2015 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 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, 2014. It must report at least $1 million in direct written premium (DWP) at Dec. 31, 2014 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, 762 companies were categorized as State Specialists for 2015. This is 29 percent of the 2,639 companies that were classified based on Dec. 31, 2014 data. This group wrote more than $80.7 billion of direct written premium, which was 14.3 percent of the industry’s direct written premium in 2014.

Examining the geographic distribution of the 2015 State Specialists reveals that more than half of them specialize in one of just six states. Texas had the most State Specialists with 96. Florida was next with 78; New York had 77. New Jersey had 57, California 54, and Pennsylvania 43.

When looking at the line of business mix, 44.5 percent of the State Specialists’ 2014 direct written premium was private passenger auto. Nearly 25 percent was homeowners multiple peril and 11.4 percent of their premium was workers’ compensation.

Space limitations precluded an enumeration of each of the 762 State Specialists. The accompanying list includes the 287 State Specialists that were not affiliated with a group as of Dec. 31, 2014.

A full list of State Specialists is available by contacting Barry Koestler at 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. They understand it and consistently strive to serve it.