Connecticut: More Than the Constitution and Nutmeg

The United States Census Bureau’s Census 2000 estimated the population of the State of Connecticut at 3,405,565. Approximately 84 percent of the adult residents had graduated from high school and about 31 percent had earned a bachelor’s degree or higher. The capital city, Hartford, has a population of 121,578.

From an employment perspective, the primary industries in Connecticut are:

From a P/C insurance perspective, Connecticut accounted for $6,078,688,000 of direct written premium. Countrywide as of Sept. 30, 2003, the aggregate is $313,781,216,000 of P/C insurance written. Connecticut calendar year 2002 loss ratio of 75 percent was somewhat above the countrywide year-to-date, Sept. 30, 2003, loss ratio of 62.3 percent. It was interesting to note that Connecticut’s medical malpractice loss ratio for calendar year 2002 was 144.7 percent compared to the countrywide average at Sept. 30, 2003, of 73.6 percent. However, what was most surprising was Connecticut’s products liability loss ratio of 482.4 percent—four times the national average of 108.4 percent.

The Connecticut economy is service-oriented. The employed civilian population comprises nearly half of Connecticut’s population. It was distributed as follows:

Given the type of jobs located in Connecticut and the relative diversification of the Connecticut economy, I would expect the growth rate of Connecticut’s P/C insurance marketplace, as measured by direct premium written, to approximate the growth rate experienced on a countrywide basis.

Correction: The Jan. 26 issue incorrectly listed the capital of New York as New York City. The capital of New York is Albany. My apologies and thanks IJ subscribers for contacting me.

Joseph L. Petrelli is president and founder of Demotech Inc. based in Columbus, Ohio. Additional information can be found at www.demotech.com.