There are two major types of companies in united states ( US ) auto insurance industry - mutual and private insurers. Auto insurance industry in US is controlled, to a significant extent, by private insurance companies. However, there are other smaller companies operating in US automobile insurance industry as well.
Private auto insurance companies amount for 50 percent of US auto insurance market. In last few years these organizations have been taking up larger shares of gains made in US auto insurance market. Profits, accrued by them, have been more than US auto insurance companies, functioning as mutual companies.
GEICO and PGR, two major private automobile insurance companies, have been top players of automobile insurance industry of US. Their performance is reflective of significant direct channels at their disposal. In recent times there has been a slowdown in market share shifts for private auto insurance companies of US.
It is a reflection of softening premium cycles and cost cutting procedures being implemented throughout US auto insurance industry. Since its inception, US auto insurance industry has been able to achieve a fair degree of maturity. In a span of a decade and a half, rate of growth of US auto insurance industry has been 4.5 percent.
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