2014 State Specialist P/C Insurers Revealed

The Demotech Company Classification System categorizes insurers into one of 11 categories based on an analysis of data reported by the companies to the National Association of Insurance Commissioners (NAIC). The 11 categories that comprise the system are Nationals, Near Nationals, Super Regionals, Regionals, State Specialists, Coverage Specialists, Strategic Subsidiaries, Risk Retention Groups, Surplus Lines Carriers, Reinsurers and companies with less than $1 million in direct written premium.

To be categorized as a State Specialist, a carrier must be an individual, active company reporting data to the NAIC using the property/casualty annual statement format at Dec. 31, 2013. It must report at least $1 million in direct written premium at Dec. 31, 2013 with 90 percent or more written in one state. Further, it cannot be a surplus lines company, risk retention group or reinsurance company.

In total, there were 766 companies categorized as State Specialists for 2014. This is more than 28 percent of the 2,676 companies classified based on Dec. 31, 2013 data. This group wrote more than $76 billion of direct written premium, which was 14 percent of the industry’s direct written premium in 2013.

Examining the geographic distribution of the 2014 State Specialists reveals that more than half of them specialize in one of just six states. Texas had the most State Specialists with 95. Florida and New York both had 80, followed by California and New Jersey with 54, and Pennsylvania with 44.

When looking at the line of business mix, 44.5 percent of the State Specialists’ 2013 direct written premium was private passenger auto. Nearly 25 percent was homeowners multiple peril and almost 11 percent of their premium was workers’ compensation.

Space limitations precluded an enumeration of each of the 766 State Specialists. The accompanying list includes the 300 State Specialists that were not affiliated with a group as of Dec. 31, 2013. A full list of State Specialists is available by contacting bkoestler@demotech.com.

State Specialists are often an independent agent’s most reliable and consistent market. These companies are focused on a specific geographic area, understand it and consistently strive to serve it. Demotech is pleased to provide State Specialists with the recognition they deserve.