5 Most Profitable Businesses in 2021

2. Insurance Business

Due to accidents, natural disasters, financial loss, or events such as the COVID-19 pandemic, the insurance industry in the United States is booming in 2021. In 2019, the insurance industry’s net premiums were valued at an astounding total of $1.32 trillion. Insurance in the United States is sold in many forms for various purposes, such as life insurance, health insurance, property or casualty insurance, and fraternal insurance. Basically, insurance guarantees financial security for people in cases of any kind of loss, hence buying insurance is an integral component of financial planning. For the residents in the United States, insurance is important enough to be necessary in some cases, as 49 of the 50 states in the US require all vehicles that are being driven to have active insurance policies. Insurance policies hence remain in demand year-round in the USA.

The Allstate Corporation (NYSE: ALL), a well-known insurance company, reported profits of $5.58 billion, or $17.31 per share, in the fiscal year. The company’s revenue was reported as $43.44 billion. Another insurance company, The Travelers Companies, Inc. (NYSE:TRV) reported an increase of 53.4% of its stock price from $88 to $135 from 2019 to 2020. Similarly, its revenue witnessed a growth of 2.74% from $31,024 million to $31,874 million.

In the US, both the competition and the barriers to entry are high in the insurance industry. In 2019, 5,965 insurance companies were operative in the country. The insurance companies in the US generally offer policies to insure health, vehicles, homes, and travel. With health and wellness being at risk in 2021, the post-COVID world presents an even brighter future for the insurance business in the United States.