The Property & Casualty (P&C) insurance market reached new highs and historic milestones in 2024, surpassing $1 trillion in total premiums and exceeding $100 billion in Excess & Surplus (E&S) premiums. This remarkable growth reflects the industry’s resilience, strategic shifts and the evolving landscape of risk management.

Here’s some highlights from NAIC bluebook and PIPSO data:

Independent Agency channel in the lead but Direct most profitable

• The independent agency channel continued to hold the majority share of the market, accounting for approximately 55% of total premiums. After some rebalancing during the 2018-2022 period, the Direct, Exclusive Agencies and Independent agency mix stabilized at present levels.

• Independent agencies also demonstrated superior claims performance compared to the Exclusive Agency and Direct channels (7 and 2 percentage points of direct loss ratio respectively), reinforcing their value proposition in the industry. Yet again, Direct outperformed in terms of combined ratio performance, given its cost-light structure.

Personal Lines Outpaces Commercial Growth

• Personal lines experienced a 14% year-over-year (YoY) growth, driven primarily by rates hardening, while commercial lines segment recorded a more modest 5% YoY increase. Beyond rates changes, the surge in personal lines also underscores the increasing demand for individual coverage.

• Profitability showed improvement in personal lines, with market-wide combined ratio dropping by five percentage points from 2023, reaching just below 98%. Conversely, commercial lines faced increased loss ratios, with combined ratio deteriorating by 2% YoY to reach 96% in 2024.

Market Share Shifts Among Industry Leaders

In personal lines…

• Market leaders State Farm and Progressive solidified their dominance by expanding their market shares.

• Meanwhile, Liberty Mutual, Berkshire Hathaway/GEICO, and Farmers saw declines in their shares, indicating shifting strategic positioning and willingness to take risk in cat-impacted areas

On the commercial side…

• Travelers emerged as the top player, overtaking Chubb for the #1 position. Other notable market share gains were made by Hartford, Progressive, and State Farm.

• In contrast, Nationwide, Chubb, and Liberty Mutual experienced declines in their respective market shares, reflecting competitive pressures and changing underwriting strategies.

Geographic Hotspots of Growth

• From a regional perspective, the fastest-growing P&C markets were in the Far West, particularly in California and Washington.

• The Southeast – with states like Georgia and Florida – and the Rockies – including Colorado and Utah – also saw significant growth.

• The Mideast region, covering New York and New Jersey, and the Plains states experienced more moderate premium increases.

Our takeaway

As the P&C insurance industry moves forward, the 2024 landscape reflects an environment of rapid expansion, shifting competitive dynamics and evolving risk factors. With independent agencies continuing to play a leading role and market leaders reshuffling their positions, the industry is poised for further transformation in the years ahead.

For more insights and full access to the data, reach out to info@pythiains.com.