Since all insurance laws and regulations are established individually by state, the National Association of Insurance Commissioners (NAIC) was organized to coordinate standards and regulations nationwide. Unless a company receives an exemption from filing, the NAIC requires all members to file audited financial statements.
The Insurance database powered by Audit Analytics contains records dating back to 2010 and covers all NAIC filing insurance companies. This database provides information on who audits insurance companies as well as several other key data points, including assets, revenue, business lines, and location.
In 2021, 209 firms conducted audits of 3,981 insurance companies. In this analysis, we look at the audit firm market share of insurance companies broken down by different business lines.
The Big 4 claimed the leading spots in this market, collectively holding about 60% of the market share in 2021. EY led the group with 712 clients, followed by PwC with 606, Deloitte with 556, and finally, KPMG with 506. Johnson Lambert & Co was the leading non-Big 4 firm with 159 clients, representing 4% of the market share.
Property & Casualty
Business Lines: Property and Casualty + Title
Property & Casualty is the largest insurance sector, representing 61.6% of all records in the AA insurance database for 2021. There were 2,454 insurance companies audited by 150 firms in this market.
The Big 4 led this sector holding a combined 56.7% of the market share. EY and PwC again ranked first and second, with KPMG moving into third over Deloitte. Johnson Lambert & Co ranked fifth again with 5.8% of the market share.
Life, Accident & Health
Business Lines: Life, Accident and Health + Health
Life, Accident & Health represents 36.5% of all records in the AA insurance database for 2021. There were 1,454 insurance companies audited by 94 firms in this sector.
The Big 4 firms also dominated this market, auditing a combined 67.3% of the market share. EY continued to lead the group, auditing 20.2% of the market. Deloitte ranked second, followed by PwC and KPMG. BKD was the leading non-Big 4 firm in this sector with 39 clients and 2.7% of the market share.
Business Lines: Fraternal + Other Risk-Bearing Entity
Other insurance companies make up the smallest sector of the insurance market, representing only 1.8% of all records in the AA insurance database for 2021. There were 35 firms conducting audits of only 73 insurance companies in this market.
The audit market is much more diverse in this sector, with no firm holding more than 10% of the market share. H2R led with seven clients, all of which fell into the fraternal business line.
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