Along with being the biggest economy in the world, the U.S. also ranks at the top of the insurance market in the world. But this ain’t a recent development. The presence of a formal insurance industry in the U.S. dates back to 1752 when Benjamin Franklin formed a mutual insurance company. The company was named Philadelphia Contributorship, and it is the currently the oldest operating insurance company in the world. So, it is pretty evident that the history of the insurance industry in the U.S. is deep rooted.
Being a hub of the insurance industry, the U.S. is home to several booming insurance companies. The market foothold of these companies is not just limited to the U.S., but their presence spans worldwide. So, this creates a state of confusion for investors in the country. This article lists the top 10 insurance companies in the U.S. to invest in. But before we deep dive into the whereabouts of these companies, it is important to understand the insurance industry ecosystem. This industry is divided into three sectors, property/casualty, life/annuity, and private health insurance. It is important for a resident in this country to avail these insurance types. The most important of these is the health insurance. Life/annuity deals with life insurance and annuity. Property/casualty insurance deals with home insurance, commercial insurance, and auto insurance.
Health Insurance in the U.S.
The health insurance industry in the U.S. is privately held. There have been several attempts in the past to make this industry public but all attempts have failed. The U.S. is the only developed country in the world that does not have a social healthcare system. Healthcare is linked to employment in the country. The employers are liable to provide their employees with a health insurance policy. Thus, the government is not liable to cover its citizens with a healthcare insurance. Healthcare expenditure in the U.S. is higher than several nations. Many a time hospitals in the country deny medical services to people who do not have a medical insurance while in other cases, they charge heft amounts. So, when in the U.S., having a medical insurance is a must. There are several insurance companies in the country that make billions of dollars through these schemes.
Property/Casualty and Life/Annuity Insurance in the U.S.
Property/casualty insurance makes up over 53% of the total premiums and annuity/life insurance makes up 47%. The country witnessed set premiums of 1.4 trillion as per the data given by the Department of Labor. These parameters may look all vibrant from these outside but the insurance industry in the country is under high pressure. The fact that the world is heading towards a recession and the sudden increase in inflation in many countries is hampering the industry ecosystem. Thus, it is important to look for an insurance company that is dynamic and readily adjusts to the market changes.
Top 10 Insurance Companies in the U.S.
The Travelers Companies, Inc.
The Travelers Companies, Inc. is a commercial property casualty insurer. It operates across various countries and has offices in every state of the U.S. including Singapore, Brazil, China, Ireland, Canada The revenue generated by the company was 34,816 million.
The Progressive Corporation
The Progressive Corporation is a commercial property casualty insurer. It is an auto insurer and provides insurance for various automobiles. The revenue generated by the company was 47,702 million.
State Farm Insurance
State Farm Insurance was established a century ago as an insurer. The revenue generated by the company was 82,225 million.
Liberty Mutual Insurance Group
Liberty Mutual Insurance Group is a property and casualty insurer that provides automobile insurance, workers’ compensation, homeowner insurance, fire insurance and surety.The revenue generated by the company was 48,200 million.
Nationwide Mutual Insurance Company
Nationwide Mutual Insurance Company houses insurance and financial services companies.The total revenue generated by the company is 47,376 million.It has headquarters in several major cities in the U.S.
Centene Corportionis the intermediate privately insured healthcare programs and government sponsored healthcare programs.It is involved in multiple business segments.The total revenue generated by the company is 125,982 million.
The Allstate Corporation
The Allstate Corporation provides various insurance types such as renters, motorcycle, life, auto and home. The revenue generated by the company was 53,228 million.
The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund offers insurance and finance services across various fields with over 5 million members. The revenue generated by the company was 40,526 million.
Humana Inc. Corporation is among the top 100 government contractors in the U.S. The revenue generated by the company was 83,064 million.
USAA or the United Services Automobile Association includes reciprocal inter-insurance exchange. The company was founded by 25 U.S. army officers. The revenue generated by the company was 37,470 million.