DATA DIVE
P&C CORE RESERVE REDUNDANCY
DEFICIENCY BY ACCIDENT YEAR
STANDARD COMMERCIAL LINES
2.0
10.0%
1.5
7.5%
1.0
5.0%
0.5
2.5%
0.0
0.0%
2001 2001 2003 2004 2005 2006 2007 2008 2009 2010
-0.5 -2.5%
Billion of Reserves
Source: Moody’s estimates and SNL Financial
E RESERVE RELEASES FOR U.S. P&C insurers through the 2011 third quarter totaled
$11.4 billion, a 14 percent decrease compared to the same time period in 2010,
according to Moody’s Investors Service. The ratings agency expects reserve releases to
continue to decline and says reserves for the most recent accident years, 2009 and
2010, are likely deficient.
Oct 2011
Employment
Nov 2011
Employment
452,300 452,300
27,500 27,500
48,100 48,400
641,700 643,200
374,900 374,800
419,100 420,700
64,100 64,900
128,200 127,200
INSURANCE INDUSTRY EMPLOYMENT:
NOVEMBER 2011
Insurance Subsector
P&C Direct
Reinsurers
Claims Adjusters
Agents/Brokers
Life Direct
Health/Medical Direct
Title & Other Direct
Third-Party Administration
All Other
Insurance-Related Activities
Net Total
Change
+0
+0
+300
+1,500
-100
+1,600
+800
-1,000
53,500
53,300
-200
2,209,400 2,212,300
+2,900
Source: I.I.I., U.S. Labor Department’s Bureau of Labor Statistics
E THE INSURANCE INDUSTRY added 2,900 jobs in November 2011 compared to
October, with P&C carrier employment remaining flat and agent and broker employment
rising to its second-highest level in nearly two years. Total P&C carrier jobs stand at
452,300, which is down 8. 3 percent, or 41,200 jobs, from July 2008.
IBHS RANKING OF HOUSING-CODE
ADOPTION AND ENFORCEMENT BY STATE
(Ranked on scale of 0-100)
Ratings are based on states’ code adoption and enforcement; code official training and certification; and licensing requirements for construction trades. These factors were determined based on IBHS research.
Florida 95
Virginia 95
New Jersey 93
Massachusetts 87
South Carolina 84
Connecticut 81
North Carolina 81
Rhode Island 78
Louisiana 73
Maryland 73
Georgia 66
Maine 64
New York 60
New Hampshire 49
Alabama 18
Texas 18
Delaware 17
Mississippi 4
E FLORIDA AND VIRGINIA lead the way among
hurricane-prone states when it comes to adopting
effective building codes. According to a ranking system
developed by the Insurance Institute for Business &
Home Safety, Florida and Virginia are the only two of
the 18 states located along the Gulf of Mexico and the
Atlantic Coast that scored above 90.
TOP 15 U.S. PERSONAL-
AUTO INSURERS AND
USAGE-BASED INSURANCE (UBI)
GROUP
OFFERS
UBI OR
SIMILAR
PRODUCT
2010
MARKET
SHARE
Yes 18.1%
Yes 10.4%
No 8.6%
Yes 7.8%
Yes 6.1%
Yes 4.6%
Source: Highline Data and Moody’s
1. State Farm Group
2. Allstate Insurance Group
3. Berkshire Hathaway Group
4. Progressive Group
5. Farmers Group
6. Liberty Mutual
Insurance Group
7. United Services
Automobile Association
8. Nationwide Corp. Group
9. Travelers Group
10. American Family
Insurance Group
11. Hartford Fire &
Casualty Group Yes 1.5%
12. Auto Club Enterprises
Insurance Group Yes 1.3%
13. Mercury General Group No 1.3%
14. Metropolitan Group No 1.2%
15. Erie Insurance Group No 1.2%
Yes
Yes
Yes
Yes
4.4%
4.3%
2.1%
2.0%
E PERSONAL-AUTO INSURERS that are at the forefront in offering usage-based insurance products will
gain “a significant competitive advantage” in pricing
and policy retention, while companies that don’t offer
such products may face adverse selection in the future,
according to Moody’s Investors Service.
