the least likely to consider bundle discounts when buying multiple policies from the same provider
                                    • Figure 62: Attitudes toward bundling, by generation, 2023
                                    • Figure 63: State Farm auto and renters bundle, direct mail piece, 2023
                                  • Nearly 30% of Gen Zers and Millennials would be willing to pay more for a policy if the provider has a strong reputation
                                    • Figure 64: Attitudes toward P&C insurers, by generation, 2022 and 2023
                                    • Figure 65: The Hartford direct mail acquisition piece, 2023
                                  • As telematics adoption grows, consumers are becoming more comfortable sharing home or auto data if it means more discounts
                                    • Figure 66: Interest in sharing home or auto data, by generation, 2023
                                • Appendix – Data Sources and Abbreviations

                                  • Data sources
                                    • Consumer survey data
                                      • Marketing creative
                                        • Abbreviations and terms
                                          • Abbreviations
                                            • Terms

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