U.S. Different Legal responsibility Insurance coverage Market Grows 6.8% in 2024, However Loss Ratios Surge
The National Association of Insurance Commissioners has issued its annual Market Share Information Experiences for each the Property & Casualty Insurance coverage Market, in addition to for the Life & Fraternal Insurance coverage Market. As in previous iterations, the info supplied right here displays a compiled record of market share knowledge primarily based upon filings of countrywide premium submitted to the NAIC from Property & Casualty insurers as reported on the State Web page of the NAIC’s annual assertion for insurers.
As soon as collected, the info is compiled right into a report itemizing the cumulative market share knowledge for the seven main traces of insurance coverage in the US: All traces; Personal Passenger Private Auto; Business Auto; Employees’ Compensation; Medical Skilled Legal responsibility; Householders’ Multi-Peril; and Different Legal responsibility (excluding auto legal responsibility).
With roughly 97.92% of P&C insurers reporting, the trade recorded roughly $1.06 trillion in Direct Premiums Written in 2024. The highest 10 P&C insurers account for 51.40% of the overall market share, reflecting a continued focus of market share among the many largest carriers.
Personal passenger auto insurance coverage stays the dominant line of enterprise, with $344.11 billion in direct premiums written, representing roughly 35% of all reported P&C premiums.
Key takeaways from this yr’s Different Legal responsibility Market Share Report
The U.S. Different Legal responsibility insurance coverage market continued its upward trajectory in 2024 in keeping with the newest NAIC knowledge. Regardless of premium progress, insurers confronted heightened challenges as loss ratios surged, pushed by rising claims severity and litigation prices. The highest 25 insurers captured 67.8% of the market, reflecting elevated consolidation amongst main carriers.
The next are 5 key takeaways from a comparability between this yr’s and final yr’s market share stories courtesy of Chat GPT:
1. Premium Development Stays Robust:
The Different Legal responsibility insurance coverage market noticed strong progress in 2024, with complete direct premiums written rising 6.8% to $129.2 billion from $121.0 billion in 2023. The rise displays continued fee hikes and heightened demand for legal responsibility protection amid a difficult claims setting.
2. Chubb Maintains Market Lead Regardless of Stiffer Competitors:
Chubb Ltd. Group maintained its place as the most important U.S. different legal responsibility insurer, writing $9.47 billion in direct premiums, up from $9.24 billion in 2023. Regardless of this progress, its market share slipped barely to 7.33% from 7.64% as opponents, together with Vacationers and Berkshire Hathaway, gained floor.
3. Loss Ratios on the Rise:
The general trade loss ratio climbed to 70.21% in 2024, up from 62.84% in 2023, pushed by a rise in massive loss claims and heightened litigation bills. Liberty Mutual reported one of the vital vital deteriorations, with its loss ratio surging to 108.50% from 69.50% a yr earlier, reflecting substantial opposed loss improvement.
4. Center-Market Insurers Make Positive aspects:
WR Berkley and Fairfax Monetary strengthened their market positions, climbing to the fourth and fifth spots, respectively. WR Berkley wrote $5.3 billion in direct premiums, whereas Fairfax posted $4.9 billion. Their stable underwriting efficiency and disciplined fee administration contributed to their upward momentum.
5. Consolidation and Market Share Focus Intensify:
The highest 25 insurers accounted for 67.8% of the overall market in 2024, down from 70.2% in 2023. As mid-sized gamers achieve traction, established giants like Chubb and Vacationers proceed to dominate however face rising stress from fast-growing opponents.
The Prime 25 P&C Insurers by Countrywide Premium – Different Legal responsibility
| Rank | Group/Firm Title | Direct Premiums Written | Direct Premiums Earned | Direct Loss to EP Ratio | Market Share % | Cumulative Market Share % | |
|---|---|---|---|---|---|---|---|
 |
1 | CHUBB LTD GRP | 9,468,300,714 | 9,311,271,230 | 68.18 | 7.33 | 7.33 |
 |
2 | TRAVELERS GRP | 6,148,891,449 | 5,937,159,704 | 70.11 | 4.76 | 12.09 |
 |
3 | BERKSHIRE HATHAWAY GRP | 5,649,813,733 | 5,571,683,136 | 62.05 | 4.37 | 16.46 |
 |
4 | WR BERKLEY CORP GRP | 5,303,967,875 | 5,076,197,378 | 56.31 | 4.10 | 20.56 |
 |
5 | FAIRFAX FIN GRP | 4,876,103,152 | 4,913,578,653 | 60.68 | 3.77 | 24.34 |
 |
6 | LIBERTY MUT GRP | 4,660,263,065 | 4,798,191,299 | 108.50 | 3.61 | 27.94 |
 |
7 | AMERICAN INTL GRP | 4,601,990,814 | 4,546,339,547 | 63.92 | 3.56 | 31.50 |
 |
8 | CNA INS GRP | 4,438,436,866 | 4,310,155,233 | 57.07 | 3.43 | 34.94 |
 |
9 | AXA INS GRP | 4,240,742,640 | 4,253,245,280 | 68.80 | 3.28 | 38.22 |
 |
10 | MARKEL GRP | 4,106,241,556 | 4,068,746,614 | 66.07 | 3.18 | 41.40 |
 |
11 | HARTFORD FIRE & CAS GRP | 3,630,477,728 | 3,531,931,993 | 62.32 | 2.81 | 44.21 |
 |
12 | ZURICH INS GRP | 3,357,948,057 | 3,255,031,807 | 81.15 | 2.60 | 46.81 |
 |
13 | NATIONWIDE CORP GRP | 2,743,478,287 | 2,776,374,113 | 61.25 | 2.12 | 48.93 |
| 14 | AMERICAN FINANCIAL GRP | 2,719,516,737 | 2,638,674,617 | 80.88 | 2.10 | 51.03 | |
 |
15 | TOKIO MARINE HOLDINGS INC GRP | 2,557,183,862 | 2,578,241,747 | 83.39 | 1.98 | 53.01 |
 |
16 | SOMPO GRP | 2,471,050,841 | 2,387,495,472 | 66.94 | 1.91 | 54.93 |
 |
17 | ARCH INS GRP | 2,204,610,971 | 2,064,468,680 | 56.28 | 1.71 | 56.63 |
 |
18 | STARR GRP | 2,180,299,456 | 2,092,257,532 | 71.09 | 1.69 | 58.32 |
 |
19 | AXIS CAPITAL GRP | 1,934,074,194 | 1,939,823,980 | 63.51 | 1.50 | 59.82 |
 |
20 | ASSURANT INC GRP | 1,910,134,329 | 1,934,137,799 | 73.70 | 1.48 | 61.29 |
 |
21 | CINCINNATI FIN GRP | 1,903,402,231 | 1,821,020,807 | 59.00 | 1.47 | 62.77 |
 |
22 | ALLIANZ INS GRP | 1,728,137,256 | 1,701,338,046 | 80.31 | 1.34 | 64.10 |
 |
23 | EVEREST REINS HOLDINGS GRP | 1,648,753,417 | 1,728,592,193 | 129.40 | 1.28 | 65.38 |
 |
24 | STATE FARM GRP | 1,624,778,629 | 1,484,947,889 | 188.03 | 1.26 | 66.64 |
 |
25 | SELECTIVE INS GRP | 1,558,546,604 | 1,476,639,822 | 84.29 | 1.21 | 67.84 |
| — | INDUSTRY TOTAL | 129,218,259,305 | 125,025,152,271 | 70.21 | 100.00 | 100.00 |
Previous NAIC Market Share Experiences
For these fascinated about revisiting or evaluating this yr’s knowledge with the NAIC Market Share Experiences from previous years, hyperlinks to every of these stories are beneath:
