21 U.S. Insurance Industry Statistics To Know

Hey there, savvy readers! Ever wonder what’s cooking in the ever-evolving world of U.S. insurance? Well, you’re in for a treat because we’ve dived into the nitty-gritty of the industry and pulled out the juiciest stats just for you.

From the behemoths of Berkshire Hathaway to the rebellious states where auto insurance isn’t a must, we’ve got the lowdown on everything insurance-related in the U.S.

So, buckle up (and maybe get some insurance for that buckle), as we unravel the 21 U.S. Insurance Industry Statistics you need to have on your radar!

General U.S. Insurance Industry Statistics

The insurance scene in the U.S. is no joke—it’s a big player both locally and globally. People all around the world are putting their trust in insurance, whether it’s for their homes or their beloved wheels. Let’s dive into some laid-back facts about this industry.

Global Premium Power

In 2022, the world collectively shelled out over $7 trillion on annual insurance premiums. Talk about a financial safety net getting its due!

Worldwide Premium Comeback

After a bit of a slump in 2019 (hitting $5.03 trillion), global insurance premiums bounced back, showing a 40% increase in recent years. Looks like the insurance mojo is back and thriving.

U.S. Health Hustle

In the U.S., private health insurance spending fueled a cool 28% of National Health Expenditure. Even with a slight dip in 2020 (down to $1.15 trillion), it still holds its ground, covering over a quarter of healthcare spending in the nation.

Profit Margins Reality Check

The average profit margin in the insurance game hovers between a slim 3-5%. But here’s the kicker—it heavily depends on the type of insurance.

Some hit the jackpot with net profit margins soaring over 20%, while others barely scrape by. It turns out that insurance companies make money when they’re not in the business of insuring risky things.

Company Count

Brace yourself—there are a whopping 5,954 insurance companies spread across the United States. New York takes the crown with 577 native companies, flaunting its insurance empire.

Florida, Texas, Illinois, and Wisconsin follow suit, proving that insurance is a serious business coast to coast.

U.S. Insurance Industry Statistics by Types Of Insurance

Let’s break down the insurance game by types – because let’s face it, life’s full of surprises, and we need coverage for just about everything. Here’s the lowdown according to our findings:

Property and Casualty Profits Soaring

When it comes to raking in the dough, property and casualty insurance companies are the champs, boasting a whopping net profit margin of 23.26%.

They’re the go-to for safeguarding your humble abode and belongings from mishaps like theft and vandalism.

With incidents on the decline (burglary down by 48.5% since 2010), it’s no surprise these folks are rolling in the green. Just between 2017 and 2018, net income skyrocketed from $38.7 billion to $57.9 billion, marking a jaw-dropping 49.5% increase.

Premium Powerhouses

Property and casualty premiums hold a solid chunk of the insurance pie, devouring 48% of all premiums. In 2021, of the $1.4 trillion in net premiums written, 52% belonged to the life and annuity crew, while the property and casualty squad claimed the remaining 48%.

Life Insurance Missed Opportunities

Here’s a head-scratcher – 16% of folks admit they need life insurance but are yet to take the plunge. That’s a potential customer pool of about 41 million people.

And the reason behind the hesitation? Well, it turns out that when the main breadwinner of a family bids adieu, up to 33% of families grapple with day-to-day expenses in the first month.

Wanderlust and Insurance

Guess what? Almost four in ten Americans (that’s 38%) are on the travel insurance bandwagon. The main ticket to this journey is the fear of trip cancellations.

A whopping 88% of those opting for travel insurance are doing so to shield themselves against the heartbreak of canceled plans.

U.S. Insurance Industry Statistics by Employment

Let’s unpack the employment scene in the U.S. insurance world—because it’s not just about protecting properties; it’s also about putting bread on the table for millions. Here’s the scoop on U.S. insurance industry employment:

Workforce Power

The U.S. insurance industry plays employer to a hefty 2.86 million individuals. And guess what? That number’s been on the rise. Back in 2015, there were 2.54 million insurance pros, so in the span of five years, the industry workforce swelled by a solid 12.6%.

Unemployment Victory

When it comes to job security, the U.S. insurance industry is rocking it. As of February 2023, the industry’s unemployment rate was a mere 1.4%, a significant drop from 2.5% in 2021.

Just to put things in perspective, that’s a whopping 61% lower than the national unemployment rate of 3.6%.

Payday in Insurance

Drumroll for the paycheck, please. On average, an insurance industry employee takes home $67,421 annually. But hold on, it’s not a one-size-fits-all deal.

Salaries can swing wildly based on factors like job category, location, experience, and education. So, the insurance industry covers quite the spectrum from a cozy $22,500 to a cushy $143,500.

COVID-19 Workforce Resilience

The insurance industry weathered the storm admirably when the pandemic hit in April 2020. Unemployment only ticked up to 3.9% from 1% between February and April 2020. Compare that to the national unemployment rate, which shot up to a daunting 14.7%.

Labor Cost Anxieties

Behind the scenes, 64% of insurers are breaking a sweat over rising labor costs. It’s not just about the dollars; it’s about maintaining quality standards and a top-notch customer experience.

In fact, nearly half of them (48%) fear that the scarcity of skills might throw these essentials off balance.

Millennials MIA

The insurance industry is facing a bit of a generational conundrum. Only 4% of millennials have their eyes set on a career in insurance. This could be a concern considering that a whopping 75% of the global workforce is now made up of millennials.

To add to the dilemma, experts foresee up to a quarter of insurance professionals retiring within the next three years, with no fresh faces ready to fill their shoes.

U.S. Insurance Industry Statistics by Insurance Companies

Let’s pull back the curtain on the powerhouse players in the U.S. insurance industry—the companies that bring us catchy jingles and memorable mascots.

These companies aren’t just good at advertising; they’re major players in the financial arena. Check out the highlights:

Berkshire Hathaway Takes the Crown

The crown for the world’s largest insurance company goes to Berkshire Hathaway, a U.S.-based non-health insurance behemoth valued at a staggering $714 billion. It’s not just leading the pack; it’s leading by a substantial margin.

Rounding out the top five are heavyweights United Healthcare ($448 billion), Ping An Insurance ($141 billion), CVS ($136 billion), and AIA Group ($123 billion).

Advertising Dominance – GEICO Rules the Roost

When it comes to advertising dollars, Berkshire Hathaway’s GEICO Corp. is the undisputed champion. In 2019 alone, GEICO splurged a whopping $2.16 billion on advertising, making it the highest spender in the insurance industry.

Other major players in the ad game include Progressive, with a cool $1.95 billion, State Farm at $1.17 billion, and Allstate at $929.9 million. These companies are not just protecting you; they’re making sure you remember their name.

Insurance Industry Statistics by U.S. Insurance Rates

Navigating the world of insurance rates in the U.S. is no small feat. From life to health and the ever-present auto insurance, let’s break down the numbers and shed some light on the state of coverage:

Life Insurance Limbo

Surprisingly, 23% of Americans are living on the edge without a life insurance policy.

The reasons are varied, with 38% citing affordability as the main hurdle, followed by 29% deeming the cost not worth it, 28% claiming no family to support, and 25% playing the “I’m too young for that” card.

Health Insurance Hurdles

Health is wealth, they say, but 9.6% of Americans are rolling the dice without any form of health insurance. While that might mean avoiding the doctor for some, the numbers used to be even grimmer before the Affordable Care Act stepped in.

Before 2010, a hefty one in six American adults went without health insurance.

Health-Related Bankruptcies

The financial toll of inadequate health insurance is no joke. A staggering 67% of American bankruptcies are linked to insufficient health coverage. In 2020 alone, Americans dug deep, shelling out $388.6 billion out of pocket to cover healthcare costs when insurance fell short.

Meanwhile, private health insurance swooped in to cover a mind-boggling $1.15 trillion in healthcare expenses.

Auto Insurance Exceptions

In the U.S., it’s almost a rite of passage to have auto insurance, but not in New Hampshire and Virginia. These rebels on the insurance scene are the only two states that allow you to hit the road without mandatory auto insurance.

Meanwhile, the majority of Americans are forking over an average of $1,655 annually just to stay street-legal.

Conclusion

And there you have it, folks! Who knew insurance could be this fascinating, right? From the jaw-dropping profits of property and casualty insurance to the advertising extravaganzas of GEICO, the U.S. insurance scene is a powerhouse of stats and stories.

Whether you’re pondering life without life insurance or wondering about the financial dance of health coverage, these 21 statistics give you a ringside seat to the insurance circus.

So, until next time, stay insured, stay curious, and remember: it’s not just about the policies; it’s about the stories they tell. Cheers to a well-covered year!

Frequently Asked Questions

1. What’s the largest insurance company globally in 2023?

Berkshire Hathaway takes the crown with a staggering worth of $714 billion, making it the undisputed heavyweight champion in the world of insurance.

2. How many Americans lack a life insurance policy, and why?

Surprisingly, 23% of Americans are without life insurance, with the top reasons being affordability (38%), perceived cost inequity (29%), having no family to support (28%), and the perception of being too young (25%).

3. What’s the state of health insurance in the U.S.?

Currently, 9.6% of Americans don’t have any form of health insurance, though it’s an improvement from the pre-2010 era when one in six American adults went without health coverage.

4. How resilient was the U.S. insurance job market during the COVID-19 pandemic?

Impressively, while overall unemployment rates soared, the insurance industry’s unemployment only rose to 3.9% in April 2020 from 1% in February 2020, showcasing its resilience during challenging times.

5. What’s the financial impact of inadequate health insurance in the U.S.?

In 2020, inadequate health insurance resulted in a staggering 67% of American bankruptcies, forcing individuals to spend $388.6 billion out of pocket to cover healthcare costs when insurance fell short.