We hope you ’ ll find this information to be as useful as we do ! •
1Q23 MARKETPLACE REPORT HIGHLIGHTS
FULL REPORT NOW AVAILABLE FOR KAIA MEMBERS written by Dave Hulcher , KAIA
KAIA recently released its 2023 Kansas Annual Marketplace Summary report for members and Industry Partners . The report uses the most recently available data from AM Best Company to provide insights on carrier growth rates , loss ratios , IA penetration rates , commissions and surplus lines utilization rates .
The report also supports our recent member feedback that Kansas is experiencing a hard market with increasing premiums , pressure on carrier loss ratios and restrictions in coverage and capacity . Included below is some of highlights from this comprehensive report :
• In 2022 the total Kansas P & C marketplace was $ 8.9B in direct written premium , an increase of nearly 13 % from last year . Independent agents write $ 5.4B direct written premium or 60 % of the total marketplace .
• The three largest lines of business written in Kansas are : private passenger auto ($ 2.2B ), homeowners ($ 1.5B ), and multi-peril crop ($ 1.3B ).
• Kansas has the 10th highest average state per capita premium which is up two spots from 2022 .
• The 2022 Kansas loss ratio for all lines of business was 73 % which is a significant increase to the 58 % overall average 5-year loss ratio .
• Kansas faired much better than the rest of the country when looking at the 2022 loss ratios coming in 8 % lower in personal auto and 22 % more favorable in homeowners .
• Overall premiums increased 13 % in 2022 which exceeds to the 5-year average growth rate of 8 %.
• Multi-peril crop insurance premiums increased approximately 42 % in 2022 , which is twice the 5-year average growth .
• Independent agents continue to grow market share with 1-year penetration increasing to 61 % for all lines . Over the past 5 years independent agents have captured about 5 % more in market share , much of that being taken in personal lines from exclusivecaptive distribution .
• $ 387M in premiums are written through the surplus lines marketplace , which represents about double the amount written 5 years ago .
• Progressive is the largest writer of personal auto for independent agents in Kansas followed by Travelers . They are also the largest direct writer of personal auto which grew by 12 % compared to the IA distribution which had a 9 % growth rate . On the exclusive-captive insurer side , State Farm is the largest writer and in 2022 they experienced a 82 % loss ratio compared to Progressive ’ s 66 %.
• The workers ’ compensation marketplace grew by 5 % last year . This is the second year in a row where direct written premiums have grown . The 2022 loss ratio was 45 % which is a 5-year low .
• Did you know that about 50 % of all flood insurance written in Kansas is through private flood insurance carriers ?
You may view a few of the Kansas overview summaries and tables on the next page , and members can access the 2023 Annual Marketplace Report by logging into InfoHub at kaia . com .
We hope you ’ ll find this information to be as useful as we do ! •
ALL DATA COURTESY OF AM BEST
28 KANSAS INSURANCE AGENT & BROKER