2016 State Specialist P/C Insurers Revealed: Demotech

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 (DWP).

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 year-end 2015. The company must report at least $1 million in DWP at Dec. 31, 2015, 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, 746 companies were categorized as State Specialists for 2016. This is 28.6 percent of the 2,612 companies that were classified based on Dec. 31, 2015 data. This group wrote nearly $83.6 billion of DWP, which was 14.3 percent of the industry’s DWP in 2015.

Examining the geographic distribution of the 2016 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 was next with 79; New York had 73. New Jersey had 53, California 51, and Pennsylvania 40. These six states accounted for more than $57.6 billion of direct premium written, or nearly 69 percent of the countrywide total.

When looking at the line of business mix, State Specialists’ 2015 DWP was 46.8 percent private passenger auto, nearly 23.9 percent homeowners multiple peril, and 10.8 percent workers’ compensation.

The accompanying list includes the 279 State Specialists that were not affiliated with a group as of year-end 2015.