US Insurance Industry Statistics 2025: Facts, Figures, and Emerging Trends

The US insurance industry is a vast and complex ecosystem that touches nearly every aspect of American life. From life insurance to property and casualty coverage, the industry provides a safety net for individuals and businesses alike. In 2025, as economic shifts, digital transformation, and climate risks continue to reshape the landscape, understanding the key trends and figures is crucial. This article delves into the most up-to-date statistics, offering insights into the size, scope, and ongoing developments in the US insurance market.

Editor’s Choice: Key Trends in the US Insurance Market

• The U.S. insurance industry is worth over $1.4 trillion in net premiums written. Of that total, property and casualty insurers accounted for approximately 53%, while life and annuity insurers comprised the remaining 47%.
• The U.S. insurance industry employs over 3 million individuals.
• There are approximately 4,700 insurance companies across the United States.
• A concerning trend for the industry, as millennials are projected to make up 75% of the global workforce by 2025.
• Experts predict that nearly 400,000 insurance professionals are expected to retire by 2026, with a significant need for new talent to replace them.
• The United States insurance distribution technology market is projected to grow at a 7.60% CAGR from 2022 to 2026, reaching approximately $261.59 billion by the end of 2026.
• Approximately 102 million Americans, or 42% of U.S. consumers, acknowledge the need for life insurance coverage.

U.S. Insurance Companies by Advertising Spend

• GEICO led the industry with $2,160 million in ad spending, making it the top spender among U.S. insurance companies.
• Progressive followed closely, investing $1,950 million in advertising efforts.
• State Farm allocated $1,170 million toward ad campaigns in a competitive market.
• Allstate spent $929 million, ranking fourth in advertising expenditures.

How Big Is The Insurance Industry?

• The size of the US insurance industry remains massive and continues to grow as new sectors, such as cyber insurance and insurtech, gain traction.
• Since 2009, the insurance market has been steadily growing in the U.S. For instance, the value of insurance premiums amounted to approximately $1.7 trillion in 2025, inclusive of property/casualty and life/annuity premiums.
• The total value of the US insurance industry is $2.3 trillion as of 2025, making it one of the largest in the world.
• In 2025, insurance premiums in the US amounted to $1.7 trillion, showing a 5.1% increase from 2024.
• Life and health insurance account for 52% of the total industry, reflecting the American public’s growing concern for health and well-being.
• The property and casualty insurance sector is worth over $850 billion, and it’s expected to grow further due to rising natural disaster claims.
• Cyber insurance, a relatively new segment, has seen premiums grow by 15% in 2025, indicating the rising threats posed by data breaches and cyberattacks.
• The insurance industry represents about 11% of the US GDP, showcasing its critical role in the economy.
• Insurance claims payouts in 2025 surpassed $850 billion, as sectors like health and auto insurance saw record claims.

Number Of Insurance Companies In America

The insurance industry in the US is both vast and diverse, with thousands of companies offering a wide range of products and services.

• There are 5,965 insurance companies currently operating in the US.
• 2,424 are property and casualty insurers, focusing on homes, cars, and businesses.
• 850 life and health insurers dominate the life insurance market, with the largest being MetLife, Prudential, and New York Life.
• Reinsurers—those that provide insurance to insurance companies—play a vital role in the market, with over 200 firms in operation.
• The top 10 insurance companies in the US control 48% of the total market share, indicating a high concentration in the industry.
• Regional and niche players continue to thrive, especially in sectors like agricultural insurance and specialty risk insurance.
• The NAIC (National Association of Insurance Commissioners) ensures regulatory oversight across all states, contributing to the industry’s stability.

ACA Marketplace Insurers Are Raising Rates

• ACA insurers are raising rates by a median of 7% in 2025.
• Among 324 reviewed insurers, 113 proposed increases between 5% and 10%, the most common range.
• 76 insurers plan to raise rates by 0% to 5%.
• 54 insurers are proposing rate hikes of 10% to 15%.
• 20 insurers are increasing rates by 15% to 20%.
• A small number—5 insurers—propose 20% to 25% increases, while 6 insurers suggest over 25% hikes.
• On the lower end, 38 insurers plan 0% to 5% decreases, and 12 insurers are cutting rates by more than 5%.

Insurance Industry Revenue

• The US insurance industry generated a revenue of $2.3 trillion in 2025, up 4.5% from the previous year.
• Health insurance premiums contributed over $1.59 trillion to the industry’s revenue in 2025, with steady growth projected.
• Life insurance products, including term life and annuities, accounted for $547 billion in revenue, representing a 2%–6% increase over the prior year.
• Auto insurance revenue exceeded $280 billion, marking a 7.5% year-on-year growth, largely due to premium increases and higher vehicle replacement costs.
• Property insurance revenue climbed to $400 billion, reflecting rising property values and increased claims from natural disasters.
• The investment portfolios of insurance companies remain a key revenue stream, with $1.2 trillion in assets under management.
• The industry’s operating profit margin averaged 10.7% in 2025, bolstered by efficient claims management and tech-driven underwriting processes.

Premiums and Revenue Breakdown

• Total premiums collected across all sectors reached $1.7 trillion in 2025, reflecting a 5.1% increase from the previous year.
• Life insurance premiums accounted for 34% of total premiums, amounting to $578 billion in 2025, marking a 2%–6% increase over the prior year.
• Health insurance premiums generated $1.59 trillion in 2025, continuing to dominate the market with 62% of all premiums collected.
• Auto insurance premiums saw a 7.5% rise, reaching $280 billion in 2025, driven by inflation and rising repair costs.
• Property insurance premiums increased by 5%, climbing to $400 billion in 2025, largely due to an uptick in claims related to natural disasters.
• Commercial insurance premiums rose by 3%, contributing $221 billion to the overall market in 2025, as businesses sought more coverage for emerging risks.
• Cyber insurance premiums stabilized in 2025, reaching $10.6 billion, reflecting the growing need for protection against cyber threats.

Life Insurance Statistics

• 52% of Americans had some form of life insurance in 2025, covering approximately 172.5 million individuals.
• The life insurance sector collected $16.2 billion in new annualized premiums, marking a 4% increase from the previous year.
• Term life insurance remains the most popular product, making up 47% of life insurance sales.
• Annuities generated between $16 billion and $18 billion in premiums in 2025, particularly driven by retirement planning needs.
• Group life insurance policies provided by employers cover 30% of insured Americans, while individual life insurance policies cover 70%.
• The largest life insurance company, MetLife, holds a 13% market share, followed closely by Prudential and New York Life.
• Death benefits paid out totaled $90 billion, a slight 2.5% increase due to rising mortality rates.

Health Insurance Statistics

• 92% of Americans have health insurance coverage in 2025, bolstered by Medicaid, Medicare, and employer-sponsored plans.
• Health insurance premiums in the U.S. totaled $1.59 trillion in 2025, contributing the largest share of industry revenue.
• Medicare and Medicaid together account for 38% of the health insurance market, with private health insurance making up 55%.
• Employer-sponsored health plans cover 49% of the population, with premiums averaging $7,452 per individual and $22,463 per family in 2025.
• Out-of-pocket health costs are expected to rise 7.5% in 2025, putting further pressure on insured individuals despite their coverage.
• The Affordable Care Act (ACA) marketplace saw 24.3 million Americans enroll in 2025, reflecting steady participation.

Life Insurance Coverage by Generation

• 57% of Baby Boomers have life insurance, the highest coverage rate among all generations.
• 55% of Gen X adults are covered by life insurance, showing strong participation.
• 50% of Millennials have life insurance, indicating half of this generation is financially preparing for the future.
• Gen Z has the lowest coverage, with only 36% of young adults holding life insurance policies.

Car/Auto Insurance Statistics

• Auto insurance premiums reached $353 billion in 2025, showing a 6.2% increase over the previous year.
• The average annual car insurance premium for U.S. drivers is now $2,826, with rates varying by state and driving record.
• Accident-related claims account for 75% of auto insurance payouts, with an average claim amount of $30,416 per incident.
• Electric vehicles (EVs) are becoming a significant factor in the industry, with EV insurance premiums being 23% higher than traditional cars due to repair costs and specialized parts.
• Telematics insurance, which tracks driving habits, is being used by 36.4% of policyholders, offering discounts of up to 20% for safe drivers.
• Florida remains the most expensive state for car insurance, with average premiums exceeding $3,264 per year.
• Uninsured motorist coverage is essential, as 14% of drivers in the U.S. do not have insurance, posing a risk to others on the road.

Insurance Industry Statistics by Types of Insurance

The US insurance market is diverse, encompassing various sectors beyond life and health insurance. Different types of coverage cater to specific needs, from businesses to homeowners.

• Property and casualty insurance now accounts for 30% of total industry premiums, reaching $1.06 trillion.
• Workers’ compensation insurance saw premiums of $55.42 billion in 2025.
• Homeowners insurance premiums are projected to rise 8% in 2025, reaching an average annual premium of $3,520.
• Renters insurance costs have increased to an average of $23/month, totaling approximately $276 annually in 2025.
• Commercial insurance premiums are projected to grow by 5% in 2025, reaching approximately $527.5 billion.
• Cyber insurance premiums are expected to stabilize around $16.3 billion globally in 2025, with the US market contributing approximately $10.6 billion.
• Specialty insurance is projected to reach $109.25 billion in 2025, with an expected growth to $164.25 billion by 2029, representing a 10.7% CAGR.

U.S. Insurance Industry Statistics by Employment

The insurance industry is a significant employer in the US, providing millions of jobs across various functions, from underwriting to claims management. Digital transformation is reshaping the workforce as automation and insurtech gain traction.

• Total industry employment exceeded 3 million in 2025, marking a growth of approximately 52,100 jobs.
• Insurance agents and brokers employ over 1.2 million individuals, maintaining the largest share of employment in the industry.
• Underwriting automation has become mainstream in 2025, with AI significantly enhancing efficiency and decision-making processes.
• Claims adjusters, appraisers, and examiners number around 540,000 jobs, though the sector is projected to decline by 5% from 2023 to 2033.
• Insurtech companies are adding approximately 20,000 new jobs annually, driven by the growing need for tech professionals in the insurance space.
• Actuaries remain essential, with over 32,000 professionals in the field, earning a median annual salary of $125,770.
• Customer service representatives in insurance numbered approximately 400,000, but this figure is expected to decline as more services move online.

Key Traits Women Look for in a Financial Advisor

• 66% of women prioritize trustworthiness when selecting a financial advisor.
• 60% consider experience a crucial factor in decision-making.
• 51% value strong communication skills, emphasizing clear dialogue.
• 50% focus on the advisor’s expertise in financial matters.
• 36% are influenced by whether the advisor is highly rated or recommended by others.
• 34% take into account personal characteristics such as personality or demeanor.
• 28% appreciate a holistic approach to financial planning.
• Only 23% consider proximity (location) as a deciding factor, making it the least important attribute

Impact of Digital Transformation and Insurtech

The rise of insurtech and digital transformation is reshaping the US insurance industry. From underwriting to claims processing, technology is improving efficiency and reducing costs.

• The insurtech market is projected to be worth $60 billion by 2025, with the US leading in innovation and investment.
• $12 billion was invested in insurtech startups, reflecting the industry’s shift towards automation, AI, and data-driven decision-making.
• AI-driven underwriting has reduced application processing time by 40%, streamlining customer experiences and reducing operational costs.
• Telematics technology is being used by 25% of auto insurers, allowing for personalized premiums based on driving behavior.
• Blockchain technology is being tested by 20% of US insurers, with applications in fraud prevention, claims processing, and smart contracts.
• Chatbots and AI-powered customer service have reduced the need for human agents, cutting costs by an estimated 15% across the industry.
• Digital-only insurance policies are growing in popularity, particularly among millennials, with 25% of new policies being purchased entirely online.

Recent Developments

Recent years have seen significant changes in the insurance industry, from regulatory shifts to new product innovations. The focus on digital transformation, sustainability, and customer-centric policies continues to drive the industry forward.

• Climate Change Impact: Homeowners’ insurance premiums have increased by an average of 24% over the past three years, with some regions experiencing even higher hikes due to climate-related disasters.
• Underwriting Gains: The U.S. property and casualty insurance sector achieved a $9.3 billion underwriting gain, a significant turnaround from the $8.5 billion loss in the same period the previous year.
• Rising Premiums: Commercial property and casualty insurance premiums are projected to grow by 5% in 2025, reflecting ongoing adjustments to market conditions.
• Digital Transformation: The industry is experiencing significant digital innovation, with a focus on AI and automation to enhance claims processing and customer service.
• Regulatory Changes The National Association of Insurance Commissioners (NAIC) has adopted a climate risk disclosure standard aligned with international recommendations, aiming to improve transparency and risk management.

Conclusion

The US insurance industry is a dynamic and evolving landscape. As digital transformation, climate change, and shifting consumer preferences shape the market, insurers are adapting to meet new challenges. With strong growth across sectors like health, life, and auto insurance, as well as emerging segments like cyber insurance, the industry remains a critical component of the US economy. Looking ahead, sustainability and technology will continue to play pivotal roles in shaping the future of insurance.