By Jordan Lee
New York, NY – September 18, 2025
The US insurance market is not even. Some states earn a lot in premiums. Others earn very little. This gap is big in property and casualty insurance. Agents need to know this. It helps them grow their business.
California is the top state. It earned $94.1 billion in direct premiums last year. That is the most. Vermont is at the bottom. It only got $1.4 billion. The difference is huge. Four big states lead the way. They are California, Florida, Texas, and New York. Together, they made $269 billion. That is more than the bottom 40 states combined.
Florida is second. It earned $70.9 billion. Why so much? Homes cost a lot there. Hurricanes make risks high. Insurance prices go up. Midwest and Northeast states also do well. Illinois, Pennsylvania, Michigan, and New Jersey are in the top 10. Cities are dense. Commercial properties are big. Auto insurance is key.
Small states lag behind. Vermont, Wyoming, and Alaska earn under $3.2 billion each. Rhode Island, Maine, and New Hampshire are also low. Population is small. Geography plays a role. Markets are isolated.
What makes premiums differ? Population size matters. Property values count. Risks from disasters affect it. Economic activity is a factor. Agents should study their state. Compare it to others. This guides choices. Stay local or expand?
Big carriers rule the market. State Farm is number one. It is in the top five in 47 states. It leads in 41 states. Its market share is 12.9%. It earned $99.3 billion in 2024. Progressive is second. It earned $47.1 billion. It has 6.2% share. It leads in Florida, Connecticut, and Rhode Island. Liberty Mutual made $34.9 billion. USAA got $34.8 billion. Allstate earned $30.8 billion. Liberty Mutual leads only in Vermont.
Agents can use this data. Pick the right carriers. Target clients better. Position against rivals. In big states, competition is tough. Stand out with special skills. Offer great service. Find niches no one serves.
In small states, go deep. Be the local expert. Build strong ties with clients. Target overlooked areas. National firms might ignore them.
A new tool helps. It is the IBA Property & Casualty Financial Insights Dashboard. Agents can analyze data. See carrier presence by state. Check premiums, losses, and expenses. Look at market share. Filter by business line, year, or state. Spot trends. Benchmark performance.
The dashboard shows key ratios. Like defense-to-loss ratios. It checks claims efficiency. This aids decisions. Refine partnerships. Find growth spots. Sharpen your edge.
The market changes fast. Agents must adapt. Use data to win. Capture high-value markets. Grow your business.
Experts say this is key. Understand your landscape. Act on insights. Success follows.
This report comes from recent data. It shows the way forward for agents.
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