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Independent 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 2022 gives you a nearly real-time sense of the developments with premiums in your marketplace. Quarterly summaries are intended as a compliment/update to the annual 2021 Nebraska P-C Marketplace Summary. This quarterly Summary is focused on premium trends only. And, as with the annual Summary, the quarterly Summary uses direct premiums, before reinsurance.
Below are the highlights from the most recent quarterly data.- Premiums in Nebraska are growing faster than the United States in the short-term (2021 Q1 vs. 2022 Q1), medium-term (rolling 12-months), and long-term (4 years).
- Surplus lines growth rates in Nebraska are lower than the United States average in the short-, medium-, and long-term. However, the surplus lines growth rates exceed the all lines average growth rate in Nebraska.
- One trend is clear from the recent premium data and that is that insurers distributing through Independent Agents are growing premiums faster than those insurers focused on Direct or Exclusive-Captive distribution styles.
- When looking at lists of the top 50 insurers in Nebraska, the largest premium insurer is Farmers Mutual Insurance Co of Nebraska. The fastest growing insurer is Century Surety Company (AmeriTrust Group). Four insurers make both the largest premium and the fastest growing lists. Sixty percent (60%) of the largest insurers, and 90% of the fastest growing, use Independent Agent distribution. In Nebraska, for the largest premium insurers, Private Passenger Auto is the line of business with the most premiums for those insurers. For the fastest-growing insurers, it is Other Liability (Occurrence).
- The line of business growing the fastest in the United States in the most recent quarter is Burglary & Theft, the premiums of which grew at 24% in 2021 Q1 vs. 2022 Q1. Other lines where premiums are growing quickly are All Auto, E.C. Perils+Flood+Crop (the combination of line of business), and Other Liability (Claims-made).
Quarter-to-quarter
premium growth trends can be visually observed in Figure 2 – Nebraska
Premium - All Distribution and Figure 3 – U.S. Premium - All
Distribution. The data below the bar
charts, Table 2 and Table 3, provide the short-term (Q1-to-Q1), medium-term
(Rolling 12-months), and long-term (Average 4 years) growth rates for Nebraska
and the United States premiums. And, for
perspective on the size of the Nebraska P-C insurance marketplace, total
premiums for Nebraska and the United States are also provided within Tables 2
and 3. This is the same general approach
to the figures and tables taken throughout the rest of this Nebraska 2022
Quarterly P-C Premium Summary – Q1.
Distribution styles shown above are based on insurer “Marketing Types.” Figures and Tables 4-6 show the main distribution styles P-C insurers use to sell their policies. Figures 4-6 visually show the actual quarterly premium dollars for Nebraska Independent Agent distribution, insurers using Direct distribution, and insurers using Exclusive-Captive distribution. Tables 4-6 show the exact percentage growth rates for these distribution styles for Nebraska, and for perspective, the premiums for each distribution style are provided within those tables. Next, shown in Figures and Tables 7-9, are the components of the insurers classified as using Independent Agents, which are insurers using purely IA or Broker, MGAs (also called general agents and wholesalers), and insurers using independent agents with other types of marketing. Table 10 shows comparison percentages for the United States.
Figures and Tables 11-13 show the Nebraska premiums broken out into the predominant regulatory regime applying to the insurer. The premiums shown in Figures 11-13 are the sum of the individual insurers classified as Admitted, E&S, and Risk Retention Groups. Admitted insurers are the most closely regulated for solvency, rates, and forms and are generally covered by the state guaranty fund. E&S insurers are less regulated and called excess & surplus lines, surplus lines or non-admitted. And, Risk Retention Groups are subject to a combination of federal and state rules and regulations and are often referred to as RRGs. The percentage growth rates for Nebraska and each regulatory regime are presented in Tables 11-13 with total premiums applicable. Table 14 shows comparison percentages for the United States.
It is important to note that for the particular set of data in Figures 11-13, the vertical axis for each bar chart varies in the maximum dollars, as the intent is to show relative changes in premiums and quarterly differences. If a single maximum were used (for example in millions of dollars only), then premium variations would be less visible, or not visible at all.
Figures 15-17 give a comparison of Nebraska to the United States in a side-by-side manner for all premiums, selected distribution styles, and selected regulatory regimes. Table 15 provides the growth percentages for Nebraska and United States, as more precise percentages are not conducive to display in Figures 15-17. You will also notice that Table 15 contains additional growth percentages for Admitted, IA or Broker, MGA and IA-Mixed.
Click here to view the full Q1 Marketplace Report! |