Table of Contents
Introduction and Abbreviations
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- Introduction
- Other relevant reports
- Scope of the report
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The industry is looking for greater efficiencies
- Catastrophes have had an impact
- What consumers think about insurers
- Consumers and renters/tenants insurance
- Agents are still preferred
- What’s ahead
Market Drivers
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- Figure 1: Graph: Property and casualty insurance products, by percentage of industry direct written premiums, 2004
- Increasing efficiencies
- Technology and expense management
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- Figure 2: Insurance industry employment, 2000-05
- More efficient claims management
- Black-box technology
- Greater pricing segmentation
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- Figure 3: Graph: Property and casualty industry underrwriting gain or loss – 1975 – 2006 (est.)
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- Figure 4: Average expenditures on homeowners’ and auto insurance, 1994-2006
- Credit ratings
- Catastrophic losses
- Product developments
- Distribution channels
- Combined ratios are better, but are they good enough?
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- Figure 5: P&C industry combined ratio, 2001-06
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Market Size and Segmentation Trends
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- Growth in premiums
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- Figure 6: Private passenger auto and homeowners’ insurance direct written premium, 1993-2004
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- Figure 7: Growth in median home prices vs. homeowners insurance DWP, 2000-05
- Average consumer expenditures by state
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- Figure 8: Annual per insured consumer auto expenditures, by state, 2003
- Industry performance—growth in combined ratio
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- Figure 9: Combined ratios for property and casualty insurers, 1993-2005
- Figure 10: Property casualty insurance industry investment total gains, 1994-2005
Competitive Landscape
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- Private passenger automobile insurance
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- Figure 11: Private passenger auto insurance top writers, by direct written premium, 2004
- Homeowners insurance
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- Figure 12: Homeowners insurance, top writers by direct written premium, 2004
- Allstate Insurance Group
- Farmers Group, Inc.
- GEICO
- Nationwide Mutual Insurance Company
- The Progressive Corporation
- Safeco Corporation
- St. Paul Travelers Companies
- State Farm Group
- USAA
Advertising and Promotion
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- Figure 13: Total advertising expenditures by the P&C insurance industry, 1999-2004
- Allstate
- Farmers
- GEICO
- Nationwide
- Progressive Insurance
- Safeco
- St. Paul Travelers
- State Farm
- USAA
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The Consumer
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- Introduction
- Perceptions of leading personal property/casualty insurance companies
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- Figure 14: Personal property/casualty insurers described as “best overall,” by geographic region of respondent, March 2006
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- Figure 15: Personal property/casualty insurers described as “best overall”, by age of respondent, March 2006
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- Figure 16: Personal property/casualty insurers described as “best overall”, by race/ethnicity of respondent, March 2006
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- Figure 17: Personal property/casualty insurers described as “best overall,” by household income of respondent, March 2006
- Perceptions of leading auto insurers
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- Figure 18: Auto insurers described as “reliable”, “expensive”, “affordable”, “trustworthy”, March 2006
- Perceptions of leading homeowners/renters insurers
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- Figure 19: homeowners insurers described as “reliable”, “expensive”, “affordable”, “trustworthy”, March 2006
- Renters versus homeowners insurance
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- Figure 20: Home rental/ownership, by age of respondent, March 2006
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- Figure 21: Home rental/ownership, by race/ethnicity of respondent, March 2006
- Purchase of insurance among renters
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- Figure 22: Home rental/tenant insurance ownership by respondents who are renters, March 2006
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- Figure 23: Home rental/tenant insurance ownership by respondents who are renters, by age of respondent, March 2006
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- Figure 24: Home rental/tenant insurance ownership by respondents who are renters, by race/ethnicity of respondent, March 2006
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- Figure 25: Home rental/tenant insurance ownership by respondents who are renters, by household income of rental respondent, March 2006
- Primary reason for not buying renters/tenants insurance
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- Figure 26: Primary reason for not buying renters/tenants insurance, March 2006
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- Figure 27: Primary reason for not buying renters/tenants insurance, by age of respondent, March 2006
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- Figure 28: Primary reason for not buying renters/tenants insurance, by race/ethnicity of respondent, March 2006
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- Figure 29: Primary reason for not buying renters/tenants insurance, by household income of respondent, March 2006
- Preferred distribution channel
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- Figure 30: Preferred distribution channel, by geographic region of respondent, March 2006
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- Figure 31: Preferred distribution channel, by age of respondent, March 2006
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- Figure 32: Preferred distribution channel, by race/ethnicity of respondent, March 2006
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- Figure 33: Preferred distribution channel, by household income of respondent, March 2006
Future and Forecast
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- Future trends
- New answers to emerging problems
- Catastrophic exposure
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- Figure 34: Catastrophe bond issuance and bonds outstanding, 2000-05
- Tort costs
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- Figure 35: Graph: Total tort system costs as a percentage of GDP, 2000-06
- Figure 36: Graph: Personal lines insurance tort costs, 1990-2004
- The Terrorism Risk Insurance Act
- Technological developments enhancing insurance underwriting and operations
- Advertising and promotion
- Factors impacting market forecasts
- Market forecast
- Overview
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- Figure 37: Forecast of U.S. private auto insurance direct written premium, at current and constant prices, 2004-09
- Figure 38: Forecast of U.S. homeowners insurance direct written premium, at current and constant prices, 2004-09
Appendix: Trade Associations
Appendix: Advertising and Promotion
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- Figure 39: Graph: Estimated mail volume, top ten direct mail advertisers, auto insurance, Q4 2005-Q1 2006
- Figure 40: Allstate renters/tenants print advertisement, November 2005
- Figure 41: Allstate “Your Choice” print advertisement, March 2006
- Figure 42: GEICO affinity marketing direct mail piece, February 2006
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- Figure 43: GEICO Hispanic targeted ad, January 2006
- Figure 44: GEICO Katrina ad, November 2005
- Figure 45: Liberty Mutual homeowners, renters/tenants insurance direct mail ad, February 2006
- Figure 46: Nationwide auto direct mail envelope, March 2006
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- Figure 47: Progressive auto insurance direct mail creative, March 2006
- Figure 48: State Farm print ad, March 2006
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