National Association of Insurance Commissioners

Transcription

1 Natial Associati Insurance Commissiers 2005 Commercial Competiti Database Report

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3 2005 Commercial Competiti Database Report 2007 Natial Associati Of Insurance Commissiers

4 Natial Associati Insurance Commissiers All rights reserved. ISBN Natial Associati Insurance Commissiers Insurance Products & Services Divisi Fax Printed in the United States America No part this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electric or mechanical, including photocopying, recording, or any storage or retrieval system, without written permissi from the NAIC. Executive Headquarters Securities Valuati Office Government Relatis 2301 McGee Street, Suite Wall Street, 6th Floor Hall States Bldg. Kansas City, MO New York, NY North Capitol NW, Suite Washingt, DC

5 2005 Commercial Competiti Database Report Introducti The Commercial Competiti Database Report (Competiti Report) was created to provide a single source reference measures that serve as a starting point for examining the competitiveness state insurance markets. Analysts look to several factors to determine the competitiveness a market, including market ccentrati, market entries and exits, market growth, availability, and pritability. The data used to calculate the measures in this report are found in property and casualty insurer annual statement filings received by the NAIC and, in all cases, are shown the basis insurer groups rather than individual insurers. In reviewing these measures and making interstate compariss, the reader is encouraged to keep in mind that measures competiti ultimately reflect a very complex set factors, and that the informati in this report functis as a starting point for measuring levels competiti. The Property and Casualty Rate and Policy Form Model Law lists a set ecomic tests to be used in determining whether a competitive market exists. These tests are described in the Alternative Secti 12 provisi the model law, which the Improvements to State- Systems Subgroup recommended in its December 2000 Report to the Speed to Working Group, as appropriate for mitoring competiti in commercial lines insurance markets. The measures in this report are csistent with, but not an exhaustive list, those described in the model law. In this report, the reader will find various structural and performance measures that are readily determinable or available from NAIC databases or other sources. While these measures are presented a by-line, by-state basis, insurance markets are not usually defined in such a straightforward manner. This report is meant to be a starting point for studies competiti and can provide insight when it is used to make multi-state and multi-year compariss. This report was prepared by the NAIC Research Divisi staff under the directi the Statistical Informati (C) Task Force. If you have any questis regarding this report, please ctact Davin Cermak at the NAIC at (816) Additial copies can be obtained from: NAIC Insurance Products and Services Divisi 2301 McGee Street, Suite 800 Kansas City, MO Telephe: (816) Fax: (816) Internet: Natial Associati Insurance Commissiers 1

6 Disclaimer: The Commercial Competiti Database Report provides reference measures that serve as a starting point for examining the competitiveness state insurance markets. The NAIC does not csider the informati ctained in this report to be the ly informati that should be used to determine whether competiti exists in a particular state or line business Natial Associati Insurance Commissiers 2

7 Commercial Insurance s To define a market, e must examine the product and the sellers and buyers the product. s for commercial property and casualty insurance products may not match the by-line, by-state format found in statutory annual statements. For example, doctors, hospitals, nursing homes and other types medical providers are the buyers in the medical malpractice insurance markets. However, each these types buyers, and the insurers that sell them coverage, represent different markets that are all reported together in the annual statement line business called Medical Malpractice. To a large extent, these medical malpractice markets differ from e state to the next, resulting in hundreds them across the country. Similarly, the line business called Other Liability represents many different types liability insurance markets, such as large manufacturers, artisan ctractors, restaurants, apartment buildings, directors and ficers corporatis, attorneys, etc. Some these customers are large multi-state operatis, while others are small town businesses. This line business represents the combined data for all these liability insurance markets and should not be viewed as representative any e them ale. Thus, while some the line--business/state combinatis in this report represent the aggregati several smaller markets in a state, and other combinatis represent parts multi-state markets, the measures presented can be used as a basic starting point for exploring competitiveness. In order to explore competiti in an insurance market, the link between the data and the market in questi should be refined Natial Associati Insurance Commissiers 3

8 Ccentrati Measures Ccentrati is an important aspect market structure. A particular state may have hundreds companies selling insurance, but if a handful companies write a majority the premiums, they may be able to ctrol the market, and its competitiveness is subject to questi. Several methods exist to measure market ccentrati in a meaningful way. This database includes two such measurements. The market shares the four largest groups (Column 2), denoted as a percentage, is calculated by dividing the sum direct premium written by the four largest insurance groups in the market by the sum direct premium written by all groups. This traditial measure market ccentrati is ten used as a rough indicator market competiti. While there is no formal way to determine market competitiveness based this calculati, values above 50 percent suggest that ccentrati at least be given a closer look in judging the overall competitiveness a market. Herfindahl-Hirschman Index (): The index (Column 3) is calculated by summing the squares the market shares (as a percent) all groups in the market. For example, if a market had ly e seller, its market share would be 100 percent and the would be 10,000. If a market had ten sellers, each with an equal 10 percent the market, the would be 1,000. Although there is no precise point at which the indicates that a market or industry is ccentrated highly enough to restrict competiti, the Department Justice has developed guidelines with regard to corporate mergers. Under these guidelines, if a merger companies in a given market causes the to rise above 1,800, the market is csidered highly ccentrated. If, after the merger, the is between 1,000 and 1,800, the market is csidered moderately ccentrated, and an less than 1,000 is csidered not ccentrated. Since these numbers are guidelines, judgment must be used to interpret what informati the s provide for a particular market Natial Associati Insurance Commissiers 4

9 Participati/Entries and Analysts competiti are usually interested in how many insurance groups are participating in a market, as well as how many insurance groups are deciding to enter or leave a market. A market demstrating a steady increase in the number groups providing insurance (more groups enter the market than exit) can be csidered a strg market where insurers see an opportunity to make a prit. Cversely, markets where more groups are exiting the market than entering may indicate that insurers are unable to earn a prit sufficient to justify a ctinued presence. Since there are a number insurance groups that, for various reass, have a very small amount direct written premium in a given market, a threshold was used to identify true market participants. While a number different thresholds could be used, in this report the threshold is 0.1 percent a market s total direct written premium. (Insurance ): The number sellers (Column 4) is the number insurance groups that have affiliate insurers writing premium in the market above the threshold. The number sellers in a market can indicate, alg with other factors, the overall competitiveness a market. The informati available to the NAIC does not distinguish between sellers that are open to both new and renewal business and sellers that write renewal business ly. (This data limitati also affects the interpretati the ccentrati measures found in this database.) Entries and : The number entries and exits is the number insurance groups that have affiliate insurers writing premium in the market that have either entered (Column 5a) or exited (Column 5b) the market at any time over the past five years. Entries and exits provide informati about the quality the market, in that more entries than exits may indicate a healthy market and more exits than entries may indicate an unhealthy market. In this report, an insurer enters a line business when its direct written premium rises above the threshold. Similarly, an exit is recorded when an insurance group s direct written premium falls below the threshold Natial Associati Insurance Commissiers 5

10 Growth growth can be a measure competiti, as growing markets normally attract competitors. growth can be initiated by two events. One is when new csumers enter into the market and demand new insurance coverages. The secd is when existing csumers start to purchase additial coverage, such as when property values increase or csumers purchase more expensive automobiles as their incomes rise. In general, both these events create market growth over time. A word cauti: increasing premium rates may cause direct written premium to increase, giving the appearance market growth when, in fact, there is ne. growth for the last three years (Column 6a) and the last ten years (Column 6b) are in terms cumulative percentage change in direct written premium over the respective periods Natial Associati Insurance Commissiers 6

11 Availability Availability is an important indicati market performance. Insurance companies in the standard (voluntary) market are not required to sell their products to everye. By law, they must be able to pay claims and stay solvent, and they are allowed to prit from sales and investments. They do this by correctly choosing and pricing risk, servicing claims, and investing premiums. The selective nature the business means that not all csumers will be able to purchase insurance from a standard insurer. When insurance is limited or not available through the voluntary market, a csumer may turn to the residual or surplus lines markets for coverage. Growth in these alternative markets may reflect a declining number sellers in the standard market or a limited capacity to add new business. market mechanisms are entities created by state laws to provide insurance to csumers ineligible for coverage in the standard market. market rates are generally higher than standard market rates because the insureds typically represent a greater level risk. In most states, the essential types commercial insurance (e.g., commercial auto and property, medical malpractice, and workers compensati) are fered through residual market operatis. There may also be residual market mechanisms in some states for other commercial lines. Some specialized types commercial insurance may ly be available through the surplus lines market. lines insurers, however, are exempt from most state insurance laws, and policyholders are not protected by state guaranty funds. For this reas, in many states, insurance can ly be purchased from a surplus lines carrier when the insurance commissier determines that the specific coverage is not sufficiently available from a regulated entity. Shares As insurers in the voluntary market reduce their exposure or withdraw from a line business, the residual market s premium share is likely to increase. The residual market share is determined by dividing the sum residual market direct premium written by total direct premium written. Note: Because residual market premiums are currently not reported to states in a csistent manner, the size the residual market for commercial lines business in many states could not accurately be determined for this report. Once a reliable method for isolating residual insurance premium from the total premium in a commercial line is devised, residual market share will be shown in Columns 7a and 7b. Shares The surplus lines market shares are determined by dividing the sum direct premium written by surplus lines insurers by the total direct premium written. The surplus lines market share for the latest year (Column 8a) and the latest five-year mean (Column 8b) are displayed for all 50 states, the District Columbia and U.S. territories Natial Associati Insurance Commissiers 7

12 Pritability Insurer pritability results can be examined to determine whether a market is attractive to insurers to enter, thereby creating greater competiti, or unattractive, causing insurers that are in the market to leave. Persistently high levels pritability may indicate that a market is failing to attract competitors, thus enabling n-competitive rates return to be earned. Alternatively, persistently low levels pritability may indicate that insurers may have difficulty estimating losses and/or are unable to set premium rates at adequate levels. Since the NAIC began publicati its Pritability Report in 1974, it has become the standard report for gauging the pritability insurance markets in the United States. : The return net worth (Column 9), taken from the NAIC s Pritability Report, is equal to total prit after taxes divided by allocated capital and surplus, adjusted to place it a GAAP basis. Allocated net investment income and realized capital gains insurers are included in total prit. The return helps regulators and others evaluate the prits earned in a particular market in relati to the net worth that is committed to that market. Because the results for a single year can be highly variable and, thus, limited meaningfulness, the average return over a period is shown Natial Associati Insurance Commissiers 8

13 Other Measures While the data included in this database represent relevant measures the competitive nature the marketplace, other measurements the same market characteristics might give somewhat different indicatis. Also, there are many other aspects competitiveness that are not addressed in this publicati. These include such csideratis as the level knowledge market participants, and product homogeneity, neither which can be readily ascertained and/or measured using the data sources relied up in this report. Similarly, the cduct market participants reflects up the competitiveness a market, but at present cannot be quantified with sufficient facility to be ctemplated in this database Natial Associati Insurance Commissiers 9

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15 Commercial Competiti Database Report Countrywide Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 11 10

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17 2005 Commercial Competiti Database Countrywide s () Line Business Commercial Auto Liability 22,872,043, % % 66.69% * * 0.82% 0.59% 4.74% Commercial Auto Physical 7,754,855, % ( 0.12%) 53.69% * * 1.65% 1.09% 9.56% Commercial Auto Total 30,626,898, % % 63.19% * * 1.03% 0.72% 5.46% Commercial Multiple Peril 34,577,222, % % 63.02% * * 1.28% 1.49% 5.01% Fire 9,685,927, % ( 4.60%) 77.91% * * 8.36% 7.49% 14.00% Allied 7,665,021, % ( 1.02%) 92.66% * * 8.34% 5.19% ( 2.06%) Inland Marine 12,732,899, % % 73.91% * * 3.76% 3.27% 19.71% Medical Malpractice 12,201,773, % % 102.1% * * 4.47% 4.10% 5.75% Other Liability 54,151,127, % % 133.2% * * 8.12% 6.88% 5.03% Workers Compensati 55,445,859, % % 92.78% * * 0.02% 0.03% 8.28% Total All Property and Casualty 491,414,545, % % 72.17% * * 1.75% 1.43% 7.43% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 13 12

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19 Commercial Competiti Database Report By State Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 15 13

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21 2005 Commercial Competiti Database Alabama s () Line Business Commercial Auto Liability 345,590, % % 58.65% * * 1.24% 1.54% ( 4.78%) Commercial Auto Physical 123,269, % % 36.71% * * 2.93% 3.42% 8.09% Commercial Auto Total 468,859, % % 52.23% * * 1.68% 2.06% ( 2.50%) Commercial Multiple Peril 496,189, % % 73.82% * * 1.22% 1.57% ( 0.48%) Fire 142,429, % ( 4.45%) 33.99% * * 9.39% 7.33% 9.53% Allied 104,252, % % 121.8% * * 14.22% 7.08% (30.40%) Inland Marine 192,223, % % 62.56% * * 1.73% 1.47% 1.96% Medical Malpractice 180,025, % 3, % 87.53% * * 6.02% 4.00% 17.74% Other Liability 576,019, % % 108.5% * * 7.38% 6.21% ( 1.51%) Workers Compensati 361,281, % % 60.82% * * 0% 0.04% 8.18% Total All Property and Casualty 6,233,335, % % 71.81% * * 1.71% 1.37% 4.45% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 17 15

22 2005 Commercial Competiti Database Alaska s () Line Business Commercial Auto Liability 57,776, % % 68.46% * * 1.26% 0.45% 12.00% Commercial Auto Physical 26,554, % 1, % 164.0% * * 0.50% 0.57% 20.89% Commercial Auto Total 84,331, % % 90.12% * * 1.02% 0.48% 13.36% Commercial Multiple Peril 101,631, % % 43.72% * * 2.36% 2.24% 13.88% Fire 29,078, % ( 2.55%) 70.58% * * 5.39% 7.75% 30.07% Allied 14,989, % 1, % 115.2% * * 5.75% 4.37% 26.90% Inland Marine 61,993, % 3, % 248.6% * * 0.75% 1.03% 34.82% Medical Malpractice 25,057, % 2, % 61.64% * * 2.98% 3.18% 6.47% Other Liability 132,327, % % 105.4% * * 13.47% 9.84% 13.29% Workers Compensati 340,513, % 1, % 108.9% * * 0% 0% 7.92% Total All Property and Casualty 1,453,440, % % 86.58% * * 1.78% 1.38% 11.69% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 18 16

23 2005 Commercial Competiti Database Ariza s () Line Business Commercial Auto Liability 388,718, % % 103.8% * * 0.45% 0.52% 0.95% Commercial Auto Physical 141,979, % % 121.2% * * 1.52% 1.26% 2.20% Commercial Auto Total 530,698, % % 108.2% * * 0.73% 0.71% 1.13% Commercial Multiple Peril 558,397, % % 91.08% * * 0.62% 0.97% 0.87% Fire 94,935, % % 117.2% * * 4.76% 4.36% 19.67% Allied 79,015, % % 186.1% * * 5.90% 5.29% (17.09%) Inland Marine 172,671, % % 121.4% * * 1.01% 0.91% 16.03% Medical Malpractice 277,955, % 3, % 131.5% * * 4.35% 3.78% 2.66% Other Liability 861,894, % % 198.1% * * 11.66% 7.48% 2.60% Workers Compensati 676,085, % 3, % 88.04% * * 0% 0.01% 8.21% Total All Property and Casualty 8,396,242, % % 100.5% * * 1.78% 1.19% 6.51% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 19 17

24 2005 Commercial Competiti Database Arkansas s () Line Business Commercial Auto Liability 265,280, % % 93.39% * * 1.95% 0.93% 0.86% Commercial Auto Physical 91,380, % % 57.77% * * 4.93% 2.72% 2.68% Commercial Auto Total 356,661, % % 82.82% * * 2.71% 1.43% 1.15% Commercial Multiple Peril 248,360, % % 62.80% * * 1.00% 1.48% 3.83% Fire 118,997, % ( 9.97%) 48.35% * * 5.55% 4.93% 10.60% Allied 93,940, % % 122.0% * * 2.64% 2.15% (18.73%) Inland Marine 135,588, % % 76.85% * * 2.76% 1.94% 10.65% Medical Malpractice 83,681, % 2, % 181.8% * * 7.86% 5.91% ( 7.03%) Other Liability 296,220, % % 114.9% * * 7.63% 6.55% 5.56% Workers Compensati 273,681, % % 19.81% * * 0% 0.02% 17.79% Total All Property and Casualty 3,785,383, % % 64.54% * * 1.60% 1.20% 5.27% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 20 18

25 2005 Commercial Competiti Database California s () Line Business Commercial Auto Liability 2,279,834, % % 76.13% * * 0.63% 0.46% 7.06% Commercial Auto Physical 813,433, % % 76.22% * * 1.08% 1.02% 13.33% Commercial Auto Total 3,093,268, % % 76.15% * * 0.75% 0.60% 8.18% Commercial Multiple Peril 4,513,741, % % 51.07% * * 2.34% 2.37% 2.97% Fire 1,024,864, % ( 3.23%) 43.27% * * 8.63% 7.75% 27.52% Allied 590,483, % ( 1.07%) 73.25% * * 8.18% 5.30% 17.64% Inland Marine 1,688,960, % ( 2.83%) 52.49% * * 9.93% 9.13% 21.44% Medical Malpractice 970,889, % 1, % 53.84% * * 5.83% 4.88% 10.67% Other Liability 7,496,707, % % 168.4% * * 12.33% 9.76% 1.10% Workers Compensati 14,593,504, % 1, ( 0.75%) 297.5% * * 0.00% 0.00% 0.61% Total All Property and Casualty 64,598,164, % % 96.55% * * 2.70% 2.10% 5.04% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 21 19

26 2005 Commercial Competiti Database Colorado s () Line Business Commercial Auto Liability 341,425, % % 104.4% * * 0.80% 0.56% 6.53% Commercial Auto Physical 143,534, % ( 2.77%) 70.76% * * 1.66% 0.73% 6.20% Commercial Auto Total 484,959, % % 93.14% * * 1.05% 0.60% 6.50% Commercial Multiple Peril 610,615, % % 85.56% * * 1.09% 1.36% 6.84% Fire 95,999, % (10.84%) 167.8% * * 13.60% 8.02% 2.49% Allied 95,883, % ( 2.86%) 85.07% * * 5.95% 3.53% 3.45% Inland Marine 361,627, % 2, % 321.4% * * 2.58% 2.60% 18.49% Medical Malpractice 168,519, % 3, % 88.25% * * 2.40% 2.95% 9.59% Other Liability 906,419, % ( 4.32%) 187.7% * * 8.13% 7.04% 9.68% Workers Compensati 920,378, % 3, % 169.3% * * 0% 0.00% 7.45% Total All Property and Casualty 8,256,339, % % 96.16% * * 1.60% 1.26% 9.34% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 22 20

27 2005 Commercial Competiti Database Cnecticut s () Line Business Commercial Auto Liability 332,305, % % 47.56% * * 0.42% 0.31% 8.40% Commercial Auto Physical 83,713, % ( 6.59%) 28.17% * * 0.03% 0.03% 11.12% Commercial Auto Total 416,018, % ( 1.09%) 43.20% * * 0.34% 0.25% 8.79% Commercial Multiple Peril 567,412, % % 52.38% * * 0.28% 0.73% 10.04% Fire 87,768, % ( 2.88%) 17.20% * * 7.19% 5.87% 23.15% Allied 72,636, % 1, (21.92%) 98.53% * * 3.88% 2.86% 17.63% Inland Marine 168,567, % (17.39%) 77.04% * * 1.87% 1.58% 19.32% Medical Malpractice 246,403, % 1, % 52.65% * * 5.64% 5.11% 4.55% Other Liability 942,397, % % 84.55% * * 5.94% 7.56% 6.10% Workers Compensati 730,574, % 1, % 41.58% * * 0% 0.00% 12.59% Total All Property and Casualty 6,993,625, % % 50.67% * * 1.32% 1.46% 10.60% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 23 21

28 2005 Commercial Competiti Database Delaware s () Line Business Commercial Auto Liability 90,112, % % 68.45% * * 0.34% 0.40% 2.86% Commercial Auto Physical 32,804, % 1, % 133.9% * * 1.08% 0.61% 16.81% Commercial Auto Total 122,916, % % 82.04% * * 0.54% 0.45% 4.77% Commercial Multiple Peril 277,105, % 4, % 362.2% * * 0.27% 0.25% 10.03% Fire 19,651, % ( 3.80%) 59.17% * * 6.02% 6.90% 22.46% Allied 18,432, % % 70.04% * * 1.98% 3.43% ( 6.28%) Inland Marine 40,530, % % 14.25% * * 1.07% 0.73% 28.76% Medical Malpractice 44,703, % 2, % 157.2% * * 5.99% 4.44% 16.72% Other Liability 298,577, % % 63.23% * * 2.37% 2.38% ( 0.49%) Workers Compensati 218,700, % % 96.76% * * 0% 0% 4.16% Total All Property and Casualty 2,273,697, % % 71.20% * * 0.65% 1.47% 8.62% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 24 22

29 2005 Commercial Competiti Database District Columbia s () Line Business Commercial Auto Liability 34,528, % (15.23%) 14.14% * * 0.12% 0.26% 15.97% Commercial Auto Physical 7,120, % 1, % 60.53% * * 5.42% 2.84% 9.61% Commercial Auto Total 41,649, % (12.35%) 20.07% * * 1.03% 0.66% 15.64% Commercial Multiple Peril 135,351, % 1, % 71.81% * * 1.03% 1.07% 13.75% Fire 26,149, % 1, (36.47%) 110.5% * * 9.60% 6.33% 39.02% Allied 21,026, % 1, (35.52%) 252.8% * * 4.73% 4.26% ( 2.37%) Inland Marine 39,134, % (13.68%) 55.09% * * 1.91% 1.74% 23.86% Medical Malpractice 44,714, % 3, ( 2.49%) 36.05% * * 7.12% 4.54% 4.33% Other Liability 308,909, % % 110.0% * * 5.44% 5.38% 14.61% Workers Compensati 181,861, % 1, % 79.99% * * 0% 0% 12.08% Total All Property and Casualty 1,456,030, % % 71.08% * * 2.29% 1.91% 14.38% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 25 23

30 2005 Commercial Competiti Database Florida s () Line Business Commercial Auto Liability 1,671,430, % % 110.8% * * 0.68% 0.54% 0.89% Commercial Auto Physical 455,075, % % 107.5% * * 1.59% 1.13% 9.46% Commercial Auto Total 2,126,505, % % 110.0% * * 0.87% 0.67% 2.09% Commercial Multiple Peril 2,064,497, % % 66.39% * * 1.47% 1.92% 15.75% Fire 776,627, % % 178.5% * * 20.05% 17.66% 39.19% Allied 1,037,552, % % 111.9% * * 23.67% 13.48% 40.99% Inland Marine 869,638, % % 112.9% * * 7.32% 5.09% 23.45% Medical Malpractice 849,578, % 1, ( 4.78%) 114.4% * * 5.73% 5.28% ( 5.95%) Other Liability 2,950,400, % % 174.9% * * 10.59% 8.69% 6.79% Workers Compensati 3,717,918, % % 77.05% * * 0% 0.02% 8.12% Total All Property and Casualty 35,648,014, % % 107.9% * * 2.90% 2.14% 11.09% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 26 24

31 2005 Commercial Competiti Database Georgia s () Line Business Commercial Auto Liability 679,727, % % 76.70% * * 0.70% 0.51% 0.39% Commercial Auto Physical 232,657, % % 64.62% * * 2.10% 1.12% 8.98% Commercial Auto Total 912,384, % % 73.46% * * 1.06% 0.67% 1.81% Commercial Multiple Peril 775,304, % % 67.93% * * 1.59% 1.67% 8.01% Fire 275,477, % % 78.66% * * 6.63% 6.89% (23.67%) Allied 165,251, % ( 2.41%) 112.6% * * 5.65% 5.26% 7.01% Inland Marine 384,015, % % 96.37% * * 0.88% 0.79% 20.89% Medical Malpractice 383,080, % 2, % 113.3% * * 11.14% 10.35% 1.72% Other Liability 1,302,709, % % 141.0% * * 5.52% 5.49% 8.17% Workers Compensati 1,259,678, % % 78.27% * * 0% 0% 9.67% Total All Property and Casualty 13,214,404, % % 80.60% * * 1.34% 1.27% 7.12% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 27 25

32 2005 Commercial Competiti Database Hawaii s () Line Business Commercial Auto Liability 90,029, % 1, % 8.49% * * 0.54% 0.75% 20.58% Commercial Auto Physical 24,848, % % 25.89% * * 8.29% 5.41% 20.04% Commercial Auto Total 114,877, % 1, % 11.83% * * 2.22% 1.70% 20.51% Commercial Multiple Peril 136,327, % 2, % 11.30% * * 0.50% 2.04% 22.08% Fire 55,964, % % 34.50% * * 21.76% 19.84% 55.55% Allied 47,529, % ( 9.75%) 68.60% * * 32.00% 21.96% 63.88% Inland Marine 42,487, % 1, % 73.30% * * 8.72% 5.80% 37.51% Medical Malpractice 38,125, % 2, % 57.24% * * 9.74% 6.29% 1.37% Other Liability 289,838, % % 115.1% * * 14.22% 9.82% 13.32% Workers Compensati 361,905, % 1, % 32.91% * * 0% 0% 12.26% Total All Property and Casualty 2,187,411, % % 42.04% * * 3.90% 3.00% 19.99% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 28 26

33 2005 Commercial Competiti Database Idaho s () Line Business Commercial Auto Liability 97,971, % % 75.09% * * 0.23% 0.27% 8.31% Commercial Auto Physical 46,650, % % 54.82% * * 0.66% 0.50% 12.61% Commercial Auto Total 144,621, % % 68.00% * * 0.37% 0.34% 9.33% Commercial Multiple Peril 167,988, % % 81.01% * * 0.89% 1.23% 14.93% Fire 25,467, % % 46.00% * * 5.29% 6.51% 31.12% Allied 25,453, % (10.37%) 34.90% * * 2.33% 2.12% 15.83% Inland Marine 58,169, % 1, % 120.6% * * 0.41% 0.57% 14.58% Medical Malpractice 46,004, % 1, % 117.0% * * 4.96% 3.11% 3.96% Other Liability 146,226, % % 122.7% * * 6.74% 5.47% 8.17% Workers Compensati 331,466, % 4, % 197.2% * * 0% 0% 4.04% Total All Property and Casualty 1,981,065, % % 94.06% * * 0.98% 0.81% 9.47% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 29 27

34 2005 Commercial Competiti Database Illinois s () Line Business Commercial Auto Liability 925,693, % ( 2.65%) 71.92% * * 0.51% 0.47% 3.73% Commercial Auto Physical 320,218, % ( 7.70%) 41.04% * * 1.79% 0.91% 9.54% Commercial Auto Total 1,245,912, % ( 4.00%) 62.76% * * 0.84% 0.58% 4.72% Commercial Multiple Peril 1,520,470, % % 60.52% * * 0.68% 0.95% 6.14% Fire 316,147, % (12.51%) 76.85% * * 5.87% 4.80% 21.09% Allied 255,594, % (12.52%) 76.91% * * 2.78% 2.05% 30.62% Inland Marine 476,751, % ( 2.79%) 47.62% * * 0.75% 0.77% 23.40% Medical Malpractice 738,956, % 3, % 81.95% * * 1.80% 1.98% 2.35% Other Liability 3,597,895, % 1, (28.24%) 143.5% * * 4.45% 3.05% 4.18% Workers Compensati 2,516,188, % % 49.56% * * 0% 0.00% 8.39% Total All Property and Casualty 20,834,418, % ( 4.49%) 61.14% * * 1.19% 0.92% 7.06% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 30 28

35 2005 Commercial Competiti Database Indiana s () Line Business Commercial Auto Liability 451,109, % % 52.86% * * 1.01% 0.58% 4.62% Commercial Auto Physical 190,693, % ( 0.14%) 41.18% * * 1.81% 1.01% 8.11% Commercial Auto Total 641,803, % % 49.19% * * 1.25% 0.71% 5.28% Commercial Multiple Peril 717,996, % % 67.46% * * 0.64% 0.90% 2.24% Fire 158,760, % ( 1.28%) 87.25% * * 5.64% 5.68% 16.12% Allied 114,182, % % 142.7% * * 3.74% 2.57% 17.46% Inland Marine 227,534, % % 99.76% * * 0.99% 0.75% 26.88% Medical Malpractice 130,522, % 1, % 234.4% * * 4.04% 3.49% 9.14% Other Liability 734,613, % % 132.7% * * 7.05% 5.97% 11.49% Workers Compensati 826,415, % % 52.80% * * 0% 0.01% 12.88% Total All Property and Casualty 10,463,790, % % 74.48% * * 0.92% 0.76% 7.57% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 31 29

36 2005 Commercial Competiti Database Iowa s () Line Business Commercial Auto Liability 239,020, % % 59.95% * * 0.17% 0.23% 8.00% Commercial Auto Physical 120,401, % % 54.54% * * 0.83% 0.48% 2.77% Commercial Auto Total 359,422, % % 58.09% * * 0.39% 0.31% 6.71% Commercial Multiple Peril 296,503, % % 76.28% * * 0.42% 0.54% ( 0.34%) Fire 67,238, % ( 4.74%) 73.48% * * 3.09% 3.39% 9.73% Allied 116,457, % ( 3.29%) 17.68% * * 0.65% 0.50% 11.62% Inland Marine 132,572, % % 82.76% * * 0.46% 0.62% 9.86% Medical Malpractice 104,021, % 1, % 142.3% * * 3.00% 3.89% 11.74% Other Liability 431,460, % % 85.16% * * 5.30% 4.71% 18.41% Workers Compensati 511,280, % % 64.63% * * 0% 0% 9.08% Total All Property and Casualty 4,445,274, % % 66.45% * * 0.79% 0.72% 8.83% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 32 30

37 2005 Commercial Competiti Database Kansas s () Line Business Commercial Auto Liability 168,302, % ( 2.21%) 49.77% * * 0.14% 0.78% 8.64% Commercial Auto Physical 98,412, % ( 3.86%) 40.91% * * 2.66% 1.17% 1.61% Commercial Auto Total 266,714, % ( 2.83%) 46.38% * * 1.07% 0.92% 6.88% Commercial Multiple Peril 300,395, % % 66.05% * * 0.94% 1.24% 5.23% Fire 71,389, % ( 0.73%) 78.53% * * 5.77% 6.11% 19.94% Allied 117,702, % ( 0.21%) 47.90% * * 1.59% 1.38% (19.96%) Inland Marine 116,561, % % 88.14% * * 0.98% 0.87% 13.47% Medical Malpractice 101,738, % 1, % 156.5% * * 2.49% 2.54% 5.08% Other Liability 346,241, % % 119.6% * * 6.47% 5.23% 12.23% Workers Compensati 384,644, % % 39.81% * * 0% 0.01% 12.24% Total All Property and Casualty 4,387,656, % % 67.22% * * 0.98% 0.82% 8.53% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 33 31

38 2005 Commercial Competiti Database Kentucky s () Line Business Commercial Auto Liability 290,106, % % 66.71% * * 0.12% 0.24% 0.28% Commercial Auto Physical 101,431, % ( 0.10%) 47.23% * * 3.35% 1.10% 1.66% Commercial Auto Total 391,538, % % 61.18% * * 0.96% 0.46% 0.50% Commercial Multiple Peril 400,387, % % 67.27% * * 1.08% 1.54% 1.14% Fire 107,308, % ( 2.56%) 66.81% * * 4.63% 5.09% 15.45% Allied 78,742, % % 165.4% * * 2.78% 2.41% (35.90%) Inland Marine 206,797, % % 117.3% * * 1.33% 1.28% 9.09% Medical Malpractice 179,383, % 1, % 172.7% * * 7.31% 6.79% 0.25% Other Liability 400,719, % ( 1.55%) 106.9% * * 6.70% 5.04% 10.72% Workers Compensati 634,504, % 1, % 76.06% * * 0% 0.01% 7.11% Total All Property and Casualty 5,949,052, % % 79.19% * * 1.07% 0.93% 3.59% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 34 32

39 2005 Commercial Competiti Database Louisiana s () Line Business Commercial Auto Liability 442,677, % % 52.70% * * 10.87% 4.38% ( 7.75%) Commercial Auto Physical 108,178, % ( 2.13%) 41.65% * * 13.07% 5.83% 11.17% Commercial Auto Total 550,855, % % 50.40% * * 11.30% 4.67% ( 5.48%) Commercial Multiple Peril 382,067, % % 37.36% * * 2.31% 2.62% 3.38% Fire 163,541, % ( 6.90%) 68.90% * * 9.66% 8.96% 24.10% Allied 146,774, % ( 6.58%) 31.52% * * 9.16% 6.56% ( 4.57%) Inland Marine 244,093, % % 73.62% * * 4.06% 3.22% 19.91% Medical Malpractice 113,192, % 2, % 71.47% * * 7.69% 5.22% 11.76% Other Liability 636,337, % % 85.39% * * 16.69% 11.53% ( 0.48%) Workers Compensati 640,376, % 1, % 31.83% * * 0% 0.01% 12.67% Total All Property and Casualty 7,702,559, % % 58.62% * * 3.13% 2.12% 4.63% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 35 33

40 2005 Commercial Competiti Database Maine s () Line Business Commercial Auto Liability 107,817, % % 87.60% * * 0.38% 0.24% 13.34% Commercial Auto Physical 42,272, % ( 6.83%) 91.60% * * 0.04% 0.04% 5.73% Commercial Auto Total 150,090, % ( 2.00%) 88.71% * * 0.28% 0.19% 12.01% Commercial Multiple Peril 202,279, % % 87.24% * * 0.23% 0.51% 13.05% Fire 32,036, % % 58.34% * * 6.23% 5.46% 14.30% Allied 19,347, % ( 9.24%) 105.0% * * 4.46% 3.12% 31.31% Inland Marine 43,631, % % 90.97% * * 0.36% 0.32% 10.58% Medical Malpractice 53,214, % 4, % 105.1% * * 3.57% 2.85% 14.59% Other Liability 145,763, % ( 9.84%) 106.6% * * 7.43% 6.83% 18.13% Workers Compensati 251,306, % 4, % 58.10% * * 0% 0% 12.51% Total All Property and Casualty 1,944,515, % % 73.95% * * 0.97% 0.85% 12.74% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 36 34

41 2005 Commercial Competiti Database Maryland s () Line Business Commercial Auto Liability 431,551, % % 68.77% * * 0.14% 0.17% 9.50% Commercial Auto Physical 130,965, % % 80.12% * * 1.57% 1.05% 1.48% Commercial Auto Total 562,517, % % 71.29% * * 0.47% 0.38% 8.53% Commercial Multiple Peril 595,048, % % 77.85% * * 0.60% 0.68% 7.32% Fire 122,804, % ( 6.79%) 98.75% * * 6.11% 5.55% 25.64% Allied 78,909, % % 136.9% * * 5.91% 4.11% 15.43% Inland Marine 180,324, % % 64.27% * * 4.06% 3.68% 23.79% Medical Malpractice 312,873, % 2, % 121.8% * * 3.08% 3.72% ( 1.00%) Other Liability 847,958, % ( 2.80%) 146.4% * * 4.83% 4.91% 11.08% Workers Compensati 966,364, % 1, % 138.4% * * 0% 0.01% 5.79% Total All Property and Casualty 8,915,296, % % 82.71% * * 0.97% 0.92% 8.31% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 37 35

42 2005 Commercial Competiti Database Massachusetts s () Line Business Commercial Auto Liability 633,402, % % 38.21% * * 0.16% 0.13% 13.54% Commercial Auto Physical 180,297, % ( 6.42%) 60.94% * * 0.05% 0.06% 4.10% Commercial Auto Total 813,700, % % 42.67% * * 0.13% 0.11% 12.41% Commercial Multiple Peril 997,817, % % 62.76% * * 0.44% 0.88% 12.18% Fire 226,556, % % 119.1% * * 5.95% 5.58% ( 1.28%) Allied 143,495, % % 133.2% * * 5.70% 4.95% 21.29% Inland Marine 252,231, % % 78.51% * * 2.33% 2.20% 26.60% Medical Malpractice 304,069, % 3, % 57.54% * * 3.03% 2.89% 8.96% Other Liability 1,399,285, % ( 3.78%) 108.7% * * 7.70% 6.62% 13.34% Workers Compensati 1,149,296, % 1, % 16.08% * * 0% 0% 13.73% Total All Property and Casualty 11,936,099, % % 59.25% * * 1.42% 1.29% 11.41% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 38 36

43 2005 Commercial Competiti Database Michigan s () Line Business Commercial Auto Liability 580,377, % % 67.78% * * 0.28% 0.33% 6.91% Commercial Auto Physical 313,228, % ( 7.96%) 42.53% * * 0.87% 0.71% 4.06% Commercial Auto Total 893,605, % ( 2.03%) 57.97% * * 0.49% 0.47% 6.41% Commercial Multiple Peril 1,123,839, % % 62.26% * * 1.03% 1.01% 3.78% Fire 321,081, % % 168.8% * * 6.04% 6.20% ( 0.56%) Allied 149,769, % ( 7.13%) 142.9% * * 4.06% 3.25% ( 3.42%) Inland Marine 294,932, % % 50.00% * * 0.90% 0.83% 20.98% Medical Malpractice 268,227, % 1, ( 7.64%) 37.34% * * 5.13% 4.54% 15.70% Other Liability 1,210,692, % % 68.12% * * 5.59% 4.97% 8.62% Workers Compensati 1,220,507, % ( 1.04%) 8.46% * * 0% 0.01% 14.18% Total All Property and Casualty 16,133,995, % % 61.17% * * 0.88% 0.74% 7.51% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 39 37

44 2005 Commercial Competiti Database Minnesota s () Line Business Commercial Auto Liability 370,309, % ( 2.88%) 61.95% * * 0.18% 0.21% 10.38% Commercial Auto Physical 178,584, % ( 4.97%) 79.35% * * 0.60% 0.52% 1.14% Commercial Auto Total 548,894, % ( 3.57%) 67.23% * * 0.32% 0.31% 8.51% Commercial Multiple Peril 655,773, % % 101.1% * * 0.76% 0.82% ( 0.64%) Fire 129,331, % ( 0.63%) 133.7% * * 3.70% 4.85% 13.98% Allied 195,987, % ( 1.41%) 74.37% * * 1.06% 0.91% ( 1.33%) Inland Marine 192,743, % ( 0.72%) 64.12% * * 1.54% 1.66% 20.02% Medical Malpractice 94,943, % 2, % 88.41% * * 12.33% 7.01% 16.72% Other Liability 903,590, % % 88.83% * * 5.65% 5.23% 4.11% Workers Compensati 879,453, % % 66.45% * * 0% 0% 10.49% Total All Property and Casualty 8,703,603, % % 70.64% * * 1.07% 0.92% 6.05% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 40 38

45 2005 Commercial Competiti Database Mississippi s () Line Business Commercial Auto Liability 238,014, % ( 1.88%) 64.18% * * 0.60% 0.80% ( 4.90%) Commercial Auto Physical 75,326, % ( 1.82%) 35.15% * * 2.93% 1.50% 4.79% Commercial Auto Total 313,341, % ( 1.86%) 56.12% * * 1.16% 0.97% ( 3.35%) Commercial Multiple Peril 248,959, % % 60.23% * * 0.85% 1.91% ( 1.60%) Fire 109,384, % (10.78%) 34.60% * * 9.23% 7.47% 15.19% Allied 99,128, % ( 0.62%) 84.56% * * 9.59% 5.13% ( 2.90%) Inland Marine 117,679, % % 28.68% * * 3.32% 2.31% 15.85% Medical Malpractice 59,408, % 1, % 106.8% * * 13.94% 16.17% (12.76%) Other Liability 291,662, % % 110.9% * * 8.93% 7.54% ( 0.43%) Workers Compensati 279,121, % % 38.45% * * 0% 0% 12.65% Total All Property and Casualty 3,756,424, % % 70.23% * * 1.79% 1.55% 3.33% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 41 39

46 2005 Commercial Competiti Database Missouri s () Line Business Commercial Auto Liability 446,051, % % 86.94% * * 0.83% 0.83% 5.54% Commercial Auto Physical 165,736, % ( 0.73%) 44.69% * * 1.92% 1.63% 6.35% Commercial Auto Total 611,787, % % 73.24% * * 1.12% 1.07% 5.73% Commercial Multiple Peril 647,067, % % 66.07% * * 1.16% 1.54% 6.82% Fire 164,205, % ( 6.48%) 73.66% * * 6.90% 7.03% 23.32% Allied 126,976, % ( 1.35%) 94.56% * * 4.38% 3.64% 7.56% Inland Marine 213,174, % % 65.16% * * 2.28% 2.12% 17.69% Medical Malpractice 232,525, % % 104.0% * * 3.67% 4.30% 2.53% Other Liability 960,481, % % 107.6% * * 6.22% 5.64% 8.83% Workers Compensati 1,009,622, % % 71.68% * * 0% 0.00% 11.20% Total All Property and Casualty 8,857,170, % % 64.99% * * 1.32% 1.16% 8.54% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 42 40

47 2005 Commercial Competiti Database Mtana s () Line Business Commercial Auto Liability 86,909, % % 78.34% * * 0.17% 0.39% 5.48% Commercial Auto Physical 49,839, % % 60.82% * * 0.22% 0.39% 8.70% Commercial Auto Total 136,749, % % 71.53% * * 0.19% 0.39% 6.29% Commercial Multiple Peril 130,258, % % 78.70% * * 0.90% 1.51% 8.07% Fire 19,225, % % 22.22% * * 8.69% 8.87% 18.25% Allied 23,859, % (20.33%) (22.12%) * * 3.05% 2.55% (28.91%) Inland Marine 29,271, % % 51.93% * * 1.29% 1.64% 19.81% Medical Malpractice 42,632, % 2, % 128.5% * * 1.29% 2.15% ( 2.06%) Other Liability 118,314, % % 132.9% * * 6.21% 5.17% 9.84% Workers Compensati 96,021, % 2, % 10.48% * * 0% 0% 6.52% Total All Property and Casualty 1,500,603, % % 74.80% * * 0.94% 0.86% 6.17% '*' - market informati was not available for this report. (See page 6) Natial Associati Insurance Commissiers Natial Associati Insurance Commissiers 43 41