Demotech Releases Market Share Data by State
by Barry J. Koestler II
Continuing Demotech’s effort to provide useful information, we have begun the release of market share data. This information is presented by line of business and by state. It is also available to you on our web site, www.Demotech.com.
Currently, our web site features the Homeowners Multiple Peril line of business. Other lines, such as Workers’ Compensation, Commercial Multiple Peril, and Private Passenger Auto will follow. See the "What’s New” section of www.Demotech.com for the schedule of release dates.
The market share reports identify the top 25 property and casualty insurers in each state and contain information for 2000-2002. The reports also include countrywide market share for the top 25 companies. Direct premiums written are presented for the top 25, all other companies combined, and in total.
The reports contain loss, defense, and cost containment expense ratios for 2000 through 2002 on a state and countrywide basis to provide a basic measure of operating performance. These ratios are also provided summarized for the top 25 and all other companies combined. This ranking of the top 25 insurers against all other companies, coupled with the concentration of market share, provides comparable experience that can be utilized.
The data contained in these reports can be useful as initial competitor research. Once the leading carriers are identified, more detailed analysis can be conducted by gathering such information as operating results, financial and corporate structure, line of business mix, or geographic dispersion.
Knowing the competition is a logical first step in improving your company’s position. These reports aid this effort and present a snapshot of the marketplace, allowing the user to understand the competitive conditions of their operating environment. An accurate assessment of market penetration and concentration dictates strategy and tactics; accordingly, an understanding of these items is critical.
Demotech hopes that these reports are helpful and enlightening. The market share data for Homeowner Multiple Peril is immediately available and the next release dates are at www.Demotech.com. Questions or comments should be directed to Barry Koestler.
Barry J. Koestler II, CFA is a Senior Financial Analyst and Chief Ratings Officer at Demotech, Inc.
Since 1985, Demotech, Inc. has been a financial analysis and actuarial consulting firm serving the needs of the property and casualty industry. Demotech was the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac, and HUD.
Visit www.Demotech.com for more information about Barry J. Koestler II and Demotech, Inc.
