Independent Insurance Agents of Nebraska has released the latest 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 second 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.
- Overall Trend: Premiums in Nebraska are growing faster than the United States in the short-term (2021 Q2 vs. 2022 Q2), the medium-term (rolling 12-months) and the long-term (4 years).
- Independent Agent Distribution: One trend is clear from the premium data, and that is that insurers in Nebraska distributing through independent agents are growing premiums faster than those insurers using Direct or Exclusive/Captive distribution styles.
- Surplus Lines: Surplus lines premium growth rates in Nebraska equal or surpass the surplus lines growth rates in the United States in the short-, medium- and long-term. Surplus lines growth rates in Nebraska also greatly exceed the non-surplus lines growth rates in Nebraska.
- 50 Largest Insurers: In Nebraska the 50 largest insurers mostly concentrate on Private Passenger Auto as their biggest premium line. About 60% of these insurers rely on independent agents for their distribution.
- 50 Fastest Growing: The Top 50 Fastest growing insurers in Q2 in Nebraska focus on a variety of lines of business with the most common largest line being Other Liability (Occurrence), followed by Other Liability (Claims-Made), Fire and Commercial Multiple Peril. Nearly 9 of 10 of these fastest growing insurers choose independent agents.
- Line of Business Trends: In the United States, the line of business growing the fastest in Q2 is Excess Workers' Compensation, but this is probably an anomaly due to timing and a lower premium volume line of business. Other lines where premiums are growing quickly are Burglary & Theft, and the combined lines of E.C. Perils+Flood+Crop. Notably, Other Liability (Claims-Made) premium growth has slowed in Q2 from its medium- and long-term averages.
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 (Q2-to-Q2), medium-term (Rolling 12-months), and long-term (Average 4 years) growth rates for Nebraska and 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 summary.
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 total premiums. 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 the percentage comparisons 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 percentage comparisons s 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 Q2 Marketplace Report!