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Sep 22
2021 Q1 Marketplace Report Now Available

Picture1.pngIndependent Insurance Agents of Nebraska has released a quarterly premium summary of the Nebraska property and casualty (P-C) insurance marketplace as a benefit of your Big “I” membership. 

This report for the first quarter of 2021 gives you a nearly real-time sense of the developments with premiums in your marketplace.  

IIAN has invested in this service, with information organized by Paul Buse of Real Insurance Solutions Consulting, LLC, to keep you informed.  This can empower you in discussions with your prospects and insureds that you belong to a professional trade association that assures you have this sort of marketplace information.   

You should also know the Nebraska annual P-C report for 2020 is available to you as members and can provide additional insights on loss ratios and trends, commissions and top insurers in each line of business. 

The data in the chart above shows that P-C premiums in Nebraska are rising faster than the rest of the country.  Within Nebraska, insurers relying on independent agents are growing the fastest.  Independent agent insurers are growing faster than those using captive or exclusive agents and those marketing directly.   



Nebraska Total Quarterly Premiums vs. U.S.

Picture2(2).PNGQuarter-to-quarter patterns between Nebraska and the U.S. can be seen above as can the total direct written premiums.  Nebraska, in the first quarter, represents about 1.75% of all U.S. premiums.  This is up slightly from the percentage Nebraska represented for the full 2020 year.  

​Being aware of the pricing trends in Nebraska helps you de-mystify premium increases for your clients.  You can also look at the seasonality of premiums as assure you are fully staffed in your agency for the busiest times of the year.



​​Nebraska Premiums by Marketing Types​

Picture3(3).pngThe bar charts above show the quarterly direct written premiums broken out into the “Marketing Types” for each policy-issuing insurer. 

Independent agents are THE choice in the marketplace to provide trusted advice and counsel.  Marketing and advertising spending from some competitors is a factor and those insurers’ growth is wise to monitor.  It is hard for those who spend so much to clarify any insurance- or risk-centric value from massive advertising expenditures but it is wise to monitor.  

Overall, looking at the marketing types of insurers and how they are growing gives you and IIAN a sense of how our form of distribution is doing in the marketplace.​



​Nebraska Admitted, Suplus Lines and Risk Retention Group Premiums

Picture4.PNGThe premiums shown above are the sum of the individual insurers as classified as predominantly admitted (the most closely regulated for solvency, rates and forms and generally covered by the state guaranty fund), Excess & Surplus (Non-admitted and less regulated) or Risk Retention Group (subject to a combination of federal and state rules and regulation).  

This is an example of being aware of trends based on how insurers are regulated is important.  The errors and omissions risk to agents placing surplus lines or E&S business is higher than the more highly regulated “admitted” business.  

Knowing the trends in surplus lines presently is important as it is growing dramatically.  If you have a client that was with an admitted policy and now facing an E&S placement (or one that is facing a large premium increase in the “non-admitted” market), this information can help your client understand they are not alone.



Nebraska and U.S. Growth Rates-Compared​​​

Picture5.PNGNebraska premiums are growing and growing faster the more recent the time frame you look at.  This can be helpful in explaining the state-wide trends are showing increases in premiums in many forms of distribution and categories of P-C insurance.  Unfortunately, we cannot look at line of business trends during the year but that information is included in the annual P-C report.



​How is this data compiled? 

The source of the data presented in this summary is A.M. Best and its Financial Suite.  That is a system that allows various standard and custom reports. A.M. Best obtains the data from the financial statements filed by each domestic insurance company with its state regulator.  

This summary takes custom data extractions for the last four years plus one additional quarter for data submitted by all insurers for Nebraska.  

This data is combined with attributes of insurers like marketing type and licenses and uses it to aggregate premiums in a way independent agents can use to understand market conditions in Nebraska.​

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