FEATURE
LINES OF BUSINESS
In Kansas the largest Line of Business for independent agents was Multi-Peril Crop ( as determined by direct written premium ). The second largest Line of Business in Kansas was All Private Passenger Auto , and the third was Homeowners Multi-Peril . For comparison , in the United States those Top 3 Lines of Business are : All Private Passenger Auto , Homeowners Multi- Peril , and Other Liability ( Occurrence ).
LOSS RATIOS
Kansas ' s average loss ratio across all P & C Lines of Business was 77.4 %, with the highest loss ratios experienced in Multi-Peril Crop ( 174.8 %), Private Crop ( 170.5 %), and Products Liability ( 121.1 %). Comparatively , the United States average loss ratio was 65.9 %, with the highest loss ratio in Hawaii ( 140.5 %), and the lowest in District of Columbia ( 43.4 %). In the United States , the Lines of Business with the highest loss ratios are Multi-Peril Crop ( 102.2 %), Private Crop ( 98.8 %), and Farmowners Multi-Peril ( 79.0 %).
PREMIUM CHANGE RATES
Premiums grew 7.6 % in Kansas from 2022 to 2023 for all P & C Lines of Business combined , placing it 44 of 51 in the United States and District of Columbia . The fastest growing Lines of Business in Kansas are Fire Peril Only ( 25.4 %), Allied Perils Only ( 16.7 %), and Products Liability ( 13.2 %). By comparison the United States grew by 10.6 %, with the fastest growing state being Florida ( 16.1 %), and the slowest being District of Columbia ( 3.4 %). The United States fastest growing Lines of Business are Fire Peril Only ( 29.9 %), Allied Perils Only ( 27.0 %), and Earthquake ( 16.7 %).
IND . AGENT PENETRATION OF MARKETPLACE
Independent Agents control 59.4 % of the Kansas P & C marketplace . This compares to the United States average of 62.2 %, with the highest penetration in
Massachusetts ( 79.6 %), and the lowest in Alabama ( 51.6 %). In Kansas , the top penetration rates by Lines of Business for Independent Agents are : International ( 100.0 %), Aircraft ( all perils ) ( 97.9 %), and Excess Workers ' Comp ( 97.1 %). In the United States , top penetration rates by Lines of Business for Independent Agents are : International ( 100.0 %), Ocean Marine ( 96.5 %), and Burglary & Theft ( 96.3 %).
COMMISSIONS
The average commission rate in Kansas was 11.5 % for all P & C Lines of Business combined . By contrast , the average commission rate in the United States was 11.4 %. The highest average commission was in the District of Columbia ( 13.8 %) with the lowest in Delaware ( 9.9 %).
SURPLUS LINES
Surplus Lines utilization is on the rise across all states . In Kansas , the average percentage of premiums going to UNLICENSED insurers ( that is , Surplus Lines ) was 4.5 %. That percentage was 4.4 % one year ago , and 2.9 % five years ago . In the United States the corresponding figures are 9.3 %, 9.0 %, and 6.2 %, respectively . In Kansas , the top 3 Lines of Business with premiums going to Surplus Lines insurers are : Fire Peril Only ( 34.7 %), Burglary & Theft ( 33.0 %), and Other Liability ( Claims-made ) ( 32.5 %). In United States , the top 3 Lines of Business with premiums going to Surplus Lines insurers are : Earthquake ( 50.8 %), Private Flood ( 46.2 %), and Products Liability ( 42.1 %).
LARGEST INSURERS
State Farm Group ( G ) was the largest insurer group in Kansas , and it writes 9.5 % of all P & C premiums . NAU Country Insurance Company emerges as the largest pure Independent Agent policy-issuing insurer , State Farm Mutual Automobile Ins Co as the largest Exclusive-Captive policy-issuing insurer , and Progressive Direct Insurance Company as the largest Direct policy-issuing insurer .
JULY / AUGUST 2024
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