Idaho: More than Snowcapped Peaks, Plateaus and Potatoes

The United States Census Bureau’s Census 2000 estimated the population of the State of Idaho at 1,293,953. Approximately 85 percent of the adult residents had graduated from high school and about 22 percent had earned a bachelor’s degree or higher. The capital city, Boise, has a population of 185,787.

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

From a P/C insurance perspective, Idaho accounted for $1,499,908,000 of direct written premium in calendar year 2003. Countrywide

the aggregate was $445,028,265,000 of P/C insurance written during 2003. Idaho’s calendar year 2003 loss and defense and cost containment ratio of 59 percent was below the countrywide ratio of 67.6 percent.

What surprised me the most was that Idaho Farmowners insurance premium for calendar year 2003 was $31,639,000. I expected it to be appreciably more. However, in a state with 16,249 farming, fishing and forestry employees, perhaps that is about right.

The Idaho populace is well-educated. The employed civilian population comprises 46 percent of Idaho’s population. It is distributed as follows:

Given the anticipated growth in the number of jobs located in Idaho and the need for additional diversification of the Idaho economy, I would expect the growth rate of Idaho’s P/C insurance marketplace, as measured by direct premium written, to lag the growth rate experienced on a countrywide basis during 2004.

This article was written by Joseph L. Petrelli, president and founder of Demotech Inc. Demotech Inc. is 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. Additional information can be found at www.demotech.com.