Healthy competition: Ranking the 25 largest home insurers in the US
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Healthy competition: Ranking the 25 largest home insurers in the US
A fallen tree on top of a grey bungalow house.
State Farm, Allstate Insurance, and Liberty Mutual ranked among the top three home insurers in the U.S., respectively. But even with their premiums combined, they only account for 34.68% of the homeowners’ insurance market. In fact, among the top 25 home insurers by market share, no single company holds more than 20% of the market.
The lack of monopoly is by design.
“You don’t want to insure all (homeowners) because if there’s any particular loss in the area or a catastrophe, you only want to insure a certain amount. That’s called your appetite,” said Janet Ruiz, director of strategic communications at the Insurance Information Institute. “That opens up the market to be a healthy, competitive market.”
Another reason for the fragmented market is that insurance companies must have a license in every state they operate. That makes it harder for companies to expand nationally and gives state-focused firms room to thrive. For instance, the Auto Club Group in Michigan, more commonly called Michigan’s AAA, ranked 24th.
Top-ranked companies can get the most significant market share by using the best predictive software, actuarial science, artificial intelligence, and other technology to determine which residences to insure.
Peter Kochenburger, visiting professor of law at Southern University Law Center, says insurers have technology so sophisticated that they can generate an individual risk profile on each house on a block. Companies cherry-pick the best homes to insure based on the data.
Major companies then lure the lowest risk — i.e., the most profitable — customers away from smaller companies by charging the lowest prices.
“Insurance is always about trying to take the best risks,” Kochenburger said.
To rank the top 25 home insurers with the largest U.S. market share, Insurify looked at homeowners’ multiple peril premiums written for 2022 filings, according to the National Association of Insurance Commissioners. The data reflects filings through March 27, 2023, the period when 98.23% of the previous year’s casualty and property filings were recorded.
The rankings looked at each company’s share of the industry total of $133 billion in direct premiums written, which is the number of premiums for insurance policies written during a specific period. Direct premiums earned, by contrast, are the paid premiums for policies that expired during that period — meaning the companies may no longer owe money to cover claims for those policies. The data also detail the ratio of direct losses to direct premiums earned.
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Evan El-Amin // Shutterstock
25. American International Group
AIG offices in New York City.
– Market share: 0.63%
– Direct premiums written: $844.6 million
– Direct premiums earned: $963.5 million
– Ratio of direct losses incurred to direct premiums earned: 50.56
Susan Montgomery // Shutterstock
24. The Auto Club Group | Michigan
AAA Michigan Canton office.
– Market share: 0.64%
– Direct premiums written: $856.4 million
– Direct premiums earned: $808.3 million
– Ratio of direct losses incurred to direct premiums earned: 84.60
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23. Country Financial
Close up roof of house.
– Market share: 0.66%
– Direct premiums written: $877.3 million
– Direct premiums earned: $830.4 million
– Ratio of direct losses incurred to direct premiums earned: 67.92
Vitalii Vodolazskyi // Shutterstock
22. Cincinnati Insurance
The Cincinnati Insurance Companies logo and pen.
– Market share: 0.70%
– Direct premiums written: $931 million
– Direct premiums earned: $841.2 million
– Ratio of direct losses incurred to direct premiums earned: 57.95
Ken Wolter // Shutterstock
21. The Hartford
Hartford Insurance Company sign.
– Market share: 0.70%
– Direct premiums written: $934.6 million
– Direct premiums earned: $917.8 million
– Ratio of direct losses incurred to direct premiums earned: 49.43
JHVEPhoto // Shutterstock
20. Mercury General
Mercury Insurance building in Tampa.
– Market share: 0.72%
– Direct premiums written: $956.9 million
– Direct premiums earned: $890.1 million
– Ratio of direct losses incurred to direct premiums earned: 60.18
Monkey Business Images // Shutterstock
19. Heritage Insurance Holdings
Couple walking toward house.
– Market share: 0.74%
– Direct premiums written: $981.4 million
– Direct premiums earned: $940.3 million
– Ratio of direct losses incurred to direct premiums earned: 87.13
Casimiro PT // Shutterstock
18. Amica Mutual Insurance
Close up Amica logo.
– Market share: 0.76%
– Direct premiums written: $1 billion
– Direct premiums earned: $983.9 million
– Ratio of direct losses incurred to direct premiums earned: 65.75
JHVEPhoto // Shutterstock
17. Auto Club Enterprises Insurance Group
Close up AAA sign on building.
– Market share: 0.76%
– Direct premiums written: $1 billion
– Direct premiums earned: $947.3 million
– Ratio of direct losses incurred to direct premiums earned: 61.85
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16. CSAA Insurance Group
Cozy home at twilight.
– Market share: 0.89%
– Direct premiums written: $1.2 billion
– Direct premiums earned: $1.1 billion
– Ratio of direct losses incurred to direct premiums earned: 39.99
Rafael Henrique/SOPA Images/LightRocket via Getty Images
15. Tokio Marine Holdings
Tokio Marine Holdings logo on smartphone.
– Market share: 0.90%
– Direct premiums written: $1.2 billion
– Direct premiums earned: $1.1 billion
– Ratio of direct losses incurred to direct premiums earned: 57.71
Gorodenkoff // Shutterstock
14. Universal Insurance Holdings
Family playing fetch with dog in backyard.
– Market share: 1.32%
– Direct premiums written: $1.8 billion
– Direct premiums earned: $1.7 billion
– Ratio of direct losses incurred to direct premiums earned: 93.89
Rafael Henrique/SOPA Images/LightRocket via Getty Images
13. Auto-Owners Insurance
Auto-Owners Insurance logo on phone.
– Market share: 1.61%
– Direct premiums written: $2.1 billion
– Direct premiums earned: $2 billion
– Ratio of direct losses incurred to direct premiums earned: 83.49
rafapress // Shutterstock
12. Erie Insurance
Erie Insurance logo on phone.
– Market share: 1.65%
– Direct premiums written: $2.2 billion
– Direct premiums earned: $2.1 billion
– Ratio of direct losses incurred to direct premiums earned: 76.67
karamysh // Shutterstock
11. Citizens Property Insurance Corp.
Detail of house against cloudy sky.
– Market share: 1.70%
– Direct premiums written: $2.3 billion
– Direct premiums earned: $1.7 billion
– Ratio of direct losses incurred to direct premiums earned: 144.37
Jonathan Weiss // Shutterstock
10. Progressive
Progressive logo on building.
– Market share: 1.84%
– Direct premiums written: $2.4 billion
– Direct premiums earned: $2.3 billion
– Ratio of direct losses incurred to direct premiums earned: 83.22
Hendrickson Photography // Shutterstock
9. Chubb
Exterior single family home.
– Market share: 2.57%
– Direct premiums written: $3.4 billion
– Direct premiums earned: $3.3 billion
– Ratio of direct losses incurred to direct premiums earned: 53.09
JHVEPhoto // Shutterstock
8. Nationwide
Nationwide sign at their headquarters in Ohio.
– Market share: 2.85%
– Direct premiums written: $3.8 billion
– Direct premiums earned: $3.6 billion
– Ratio of direct losses incurred to direct premiums earned: 74.82
Jon Kraft // Shutterstock
7. American Family Insurance
Sign for American Family Insurance.
– Market share: 4.35%
– Direct premiums written: $5.8 billion
– Direct premiums earned: $5.4 billion
– Ratio of direct losses incurred to direct premiums earned: 72.12
JHVEPhoto // Shutterstock
6. Travelers Insurance
Close up of Travelers sign on building.
– Market share: 4.88%
– Direct premiums written: $6.5 billion
– Direct premiums earned: $6 billion
– Ratio of direct losses incurred to direct premiums earned: 68.72
JHVEPhoto // Shutterstock
5. Farmers Insurance
Farmers Insurance headquarters.
– Market share: 6.22%
– Direct premiums written: $8.3 billion
– Direct premiums earned: $7.9 billion
– Ratio of direct losses incurred to direct premiums earned: 63.63
Tada Images // Shutterstock
4. United Services Automobile Association
USAA office in North Carolina.
– Market share: 6.65%
– Direct premiums written: $8.9 billion
– Direct premiums earned: $8.4 billion
– Ratio of direct losses incurred to direct premiums earned: 73.45
Jonathan Weiss // Shutterstock
3. Liberty Mutual
Liberty Mutual signage.
– Market share: 7.31%
– Direct premiums written: $9.7 billion
– Direct premiums earned: $9 billion
– Ratio of direct losses incurred to direct premiums earned: 65.69
Jonathan Weiss // Shutterstock
2. Allstate Insurance
Allstate Insurance logo and signage.
– Market share: 9.02%
– Direct premiums written: $12 billion
– Direct premiums earned: $11.2 billion
– Ratio of direct losses incurred to direct premiums earned: 63.27
JHVEPhoto // Shutterstock
1. State Farm
State Farm corporate headquarters in Illinois.
– Market share: 18.35%
– Direct premiums written: $24.4 billion
– Direct premiums earned: $23.2 billion
– Ratio of direct losses incurred to direct premiums earned: 60.21
Story editing by Jeff Inglis. Copy editing by Kristen Wegrzyn. Photo selection by Elizabeth Ciano.
This story originally appeared on Insurify and was produced and
distributed in partnership with Stacker Studio.
