NAIC share of the market data finds Progressive up to 13.3% of car insurance premiums

Though it continues to be No. 3 insurer in the united states, Progressive continued to achieve last year on its rivals GEICO assuring Farm, according to National Association of Insurance Commissioners data released last month.

Progressive's share of premium dollars rose 1.05 percentage points to 13.3 percent of the private passenger auto insurance market, based on the data spanning 99.38 from the property and casualty insurance industry's fillings.

GEICO, which ranks No. 2, slid 0.24 percentage suggests control 13.54 percent from the private passenger auto industry.

No. 4 Allstate fell 0.22 percentage suggests a 9.11 percent share.

Progressive said it spent more than $3.27 billion on policy acquisition costs in 2021, up $250 million. It spent $5.57 billion on other underwriting expenses, up nearly $595 billion and including nearly $2.18 billion in ad spending.

“Progressive's other underwriting expenses, which excludes the policyholder credits, increased 12% in 2021 and 19% in 2021, in part reflecting increased advertising spend both in years,” Progressive wrote in its annual report. “On a year-over-year basis, our advertising expenditures increased 18% and 29% in 2021 and 2021, respectively. We'll still invest in advertising so long as we generate sales at a cost underneath the maximum amount we're prepared to spend to acquire a new customer.”

Progressive spent nearly $1.84 billion on ads in 2021. It increased this amount $338.4 million to almost $2.18 billion in 2021.

Other significant declines included No. 9 American Family losing 0.21 percentage points of share, No. 7 Farmers dropping 0.18 points, and No. 8 Nationwide decreasing by 0.15 points.

No. 5 USAA with no. 6 Liberty Mutual represented the other big winners in 2021. USAA popped 0.31 suggests own 6.32 percent of the market, while Liberty Mutual rose 0.13 points to a 4.75 % share.

Some of the insurers are going to be a bigger deal this year than the 2021 data suggests.

However, Farmers on Wednesday announced it had closed on its purchase of MetLife’s auto business. MetLife had 0.91 percent from the market this past year, which combined with Farmers’ 3.98 percent share pushes it ahead of Liberty Mutual to some 4.89 percent share.

And No. 12 Kemper, which rose on its own from the No. 13 rank in 2021, announced April 1 it finished its purchase of American Access Casualty Company. Kemper last year estimated AACC did $370 million in direct premiums during 2021, which may boost Kemper to become no. 11 insurer.

No. 1 State Farm closed Dec. 31, 2021, on the $400 million deal to buy nonstandard auto insurer GAINSCO. It’s unclear the number of premium dollars this contributes to State Farm’s book.

The auto insurance industry already was consolidating, a minimum of when it comes to larger insurers collecting more premium dollars. The nation’s Top 25 carriers held 87.3 percent from the market, a 0.34-percentage-point gain from 2021’s shared.

The standings offer an industrywide perspective on which insurers a store will probably see more or less of in 2021 – and perhaps how worried those carriers might be about losing customers.

Direct repair program shops and shops considering joining a DRP also benefit from the perspective on how much work may be coming or otherwise arriving from the particular carrier. The information might also help independent repairers identify thriving smaller insurers seeking DRP partners.

The data is also interesting as a measure of just how much insurers were able to save money on auto claims this past year as COVID-19 restrictions reduced traffic and the odds of vehicles engaging in crashes and generating losses.

The auto insurance industry saw their direct loss ratio — the quantity of premiums dollars spent reimbursing customers with claims — visit 8.53 suggests 56.08. Which means for every $1 in premiums collected, the insurer paid its customers back a little more than 56 cents. When cost containment and defense costs were considered, the ratio was 58.38, down 8.97 points.

On the whole, the non-public passenger auto insurance industry earned a lot more than $250 billion in premiums this past year.