US Homeowners Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 3.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
US Homeowners Insurance Market Analysis
The property/casualty insurance sector is one of the highly valuated sectors in the market in the current scenario, irrespective of the increases in pricing and a low-interest rate. Due to the catastrophic concerns, the property/casualty insurance industry stood at approximately $800 Billions.
COVID-19 experience during the first quarter of 2020 demonstrated, pandemic-related losses are correlated with both financial market losses and other insurance losses. During the first quarter of 2020, the policyholder surplus of the U.S. property-casualty insurance industry fell by 9.3% to $744.9 billion, due in large part to a sharp decline in asset prices as well as the establishment of COVID-19 loss reserves across numerous lines of insurance.
The profits generated by insurance companies is accounted by investment income from capital and surplus reserves. Money is set aside as loss reserves and unearned premium reserves in the United States. From underwriting operations, whenever there are losses, they are offset from their investment planning.
US Homeowners Insurance Market Trends
This section covers the major market trends shaping the US Homeowner's Insurance Market according to our research experts:
InsurTech in the US Homeowner's Insurance
A sustained economic growth coupled with higher interest rate and bigger investment income, helped the US insurance industry to top the charts with an impressive growth. Even though the traditional insurance companies are doing good, to with-stand newer business models, they are coming forward to partner with Insurtech companies. In fact this partnership helps the traditional players to better cater as per the customer demands without investing much on R&D for self-made technology. InsurTech companies manage many niche segments of the market, ranging from operating as Distributors/Aggregators, API developers, HealthTech, Online First Insurance providers and IoT, amongst others.
Among all, Property/casualty sector has been doing well with 12.7% increase in the first half of 2018. The Online first insurance: As the name suggests these companies offer insurance products completely online and connect various distribution channels. For E.g., Lemonade is an online first P2P insurance platform that offers home insurance in New York, California and Illinois. Technology used is AI and Behavioral economics. Another example would be Next Insurance, which is also an online insurance platform that targets SMEs, entrepreneurs who are looking for insurance to cover their business. Hippo, an online platform provides home insurance products.
The Internet of Things: These companies are using technology to reduce the premium amounts for the insurance taken and creating a digital disruption. For E.g., American Well, a web and mobile based platform founded in 2006 and then there is a start-up named Metromile, which turns an ordinary car into a smart car with a plug-in device that calculates the miles travelled to find out the insurance to be paid.
Natural Catastrophes affect Spending on Homeowner’s Insurance
Homeowners insurance is a package policy, providing both property and personal liability insurance. The typical policy covers a house, garage and other structures on the property-as well as personal property inside the house-against a wide variety of perils, such as fire, windstorm, vandalism and accidental water damage. The typical homeowner's policy includes theft coverage on personal property anywhere in the world and liability coverage for accidental harm caused to others. It also reimburses the policyholder for the additional cost of living elsewhere while a house is being repaired or rebuilt after a disaster.
Earthquake damage and flood damage caused by external flooding are not covered by standard homeowners' policies, however special policies can be purchased separately. Flood coverage is provided by the federal governments National Flood Insurance Program and some private insurers.
Storm surge is ocean water that is pushed ahead of a storm and can cause severe damage. States along the U.S. Gulf of Mexico and Atlantic Basin are potentially vulnerable to storm surge damage. In 2019, there were 7.3 million coastal homes along the Gulf and Atlantic Coasts, worth almost $1.8 trillion, at risk for storm surge damage. Along the Gulf Coast, 3.1 million homes are at risk from storm surge, and another 4.1 million homes along the Atlantic Coast are at risk. The reconstruction cost value of homes at risk for storm surge damage is $668 billion along the Gulf of Mexico in the United States and $1.1 trillion along the highly populated Atlantic Coast. The reconstruction cost is based on the 100 percent destruction of the residential structure, using a combined cost of construction materials, equipment and labor costs by geographic location.
The State Farm mutual automobile insurance from Bloomington, Illinois, was the leading homeowners insurance writer in the United States in 2020. With almost 20 billion U.S. dollars in direct premiums written, this insurance company toppled the second homeowner insurer (Allstate Corp.) in the U.S. by around 10 billion dollars in that year.
US Homeowners Insurance Industry Overview
The US HomeOwner's Insurance Market is highly competitive, with the presence of major international players. The US HomeOwner's Insurance Market presents opportunities for growth during the forecast period, which is expected to further drive market competition. With a few players holding a significant share, the US HomeOwner's Insurance Market has an observable level of consolidation.
US Homeowners Insurance Market Leaders
-
State Farm
-
Allstate
-
Liberty Mutual
-
USAA
-
Farmers
*Disclaimer: Major Players sorted in no particular order
US Homeowners Insurance Market News
- Direct-to-consumer home insurance technology company Kin Insurance is going public through a reverse merger with Omnichannel Acquisition Corp. The agreement values Kin Insurance at roughly $1.03 billion. Kin's technology-first approach enables customers to insure homes online within minutes.
- Porch Group, the Seattle-based home services software company, completed its $100 million acquisition of homeowners of America Inc in 2020. Their plan is to expand aggressively across the vast majority of states. Porch cut its net loss in half in 2020, to $51.6 million, from $103 million in 2019
US Homeowners Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Market Overview
- 4.1.1 US Current Economic and Banking Industry Scenario
- 4.1.2 Impact of Global Insurance Market on US Industry
- 4.1.3 Review and Commentary on US Non-Life and Home Insurance Market Scenario
- 4.2 Key Trends in US Insurance Industry
- 4.3 Impact of US Environmental Changes/Hurrricanes/Wildfires on the US HomeOwner's Insurance
- 4.4 Impact of Government Regulations and Initiatives on the Insurance Industry
- 4.5 Market Drivers
- 4.6 Market Restraints
- 4.7 Impact of InsurTech on the US Inusrance Industry
-
4.8 Porters' 5 Force Analysis
- 4.8.1 Threat of New Entrants
- 4.8.2 Bargaining Power of Buyers/Consumers
- 4.8.3 Bargaining Power of Suppliers
- 4.8.4 Threat of Substitute Products
- 4.8.5 Intensity of Competitive Rivalry
- 4.9 Impact of Covid 19 on the Industry
5. MARKET SEGMENTATION
-
5.1 HomeOwners' Insurance Type
- 5.1.1 Dwelling Fire
- 5.1.2 HO-1
- 5.1.3 HO-2
- 5.1.4 HO-3
- 5.1.5 HO-5
- 5.1.6 HO-8
-
5.2 Distribution Channel
- 5.2.1 Independent Advisers
- 5.2.2 Affiliated Agents
- 5.2.3 Direct Sales
- 5.2.4 Online Channels
- 5.2.5 Others
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview (Market Shares and M&A Deals)
-
6.2 Company Profiles
- 6.2.1 Lemonade
- 6.2.2 USAA
- 6.2.3 Amica
- 6.2.4 Allstate
- 6.2.5 State Farm
- 6.2.6 Nationwide
- 6.2.7 American Family
- 6.2.8 Erie Insurance
- 6.2.9 Liberty Mutual
- 6.2.10 Chubb
- 6.2.11 Progressive
- 6.2.12 Farmers Inurance*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
US Homeowners Insurance Industry Segmentation
The US Homeowner's Insurance Market is segmented by countrywide mostly available homeowner's insurance type like HO-1, HO-2, HO-3, HO-5, HO-8 and by the distribution channels operated in the US Homeowner's insurance sector.
| HomeOwners' Insurance Type | Dwelling Fire |
| HO-1 | |
| HO-2 | |
| HO-3 | |
| HO-5 | |
| HO-8 | |
| Distribution Channel | Independent Advisers |
| Affiliated Agents | |
| Direct Sales | |
| Online Channels | |
| Others |
US Homeowners Insurance Market Research FAQs
What is the current US Homeowner's Insurance Market size?
The US Homeowner's Insurance Market is projected to register a CAGR of 3% during the forecast period (2024-2029)
Who are the key players in US Homeowner's Insurance Market?
State Farm, Allstate, Liberty Mutual, USAA and Farmers are the major companies operating in the US Homeowner's Insurance Market.
What years does this US Homeowner's Insurance Market cover?
The report covers the US Homeowner's Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the US Homeowner's Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Homeowners Insurance Industry Report
Statistics for the 2024 US Homeowners Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Homeowners Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
