State Farm still #1 for auto – but other insurers closing the gap

State Farm still #1 for auto – but other insurers closing the gap | Insurance Business America

State Farm still #1 for auto – but other insurers closing the gap
State Farm has held steady in top spot among car insurers despite losing market share.

Data from the National Association of Insurance Commissioners (NAIC) revealed that the company controlled 18% of the market last year, losing just 0.01% of its market share. Government data also revealed that the top 25 carriers of the past year gained almost one percentage point of their total share in the market as it rose to 85.15% in 2016 from 84.38% in 2015, suggesting smaller players are being pushed out.

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According to a report from trade publication Repairer Driven News, NAIC data is significant to the auto insurance industry because it covers almost the whole market, accounting for 98.51% of all property and casualty filings in the US.

Runner-up GEICO cornered 0.49% more of the market in the past year, taking 11.92% market share. It enjoyed the biggest market share gain of the year, followed by AMTrust which leapt from 20th to 14th place thanks to a 0.45% increase.

Meanwhile, Allstate, which held the third spot overall, lost the biggest slice of market share as its client base shrank by 0.32 percentage points to 9.72%.

“The company told investors in 2016 it would mitigate higher frequency and severity through a combination of higher premiums, increased underwriting standards and lower ad spending — none of which is conducive to attracting new business,” the goal explained. “But the goal was profitability, judged by its ‘combined ratio’ of claim payouts and general expenses compared to its premium revenue.”

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