By: Ramu Garuda August, 08, 2019
Homeowners in Arizona pay an average homeowners insurance rate of $803 per annum, which is much lower than the national average of $1,228 per annum. The total written premiums by insurance firms under Arizona’s homeowner's multi-peril segment amount to $1,610,131,044 for 2017.
Gavop analyzed data from a 2019 market share report published by the National Association of Insurance Commissioners (NAIC) to identify the top 5 homeowners insurance firms in Arizona.
State Farm is the largest firm providing multi-peril homeowners insurance in Arizona and holds a 17.97% market share in the state’s multi-peril home insurance segment. In 2018, the firm reported $303,259 in direct premiums written and $299,049 in direct premiums earned. State Farm has been awarded an A++ rating by AM Best, which is the highest possible rating given to a firm for its superior financial ability to meet ongoing insurance obligations.
State Farm has also received an overall customer satisfaction rating of 4/5 stars from Everquote.About 52% of State Farm’s customers say would buy insurance from the company again and 40% might continue to do so. Only 6% customers state they will not return to State Farm to fulfill their insurance needs.
Farmers Insurance is the second-largest multi-peril homeowner's insurance company in Arizona with a 13.01% market share. In 2018, the firm reported $219,578 in direct premiums written and $220,278 in direct premiums earned. Farmers has received an A rating by AM Best for showcasing the excellent ability to meet their ongoing insurance obligations.
Farmers have also received a customer satisfaction score of 4/5 stars from Everquote. About 57% of customers who have purchased insurance from Farmers say they will continue to do so and 37% state they might buy insurance from Farmers in the future. About 6% of customers admit they will not be returning to Farmers.
USAA is the third-largest player in the multi-peril home insurance segment in Arizona with an 8.7% market share. For the year 2018, the firm recorded $146,815 in direct premiums written and $142,816 in direct premiums earned.USAA has been given the highest possible rating of A++ by AM Best.
About 70% of USAA customers say they will continue buying their insurance from the firm and 23% might do so. Only 7% of customers will stop buying insurance from USAA. Unfortunately, USAA provides insurance only to military personnel, veterans, and their families.
Liberty Mutual is a predominant player in Arizona’s multi-peril home insurance segment with an 8.64% market share.
In 2018, Liberty Mutual reported $145,779 in direct premiums written and $140,214 in direct premiums earned. Liberty Mutual has earned an A rating by AM Best for their excellent financial ability to meet their current insurance obligations.
In addition, they have a 4 out of 5 stars rating for overall customer satisfaction by Everquote.About 46% customers who have previously bought insurance from Liberty Mutual say they will continue buying insurance from the firm and 44% might do so. However, 10% state they won’t be buying insurance from Liberty Mutual again.
With a market share of 8.64%, All State is another big player in the multi-peril homeowner’s insurance segment. All-State reported $145,772 in direct premiums written and $145,509 in direct premiums earned for the year 2018. The firm has an A+ rating by AM Best and a 4 out of 5 stars rating for customer satisfaction by Everquote.
About 64% of All States customers say they will continue buying insurance from All State, 26% might do so, and 10% will not buy insurance from All State again.
These top 5 home insurance firms cumulatively hold more than half of the market share for the multi-peril home insurance segment in Arizona.
The graph highlights the increasing trend of premiums written for homeowners insurance in Arizona.
Ramu is a research analyst with over 9 years of analytics & research experience. Prior to joining the company, he worked with some of the prominent consulting and market research firms in India, including Pride Technology (Supporting consulting projects to PWC), RR Donnelly, and The Hackett Group. His skills include company profiling, benchmarking, data and trend analysis, industry analysis, and report writing across the industries. Ramu holds a Master’s degree in Finance and Marketing. He also has a bachelor’s degree in Biotechnology.