Automobile Insurance in the US Industry Market Research Report Now Available from IBISWorld

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Providers will benefit from more car purchases and higher interest rates. For this reason, industry research firm IBISWorld has added a report on the Automobile Insurance industry to its growing industry report collection.

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The number of vehicle registrations will increase, facilitating demand for auto insurance

An intensified focus on financial positions and net premium growth for liability insurance products have aided the Automobile Insurance industry over the five years to 2014. From 2009 to 2011, industry operators struggled through a soft insurance market where premium prices were dragged down by the impact of the recession. However, since 2011, auto insurance prices have risen, with private passenger auto insurance prices ultimately forecast to increase at an annualized rate of 2.6% from 2009 to 2014. Largely because of this trend, industry revenue is anticipated to increase at an annualized rate of 2.3% over the same period to $198.5 billion in 2014; this growth includes a 4.9% rise in revenue expected in 2014 alone.

While industry product segments generally do not fluctuate as a share of revenue on a year-to-year basis, the industry's bodily injury and property damage liability products have driven sales for auto insurers in recent years. According to IBISWorld Industry Analyst Stephen Hoopes, “Over the five years to 2014, net premiums written for the industry's liability products are anticipated to rise at an annualized rate of 2.8%, compared with an annualized growth of just 1.0% for collision and comprehensive offerings.” Moreover, “pay as you drive” pricing schemes, which provide quotes based on consumer-specific driving habits, have continued to grow in popularity.

Similar to the industry's product segments, the portion of revenue provided by each of the industry's markets displays a low degree of volatility. Younger consumers continue to account for more accidents than their share of licensed drivers would suggest. As such, these drivers pay larger premiums to account for their higher probability for claims. Yet, the method by which auto insurers distribute their products to these markets has changed over the five-year period, with online sales posing a mounting threat to traditional insurers that rely on sales staffs.

Over the five years to 2019, industry revenue is forecast to increase. Continued improvements in the macroeconomic landscape are anticipated to benefit investment conditions for auto insurers. Given that the majority of auto insurer assets are invested in bonds, forecast increases in interest rates are expected to boost investment gains. “Despite this trend, consolidation in the industry is expected to continue, with larger operators viewing strategic acquisitions as a lucrative method to expand their share of the market,” says Hoopes.

For more information, visit IBISWorld’s Automobile Insurance in the US industry report page.

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IBISWorld industry Report Key Topics

This industry underwrites (i.e. assuming the risk and assigning premiums) auto insurance policies. Car insurance provides financial protection against physical damage to automobiles and bodily injuries resulting from traffic collisions. Automobile insurance can also protect against resulting liability.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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