Cash vs. replacement: U.K. homeowners insurers are doling out replacement goods instead of cash settlements on claims, while U.S. insurers are doing just the opposite.Imagine responding to an insurance claim for a Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) TV and telling the policyholder Policyholder An individual who owns an insurance policy. that instead of receiving a check in the mail, shell be getting a replacement TV from the insurer's preferred electronics supplier. Or in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. a $10,000 check to replace his grandmother's stolen pearls, he'll he'll Contraction of he will. he'll he will or he shall he'll will get a $10,000 voucher to WARRANTY, VOUCHER TO, practice. A warranty is a contract real, annexed to lands and tenements, whereby a man is bound to defend such lands and tenements from another person; and in case of eviction by title paramount, to give him lands of equal value. 2. shop at one of the insurer's preferred jewelers. Or, if they really complain, they can receive a check--but for less than the settlement price. That's often the case in the United Kingdom, where such replacement settlements are known as "like for like," and most homeowners insurers are saving money by buying replacement items in bulk from a preferred group of suppliers. While the practice of "like for like" has been burgeoning in the United Kingdom since the 1990s, it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have been waning in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. for about as many years. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of policyholders, it seems, prefer a cash settlement--and freedom of choice. "It used to be that way," noted JoAnne Joanne is a common given name for females, being a variant of Joanna, the feminine form of John and is derived from the Latin name Johanna and has a hebrew meaning of "God is Gracious" People with the given name Joanne: Murray, principal river of Australia, 1,609 mi (2,589 km) long, rising in the Australian Alps, SE New South Wales, and flowing westward to form the New South Wales–Victoria boundary. , president of the Independent Insurance Agents of Westchester Westchester is the name of some places in the United States of America:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Though some smaller companies probably still do offer replacement settlements, she said, for the most part, those days are long over in the United States. "None of them are forcing it. If they do offer it, it's an option, but it's not a 'you have to do this,'" said Murray, president of the Allan Allan can refer to:
Many U.S. companies have shied shied 1 v. Past tense and past participle of shy1. shied Verb the past of shy1 or shy2 away from replacement claims due to the increased competitiveness of the electronics industry; they'd they'd 1. Contraction of they had. 2. Contraction of they would. they'd have ~would rather provide a claimant CLAIMANT. In the courts of admiralty, when the suit is in rem, the cause is entitled in the Dame of the libellant against the thing libelled, as A B v. Ten cases of calico and it preserves that title through the whole progress of the suit. with a cash payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. than squabble squab·ble intr.v. squab·bled, squab·bling, squab·bles To engage in a disagreeable argument, usually over a trivial matter; wrangle. See Synonyms at argue. n. A noisy quarrel, usually about a trivial matter. over brand names and model numbers, Murray said. Replacement settlements were once common in the United States, but faded away within the last decade. "Years ago jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion. The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. was in the program. They could replace it for you, but it was just horrible" she said. "People would argue about the piece their mother gave them, and what you wanted to replace it with wasn't was·n't Contraction of was not. wasn't was not wasn't be the same. Then they'd say, 'Well I've I've Contraction of I have. I've I have I've have been paying a premium on a $10,000 piece, and the company wants to replace it with a $5,000 piece?'" Somewhere along the line, the U.S. insurance industry began to see that the practice just wasn't worth the trouble, Murray said: "Some light bulb bulb, thickened, fleshy plant bud, usually formed under the surface of the soil, which carries the plant over from one blooming season to another. It may have many fleshy layers (as in the onion and hyacinth) or thin dry scales (as in some lilies)—both of which went off and they said, 'You know, if we were collecting the premium for $10,000, why don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. we just give them the $10,000 and walk away from it?'" Dual Policies In the United Kingdom, homeowners policies are divided into two types: building insurance, which covers the structure of the home, and contents insurance Contents insurance is insurance that pays for damage to, or loss of, your personal possessions whilst they are located within your home. Some contents insurance policies also provide restricted cover for personal possessions temporarily taken away from the home by the policyholder. , which covers the furniture and other items that policyholders would take away if they moved. Both types protect against such risks as fire, subsidence subsidence, lowering of a portion of the earth's crust. The subsidence of land areas over time has resulted in submergence by shallow seas (see oceans). Land subsidence can occur naturally or through human activity. (when a house slides on muddy or otherwise unstable unstable, adj 1. not firm or fixed in one place; likely to move. 2. capable of undergoing spontaneous change. A nuclide in an unstable state is called radioactive. An atom in an unstable state is called excited. ground), theft, flood, storm and liability. Policyholders can choose different insurers for their building and contents. In the United States, most homeowners policies cover both the building and the contents with the exception of renters' and condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. insurance, which covers the contents; the landlord or condo association usually insures the structure. And flood insurance Flood insurance denotes the specific insurance coverage against property loss from flooding. To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands and floodplains that are susceptible to flooding. is purchased separately. Most U.S. homeowners insurance policies today are "new for old"--a claimant gets the replacement value of a new product to replace a stolen or damaged one, Murray said. American policyholders, like Murray's son-in-law SON-IN-LAW, in Latin called gener. The husband of one's daughter. who "researches to death" electronic equipment before he buys it, wouldn't would·n't Contraction of would not. wouldn't would not wouldn't would want an insurance agent delivering a replacement product that differs from the one he lost, she said. "From an agent's perspective, I would think that customers would not appreciate that," Murray said. Besides, what usually differentiates one insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. from another in this country, she said, is the level of service provided, so it's advantageous for an insurer to settle a claim quickly: "When you put cash in their hand, it's over." Leading U.K. insurers Direct Line, Norwich Union Norwich Union is an insurance company in the UK. It is the biggest life-insurer in the UK, and has a strong position in motor insurance. It is part of the Aviva group, itself created by a merger of Norwich Union and CGU plc in 2000. and Zurich UK all participate in "like for like" settlements, citing cost savings, customer convenience and a fraud deterrent de·ter·rent adj. Tending to deter: deterrent weapons. n. 1. Something that deters: a deterrent to theft. 2. . "We have a list of suppliers we like to use," said Sally Leeman, a spokesperson for Norwich Union. Norwich Norwich, city, England Norwich (nôr`ĭj, –ĭch), city (1991 pop. 32,664) and district, county seat of Norfolk, E England, on the Wensum River just above its confluence with the Yare. is an arm of Aviva Aviva plc (LSE: AV.) is the world's fifth-largest insurance group, the biggest insurance group in the UK and the second-largest insurance group in Canada. Worldwide, it trails behind AXA, Allianz, ING and Fortis. , the United Kingdom's biggest insurance group and the sixth-largest worldwide. "We reap the benefit of some discount, which is beneficial for everyone, really. It keeps costs lower and keeps premiums lower in the long run." "Our experience is that the majority of customers are very happy with our offer of replacement goods rather than cash settlement," Leeman said. Norwich uses a list of preferred jewelers for jewelry claims. "If it's an heirloom that can't be replaced, we will look at it as an individual; it's not a blanket blanket, sheet, usually of heavy woolen, or partly woolen, cloth, for use as a shawl, bed covering, or horse covering. The blanketmaking of primitive people is one of the finest remaining examples of early domestic artwork. settlement. If you can replace it we'd we'd 1. Contraction of we had. 2. Contraction of we should. 3. Contraction of we would. we'd have ~would prefer to do it that way, but we can do a cash settlement for items that can't be replaced. We will look at those on an individual basis, but on the whole, we prefer to replace with something from our suppliers if we can." "Like for like" settlements cut down on fraud, a real problem in the United Kingdom, Leeman explained: "It's probably the same in the States: Fraud is a major factor to consider. Doing it this way does combat that to a degree." Murray concurred; if a policyholder were to receive a replacement product in lieu of a "fat check," it would send a clear message: "You're you're Contraction of you are. you're you are you're be not going to get rich here." But U.S. insurers saw that the practice could also deter honest customers--those preferring a check might feel the insurer is targeting them as a potential fraud risk. U.S. insurers have since developed other ways to thwart fraudulent The description of a willful act commenced with the Specific Intent to deceive or cheat, in order to cause some financial detriment to another and to engender personal financial gain. claims. Most policies issued by the Allan Block Agency have a "holdback hold·back n. 1. a. The act of holding back. b. Something held back. 2. A device that retains or restrains. 3. ," which means policyholders receive a partial payment up front and the balance when they prove their claimed goods have been replaced. Say a client is due a $10,000 payout for ruined appliances due to a power surge An oversupply of voltage from the power company that can last up to 50 microseconds. Although surges are very short in duration, they often reach 6,000 volts and 3,000 amps when they arrive at the equipment. Power surges are a common cause of damage to computers and electronic equipment. : "The insurer might hold back $3,000 and say, 'when you get all your receipts, we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall give you the rest,'" Murray said. As for jewelry claims in the United States, the industry has been moving toward the use of agreed value during the past 10 years, Murray said. "I won't won't Contraction of will not. won't will not won't will sell a policy without it. It means that whatever we write the policy for is what we write the check for." It differs from actual cash value, which pays damages equal to the replacement value of damaged property, minus depreciation. Back in the States There are still some U.S. companies who do offer replacement products as an option because policyholders perceive per·ceive v. 1. To become aware of directly through any of the senses, especially sight or hearing. 2. To achieve understanding of; apprehend. value in the practice, and there are situations in which a customer might actually jump at it. "There are some customers who work 7-to-7. They say, 'You can get that same TV for me? Great, have it delivered," Murray said. "For somebody like me who doesn't does·n't Contraction of does not. get out of here until 9 p.m., it would be great." Among the U.S. companies who offer replacement settlements, it's up to an agent to offer the policyholder a choice: cash settlement or replacement settlement. If no choice is made, replacement reigns as the default. At Encompass ENCOMPASS Enhanced Consequence Management Planning and Support System (DARPA) Insurance, for example, if an agent or policyholder does not check off a box that states the customer wants agreed value on an item, the policy will be written for replacement value, Murray said. Other companies such as MetLife, St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery Travelers and Chubb offer cash settlements automatically. "It's an educating process to try to make sure people understand," Murray said. Tony LeFevre, managing director for Loss Management Group, the United Kingdom's largest jewelry claims management firm, has written extensively about homeowners replacement claims in the United Kingdom. Customers who "vehemently" object to replacement settlements are allowed cash, but then at a discounted cost of the replacement goods, he said. "By and large," LeFevre said, "U.K. insurers get away with this practice with only a small reduction in goodwill." Earlier this year, LeFevre and LMG LMG Light Machine Gun LMG Laurence M. Gould (Antarctic Research Support Vessel, USAP) LMG Local Marketing Group LMG Loaf's Merry Guild LMG Laboratory Molecular Genetics LMG Liquid Methane Gas commissioned a survey asking consumers how they thought their insurer would resolve a claim. Of the 1,037 Britons who took part, 60% said they expected the settlement to be cash or a check; only 5% knew they'd receive a voucher A receipt or release which provides evidence of payment or other discharge of a debt, often for purposes of reimbursement, or attests to the accuracy of the accounts. for a replacement item at a specified outlet. The study, which took place from April 29 through May 1, was conducted by U.K. firm Market & Opinion Research International. "The problem we Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. most is that most insureds never make claims," LeFevre said. "The majority never make a claim, and they're they're Contraction of they are. they're be not sure what's going to happen when that claim happens." And so, what U.K. policyholders expect vs. what actually happens often leads to conflict, LeFevre said: "The consensus seems to be they expect cash. When they're told they can't expect cash for Granny's diamond ring, which you never liked anyway, there's a bit of confrontation A fundamental right of a defendant in a criminal action to come face-to-face with an adverse witness in the court's presence so the defendant has a fair chance to object to the testimony of the witness, and the opportunity to cross-examine him or her. ." Still, some 50% of U.K. policyholders like the replacement goods, LeFevre said. Yearly cost to the United Kingdom's insurance industry for lost and stolen jewelry is about 300 million, he said. Most homeowners policies in the United Kingdom offer contents protection on single items up to 1,500 (about $2,650). U.K. insurers would probably still use replacement settlements over cash whether the public favored it or not, LeFevre hinted. "It actually has nothing to do with ideals or philosophies and everything to do with money," LeFevre said. "The reason why U.K. insurers started to offer replacement and all that 10 to 15 years ago is they realized they were losing loads of money on homeowners insurance, and how could they cut the costs?" "The huge difference between cash settlements and replacement settlements is that with the cash settlement regime, it's the consumer that picks up the discount on the purchase of the goods, and with replacement goods, it's the insurance company [that] picks up the discount," LeFevre explained. "When you're talking about millions and millions of pounds, this comes to quite a lot of money." In the United States, the pressure from the agents' side has been to offer policyholders agreed value and just write the check, Murray said. "The sooner you put money in a customer's hand, the happier they are. No one has that kind of time to run around from jeweler to jeweler." Making a Choice Allstate This article is about the American insurance company. For the line of automobiles, see Allstate (automobile). The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. , the largest publicly-held personal lines insurer in the United States, provides cash settlements on all of its homeowners claims. "We don't go out and physically provide them with a replacement item or a voucher," said Allstate spokesperson Bill Mellander, who has been working with hurricane- and flood-ravaged policyholders in Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. . "We provide them with financial
reimbursement ReimbursementPayment made to someone for out-of-pocket expenses has incurred. per what is offered and available through their policy. It's up to the customer to go out and determine when and how they are going to replace their damaged or stolen items." The two leading U.K. insurers' groups, the British Insurance
Britishinsurance.com is the trading name of British Insurance Limited, a specialist insurance company based in the United Kingdom. Brokers Association and the Association of British Insurers, offer tips to alert policyholders to replacement settlements. The ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother. (Application Binary Interface) A specification for a specific hardware platform combined with the operating system. Web site offers this general advice: "Your insurer may seek to replace damaged items through a nominated nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. retailer. You cannot insist on a cash settlement, although if the item concerned isn't is·n't Contraction of is not. isn't is not isn't be generally available a cash settlement will normally be made." Peter Staddon, head of technical services for BIBA BIBA British Insurance Brokers' Association BIBA Bremen Institute of Industrial Technology (University of Bremen) BIBA Bulgarian International Business Association BIBA Bermuda International Business Association , said insurers can achieve a major cost savings by buying items such as carpet in bulk, simply because the flooring trend in the United Kingdom is moving toward laminated laminated /lam·i·nat·ed/ (-nat?ed) having, composed of, or arranged in layers or laminae. laminated made up of laminae or thin layers. floors and away from carpeting. Norwich Union has purchased and distributed enough replacement carpeting to policyholders in recent months to cover the square footage of five football fields, he said. "The major insurers, when approaching a manufacturer, can make a deal. If it's 20 [pounds sterling] a meter, they can get it for 10 [pounds sterling]," Staddon said. "They can't sell it; nobody is interested in carpets." Staddon said if the public trend in the United Kingdom were to follow that of the United States toward cash settlements, U.K. insurers might start to follow suit as well. There has been talk around the United Kingdom that insurers may revert re·vert v. 1. To return to a former condition, practice, subject, or belief. 2. To undergo genetic reversion. to cash settlements, LeFevre noted. "Like everything else, it's cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. ," LeFevre said. But he doubts U.K. insurers would want to give up the cost savings associated with replacement settlements. LMG manages to replace items, instead of issuing a check, about 70% of the time, he added. "We do that by offering a huge range of choices in terms of shops that you can use and other mechanisms," LeFevre said. And choices make policyholders happy, whether it's in the United States or the United Kingdom. "If you choose one jewelry shop in our world and tell the customer to go there, they will find a million reasons why they can't go there," he said. Key Points * U.K. homeowners insurers prefer replacement goods over cash settlements, citing cost savings, customer convenience and a deterrent to fraud. * U.S. homeowners insurers prefer cash settlements, since policyholders want freedom of choice, ease of replacement and speedier claims settlements. * Most U.K. policyholders surveyed this year did not know that they would receive goods in lieu of a cash settlement. Learn More MetLife Auto & Home Group A.M. Best Company # 18552 Distribution: Work-site program, independent agents, career agents and direct marketing Hartford Fire Insurance Co. A.M. Best Company # 02231 Distribution: independent agents, AARP AARP, a nonprofit, nonpartisan national organization dedicated to "enriching the experience of aging"; membership is open to people age 50 or older. Founded in 1958 by Ethel Percy Andrus as American Association of Retired Persons, AARP now has over 30 million Homeowners Insurance Program Travelers Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Co. A.M. Best Company # 02520 Distribution: Independent agents and brokers Chubb Group of Insurance Companies A.M. Best Company # 00012 Distribution: Independent agents and brokers Encompass Insurance Co. A.M. Best Company # 11794 Distribution: Independent agents Allstate Insurance Group A.M. Best Company # 00008 Distribution: Independent agents Direct Line Insurance plc A.M. Best Company # 87316 Distribution: Captive captive said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. agents, direct Norwich Union insurance Ltd. A.M. Best Company # 85250 Distribution: IFA Immunofluorescent assay (IFA) A blood test sometimes used to confirm ELISA results instead of using the Western blotting. In an IFA test, HIV antigen is mixed with a fluorescent compound and then with a sample of the patient's blood. relationships, brokers, bancassurance Bancassurance A French term referring to the selling of insurance through a bank's established distribution channels. Notes: The result is a bank that can offer banking, insurance, lending, and investment products to a customer. , direct sales force, corporate partnerships, direct For ratings and other financial strength information about these companies, visit www.ambest.com
What's in Your Policy?
United Kingdom-based claims management firm Loss Management
Group commissioned a survey on customers' expectations of replacement
following a jewelry theft claim. The study was conducted from April 29
through May 1 and included 1,037 respondents.
If your jewelry was stolen, how would you expect your insurer to settle
your claim? Would you expect the claim to be settled ...
Men Women Employed Unemployed
In cash or check to the value of 60% 59% 59% 60%
the stolen jewelry
By voucher for replacement by a 4% 7% 5% 7%
jeweler of the insurer's choice
By voucher for replacement by a 17% 19% 21% 13%
jewelry shop of my own choice
By sending a professional jeweler 8% 7% 7% 8%
to my home so I can choose
jewelry
Source: Market & Opinion Research International
Homeowners Multiple Peril, Top Writers, United States--2004
Rank is based on 2004 direct premiums written.
($ Thousands)
2004 Direct %
Premiums Change in
Rank Group AMB # Written Premiums
1 State Farm Group 00088 $11,916,227 9.8
2 Allstate Ins Group 00008 6,011,285 10.8
3 Farmers Ins Group 00032 3,775,613 5.9
4 Nationwide Group 05987 2,514,624 10.0
5 St Paul Travelers Cos 18647 2,281,516 21.8
6 USAA Group 04080 2,079,250 15.3
7 Liberty Mutual Ins Cos 00060 1,600,873 11.9
8 Chubb Group of Ins Cos 00012 1,488,386 8.8
9 Amer Family Ins Group 00124 1,437,728 15.5
10 Hartford Ins Group 00048 868,429 11.7
11 Auto-Owners Ins Group 04354 795,572 12.3
12 Safeco Ins Cos 00078 794,072 -0.3
13 MetLife Auto & Home Group 18552 755,353 4.2
14 Ede Ins Group 04283 735,894 19.2
15 Southern Farm Bureau Group 02962 519,772 11.5
16 Allianz of America Inc 18429 502,815 4.5
17 CNA Ins Cos 18313 502,192 -4.0
18 Amer Intl Group Inc 18540 451,695 7.7
19 Allmerica Finl P&C Cos 04861 434,883 3.6
20 Arnica Mutual Group 18522 368,069 17.1
21 Vesta Ins Group 05681 360,082 -3.8
22 CA State Auto Group 18460 352,183 15.0
23 Country Ins & Finl Svcs 00302 337,873 16.0
24 Cincinnati Ins Cos 04294 287,315 9.4
25 Poe Ins Group 18554 282,092 85.6
Top 25 P/C Writers $41,453,793 10.6
Total U.S. P/C Industry $53,071,557 9.5
Market Share (%) Adjusted Loss Ratios % of
Company
Rank 2004 2003 2002 2004 2003 2002 Premiums
1 22.5 22.4 22.3 64.6 60.6 73.1 25.3
2 11.3 11.2 11.5 69.9 52.4 61.2 24.3
3 7.1 7.4 7.9 43.7 52.1 67.7 26.7
4 4.7 4.7 4.6 65.3 64.9 62.3 17.1
5 4.3 3.9 3.6 43.1 51.3 58.8 10.3
6 3.9 3.7 3.6 68.1 61.4 59.7 25.5
7 3.0 3.0 2.9 62.1 59.6 64.2 10.1
8 2.8 2.8 2.8 56.2 61.6 60.8 15.5
9 2.7 2.6 2.3 51.1 57.5 67.4 24.0
10 1.6 1.6 1.6 80.2 53.7 57.3 7.7
11 1.5 1.5 1.3 93.5 71.8 81.2 18.2
12 1.5 1.6 1.8 40.4 50.8 65.7 14.1
13 1.4 1.5 1.6 52.7 52.0 54.0 25.0
14 1.4 1.3 1.2 45.6 72.5 85.7 18.4
15 1.0 1.0 1.0 110.7 60.5 86.1 24.1
16 0.9 1.0 1.1 56.6 56.1 62.0 10.5
17 0.9 1.1 1.2 57.4 74.9 60.8 4.6
18 0.9 0.9 0.7 71.9 53.6 60.4 1.6
19 0.8 0.9 0.9 57.2 57.5 58.6 17.9
20 0.7 0.6 0.6 68.5 67.5 69.6 26.3
21 0.7 0.8 0.8 65.7 56.5 47.9 64.0
22 0.7 0.6 0.6 31.6 34.4 63.4 16.4
23 0.6 0.6 0.5 43.7 54.6 60.7 20.8
24 0.5 0.5 0.6 85.1 79.8 86.2 9.1
25 0.5 0.3 0.2 156.3 32.7 39.8 63.0
78.1 77.3 77.1 62.1 58.0 66.4 16.7
100.0 100.0 100.0 65.9 59.5 66.1 11.4
Source: A.M. Best Statement Products: State/Line. For more information
about custom data, call (908) 439-2200, Ext. 5383.
Homeowners Multiple Peril, Top Writers by State--2004
Rank is based on direct premiums written in 2004.
($Thousands)
Direct % of
No. of Premiums U.S. Premium
State Rank Cos. Written Total % Change
Ala. 23 198 $917,279 1.7 12.0
Alaska 48 76 107,922 0.2 11.5
Ariz. 20 227 1,018,700 1.9 11.7
Ark. 32 190 462,911 0.9 8.7
Calif. 1 262 5,876,021 11.1 10.3
Colo. 16 210 1,087,800 2.0 9.1
Conn. 27 190 789,133 1.5 10.0
Del. 45 160 130,990 0.2 15.7
D.C. 50 128 98,940 0.2 12.4
Fla. 3 276 4,362,572 8.2 14.9
Ga. 10 271 1,406,512 2.7 13.8
Hawaii 41 86 215,785 0.4 15.3
Idaho 43 173 169,475 0.3 7.3
Ill. 5 323 2,177,417 4.1 8.6
Ind. 14 264 1,169,458 2.2 8.9
Iowa 33 216 425,310 0.8 7.9
Kan. 29 216 613,563 1.2 9.1
Ky. 28 224 617,357 1.2 11.3
La. 22 195 924,986 1.7 4.8
Maine 39 146 239,463 0.5 10.5
Md. 18 222 1,020,946 1.9 16.2
Mass. 13 211 1,249,103 2.4 10.4
Mich. 6 194 2,140,242 4.0 7.6
Minn. 15 229 1,131,619 2.1 8.2
Miss. 30 181 545,493 1.0 14.5
Mo. 17 238 1,064,807 2.0 9.8
Mont. 44 140 157,043 0.3 8.0
Neb. 35 186 347,237 0.7 9.6
Nev. 34 176 384,665 0.7 15.0
N.H. 40 156 238,022 0.4 12.2
N.J. 9 212 1,476,516 2.8 11.4
N.M. 38 179 265,643 0.5 8.2
N.Y 4 274 3,164,001 6.0 9.3
N.C. 11 222 1,333,356 2.5 9.2
N.D. 49 141 99,886 0.2 10.7
Ohio 8 283 1,734,159 3.3 9.7
Okla. 26 197 791,807 1.5 7.4
Ore. 31 202 501,210 0.9 9.1
Pa. 7 298 2,063,587 3.9 9.8
R.I. 42 148 200,858 0.4 12.3
S.C. 24 217 848,922 1.6 14.9
S.D. 47 164 107,929 0.2 6.5
Tenn. 19 254 1,020,192 1.9 11.2
Texas 2 275 4,518,775 8.5 -1.1
Utah 37 191 277,951 0.5 5.9
Vt. 46 151 128,864 0.2 11.8
Va. 12 241 1,259,698 2.4 12.9
Wash. 21 211 1,006,313 1.9 10.3
W.Va. 36 149 290,004 0.5 16.5
Wis. 25 274 794,720 1.5 10.2
Wyo. 51 133 96,395 0.2 10.3
U.S. Total 1,081 $53,071,557 100.0 9.5
Market Share
Agency Direct
State ALR (1) DDCCE (2) Writer (3) Writer (4)
Ala. 147.1 2.2 20.8 79.2
Alaska 44.6 2.3 14.6 85.4
Ariz. 33.9 1.7 24.1 75.9
Ark. 43.9 1.0 15.3 84.7
Calif. 31.0 3.0 26.1 73.9
Colo. 60.7 1.4 19.0 81.0
Conn. 41.5 -1.9 56.2 43.8
Del. 41.3 1.2 32.3 67.7
D.C. 31.3 0.9 51.1 48.9
Fla. 305.0 4.2 46.0 54.0
Ga. 61.4 1.9 28.8 71.2
Hawaii 30.4 1.8 50.7 49.3
Idaho 41.8 1.6 29.8 70.2
Ill. 45.4 1.4 21.8 78.2
Ind. 43.5 1.2 34.0 66.0
Iowa 44.8 0.7 29.2 70.8
Kan. 35.1 0.5 23.2 76.8
Ky. 55.8 1.0 31.8 68.2
La. 35.1 1.5 18.8 81.2
Maine 44.0 1.4 57.7 42.3
Md. 39.0 1.2 40.4 59.6
Mass. 46.3 2.0 82.2 17.8
Mich. 49.2 1.2 44.5 55.5
Minn. 31.9 1.0 25.9 74.1
Miss. 48.1 1.2 12.1 87.9
Mo. 59.8 0.7 20.2 79.8
Mont. 30.9 1.6 34.8 65.2
Neb. 53.5 0.8 28.8 71.2
Nev. 41.3 2.2 19.8 80.2
N.H. 47.0 1.7 48.4 51.6
N.J. 59.8 3.6 59.0 41.0
N.M. 61.3 2.1 21.5 78.5
N.Y 47.9 2.6 49.3 50.7
N.C. 44.3 0.9 27.6 72.4
N.D. 28.2 0.2 33.0 67.0
Ohio 61.3 1.5 44.4 55.6
Okla. 60.2 1.2 21.7 78.3
Ore. 40.7 1.6 23.6 76.4
Pa. 48.7 1.9 47.0 53.0
R.I. 47.2 1.3 47.4 52.6
S.C. 40.8 0.9 28.1 71.9
S.D. 31.0 0.6 37.2 62.8
Tenn. 45.4 0.9 25.4 74.6
Texas 28.3 2.3 23.9 76.1
Utah 44.4 1.7 21.1 78.9
Vt. 47.8 1.8 53.6 46.4
Va. 37.2 0.8 30.2 69.8
Wash. 43.0 1.9 36.6 63.4
W.Va. 48.2 1.8 36.6 63.4
Wis. 47.5 1.1 39.1 60.9
Wyo. 25.1 0.8 24.1 75.9
U.S. Total 65.9 1.9 34.4 65.6
% Market
State Leading Writer Share
Ala. State Farm Group 30.0
Alaska State Farm Group 35.0
Ariz. State Farm Group 20.4
Ark. State Farm Group 25.5
Calif. State Farm Group 22.3
Colo. State Farm Group 24.5
Conn. Allstate Ins Group 11.4
Del. State Farm Group 29.3
D.C. State Farm Group 23.9
Fla. State Farm Group 23.7
Ga. State Farm Group 32.5
Hawaii State Farm Group 25.5
Idaho State Farm Group 18.8
Ill. State Farm Group 32.3
Ind. State Farm Group 26.3
Iowa State Farm Group 24.2
Kan. State Farm Group 23.7
Ky. State Farm Group 21.4
La. State Farm Group 34.7
Maine White Mountains Ins Group 11.3
Md. State Farm Group 22.1
Mass. Commerce Group Inc 9.7
Mich. State Farm Group 19.4
Minn. State Farm Group 23.3
Miss. State Farm Group 30.4
Mo. State Farm Group 24.1
Mont. State Farm Group 24.3
Neb. State Farm Group 24.8
Nev. Farmers Ins Group 21.9
N.H. Liberty Mutual Ins Cos 13.6
N.J. State Farm Group 13.8
N.M. State Farm Group 27.4
N.Y Allstate Ins Group 17.9
N.C. State Farm Group 19.1
N.D. State Farm Group 18.4
Ohio State Farm Group 22.4
Okla. State Farm Group 27.4
Ore. State Farm Group 27.0
Pa. State Farm Group 18.8
R.I. Arnica Mutual Group 11.9
S.C. State Farm Group 25.9
S.D. State Farm Group 21.1
Tenn. State Farm Group 26.5
Texas State Farm Group 29.6
Utah State Farm Group 21.4
Vt. T Mutual Group 15.0
Va. State Farm Group 21.4
Wash. State Farm Group 19.4
W.Va. State Farm Group 26.1
Wis. Amer Family Ins Group 26.6
Wyo. State Farm Group 27.0
U.S. Total State Farm Group 22.5
% Market
State Second Leader Share
Ala. Alfa Ins Group 20.8
Alaska Allstate Ins Group 29.8
Ariz. Farmers Ins Group 17.1
Ark. South Farm Bureau Group 22.1
Calif. Farmers Ins Group 16.6
Colo. Farmers Ins Group 16.2
Conn. Chubb Group of Ins Cos 10.8
Del. Nationwide Group 17.1
D.C. St. Paul Travelers Cos 22.2
Fla. Allstate Ins Group 10.8
Ga. Allstate Ins Group 12.7
Hawaii Zephyr Ins Co Inc 15.5
Idaho Farmers Ins Group 16.8
Ill. Allstate Ins Group 14.5
Ind. United Farm Bureau IN 9.1
Iowa Nationwide Group 15.4
Kan. Amer Family Ins Group 17.7
Ky. KY Farm Bureau Group 20.5
La. Allstate Ins Group 20.8
Maine State Farm Group 11.0
Md. Allstate Ins Group 13.5
Mass. Andover Cos 8.7
Mich. Auto-Owners Ins Group 14.4
Minn. Amer Family Ins Group 15.8
Miss. South Farm Bureau Group 21.0
Mo. Amer Family Ins Group 22.4
Mont. Farmers Ins Group 15.6
Neb. Amer Family Ins Group 13.9
Nev. State Farm Group 20.6
N.H. State Farm Group 10.8
N.J. Allstate Ins Group 9.4
N.M. Farmers Ins Group 20.4
N.Y State Farm Group 14.3
N.C. Nationwide Group 16.8
N.D. Amer Family Ins Group 17.9
Ohio Nationwide Group 10.6
Okla. Farmers Ins Group 20.6
Ore. Farmers Ins Group 18.5
Pa. Erie Ins Group 14.4
R.I. Allstate Ins Group 9.6
S.C. Allstate Ins Group 14.7
S.D. Amer Family Ins Group 18.9
Tenn. TN Farmers Ins Cos 17.1
Texas Allstate Ins Group 16.2
Utah Allstate Ins Group 19.8
Vt. Co-Operative Ins Cos 10.4
Va. Allstate Ins Group 11.9
Wash. Farmers Ins Group 16.7
W.Va. Nationwide Group 19.1
Wis. State Farm Group 15.2
Wyo. Farmers Ins Group 15.8
U.S. Total Allstate Ins Group 11.3
(1) ALR: Adjusted loss ratio is direct losses incurred divided by the
difference between direct premiums earned and dividends paid to
policyholders.
(2) DDCCE: Direct defense and cost-containment expense ratio is the
former allocated loss adjustment expense (ALAE) ratio.
(3) Insurers that distribute primarily through independent agents.
(4) Insurers that distribute primarily through a direct-selling system
or an exclusive agency system.
Source: A.M. Best Statement Products: State/Line. For more information
about custom data, call (908) 439-2200, Ext. 5383.
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