Meanwhile, GlobalData discovered that State Farm’s market share declined from 15.9% in 2017 to 13.9% in 2021.
In 2021, Progressive expanded its business motor enterprise by buying Protective Insurance Corporation, which gave it a bigger fleet and extra product strains. This acquisition helped Progressive report direct written premium (DWP) progress of 14.1% in 2021, in comparison with State Farm’s 3.5% progress.
Progressive’s DWP momentum was largely pushed success in its business motor enterprise, which grew by 50.2%, whereas its private motor enterprise grew by 8.1%, in accordance with GlobalData. The insurer additionally noticed good natural progress in 2021, rising its insurance policies in pressure (PIF) by 6%, including 1.3 million new private strains insurance policies.
As the main motor insurer within the nation, Progressive additionally has higher profitability than State Farm, in accordance with GlobalData, with a motor insurance coverage loss ratio of 67.0% in 2021 in comparison with State Farm’s 72.2%.
GlobalData expects Progressive to proceed its constructive momentum in 2023.
Swarup Kumar Sahoo, senior insurance coverage analyst at GlobalData, commented: “Progressive is expected to maintain its leading position in the US motor insurance market, which is expected to grow at a compound annual growth rate (CAGR) of 3.9% during 2021-26. However, profitability of the industry could be a challenge over the next couple of years due to the high inflation, global automobile chip shortage, and an ongoing recession.”