President's Message

STATE OF THE INDUSTRY

In this issue of Primary Agent, I wanted to highlight how IA&B is using technology to get a better understanding of our marketplace.

IA&B participates in the independent agent marketplace summary studies, a compilation of data submitted by all insurance companies. This data is boiled down to independent agent specific insights, with historical trends. IA&B does a deep dive into this annually, along with quarterly updates.

What we are seeing:

▲ Over the last five years, national direct written premium in all lines has grown by $193 billion. But the best part is, independent agents control over 60% of that business. There is a lot of business out there, and IAs are a big part of it. Despite what pundits say, IAs are not losing business to the direct market – in fact, there is slow and steady growth.

▲ The national average for premium increase over the last year is 10%. The good news is that, for Pennsylvania, Maryland, and Delaware, the average is 7%. The hardening market is certainly impacting premium, but our footprint is somewhat sheltered. For perspective, Florida has had a 14% premium increase year-over-year, double what we are seeing.

▲ The national average loss ratio over the last year was 68%, a very high number (five years ago it was 62%). Again, good news is that Pennsylvania, Maryland, and Delaware averaged a 65% loss ratio for the past year – still high, but sheltered from the national average. Loss ratios have had a steady and alarming increase over the last five years, no doubt impacting the hard market as much as inflation.

There is a lot more detail in the data, and IA&B continually studies it to better respond to our members. The more we learn, the better we are, for the benefit of all members.

Onward and upward,

Jason F. Ernest President & CEO

Members: How to Access Marketplace Summaries

Online: IABforME.com/member-resources/#marketplace-summaries

Email: ClaireP@IABforME.com | Phone: 717-918-9202