BMI View: Both the life and non-life insurance sectors are very well developed in the US, with a large number of firms active in the market encompassing one of the broadest product offerings available globally. Premiums written in both sectors are forecast to increase steadily throughout the forecast period, supported by domestic economic growth, though faster expansion in the non-life sector will see it gain some market share over the life insurance sector by the end of the current forecast period in 2019.
In the short term the insurance market in the US will benefit from a positive domestic economy environment, with the US economy set to grow at a more rapid pace in 2015, supported by lower oil prices, a tightening labour market and improving sentiment, although rising external headwinds will see that growth remain relatively subdued. We forecast real GDP growth of 2.5% in 2015, with similar growth expected in terms of life insurance (to premiums of USD529.1bn) and non-life (to premiums of USD757.1bn).
Throughout the remainder of the forecast period we expect the non-life segment to grow more rapidly than the life sector. To a large extent this growth will be driven by the expansion of healthcare and the increased accessibility of health insurance products. The large health insurance firms benefit from a high level of capital and solid brand awareness and are expanding market reach via the introduction of a greater range of more innovative products. Other non life segments, such as motor, are already well established and unlikely to see significant growth over the forecast period, particularly in light of the expected stall in new car sales. A recovery in the lending market in the US will support rapid expansion credit/financial guarantee insurance products, making this the non-life outperformer, with general liability another strong growth area.
While growth will be slower in the life segment, it remains an attractive market. Although a mature market, the...
The United States Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's United States Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the American insurance industry.
- Benchmark BMI's independent insurance industry forecasts for United States to test other views - a key input for successful budgeting and strategic business planning in United States's insurance market.
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BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.