The insurance industry lives and dies by the numbers. A.M. Best published its 2014 annual figures for the property and casualty industry in June.
The first thing that struck me was a dose of personal humility. It occurred when I realized my agency, which I think is significant, places only .0035% of the $570 billion that makes up the P&C total for the United States.
Then I started to look inside the numbers.
Private Passenger Auto still dominates the industry comprising over 53% of the total. Homeowners’ makes up another 15%. Workers’ Compensation, although a sizable chunk, at $55 billion is just under 10% of the total premium.
However, if driverless cars were to become fully functional and Obamacare was to right itself and absorb Workers’ Comp, our industry could easily drop to half its current size.
State Farm is still the 1,000-pound gorilla in the personal lines world with just slightly under 20% of the market share. GEICO has just over 11% of the private auto. AIG and Travelers’ dominate the commercial side, but their share of the market is much less.
Overall the market grew 4.4%, which is beyond inflation, indicating the industry is starting to assume more of the ever-growing risk in the world.
Nationwide is the king of the $4 billion farm market, with about 10% market-share.
In the tough private passenger auto market, Travelers’ had the best underwriting performance of the top fifteen companies with a 58.4% adjusted loss ratio. Homeowners’ adjusted loss ratios were much better than auto with Travelers’ again having the best year at 40%.