Business Insurance in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS OD4779Revenue
$258.1bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
323k
Businesses
1,665
Wages
$XX.Xbn
Business Insurance in the US industry analysis
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.
Trends and Insights
- Economic expansion boosts the business insurance industry. Higher demand and increased premiums amid a robust economy have positively impacted the sector.
- Business strategies now heavily lean on comprehensive general and professional liability coverage. This insurance offers a broad range, protecting businesses from risks and operational disruptions.
- The distribution of establishments significantly depends on population trends and geographical location. Larger and more densely populated states tend to have more business insurance establishments due to the higher demand for insurance services.
- Competition intensifies based on macroeconomic conditions and price-raising and price-cutting cycles. During price-raising periods, companies focus on profitability as higher-priced policies bring increased risk exposure, while during price-cutting processes, businesses face augmented price-based competition.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.7 % over the past five years, to reach an estimated $258.1bn in 2023.
Trends and Insights
Economic expansion fuels the business insurance industry
- A strong economy with low unemployment rates increased the number of businesses, leading to higher demand for business insurance and positively impacting the industry.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Recovering economy set to bolster business insurance sector
- The business insurance industry is prepared for growth, albeit slower, as the global economy rebounds from the COVID-19 pandemic.
Biggest companies in the Business Insurance in the US
| Company | Market Share (%)
2023 | Revenue ($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 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
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.
Trends and Insights
The rising importance of general and professional liability coverage in business
- General and professional liability insurance provides a broad coverage umbrella, safeguarding businesses against claims like bodily injury, property damage, personal injury and disruptions in operations.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- There are no industries to display.
International industries
- Property, Casualty and Direct Insurance in Canada
- General Insurance in Australia
- Property & Casualty Reinsurance in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Directly underwriting workers' compensation insuranceDirectly underwriting general liability insuranceDirectly underwriting professional liability insuranceDirectly underwriting commercial multiple peril insuranceCompanies
State Farm Mutual Automobile Insurance CoAllstate CorpChubb LimitedPurchase this report to view all 3 major companies in this industry.
Related Terms
COMBINED RATIOEXPENSE RATIOUNDERWRITINGIndustry Code
NAICS 52412 - Business Insurance in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Economic expansion boosts the business insurance industry. Higher demand and increased premiums amid a robust economy have positively impacted the sector.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Business strategies now heavily lean on comprehensive general and professional liability coverage. This insurance offers a broad range, protecting businesses from risks and o...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The distribution of establishments significantly depends on population trends and geographical location. Larger and more densely populated states tend to have more business i...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition intensifies based on macroeconomic conditions and price-raising and price-cutting cycles. During price-raising periods, companies focus on profitability as higher...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Allstate keeps up with the lower-priced competition by offering product deals. Allstate has focused on maintaining its market share by bundling insurance offerings.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of State Farm Mutual Automobile Insurance Co's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Allstate Corp's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Chubb Limited's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for State Farm Mutual Automobile Insurance Co, and factors influencing its performance in the industry
- Description and key data for Allstate Corp, and factors influencing its performance in the industry
- Description and key data for Chubb Limited, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Statutory Accounting Principles upholds fair play in insurance, enabling uniform policy application across states. The Statutory Accounting Principles ensures insurers ha...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
A sharp profit rise paints a rosy picture for business insurance companies. Profit growth has been notably robust recently across multiple key insurance lines, rapidly reboun...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Business Insurance in the US industry in United States in 2024?
The market size of the Business Insurance in the US industry in United States is $258.1bn in 2024.
How many businesses are there in the Business Insurance in the US industry in 2023?
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.
Has the Business Insurance in the US industry in United States grown or declined over the past 5 years?
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.
What is the forecast growth of the Business Insurance in the US industry in United States over the next 5 years?
Over the next five years, the Business Insurance in the US industry in United States is expected to grow.
What are the biggest companies in the Business Insurance in the US market in United States?
The biggest companies operating in the Business Insurance market in United States are State Farm Mutual Automobile Insurance Co, Allstate Corp and Chubb Limited
What does the Business Insurance in the US in United States include?
Directly underwriting workers' compensation insurance and Directly underwriting general liability insurance are part of the Business Insurance in the US industry.
Which companies have the highest market share in the Business Insurance in the US in United States?
The company holding the most market share in United States is State Farm Mutual Automobile Insurance Co.
How competitive is the Business Insurance in the US industry in United States?
The level of competition is high and increasing in the Business Insurance in the US industry in United States.
