Top 10 P/C Companies by 2000 Premium Volume for Selected Lines

The Top 10 P/C insurance companies for selected personal and commercial lines are provided for both Ohio and the US, based on their 2000 direct premiums written. The information also provides insurer market share based on 2000 premium volume. Also provided is the total premium volume for each product line. Direct premiums written and market shares have been rounded.

Direct premiums written are the aggregate amount of recorded originated premiums, other than reinsurance, written during 2000, whether collected or not, at the close of the year (plus retrospective premium collections), after deducting all return premiums.

The charts were compiled from A.M. Best Company data.

All property/casualty insurance lines include fire, allied, crop, federal flood, homeowners, all commercial lines, inland marine, Workers’ Compensation, medical malpractice, other liability, product liability, all auto lines, farmowners, earthquake, burglary/theft, ocean marine, financial and mortgage guaranty, aircraft, fidelity, surety, boiler and machinery, credit, group accident and health and miscellaneous lines.

Fire coverage protects against losses to real or personal property from damage caused by fire or lightning. Fire insurance covers losses from hostile fires, fires escaping their intended limits or others not considered intentional.

According to A.M. Best, 49.3% of Ohio’s P/C all-lines total (based on direct premiums) in 2000 was written by direct writers. 33.4% of the all-lines total in Ohio was written by state agency writers and 17.3% was written by nationally based companies. (Best Review, 8/01)

Homeowners coverage protects both property owners and renters. It typically combines property coverage for the structure (except for those renting), personal property coverage for contents, and personal liability coverage. The term multi-peril (multiple peril) means that more than one instance is covered for the duration of the insurance policy.

Based on 2000 homeowners multi-peril insurance premiums, Ohio ranks eighth in the US in total direct premiums for homeowners insurance. There are 302 companies writing homeowners insurance in the Buckeye state, according to A.M. Best. Only three other states have more homeowners insurance writers: Illinois, Florida and Texas.

Commercial coverage provides risk coverage for companies and organizations. Multi-peril (multiple peril) means that more than one instance is covered for the duration of the insurance policy. It covers such perils as property, boiler and machinery, crime and general liability.

Independent agents and brokers sold 74.2% of 1999’s commercial policies. (Independent Insurance Agents of America study, “The Independent Agency System: A Time of Great Opportunity,” 4/01)

Product liability coverage provides liability protection to a manufacturer or seller for losses or injuries of a product or service to a buyer, user or other party caused by a defect or malfunction.

Captive agents still command the largest percentage of total personal lines business sold, with State Farm holding 19% of the US personal automobile market in 1999. The captive channel controlled nearly 60% of written premiums, while independent agents produced 33% and direct writers, including online sales, produced roughly 7%. At year-end 1999, four of the top five personal lines insurers marketed their products through captive agents. By 2010, A.M. Best expects 15% to 20% of personal-lines premiums to be generated by direct sales to consumers. (BestWire, 3/28/01)

Private passenger auto insurance covers vehicles for personal use. Coverage is for vehicles owned by individuals and are not used for business purposes, including carrying passengers for hire.

Commercial auto insurance covers vehicles owned by businesses, government and nonprofit organizations. This includes the combination of both commercial physical damage and liability coverages.

Direct premiums written for all P/C lines in 2000 rose to $314.7 billion—an increase of 5%. (Best Review, 8/01)

All auto lines includes commercial and private passenger coverages.

Based on 2000 auto insurance premiums, Ohio ranks ninth in the US in terms of total direct premiums for all auto lines. There are 628 companies writing auto insurance in the Buckeye state, according to A.M. Best. Only Illinois has more auto insurance writers than Ohio.

Auto liability protects against losses arising out of legal liability when the insured’s vehicle injures others or causes damage to their property.

Commercial auto liability protects against losses arising out of legal liability when the commercially insured’s vehicle injures others or causes damage to their property.

Jury awards in lawsuits over defective products have increased over the past three years, but lawyers are reluctant to take on a case unless the injury can bring a huge award. Exclusive of punitive damages, the median award increased from $500,300 in 1993 to over $1.8 million in 1999, according to a study by LRP Publications’ Jury Verdict Research Series. (The NY Times, 1/30/01)

Medical malpractice coverage protects health care practitioners and institutions in cases of negligence or wrongdoing. Policyholders include doctors, nurses, hospitals, emergency technicians, nursing homes and other health care providers and facilities.

According to Tillighast-Towers Perrin in Atlanta, premium increases for malpractice insurance will generally be between 8–18% in 2001 and 2002, although higher increases are expected in some parts of the US. The average cost of medical malpractice insurance increased by 4% in 2000. Insurers say that the most significant factor causing the rapid increase in premiums is the escalating cost of jury awards, which now average $3.49 million. (USA Today, 12/4/01 and The NY Times, 9/10/01)