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P&C
(Property and Casualty)
P&C insurance protects against property losses (homes, cars, belongings) and liability for injuries or damage to others. It represents about 50% of the U.S. insurance market, with annual premiums exceeding $700 billion.
Major P&C lines include auto (35% of market), homeowners (25%), and commercial policies. Unlike life insurance, P&C covers specific risks for set periods (typically 6-12 month terms). The industry operates on the combined ratio metric (claims + expenses divided by premiums), with 100% being breakeven. Catastrophic events like hurricanes can significantly impact P&C insurers' profitability, leading to premium adjustments in affected regions.
Major P&C lines include auto (35% of market), homeowners (25%), and commercial policies. Unlike life insurance, P&C covers specific risks for set periods (typically 6-12 month terms). The industry operates on the combined ratio metric (claims + expenses divided by premiums), with 100% being breakeven. Catastrophic events like hurricanes can significantly impact P&C insurers' profitability, leading to premium adjustments in affected regions.