United States Insurance Report

Providing expert analysis, independent forecasts and competitive intelligence on the insurance industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Insurance Risk Reward Index and Company Profiles.

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United States Insurance Report
Product Price
$1,295.00

BMI View: Already the largest insurance market globally, the US insurance industry is expected to record steady growth over the medium term, particularly in the larger non-life market. Rising household income rates and positive private consumption trends will support demand for a range of non-life and life products and we expect density rates (premiums per capita) to improve throughout the forecast period between 2016 and 2020. Strongest growth will likely be seen in the health insurance segment, where demand remains high as a significant proportion of the population continues to lack cover due to affordability issues. Steady growth in premiums and the fragmented nature of the market mean that the US is a popular destination for investors and we expect to see a variety of mergers and acquisitions progress in the coming years.

Headline Insurance Forecasts (United States 2013-2020)
2013 2014 2015e 2016f 2017f 2018f 2019f 2020f
e/f = BMI estimate/forecast. Source: National sources, BMI
Gross life premiums written, USDbn 483.60 506.50 514.90 528.10 539.90 552.70 565.90 579.70
Gross life premiums written, USD, % y-o-y -7.8 4.7 1.7 2.6 2.2 2.4 2.4 2.4
Gross life premiums written, USDbn 483.60 506.50 514.90 528.10 539.90 552.70 565.90 579.70
Gross life premiums written, USD, % y-o-y -7.8 4.7 1.7 2.6 2.2 2.4 2.4 2.4
Gross non-life premiums written, USDbn 721.70 730.80 749.00 783.80 815.80 849.70 884.40 920.30
Gross non-life premiums written, USD, % y-o-y 8.8 1.3 2.5 4.6 4.1 4.2 4.1 4.1
Gross non-life premiums written, USDbn 721.70 730.80 749.00 783.80 815.80 849.70 884.40 920.30
Gross non-life premiums written, USD, % y-o-y 8.8 1.3 2.5 4.6 4.1 4.2 4.1 4.1

Key Updates And Forecasts

  • While the US market has seen a number of high profile mergers in recent months, some major deals have stalled. In late May 2016, Chinese firm Anbang Insurance Group reportedly withdrew its application for regulatory approval by the New York State Department of Financial Services for the proposed USD1.57bn merger with Fidelity & Guaranty Life, though it does plan to re-submit the application shortly.

  • One of the most high-profile mergers which is underway is that of health insurance provider Cigma with Anthem. This merger has recently come under criticism from the California Insurance Commissioner, Dave Jones, who has recommended the deal be blocked due to competition concerns.

  • The non-life market, already slightly larger than the life sector, is expected to record the strongest annual premium growth over the forecast period between 2016 and 2020, supported by growing demand for key lines such as health insurance. Overall non-life premiums are forecast to increase by 4.2% annually, reaching USD920.3bn in 2020.

  • In the life sector we are forecasting slightly slower growth of 2.4% annually between 2016 and 2020, with total life premiums reaching USD579.7bn by the end of the current forecast period. The US will continue to offer substantial growth potential, with much of the population still lacking adequate coverage.

BMI Industry View
5
Table: Headline Insurance Forecasts (United States 2013-2020)
5
SWOT
7
Insurance
7
Industry Forecast
9
Life Premiums Forecast
9
Table: Life Premiums (United States 2013-2020)
12
Table: Life Insurance Claims (United States 2008-2014)
13
Non-Life Premiums Forecast
13
Table: Non-Life Premiums (United States 2013-2020)
16
Table: Non-Life Insurance Claims (United States 2009-2014)
16
Non-Life Sub-Sector Forecast
17
Table: Non-Life Insurance Premiums by Product Line (United States 2013-2020)
27
Insurance Risk/Reward Index
29
Developed States Insurance Risk/Reward Index
29
Table: Developed States Insurance Risk/Reward Index - Q316
30
Market Overview
31
Life Market Overview
31
Product Offering
31
Competitive Landscape
31
Table: Life Insurance Market (USDmn) 2009-2013
34
Non-Life Market Overview
35
Product Offering
35
Competitive Landscape
36
Table: Non-Life Insurance Market (USDmn) 2010-2014
38
Company Profile
40
ACE Group
40
AIG
43
MetLife
46
New York Life
49
State Farm
52
Methodology
55
Industry Forecast Methodology
55
Risk/Reward Index Methodology
58
Table: Indicators
60
Table: Weighting of Indicators
61

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.

Key Benefits

  • 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.
  • Target business opportunities and risks in United States through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

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.

Company Profiles*

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.

Sources

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.