In the rivalry between Progressive and State Farm, there is a clear leader based on GDWP.
When it comes to the largest auto insurance company, there are many ways to measure leadership, but it’s clear to most people that the biggest insurer is either Progressive or State Farm.
Based on gross direct written premiums, it appears that there was a change in the top spot.
Gross direct written premiums (GDWP) for global auto insurance companies last year rose to about $822.5 billion. That year, Progressive managed to overtake State Farm and became the largest car insurer in the world, according to the results of a new study released by the Insuramore industry marketing and consulting firm. Also in the top 5 in the world were Berkshire Hathaway from the United States, as well as PICC and Ping An from China.
The study results also revealed that there were quite a few insurers struggling to see significant GDWP growth in this market last year. As a result, they have experienced reduced profitability throughout this year’s claims inflation, which was notably higher than anticipated.
Still, some auto insurance company results did show strong, double-digit growth throughout 2021.
According to the auto insurance company study results, there were some insurers that saw notably growth last year, including Sampo, due to its Hastings Group acquisition. Also in that category were Skyfire and Root, which each saw double-digit organic growth.
Though Root is still loss-making, Skyfire has been profitable for several years now. Last year was the first time that it was ranked among the top 200 groups in the world based on auto insurance company GDQP.
“Belonging to First Central Group, an insurance distribution and technology enterprise active in the US and focused principally on selling through online marketplaces (a.k.a. comparison sites), the progress of Skyfire illustrates how there is scope for competitors with an apt and genuinely differentiated proposition to take on incumbent underwriting groups even in a relatively mature and tough sector such as auto insurance,” read a statement released by Insuramore regarding its study findings.
The study report pointed to a factor that will be central to this market in the future and that will help to define trends moving forward, which is the participation of auto manufacturers in coverage.