Progressive, America’s Largest Auto Insurance Company, Surpasses State Farm

According to GlobalData, State Farm is no longer the largest auto insurer in the United States, as Progressive has leapt to number one.

The company’s growth has been driven primarily by expanding its rental transportation business, increasing advertising campaigns and partnering with more insurance agencies, the data and analytics firm said earlier this week.

Progressive’s auto insurance market share increased from 13.1% in 2020 to 14.0% in 2021, while State Farm’s auto insurance share decreased from 15.9% in 2017 to 13.9% in 2021. GlobalData expects this trend to continue in 2023.

Progressive motor direct written premiums increased 14.1% in 2021 compared to State Farm’s 3.5%. GlobalData reports that this was primarily driven by growth in the commercial auto insurance business. Growth in Progressive’s auto insurance business was driven by 50.2% growth in the commercial vehicle business compared to 8.1% growth in the personal vehicle business. According to Insurance Business America, Progressive posted good organic growth in 2021, with policies in force he increased by 6% and added 1.3 million new individual policies.

“Progressive has expanded its commercial motor business with the acquisition of Protective Insurance Corporation in 2021, which has allowed us to add a larger fleet and additional product lines,” said Senior Insurance at GlobalData. Analyst Swarup Kumar Sahoo said. “In terms of organic growth, the company’s business in force (PIF) increased by 6% in 2021 and added 1.3 million new individual insurance policies.”

GlobalData also found that Progressive is more profitable than State Farm, with a 2021 auto insurance loss rate of 67.0% compared to State Farm’s 72.2%.

“Progressive is expected to maintain its leading position in the U.S. auto insurance market, which is expected to grow at a compound annual growth rate (CAGR) of 3.9% from 2021 to 2026,” said Sahoo. . “However, industry profitability may be challenged in the coming years due to high inflation, a global shortage of automotive chips and an ongoing recession.”

Earlier this year, Fitch Ratings said personal motor insurance continued to move toward a “more concentrated” market, with the 10 largest insurers controlling 76% of the market by the end of 2021. rice field. Market share based on net premiums written reached 16.4%, with GEICO and Progressive “growing revenue faster than the market as a whole,” rising to 14.7% and 14.1% share respectively.

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