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US fire insurance market surpasses $23 billion as losses ease
Direct premiums written rose 73.9% from 2019 to 2024, while the national loss ratio fell to 40.6% in 2024, the lowest in six years.
America’s fire insurance market has surpassed $23 billion in premium volume, with a new special report tracing how the US market has been reshaped since 2019, including phases of rapid pricing and later moderation. Insurance Business America attributes the headline growth to direct premiums written rising 73.9% between 2019 and 2024, based on NAIC statutory filings across all 50 states.
The report says the market’s trajectory is not just about higher rates. It highlights that underwriting improved, with the national loss ratio dropping to 40.6% in 2024, the lowest in six years, even as total losses incurred stayed flat at $8.8 billion.
Insurance Business America links the shift to a post hard market period where rate correction has moved faster than claims inflation, at least on a pre-2025 wildfire basis. The report also notes that nine of the 10 costliest wildfires in US history have occurred since 2017.
On the competitive and state-level dynamics, the report points to California’s FAIR Plan, which has more than doubled its policy count since 2020. It also says commission and brokerage expenses reached $3.15 billion in 2024, up 13.7% year on year, suggesting ongoing competitive pressure for better risk selection.