Property & Casualty Insurance Market Size, Forecasts 2024-2032 (2024)

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  • Report ID: GMI7113
  • Published Date: Oct 2023
  • Report Format: PDF

Property & Casualty Insurance Market Size

Property & Casualty Insurance Market size was valued at USD 1.8 trillion in 2023 and is estimated to register a CAGR of over 5.5% between 2024 and 2032. The increasing GDP contributes to the expansion of the market by driving economic growth, which results in greater assets, property, and commercial activities. As GDP rises, individuals and businesses have more to protect, leading to an increased demand for P&C insurance products such as property, liability, and business interruption coverage. According to the Bureau of Economic Analysis U.S., in the second quarter of 2023, real Gross Domestic Product (GDP) in the U.S. grew at an annual rate of 2.1 percent, as per the "third" estimate.

Property & Casualty Insurance Market Size, Forecasts 2024-2032 (1)

Rising urbanization is propelling the property and casualty insurance market by increasing the concentration of properties and businesses in urban areas. The demand for insurance coverage on properties, homes, commercial enterprises, and vehicles will surge as more people migrate to cities and urban infrastructure expands. According to the UNCTAD, 57% of world population lives in urban areas. In the coming 25 years, global population is projected to grow by 1.6 billion people. Urban environments are prone to unique risks such as higher traffic congestion, property thefts, and natural disasters, necessitating comprehensive P&C insurance. Urbanization-driven demand expansion fuels the market growth as insurers adapt to the evolving risk landscape in urban areas.

Property & Casualty Insurance Market Report Attributes
Report AttributeDetails
Base Year:2023
Property & Casualty Insurance Market Size in 2023:USD 1.8 Trillion
Forecast Period:2024 to 2032
Forecast Period 2024 to 2032 CAGR:6%
2032 Value Projection:USD 3.02 Trillion
Historical Data for:2018 to 2023
No. of Pages:220
Tables, Charts & Figures:226
Segments covered:Product type and distribution channel
Growth Drivers:
  • Growing urbanization worldwide
  • Rising awareness about insurance benefits
  • Increasing product diversification
  • Surge in regulatory changes and demands
Pitfalls & Challenges:
  • Regulatory compliance

Implementing and maintaining technology solutions in the property & casualty (P&C) insurance market poses a significant challenge due to the associated high costs. Developing and maintaining robust digital infrastructure, including core systems and data analytics, requires substantial investments. Smaller insurers may struggle with these costs, which will limit their competitiveness. Additionally, the ongoing expenses for updates, cybersecurity, and compliance can also strain budgets. To address this challenge, insurers are seeking cost-effective and scalable solutions to ensure their long-term viability and competitiveness.

COVID-19 Impact

COVID-19 had negative impacts on the property & casualty insurance market due to increased claims. Business interruptions, event cancelations, and supply chain disruptions have led to a surge in claims related to commercial losses. Additionally, the pandemic strained the global economy, affecting investments and potentially impacting insurer portfolios. Uncertainties and evolving risks also led to more complex underwriting processes. While certain sectors saw growth, the market faced some challenges stemming from the economic and operational disruptions cause by the pandemic.

Property & Casualty Insurance Market Trends

Data analytics is an emerging trend in the market as insurers increasingly harness the power of data to enhance underwriting, claims processing, and risk assessment. Advanced analytics and AI-driven models are used to gain deeper insights into customer behavior and risk factors, allowing for more accurate pricing and policy customization. This trend is driven by a desire for greater efficiency, better risk management, and the ability to offer more competitive and tailored insurance products in an increasingly data-driven world.

Usage-Based Insurance (UBI) is a growing trend, especially in the auto insurance sector. It involves policy pricing based on actual vehicle usage data, collected through telematics devices or smartphone apps. UBI offers personalized insurance rates, rewarding safe driving habits and reducing premiums for low-mileage drivers. Insurers calculate premiums using real-time data on driving behavior such as speed, braking, and mileage.

For instance, in January 2023, New India Assurance introduced the "Pay as You Drive" (PAYD) policy, offering discounts upon renewal, extended coverage beyond distance limits, and enhanced protection such as zero depreciation, roadside assistance, and return-to-invoice benefits, making it a comprehensive and innovative insurance offering.

Property & Casualty Insurance Market Analysis:

Property & Casualty Insurance Market Size, Forecasts 2024-2032 (2)

Based on product type, the homeowners segment accounted for 30% of the market share in 2023. Increased property ownership, urbanization, and climate-related risks are driving the demand for homeowners insurance. As homeowners seek protection against property damage, natural disasters, and liability issues, insurers are expanding coverage options and customization. Furthermore, technological advancements and data analytics enable more accurate underwriting and pricing, making homeowners insurance accessible and competitive.

Property & Casualty Insurance Market Size, Forecasts 2024-2032 (3)

Based on distribution channel, the agency segment held over 38% of the property & casualty insurance market share in 2023, due to its enduring importance in the insurance industry. Insurance agencies and agents play a crucial role in educating customers, providing personalized advice and facilitating policy sales. While digital channels have expanded, many customers still value the expertise and guidance offered by agents, particularly for complex insurance needs. Insurers are increasingly investing in technology to support agents, making the agency channel more efficient and accessible, driving its continued growth.

Property & Casualty Insurance Market Size, Forecasts 2024-2032 (4)

North America property & casualty insurance market recorded over 30% of the revenue share in 2023. The region has a robust insurance industry, high urbanization rates, and a strong focus on risk management. For instance, in May 2023, Toyota Auto Insurance expanded its services to California, marking its ninth state of operation in the U.S. This branded insurance product provides customers with quality and customizable coverage at competitive rates, enhancing options for Toyota vehicle owners in the region. Increasing climate-related events have amplified the need for various insurance coverages. Additionally, advancements in data analytics and technology are driving innovations in underwriting and customer engagement.

Property & Casualty Insurance Market Share

State Farm Group and Berkshire Hathaway Inc. are the major companies in the market due to their extensive customer base, financial strength, and diverse portfolio of insurance products. State Farm is known for its wide range of insurance offerings and a vast network of agents, while Berkshire Hathaway through GEICO, its subsidiary, is a leader in auto insurance. Their financial stability, innovations, and customer trust solidify their prominent positions in the P&C insurance industry.

Property & Casualty Insurance Market Companies

The major companies operating in the property & casualty insurance industry are-

  • State Farm Group
  • Berkshire Hathaway Inc.
  • Progressive Corporation
  • Allstate Corporation
  • Liberty Mutual Insurance
  • Travelers Companies Inc.
  • Chubb Limited

Property & Casualty Insurance Industry News

  • In July 2023, Allianz Global Corporate & Specialty (AGCS) and the commercial insurance business of local Allianz Property & Casualty (P&C) entities have announced a merger, consolidating their operations under the name "Allianz Commercial." This unified entity will provide insurance solutions for mid-sized businesses, large enterprises, and specialty risks.

The property and casualty insurance market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Product Type

  • Homeowners Insurance
  • Car Insurance
  • Condo Insurance
  • Renters Insurance
  • Landlord Insurance
  • Others

Market, By Distribution Channel

  • Direct
  • Agency
  • Banks
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Southeast Asia
    • ANZ
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of property & casualty insurance reached USD 1.8 trillion in 2023 and is set to witness over 5.5% CAGR between 2024 and 2032, owing to the rising rate of urbanization along with the higher insurance coverage on properties, homes, commercial enterprises, and vehicles.

The agency distribution channel segment held over 38% of the market share in 2023, attributed to the rising expansion of digital channels.

North America recorded over 30% of the market share in 2023, due to the presence of robust insurance sector, high urbanization rates, and the strong focus on risk management.

Some of the prominent property & casualty insurance companies are State Farm Group, Berkshire Hathaway Inc., Progressive Corporation, Allstate Corporation, Liberty Mutual Insurance, Travelers Companies Inc., and Chubb Limited.

Property & Casualty Insurance Market Scope

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    • Base Year: 2023
    • Companies covered: 15
    • Tables & Figures: 226
    • Countries covered: 21
    • Pages: 220
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    Property & Casualty Insurance Market Size, Forecasts 2024-2032 (2024)


    Property & Casualty Insurance Market Size, Forecasts 2024-2032? ›

    The global property and casualty insurance market size was estimated at USD 3,674.46 billion in 2023 and is expected to reach USD 3,916.99 billion in 2024. What is the property and casualty insurance market growth?

    How big is the P&C market? ›

    The global property and casualty insurance market size was estimated at USD 3,674.46 billion in 2023 and is expected to reach USD 3,916.99 billion in 2024. What is the property and casualty insurance market growth?

    What is the outlook for property casualty insurance? ›

    We expect improvement in the combined ratio, led by personal auto. We forecast the industry net combined ratio at 98.5% in both 2024 and 2025, a sharp improvement from an estimated 103% in 2023.

    What is the CAGR of the P&C insurance industry? ›

    The U.S. property and casualty insurance market size was estimated at USD 880 billion in 2023 and is projected to hit around USD 1,910 billion by 2033, at a CAGR of 8.05% from 2024 to 2033.

    What is the outlook for the insurance industry? ›

    The insurance industry has a promising future, but it must remain agile and innovative in their approach. By embracing new technologies and meeting the changing needs of policyholders, insurance companies can remain competitive and relevant in a rapidly evolving landscape.

    How big is the US property and casualty market? ›

    The market size, measured by revenue, of the Property, Casualty and Direct Insurance industry was $888.0bn in 2023. What was the growth rate of the Property, Casualty and Direct Insurance industry in the US in 2023? The market size of the Property, Casualty and Direct Insurance industry increased 0.7% in 2023.

    Who is the biggest P&C insurer? ›

    1. State Farm. State Farm is the industry's biggest player, both in the US and overseas. The Bloomington, Illinois-based P&C insurance giant wrote almost $78 billion worth of premiums in the past year.

    What is the P&C industry outlook for 2024? ›

    Alera Group's recent P&C Market Outlook shows that prices will continue to go up in 2024, with most lines of business likely to experience a 1%-10% increase.

    What are the trends for P&C insurance in 2024? ›

    Inflation is driving up the price of materials and labor for repairs, and lingering pandemic supply chain issues have made parts scarcer and more expensive. To preserve profits, insurers increased full coverage premiums by an average of 26% in 2024, according to Bankrate. That's the biggest hike in about 48 years.

    What is the outlook for property casualty insurance in 2024? ›

    Our outlook for 2024 remains decidedly more favorable than 2023, with continued strong premium growth and easing inflation pressures. We raise our premium growth estimate to 8.0% for 2024 (from 7.0%) and forecast 5.0% growth in 2025.

    Is P&C insurance profitable? ›

    Despite a $38 billion underwriting loss for the year, the P&C industry managed to record a substantial pretax operating profit in 2023, thanks to higher investment yields and a corresponding increase in net investment income.

    What is the largest expense most P&C insurers face? ›

    - Loss payments arising from claims – this constitutes the major expense category for most insurers. For P&C insurers, loss payments often represent 70 percent to 80 percent of their total costs.

    What are the challenges facing the insurance industry in 2024? ›

    With the increasing digitization of operations, insurers face heightened cybersecurity risks. Protecting sensitive customer data from cyber threats and ensuring compliance with stringent data protection regulations are paramount challenges in safeguarding the industry's reputation and maintaining customer trust.

    Why is the insurance industry struggling? ›

    The main drivers are the higher costs insurers face, including from more severe storms; higher replacement costs; and re-insurance, the type of insurance used by insurers to limit their risks. These are passed on to consumers.

    What is the market size of the insurance industry in the US? ›

    Market size

    While estimates can vary, most sources put the figure at around 5.5 trillion U.S. dollars of insurance premiums written in 2021.

    What is the largest insurance market? ›

    The United States is the largest insurance market globally by a wide margin. In 2022, the highest value of life and non-life direct premiums was written on the U.S. insurance market. China was the second largest market, though the U.S. market was more than four times the size of the Chinese market.

    How big is the insurance industry in the US? ›

    Insurance market size in the U.S. 2009-2022

    In 2022, insurance premiums written in the United States amounted to 1.48 trillion U.S. dollars, which includes property/casualty premiums in addition to life/annuity premiums.

    How big of a market is insurance? ›

    The global market for insurance was valued at $9.8 trillion in 2021 and is estimated to grow from $5.6 trillion in 2022 to $9.8 trillion 2027, with a compound annual growth rate (CAGR) of 12% for the period of 2022-2027.

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