top-auto-cover.jpg
Each year, the National Association of Insurance Commissioners releases U.S. market-share data for all major lines of insurance business. Here are the top 15 auto-insurance carriers in the country for 2017, along with a rundown of some of their recent digital initiatives.
di-state-farm-hq-030817
1. State Farm
Market share: 18%
Direct premium written: $41.8 billion
Recent digital initiatives: State Farm had a relatively quiet 2017 as the industry zoomed ahead on digitalization, but has a strong structure in place to facilitate new development. The company is particularly interested in the coming impact of autonomous vehicles, technology research director Chris Mullen told DI last year. State Farm has patented wearable technology to dissuade distracted driving and taken a leadership role in addressing it as underwriting losses mount. EVP of IT Duane Farrington also highlighted the company’s work with drones this year in a speech at a local university.
DI-GeicoHQ_03202017
2. Berkshire Hathaway
Market share: 13%
Direct premium written: $29.6 billion
Recent digital initiatives: Berkshire Hathaway’s Geico unit is responsible for the vast majority of this market share. It’s focused on digitally enhancing customer service, with a robust online portal and mobile app. In 2017, Geico launched a virtual assistant, Kate, presaging an industry trend toward chatbots. The company also transitioned its core systems to Duck Creek last year, which it expects to support further digital developments.
DI-Progressive_03282017
The Progressive Corp. headquarters is seen in Mayfield Village, Ohio on Wednesday, January 18, 2006. Progressive Corp., the first of the 10 biggest U.S. insurers to report fourth-quarter results, said profit fell 32 percent on claims from Hurricane Wilma. Sales dropped for the first time in five years.
3. Progressive
Market share: 10%
Direct premium written: $22.8 billion
Recent digital initiatives: While Progressive is mostly known for its innovation around usage-based insurance, it’s been making inroads in other digital realms as well recently. The carrier’s partnership with Slice on homeowners insurance represented a new model for insurer-insurtech partnerships, Celent’s Mike Fitzgerald posited. The company also launched a Facebook chatbot and has been active in developing for Amazon’s Alexa. Finally, the company has promised more to come with an active hiring push including IT staff.
DI-AllstateOffices_03282017
Allstate signage stands outside its headquarters in Northbrook, Illinois, U.S., on Thursday, Dec. 30, 2010. Allstate Corp. sued Bank of America Corp. and its Countrywide mortgage unit over $700 million in residential mortgage-backed securities the insurer purchased, claiming Countrywide misrepresented the investments. Photographer: Tim Boyle/Bloomberg *** Local Caption ***
4. Allstate
Market share: 9%
Direct premium written: $21.4 billion
Recent digital initiatives: Allstate has been very active in deploying digital solutions, especially in claims response after 2017’s major hurricanes. Claims leader Glenn Shapiro was promoted to head of personal lines with a mandate to continue that transformation across the business. The company also is employing advanced analytics in fraud fighting and to develop ridesharing-insurance coverage.
DI-USAAPhoenixOffice_11202017
5. USAA
Market share: 6%
Direct premium written: $13.2 billion
Recent digital initiatives: USAA has been active in leveraging different data sources to power the customer experience. The company has made upgrades to its analytics infrastructure to support that growth and is ramping up staff at a tech campus in Arizona. It’s also been a leader in deploying drones at catastrophe sites.
DI-liberty-mutual-HQ-022417
6. Liberty Mutual
Market share: 5%
Direct premium written: $11.6 billion
Recent digital initiatives: Liberty Mutual rolled out a revamped usage-based insurance platform in 2017, including gamification and driver-feedback components. The company is also getting results from its innovation workshop, Solaria Labs, including Dwellbeing, a platform for gathering and responding to home appliances and systems in order to reduce claims.
di-farmers-hq-031617
7. Farmers
Market share: 4.5%
Direct premium written: $10.4 billion
Recent digital initiatives: Farmers has announced an array of new tech solutions recently. The company is using virtual reality to train claims personnel, and contracted with Kespry to use its drone fleet at catastrophe sites. Its new mobile-based UBI program, Signal, targets distracted driving as well by alerting drivers who pick up their phone while driving.
DI-NationwideHQ_03182017
8. Nationwide
Market share: 3%
Direct premium written: $7.3 billion
Recent digital initiatives: Nationwide made a big splash with blockchain in late 2017, announcing it would pilot a proof-of-insurance concept based on the distributed-ledger technology. The company also is working with insurtechs at a higher level after announcing a $100 million investment fund. It partnered with TrueMotion to capture distracted-driving data from users of its UBI program, SmartRide.
di-travelers-031317
The Travelers Insurance Co. logo office building stands in Hartford, Connecticut, U.S., on Friday, Feb. 6, 2015. Obamacare's startup health insurance plans are flirting with financial distress, as all but five of the 23 nonprofit companies had negative cash flow from operations in the first three quarters of 2014, Standard & Poor's said in a report Tuesday. Photographer: Ron Antonelli/Bloomberg
9. Travelers
Market share: 2%
Direct premium written: $4.4 billion
Recent digital initiatives: Travelers named its first enterprise chief data and analytics officer this year, and shortly thereafter announced a new data-driven approach to homeowners insurance. The company is also exploring automated flight for claims drones and deploying a mobile-based UBI program.
p19m8dp7575cbhdn14f8l018g18.jpg
10. American Family
Market share: 2%
Direct premium written: $4.4 billion
Recent digital initiatives: American Family has been active in the insurtech sector under business development leader Peter Gunder, including the purchase of two companies last year: Networked Insights, a marketing analytics company incorporating AI and machine learning into its core platform; and HomeGauge, a home inspection software company. The company also rolled out a new UBI program with Automatic.
ForMedia-ExecutiveStaff.jpg
11. Auto Club Enterprises
Market share: 1%
Direct premium written: $3.1 billion
HomeOffice_web.jpg
12. Erie Insurance
Market share: 1%
Direct premium written: $3 billion
Recent digital initiatives: Erie has focused on the home-insurance segment recently, including a robust drone program and a partnership with Roost devices on home telematics.
DI-AmTrustHQ_08162017
13. AmTrust
Market share: 1%
Direct premium written: $2.9 billion
Recent digital initiatives: AmTrust is very active in insurtech. The company announced partnerships with Farmobile, a crop-insurance tech company; and Sure, which provides smartphone insurance. It also named a new CIO in August 2017.
CSAA Insurance Group_HQ_2018.jpg
14. CSAA Insurance Group
Market share: 1%
Direct premium written: $2.8 billion
Recent digital initiatives: The AAA insurer is attuned to its Silicon Valley-area clientele with a focus on autonomous vehicles and telematics. Company CTO Michele James was a Women in Insurance Leadership honoree last year for her work consolidating the company’s disparate core system environment.
auto-owners-hq
15. Auto-Owners Insurance
Market share: 1%
Direct premium written: $2.5 billion