20 Insightful Insurance Statistics

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With the ever-growing importance of insurance in today’s society, it is important to be familiar with some interesting insurance statistics. This blog post highlights 20 different insights about how much we take for granted when it comes to life and what happens if you don’t have access to such a service.

The “fun facts about commercial insurance” is a blog post that contains 20 insightful statistics about the industry. The blog post discusses how the industry has changed in recent years and what it means for consumers.

Insurance may seem to be uninteresting to some, yet it is an essential service for companies, homes, and daily customers. Take a look at these insurance statistics to understand how the business is evolving.

8 Premium Statistics from the Insurance Industry

Global Gross Insurance Premiums: $5.3 Trillion

That may seem like a huge amount, but when you consider that insurance impacts practically every aspect of people’s lives and livelihoods throughout the globe, $5.3 trillion in gross premiums makes sense.

Recently in the news:

COVID-19 is expected to reduce the gross domestic product (GDP) of the top ten biggest insurance markets by roughly 7% this year. According to an analyst from the Insurance Information Institute, this will have an effect on premium and investment income.

The United States accounts for 49% of global gross insurance premiums.

52% • Percent Total Net Premiums From Life & Health Insurance

Of the $1.3 billion in net insurance premiums paid in 2019, 52% of them went to the annuities, life, and health and accident insurance. The other 48% went to property and casualty (P&C) premiums, which includes auto, home, and commercial policies.

53% • Percent of P&C Net Premiums From Personal Lines

Zeroing in on personal lines (i.e., insurance for individuals) shows us that they made up slightly more than 53% P&C net premiums in 2019, or approximately $340 billion. Commercial lines accounted for 46% of net premiums, or $299 billion.

$65 Billion • Amount of Direct Premium Written by the Leading P&C Insurer

State Farm is the largest property and casualty insurer in the United States, with a direct premium of $65 billion. UnitedHealth Group ($106 billion in direct premium) for health insurance and MetLife ($95 billion in direct premium) for life and annuities are among the top carriers in other categories.

• Market Share attained by the Top Commercial Insurers: 5.5 percent

When you narrow down the P&C market to just commercial lines, Chubb and Travelers both earn 5.5% of the commercial insurance market—meaning that together they make up 11% of the entire market. Liberty Mutual follows close behind with 5% of the market.

$500 is the average annual premium for small business general liability insurance.

General liability insurance costs $42 per month, according to a review of 28,000 small company insurance plans acquired via online brokerage Insureon. When you add property coverage to a company owner’s policy, your monthly premiums rise to $53, resulting in a general liability expense of at least $500 per year.

In Michigan, the average annual auto insurance premium is $2,878.

Statistics on Insurance Claims

The strange thing about insurance is that you purchase it in the hopes of never having to use it. Unfortunately, many of us will have to file a claim at some time, but it’s better than being unprepared for a disaster.

Home insurance claims due to property damage account for 98 percent of all claims.

The likelihood of a small business filing an insurance claim is 40%.

Over the course of a decade, 40% of firms will submit a claim with their insurance carrier. This implies that having insurance will almost certainly pay off at some time throughout the life of your company.

$50,000 • Average Cost of a Small Business Reputational Harm Claim

While reputational injury claims, such as defamation and copyright infringement, account for fewer than 5% of all small company insurance claims, they are the most expensive for insurers to pay. Accidents involving vehicles come in second, with a payout of $45,000.

20% • Percent of Small Business Insurance Claims Due to Burglary & Theft

Small company owners must defend themselves against crooks, whether they are victims of a shady client or a sticky-fingered staff. Despite the fact that theft is the most prevalent insurance claim, it is also the least expensive, costing just $8,000.

Small businesses prefer to file insurance claims online in 36 percent of cases.

Convenience reigns supreme, and small company owners want the claims process to be as quick and painless as possible. More than a third of small firms say they prefer to file claims online, and 55 percent want to be able to follow claims there as well.

3 Employment Statistics in the Insurance Industry

Total Number of Insurance Companies: 5,965

According to the National Association of Insurance Commissioners, there were 5,965 insurance businesses in the United States in 2018. Property, health, vehicle, title, and other sorts of insurance fall under this category.

• The Insurance Industry Employed 2.8 Million People

The percentage of women employed in the insurance industry is 59.4 percent.

Statistics on Insurance Purchases

This section may be of particular interest to insurance brokers who want to market business lines of insurance. These four insurance data will help you figure out what kind of coverage your customers are missing and how to effectively handle it.

• Purchases of workers’ compensation insurance for small businesses have decreased by 22%.

• The percentage of small business owners who get general liability insurance is 54 percent.

Small businesses with cyber insurance account for 31% of all small businesses.

• The percentage of small businesses that do not buy insurance online is 76 percent.

Conclusion

These insurance statistics demonstrate how dynamic, sophisticated, and important the insurance sector is. Whether you’re a new homeowner wanting to safeguard your most prized asset or a small company owner searching for general liability, insurance is essential in the event of a disaster.

We continue to observe a demand for a more smooth online experience among insurance providers, as well as a need to persuade customers to acquire the coverage they need. COVID-19, on the other hand, will very certainly make these objectives impossible to attain.

The “small business insurance market size” is a statistic that shows how large the small business insurance market is. It is estimated to be worth $1 trillion and it has been growing at a rate of 5% per year.

Related Tags

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commercial insurance premiums
state of the commercial insurance market
commercial lines insurance
personal and commercial lines insurance