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WHAT IT DOES |
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STANDARD LINES PREMIUMS
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COMMERCIAL LINES INSURANCE
The commercial lines sector of the property/casualty insurance industry generally provides insurance products for businesses as opposed to the personal lines sector, which offers products for individuals. However, the division between commercial and personal coverages is not precise. Inland marine insurance, which is included in the commercial lines sector, may cover some personal property such as expensive jewelry, fine art and other items whose values are above the standard homeowners policy limits.
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WORKERS COMPENSATION INSURANCE, 1999-2007
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Combined ratio (1) |
Year |
Net premiums written (2) ($000) |
Annual percent change |
Calendar year (3) |
Annual point change |
Accident year (3) |
Annual point change |
| 1999 | $23,090,325 | -4.7% | 120.0 | NA | 142 | 9 pts. |
| 2000 | 26,185,928 | 13.4 | 114.9 | -5.1 pts. | 136 | -6 |
| 2001 | 27,123,299 | 3.6 | 117.3 | 2.4 | 123 | -13 |
| 2002 | 30,612,127 | 12.9 | 108.7 | -8.6 | 105 | -18 |
| 2003 | 32,919,340 | 7.5 | 108.9 | 0.2 | 96 | -9 |
| 2004 | 36,734,514 | 11.6 | 105.5 | -3.4 | 88 | -8 |
| 2005 | 39,724,580 | 8.1 | 100.5 | -5.0 | 85 | -3 |
| 2006 | 41,820,358 | 5.3 | 93.8 | -6.7 | 84 | -1 |
| 2007 | 40,858,588 | -2.3 | 99.3 | 5.5 | 92 (4) | 8 |
(1) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(2) After reinsurance transactions, excluding state funds.
(3) Calendar year data are from National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC., calculated from unrounded data. Accident year data are from the National Council on Compensation Insurance (NCCI).
(4) Estimated by NCCI.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC; National Council on Compensation Insurance. |
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COMMERCIAL AUTOMOBILE INSURANCE
Commercial automobile insurance protects businesses against property damage and legal liability associated with the operation of the vehicles a company owns. In addition, businesses may also buy insurance covering their liability for their employees’ use of automobiles not owned by the business, including personally owned cars as well as rented, leased or borrowed vehicles.
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COMMERCIAL AUTOMOBILE INSURANCE, 1999-2007
($000)
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Liability |
Collision/comprehensive |
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $12,979,182 | -2.1% | 120.5 | NA | $5,381,430 | 5.4% | 111.5 | NA |
| 2000 | 13,734,120 | 5.8 | 122.0 | 1.5 pts. | 6,070,862 | 12.8 | 104.8 | -6.7 pts. |
| 2001 | 15,270,917 | 11.2 | 122.8 | 0.8 | 6,459,093 | 6.4 | 101.7 | -3.1 |
| 2002 | 17,232,258 | 12.8 | 108.1 | -14.7 | 7,322,301 | 13.4 | 93.6 | -8.1 |
| 2003 | 18,444,917 | 7.0 | 99.5 | -8.6 | 7,018,962 | -4.1 | 83.7 | -9.9 |
| 2004 | 19,569,829 | 6.1 | 96.8 | -2.6 | 7,149,217 | 1.9 | 82.9 | -0.8 |
| 2005 | 19,847,138 | 1.4 | 91.8 | -5.0 | 6,951,211 | -2.8 | 88.0 | 5.2 |
| 2006 | 19,704,064 | -0.7 | 95.5 | 3.7 | 6,949,355 | (4) | 88.0 | (4) |
| 2007 | 18,995,816 | -3.6 | 95.4 | -0.1 | 6,657,227 | -4.2 | 91.0 | 3.0 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
(4) Less than 0.1 percent.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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LIABILITY INSURANCE
“Other liability” insurance is a commercial coverage that protects the policyholder from legal liability arising from negligence, carelessness or a failure to act that causes property damage or personal injury to others. It encompasses a wide variety of coverages including errors and omissions, umbrella liability and liquor liability. It does not include products liability, which is a separate line of insurance. Products liability protects the manufacturer, distributor or seller of a product from legal liability resulting from a defective condition that caused personal injury or damage associated with the use of the product.
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PRODUCTS LIABILITY INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $1,586,915 | -2.4% | 159.1 | NA |
| 2000 | 1,413,984 | -10.9 | 130.7 | -28.4 pts. |
| 2001 | 2,035,893 | 44.0 | 213.8 | 83.1 |
| 2002 | 1,787,544 | -12.2 | 354.9 | 141.2 |
| 2003 | 2,726,599 | 52.5 | 165.8 | -189.1 |
| 2004 | 3,401,867 | 24.8 | 152.4 | -13.4 |
| 2005 | 3,561,261 | 4.7 | 130.9 | -21.5 |
| 2006 | 3,623,796 | 1.8 | 77.6 | -53.3 |
| 2007 | 3,305,707 | -8.8 | 101.2 | 23.6 |
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(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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OTHER LIABILITY INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $17,576,768 | -0.9% | 106.2 | NA |
| 2000 | 18,713,111 | 6.5 | 110.5 | 4.3 pts. |
| 2001 | 21,415,896 | 14.4 | 120.4 | 9.9 |
| 2002 | 29,342,115 | 37.0 | 124.6 | 4.2 |
| 2003 | 36,149,829 | 23.2 | 112.1 | -12.5 |
| 2004 | 39,752,695 | 10.0 | 114.0 | 1.9 |
| 2005 | 39,363,336 | -1.0 | 110.3 | -3.7 |
| 2006 | 42,221,055 | 7.3 | 94.6 | -15.7 |
| 2007 | 41,377,084 | -2.0 | 98.9 | 4.3 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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COMMERCIAL AND FARMOWNERS MULTIPLE PERIL INSURANCE
Commercial multiple peril insurance is a package policy that includes property, boiler and machinery, crime and general liability coverages. Farmowners multiple peril insurance, similar to homeowners insurance, provides coverage to farmowners and ranchowners against a number of named perils and liabilities. It covers a dwelling and its contents, as well as barns, stables and other structures.
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COMMERCIAL MULTIPLE PERIL INSURANCE, 1999-2007
Total ($000)
Year |
Net premiums written (1) |
Annual percent change |
| 1999 | $18,983,821 | -2.4% |
| 2000 | 20,072,151 | 5.7 |
| 2001 | 22,230,355 | 10.8 |
| 2002 | 25,421,072 | 14.4 |
| 2003 | 27,430,022 | 7.9 |
| 2004 | 29,074,586 | 6.0 |
| 2005 | 29,695,831 | 2.1 |
| 2006 | 31,850,051 | 7.3 |
| 2007 | 31,328,917 | -1.6 |
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Nonliability Portion ($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $10,293,766 | -1.4% | 121.7 | NA |
| 2000 | 11,706,119 | 13.7 | 114.8 | -6.9 pts. |
| 2001 | 13,010,431 | 11.1 | 117.2 | 2.4 |
| 2002 | 15,251,130 | 17.2 | 96.1 | -21.1 |
| 2003 | 16,352,256 | 7.2 | 88.1 | -8.0 |
| 2004 | 16,971,835 | 3.8 | 96.7 | 8.6 |
| 2005 | 17,706,117 | 4.3 | 93.8 | -2.9 |
| 2006 | 18,246,312 | 3.1 | 83.8 | -10.0 |
| 2007 | 18,367,516 | 0.7 | 89.5 | 5.7 |
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Liability Portion ($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $8,690,055 | -3.6% | 113.4 | NA |
| 2000 | 8,366,032 | -3.7 | 115.4 | 2.0 pts. |
| 2001 | 9,219,924 | 10.2 | 121.3 | 5.9 |
| 2002 | 10,169,942 | 10.3 | 113.9 | -7.4 |
| 2003 | 11,077,766 | 8.9 | 115.0 | 1.1 |
| 2004 | 12,102,751 | 9.3 | 105.4 | -9.5 |
| 2005 | 11,989,714 | -0.9 | 102.7 | -2.7 |
| 2006 | 13,603,739 | 13.5 | 101.9 | -0.8 |
| 2007 | 12,961,401 | -4.7 | 93.2 | -8.7 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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FARMOWNERS MULTIPLE PERIL INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $1,478,142 | 2.7% | 111.4 | NA |
| 2000 | 1,524,233 | 3.1 | 108.9 | -2.5 pts. |
| 2001 | 1,640,592 | 7.6 | 113.5 | 4.6 |
| 2002 | 1,779,336 | 8.5 | 106.7 | -6.8 |
| 2003 | 2,000,834 | 12.4 | 99.1 | -7.6 |
| 2004 | 2,118,097 | 5.9 | 91.7 | -7.5 |
| 2005 | 2,267,698 | 7.1 | 94.6 | 2.9 |
| 2006 | 2,310,688 | 1.9 | 122.8 | 28.1 |
| 2007 | 2,423,989 | 4.9 | 97.3 | -25.4 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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MEDICAL MALPRACTICE INSURANCE
Medical malpractice insurance covers faculities, doctors and other professionals in the medical field for liability claims arising from the treatment of patients.
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MEDICAL MALPRACTICE INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $5,181,729 | 3.1% | 128.6 | NA |
| 2000 | 5,726,696 | 10.5 | 127.9 | -0.7 pts. |
| 2001 | 6,256,399 | 9.2 | 150.4 | 22.5 |
| 2002 | 7,440,970 | 18.9 | 138.0 | -12.4 |
| 2003 | 8,753,854 | 17.6 | 138.8 | 0.8 |
| 2004 | 9,124,240 | 4.2 | 108.6 | -30.2 |
| 2005 | 9,734,772 | 6.7 | 100.1 | -8.6 |
| 2006 | 10,378,325 | 6.6 | 89.5 | -10.6 |
| 2007 | 9,960,558 | -4.0 | 81.9 | -7.6 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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FIRE AND ALLIED LINES INSURANCE
Fire insurance provides coverage against losses caused by fire and lightning. It is usually sold as part of a package policy such as commercial multiple peril.
Allied lines insurance includes property insurance that is usually bought in conjunction with a fire insurance policy. Allied lines includes coverage for wind and water damage and vandalism.
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FIRE INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $4,773,647 | 1.4% | 104.0 | NA |
| 2000 | 4,740,558 | -0.7 | 110.9 | 6.9 pts. |
| 2001 | 5,097,592 | 7.5 | 117.5 | 6.6 |
| 2002 | 7,365,861 | 44.5 | 84.0 | -33.5 |
| 2003 | 8,396,083 | 14.0 | 79.6 | -4.4 |
| 2004 | 8,050,779 | -4.1 | 73.1 | -6.5 |
| 2005 | 7,937,316 | -1.4 | 83.2 | 10.1 |
| 2006 | 9,363,902 | 18.0 | 77.9 | -5.3 |
| 2007 | 9,797,519 | 4.6 | 86.0 | 8.1 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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ALLIED LINES INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $2,815,608 | -4.8% | 123.7 | NA |
| 2000 | 2,933,047 | 4.2 | 115.6 | -8.1 pts. |
| 2001 | 3,732,266 | 27.2 | 151.1 | 35.5 |
| 2002 | 4,838,138 | 29.6 | 86.3 | -64.8 |
| 2003 | 6,154,573 | 27.2 | 77.9 | -8.3 |
| 2004 | 5,985,422 | -2.7 | 119.8 | 41.9 |
| 2005 | 5,945,786 | -0.7 | 152.9 | 33.1 |
| 2006 | 6,592,847 | 10.9 | 94.4 | -58.5 |
| 2007 | 6,966,059 | 5.7 | 53.5 | -40.9 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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INLAND MARINE AND OCEAN MARINE INSURANCE
Inland marine insurance covers bridges and tunnels, goods in transit, movable equipment, unusual property, and communications-related structures as well as expensive personal property. Ocean marine insurance provides coverage on all types of vessels, for property damage to the vessels and cargo, as well as associated liabilities.
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INLAND MARINE INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $6,063,160 | 2.8% | 101.2 | NA |
| 2000 | 6,577,227 | 8.5 | 92.0 | -9.2 pts. |
| 2001 | 6,686,003 | 1.7 | 98.7 | 6.7 |
| 2002 | 6,987,446 | 4.5 | 85.7 | -13.0 |
| 2003 | 7,786,214 | 11.4 | 80.1 | -5.6 |
| 2004 | 7,940,003 | 2.0 | 84.1 | 4.0 |
| 2005 | 8,251,519 | 3.9 | 90.3 | 6.1 |
| 2006 | 9,216,442 | 11.7 | 72.6 | -17.7 |
| 2007 | 9,795,551 | 6.3 | 79.1 | 6.5 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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OCEAN MARINE INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $1,756,781 | -5.5% | 115.5 | NA |
| 2000 | 1,738,796 | -1.0 | 102.6 | -12.9 pts. |
| 2001 | 1,979,205 | 13.8 | 104.1 | 1.5 |
| 2002 | 2,442,039 | 23.4 | 100.9 | -3.2 |
| 2003 | 2,588,607 | 6.0 | 103.1 | 2.2 |
| 2004 | 2,828,685 | 9.3 | 95.4 | -7.7 |
| 2005 | 2,948,349 | 4.2 | 114.5 | 19.0 |
| 2006 | 3,133,418 | 6.3 | 97.3 | -17.2 |
| 2007 | 3,261,175 | 4.1 | 113.6 | 16.3 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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SURETY AND FIDELITY
Surety bonds provide monetary compensation in the event that a policyholder fails to perform certain acts such as the proper fulfillment of a construction contract within a stated period. Surety bonds are usually purchased by the party that has contracted to complete a project. They are required for public projects in order to protect taxpayers.
Fidelity bonds, which are usually purchased by an employer, protect against losses caused by employee fraud or dishonesty.
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SURETY BONDS, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $3,273,926 | 7.2% | 83.6 | NA |
| 2000 | 3,362,627 | 2.7 | 86.7 | 3.1 pts. |
| 2001 | 3,039,761 | -9.6 | 121.6 | 34.9 |
| 2002 | 3,260,415 | 7.3 | 110.3 | -11.3 |
| 2003 | 3,382,615 | 3.7 | 119.9 | 9.6 |
| 2004 | 3,817,245 | 12.8 | 119.4 | -0.5 |
| 2005 | 3,819,542 | 0.1 | 101.6 | -17.9 |
| 2006 | 4,434,780 | 16.1 | 80.6 | -21.0 |
| 2007 | 4,833,956 | 9.0 | 71.4 | -9.2 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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FIDELITY BONDS, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $871,365 | 11.8% | 90.4 | NA |
| 2000 | 815,007 | -6.5 | 93.3 | 2.9 pts. |
| 2001 | 842,428 | 3.4 | 93.2 | -0.1 |
| 2002 | 1,024,107 | 21.6 | 104.7 | 11.6 |
| 2003 | 1,192,535 | 16.4 | 70.9 | -33.9 |
| 2004 | 1,309,344 | 9.8 | 79.7 | 8.9 |
| 2005 | 1,216,793 | -7.1 | 85.1 | 5.4 |
| 2006 | 1,240,822 | 2.0 | 87.2 | 2.1 |
| 2007 | 1,252,838 | 1.0 | 76.4 | -10.8 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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BURGLARY AND THEFT AND BOILER AND MACHINERY INSURANCE
Burglary and theft insurance covers the loss of property, money and securities due to burglary, robbery or larceny.
Boiler and machinery insurance is also known as mechanical breakdown, equipment breakdown or systems breakdown coverage. Among the types of equipment covered by this insurance are heating, cooling, electrical, telephone/communications and computer equipment.
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BURGLARY AND THEFT INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $111,059 | 1.4% | 82.3 | NA |
| 2000 | 116,885 | 5.2 | 60.3 | -22.0 pts. |
| 2001 | 121,629 | 4.1 | 71.3 | 11.0 |
| 2002 | 114,299 | -6.0 | 53.4 | -17.9 |
| 2003 | 123,692 | 8.2 | 66.8 | 13.4 |
| 2004 | 138,307 | 11.8 | 68.3 | 1.5 |
| 2005 | 120,136 | -13.1 | 63.5 | -4.8 |
| 2006 | 143,054 | 19.1 | 64.2 | 0.6 |
| 2007 | 160,603 | 12.3 | 56.3 | -7.9 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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BOILER AND MACHINERY INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $760,055 | 1.8% | 117.8 | NA |
| 2000 | 1,144,068 | 50.5 | 89.9 | -27.9 pts. |
| 2001 | 1,119,295 | -2.2 | 88.2 | -1.7 |
| 2002 | 1,410,316 | 26.0 | 73.6 | -14.6 |
| 2003 | 1,591,987 | 12.9 | 68.4 | -5.3 |
| 2004 | 1,572,195 | -1.2 | 67.1 | -1.3 |
| 2005 | 1,582,917 | 0.7 | 60.2 | -6.9 |
| 2006 | 1,675,296 | 5.8 | 73.1 | 12.9 |
| 2007 | 1,741,324 | 3.9 | 73.1 | -0.1 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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CROP INSURANCE
There are two kinds of crop insurance: crop-hail, which is provided by the private market and covers just hail, fire and wind, and federally sponsored multiple peril crop insurance, which is sold and serviced by the private market but subsidized and reinsured by the federal government.
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CROP-HAIL INSURANCE, 1998-2007
($000)
Year |
Direct premiums written (1) |
Annual percent change |
Loss ratio (2) |
Annual point change |
| 1998 | $576,464 | -3.0% | 83 | 26 pts. |
| 1999 | 508,108 | -11.9 | 76 | -7 |
| 2000 | 468,405 | -7.8 | 68 | -8 |
| 2001 | 433,743 | -7.4 | 69 | 1 |
| 2002 | 405,003 | -6.6 | 70 | 1 |
| 2003 | 422,137 | 4.2 | 56 | -14 |
| 2004 | 427,567 | 1.3 | 58 | 2 |
| 2005 | 434,711 | 1.7 | 44 | -14 |
| 2006 | 405,254 | -6.8 | 48 | 4 |
| 2007 | 489,673 | 20.8 | 50 | 2 |
(1) Before reinsurance transactions, total for all policyholders of crop-hail insurance.
(2) The percentage of each premium dollar spent on claims and associated costs. A drop in the loss ratio represents an improvement; an increase represents a deterioration.
Source: National Crop Insurance Services. |
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MULTIPLE PERIL CROP INSURANCE, 1999-2007
($000)
Year |
Net premiums written (1) |
Annual percent change |
Combined ratio (2) |
Annual point change (3) |
| 1999 | $725,821 | 1.8% | 98.2 | NA |
| 2000 | 938,840 | 29.3 | 90.4 | -7.8 pts. |
| 2001 | 1,321,820 | 40.8 | 96.0 | 5.6 |
| 2002 | 2,003,443 | 51.6 | 124.4 | 28.4 |
| 2003 | 1,702,862 | -15.0 | 109.8 | -14.6 |
| 2004 | 2,203,143 | 29.4 | 76.1 | -33.8 |
| 2005 | 2,234,630 | 1.4 | 91.3 | 15.2 |
| 2006 | 2,824,769 | 26.4 | 77.9 | -13.4 |
| 2007 | 3,736,658 | 32.3 | 75.3 | -2.6 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
NA=Data not available.
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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REINSURANCE
Reinsurance is essentially insurance for insurance companies. It is a way for primary insurers to protect against unforeseen or extraordinary losses. Reinsurance also serves to limit liability on specific risks, to increase individual insurers' capacity to write business, and to help insurers stabilize their business in the face of the wide swings in profit and loss margins which are inherent in the insurance business.
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REINSURANCE, 1999-2007 (1)
($000)
Year |
Net premiums written |
Annual percent change |
Combined ratio (2) |
Annual point change |
| 1999 | $21,212,749 | 9.1% | 113.8 | 9.4 pts. |
| 2000 | 24,853,859 | 17.2 | 114.2 | 0.4 |
| 2001 | 26,687,636 | 7.4 | 142.9 | 28.7 |
| 2002 | 29,503,920 | 10.6 | 121.3 | -21.6 |
| 2003 | 30,630,787 | 3.8 | 101.2 | -20.1 |
| 2004 | 28,759,085 | -6.1 | 106.2 | 5.0 |
| 2005 | 25,330,697 | -11.9 | 129.4 | 23.2 |
| 2006 | 25,834,026 | 2.0 | 94.9 | -34.5 |
| 2007 | 22,711,994 | -12.1 | 94.7 | -0.2 |
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(1) Based on reinsurance companies responding to quarterly surveys conducted by the Reinsurance Association of America.
(2) After dividends to policyholders.
Source: Reinsurance Association of America. |
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