The Commercial Insurance Market
Property/casualty insurance can be broken down into two major categories: commercial lines or types of insurance and personal lines. Personal lines, as the term suggests, include coverages for individuals—auto and homeowners insurance. Commercial lines, which account for about half of U.S. property/casualty insurance industry premium, include the many kinds of insurance products designed for businesses.
Commercial insurance performs a critical role in the world economy. Without it, the economy could not function. Insurers protect the economic system from failure by assuming the risks inherent in producing goods and services. For further information on commercial lines see the Commercial Insurance website.
There are over eight million small businesses in the U.S., ranging from construction firms to grocery stores to home-based businesses. All have one thing in common: Without the right insurance coverage, each could be wiped out by a disaster or a lawsuit. In addition, almost all businesses are accountable for the safety of their workers and bear responsibility for injuries suffered on the job. The Triple-I’s Insuring Your Business website provides information on the kinds of liability coverage businesses should consider and what business owners should know about risk management and loss control. (See small business.)
Net Premiums Written, Personal And Commercial Lines, 2023
($ billions)
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.
Top 10 Writers Of Commercial Lines Insurance By Direct Premiums Written, 2023
($000)
| Rank | Group/company | Direct premiums written (1) | Market share (2) |
|---|---|---|---|
| 1 | Chubb Ltd. | $25,513,446 | 5.5% |
| 2 | Travelers Companies Inc. | 24,126,398 | 5.2 |
| 3 | Liberty Mutual | 20,191,208 | 4.3 |
| 4 | Berkshire Hathaway Inc. | 18,434,943 | 4.0 |
| 5 | Zurich Insurance Group | 18,021,524 | 3.9 |
| 6 | American International Group (AIG) | 14,102,731 | 3.0 |
| 7 | CNA Financial Corp. | 12,782,325 | 2.7 |
| 8 | Hartford Financial Services | 12,738,362 | 2.7 |
| 9 | Progressive | 11,482,962 | 2.5 |
| 10 | Tokio Marine | 9,846,421 | 2.1 |
(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, excluding territories.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.
Incurred Losses For Commercial Insurance, 2019-2023 (1)
($000)
| Year | Incurred losses |
|---|---|
| 2019 | $154,852,263 |
| 2020 | 171,257,364 |
| 2021 | 186,094,738 |
| 2022 | 202,958,686 |
| 2023 | 222,488,074 |
(1) Losses occurring within a fixed period, whether or not adjusted or paid during the same period, after reinsurance transactions. Does not include incurred losses from certain insurers that write health insurance but file financial statements with state regulators on a property/casualty basis.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.
