South Carolina Proves More than Palmetto Trees, Peaches, and Golf

The United States Census Bureau’s Census 2000 estimated the population of the State of South Carolina at 4,012,012. Approximately 76 percent of the adult residents had graduated from high school and about 20 percent had earned a bachelor’s degree or higher. The capital, Columbia, has a population of 116,278.

From an employment perspective, the primary industries in South Carolina are:

From a property/casualty insurance perspective, South Carolina accounted for $5,880,438,000 of direct written premium. Countrywide as of Sept. 30, 2003 the aggregate is $313,781,216,000 of P/C insurance written. South Carolina calendar year 2002 loss ratio of 67.7 percent was slightly above the countrywide year to date Sept. 30, 2003 loss ratio of 62.3 percent. It was interesting to note that South Carolina’s Credit insurance loss ratio for calendar year 2002 was 185.9 percent compared to the countrywide average at Sept. 30, 2003 of 47.8 percent.

However, what surprised me the most was that South Carolina farmowners insurance premium for calendar year 2002 was only $4,149,000. I expected it to be more. The farmowners loss ratio was but 27.7 percent with the countrywide average at 64.2 percent. In a state with 10,679 farming, fishing and forestry employees, perhaps the level of premium is about right.

The South Carolina economy needs a jump-start. The employed civilian popu-lation comprises only 45 percent of the population.

It is distributed as follows:

Given the anticipated growth in the number of jobs located in South Carolina and the diversification of the South Carolina economy, I would expect the growth rate of the P/C 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), headquartered in Columbus, Ohio.