Property & Casualty Insurance - US - April 2021
Overview
 
What you need to know 
The majority of American adults own property and casualty insurance, not surprising given the fact that auto and homeowners insurance are often mandatory, either by law or contract. One effect of the COVID-19 pandemic has been to stress the importance of staying agile and being in tune with consumer needs. Insurers will need to find meaningful ways to continue innovating outside of pricing. Providers that can differentiate themselves by focusing on the overall value they offer consumers have the most to gain in the next normal. Those that stay complacent and neglect enhancing the customer experience risk their survival in an intensely competitive industry. 

Key issues covered in this Report
●	The impact of COVID-19 on consumer behavior and the property and casualty insurance market
●	Property and casualty insurance ownership
●	Bundling and switching motivators 
●	Attitudes toward property and casualty insurance

Definition 
This Report only covers P&C insurance – auto, homeowner/condo and renters insurance. It does not include any information about health or life insurance. This Report builds on the analysis presented in Mintel’s Property and Casualty Insurance – US, March 2020.

COVID-19: market context
This Report was written in early 2021. Data was fielded in January 2021 and thus reflects the behaviors and attitudes of consumers during the reemergence stage of the pandemic.

The first COVID-19 case was confirmed in the US in January 2020. It was declared a global health pandemic and national emergency in early March 2020. Across the US, various stay-at-home orders were put in place in Spring 2020, and nonessential businesses and school districts closed or shifted to remote operations. The remainder of 2020 saw rolling orders, as states and local governments relaxed and reinforced guidelines according to the spread of the virus in each region.

Vaccine rollout began in December 2020. Based on current estimates of vaccine production and distribution, the US could reach herd immunity, with 70-85% of the population vaccinated, by late Summer to early Fall 2021. Mintel anticipates business operations in the US will remain in a state of flux through 2021 as the vaccine is widely administered.

Economic and other assumptions
Mintel’s economic assumptions are based on CBO estimates released on February 1, 2021. The CBO’s previous forecast for US GDP to fall by 5.8% in 2020 was revised after a stronger second half of the year and the updated estimate indicates negative 3.5% GDP for the year. The CBO forecast for GDP to grow by 4.6% in 2021 and unemployment to continue to fall to average 5.7% for the year do not take into consideration the impact of the $1.9 trillion economic relief package, which is expected to further boost growth.