North Carolina Farm Bureau is ranked the No. 1 auto insurance company in an annual rankings report by Forbes and Statista.

More than 18,000 insured people across the U.S. were surveyed for “America’s Best Insurance Companies 2025” on whether they were satisfied with their insurance company and if they would recommend it to others. Participants also rated their insurance providers on the guidance agents offered, customer service, cost, company transparency, digital services, and claims service.

Ratings in each insurance category (homeowners, renters, auto, permanent life, or term life) were combined into a score, and the companies with the highest scores made the list.

Ninety-seven companies were recognized in at least one of the five insurance categories on this year’s list. Of the largest auto insurers, USAA was the only one to place in the top 10 on the list.

Following Farm Bureau are West Bend Mutual Insurance, Kentucky Farm Bureau Insurance, USAA, Farm Bureau Insurance of Tennessee, Amica, Texas Farm Bureau Insurance, Erie Insurance, NJM Insurance Group, and Donegal Insurance.

State Farm placed 20 on the list. Travelers came in last at No. 35.

A new report from PwC cites five trends that are affecting the insurance market:

• • “A widening trust gap in an uncertain world: erosion of trust, combined with lack of access and poor financial education, has made customers less likely to buy insurance and has led to wider protection gaps and higher economic losses.
  • “Rapidly evolving customer needs and preferences: Customers today aren’t simply looking for financial protection. They want personalized solutions presented in the context of their day-to-day lives, be it while buying a car, planning for retirement or starting a business. Customers expect insurers to go beyond their risk-transfer obligations and offer end-to-end solutions…
  • “An increasingly digital and AI-driven world: Recent advancements in the digitisation of client interactions have included the growing use of so-called bionic advisers that integrate human and digital client experiences. And proliferation of data sources and analytical power will continue to unlock new capabilities, such as event- and usage-based insurance (or ‘ondemand’ insurance) and real-time pricing and claims processing.
  • “Climate risk and a focus on sustainability: Because of their inherent expertise in risk management, insurers and reinsurers have a clear opportunity and societal obligation to lead the way in fighting the global climate crisis.
  • “Convergence, collaboration, and competition: Successful business models will drive increased collaboration with traditional competitors, emerging insurtechs, big tech companies, and adjacent industries, like manufacturing, retail, and healthcare. There’s also an expectation that insurers will need to play a larger role in making up for government shortfalls in climate change, elder care, and healthcare.

The insurer of the future will, according to PwC:

• • “Go on the offensive with digital;
  • “Embrace customer-centric ecosystems to create new value;
  • “Put a premium on execution;
  • “Embed ESG in your organization’s core; and
  • “Win the race for talent.”

“Insurance has undergone a transformation,” the report states. “As we described in our Future of Insurance 2020 report, the industry has faced demographic changes, rapidly evolving customer expectations, advancements in digital technology and analytics, and the challenge of maintaining a continued focus on innovative risk prevention.

“Though insurers acted slower than we expected, most embraced the need for change. Throughout this transformation, new market entrants and technology-led innovators known as insurtechs introduced capabilities and offerings at a much faster pace, challenging the status quo… Macroeconomic fallout from COVID-19; environmental, social, and governance (ESG) issues; and workforce-related challenges have also become more prominent on insurers’ agendas. Some market players have taken the opportunity to rethink their long-term strategies because notions of trust and societal purpose now play a greater role in the industry than ever before.”

Fitch Ratings reported in August that “improving, more favorable” mid-year 2024 results for U.S. personal auto insurance companies will likely continue through the end of this year and into 2025.

Fitch listed several rounds of material price increases and a moderation of claims severity trends as reasons for “vastly improved” profit.

“However, a return to segment underwriting profitability could lead to a sudden flattening of price movement going forward,” Fitch wrote. “Improved underwriting performance will eventually lead to competitive pressure and resistance from policyholders and regulators for further price increases. Companies that are lagging in the turnaround of auto results, including several large mutual carriers, may face difficulty in taking needed pricing actions while also retaining policyholders in a more competitive environment.”

An extended period of better auto profits will help several companies affected by substantial profit deterioration in 2022 and 2023 restore capital adequacy to prior levels, Fitch added.

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