$258.1bn
$XX.Xbn
323k
1,665
$XX.Xbn
Companies in the Business Insurance industry underwrite business insurance policies, which protect businesses from losses because events may occur during the business. These events include car accidents, natural disasters or machinery issues. Business insurance is primarily for businesses that want to pool several different commercial-related insurance policies together, which results in a lower premium price for such packages. Accordingly, companies emphasize potential risk exposure when pricing business insurance policies, with insurance policy prices falling during price-cutting cycles or softening and rising during price-raising or hardening cycles.Industry demand has benefited from price increases, primarily due to an expanding economy. As the number of businesses and employees expanded, the potential pool of customers for business insurance companies also grew. However, industry demand slowed in 2020 because of the COVID-19 pandemic and subsequent economic downturn. However, this was offset by essential businesses that remained open, enabling the industry to grow despite an economic recession. Also, as the economy recovered and companies began reopening, industry product demand rose. Industry-wide revenue has been growing at an average annualized 1.7% over the past five years and is expected to total $258.1 billion in 2023, when income will climb by an estimated 1.7%. Similarly, industry profit is expected to remain high, accounting for 11.7% of industry revenue in 2023.As the economy recovers, industry firms will benefit from falling unemployment and rebounding corporate profitability. Accordingly, industry demand will rise as new and existing businesses require business insurance with increased business activity. Also, companies are expected to benefit from technological advancements, which will enhance risk management, modeling abilities and cloud computing. As the percentage of services conducted online rises, industry businesses are expected to increase their online presence. Industry revenue is forecast to grow at an annualized 0.6% over the five years through 2028 to total $265.8 billion.
Industry revenue has grown at a CAGR of 1.7 % over the past five years, to reach an estimated $258.1bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
State Farm Mutual Automobile Insurance Co | 30,241.6 | 1,198.0 | 4.0 | |
Allstate Corp | 21,130.6 | 2,360.6 | 11.2 | |
Chubb Limited | 6,792.0 | 342.4 | 5.0 |
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Industry revenue is measured across several distinct product and services lines, including General and professional liability coverage, Workers' compensation coverage and Commercial multiple peril coverage. General and professional liability coverage is the largest segment of the Business Insurance in the US.
The rising importance of general and professional liability coverage in business
This industry underwrites (i.e. assuming the risk and assigning premiums) business insurance, which is used to protect businesses from losses due to events that may occur during the normal course of business.
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NAICS 52412 - Business Insurance in the US
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Including values and annual change:
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Key data sources in the US include:
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The market size of the Business Insurance in the US industry in United States is $258.1bn in 2024.
There are 1,665 businesses in the Business Insurance in the US industry in United States, which has grown at a CAGR of 0.6 % between 2018 and 2023.
The market size of the Business Insurance in the US industry in United States has been growing at a CAGR of 1.7 % between 2018 and 2023.
Over the next five years, the Business Insurance in the US industry in United States is expected to grow.
The biggest companies operating in the Business Insurance market in United States are State Farm Mutual Automobile Insurance Co, Allstate Corp and Chubb Limited
Directly underwriting workers' compensation insurance and Directly underwriting general liability insurance are part of the Business Insurance in the US industry.
The company holding the most market share in United States is State Farm Mutual Automobile Insurance Co.
The level of competition is high and increasing in the Business Insurance in the US industry in United States.