What are the largest auto insurance companies in the US in 2019? With 8,701 businesses, the US auto insurance industry is one of the biggest in the world. According to IBIS World, the total revenue raked in by the industry in 2019 is approximately $285 billion. Further, IBIS World data shows that between 2014 and 2019, the annual growth of the US auto insurance industry is 3.3%. I wonder when Amazon is going to start offering automobile insurance policies to its Prime members and try to grab a piece of this huge pie.
In the five years leading to December 2018, most insurers within the US auto insurance industry emphasized on growing their net premiums as well as their financial position. Resultantly, the industry witnessed an increased rate of growth in that period. In addition, the US economy has been on a positive trajectory in the five years leading to 2018. As such, the higher investment and disposable income in the hands of Americans saw auto insurers record higher levels of income.
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The auto insurance industry is critical to the economy of the US. For starters, individuals and businesses in the US cannot legally operate automobiles without insurance. Insurers in the auto insurance industry, therefore, take up the critical role of ensuring that the individuals and businesses have the insurance. While at that, operators earn revenue from the premiums they underwrite. Oftentimes, the operators invest some of the revenue in a range of financial instruments to generate more income.
Clearly, insurance operators in the auto insurance industry rely on underwritten premiums as their main source of revenue. Every financial year, operators collect different amounts of direct premiums written. In this article, we rank the top eleven largest auto insurance companies in the US in 2019. Our methodology was the market share of the companies according to the most recent financial information available in the public domain. In addition, we relied on other sources like S&P Global Market Intelligence and ValuePenguin to compute the market share of the companies. Here is our list of the largest auto insurance companies in US in 2019:
Auto Club Exchange
ValuePenguin puts the market share of Auto Club Exchange at just 1.02%. Auto Club Exchange Group is part of the Interinsurance Exchange of the Automobile Club. The operator provides private insurance for automobile owners. Based in Missouri, the insurer claims a huge market in California where its market share was 8.5% in 2017. S&P Global Market Intelligence data shows that the insurer has close to 1.3 million policyholders in California alone.