Mississippi Offers Magnolias and Elvis Presley’s Birthplace
The United States Census Bureau’s Census 2000 estimated the population of the State of Mississippi at 2,844,658. Approximately 73 percent of the adult residents had graduated from high school and about 17 percent had earned a bachelor’s degree or higher. The capital, Jackson, has a population of 184,256.
From an employment perspective, the primary industries in Mississippi are:
From a P/C insurance perspective, Mississippi accounted for $3,179,978,000 of direct written premium. Countrywide as of Sept. 30, 2003 the aggregate is $313,781,216,000 of P/C direct premium. The Mississippi calendar year 2002 loss ratio of 82.5 percent was above the countrywide year to date Sept. 30, 2003 loss ratio of 62.3 percent. It was interesting to note that Mississippi’s medical malpractice loss ratio for calendar year 2002 was 191.6 percent compared to the countrywide average at Sept. 30, 2003 of 73.6 percent.
What surprised me the most was that Mississippi farmowners insurance premium for
calendar year 2002 was $7,932,000. I expected it to be more. However, in a state with 14,462 farming, fishing and forestry employees, perhaps that is about right.
The economy is stagnant. The employed civilian population comprises only 41 percent of Mississippi’s population. It is distributed as follows:
Given the anticipated growth in the number of jobs located in Mississippi and the diversification of the Mississippi economy, I would expect the growth rate of Mississippi’s P/C insurance marketplace, as measured by direct premium written, to lag the growth rate experienced on a countrywide basis.
Joseph L. Petrelli is president and founder of Demotech, Inc. (www.demotech.com), a Columbus, Ohio- based financial
analysis and actuarial services firm. Petrelli is a member of the Casualty Actuarial Society, American Academy of Actuaries and the Conference of Actuaries in Public Practice.