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A Rising Market.

Tropical Storm Allison, which caused $2.5 billion in insured property losses, may have been a turning point for the flood insurance market.

In early June, Tropical Storm Allison dumped as much as 32 inches of rain on parts of eastern Texas, Louisiana and four other states, leaving insurers with a legacy of at least $2.5 billion in insured property losses, according to the Insurance Services Office Inc.

Considering that the total bill for flood damage in the United States is usually about $1 billion a year, the cost of this single storm was eye opening. It has made many in the property/casualty industry start to view Allison as a possible turning point in the expansion of the flood insurance market, both in the federal and private realms, in the United States.

"That magnitude of loss approaches Hurricane Hugo in 1989, and given that so much of the loss is concentrated in the commercial lines sector, the insured losses approach what the commercial lines sector paid out in the Northridge earthquake" in 1994, said Hemant Shah, president of Risk Management Solutions, a catastrophe-modeling firm based in Newark, Calif. Judging from discussions with clients, his company estimates that losses from Allison have been understated and are likely to exceed $3.5 billion, an unprecedented amount for a flood event and particularly a tropical cyclone, he said.

"From any perspective, it's a sizable event, and companies are now re-evaluating how they should underwrite and manage this going forward," Shah said.

Allison's price tag represents 221,500 total claims, with an average claim payment of $11,287. Tropical Storm Gabrielle, which pummeled Florida in September, resulted in $115 million in insured losses, representing 42,000 total claims and an average claim payment of $2,738, ISO said.

National Flood Insurance

Homeowners policies in the United States typically do not cover flood loss or damage. But the National Flood Insurance Program, instituted in 1968, offers federally subsidized flood insurance to homeowners, renters and business owners in communities that adopt and enforce floodplain-management ordinances that reduce flood losses by regulating new construction.

Prior to the development of the national program, flood insurance was generally unavailable and most states and communities did not regulate floodplain development. Instead, the focus was on constructing flood-control projects such as levees, dams and channels to reduce flood damage. But after billions of dollars were spent on these projects, annual flood damages and disaster-assistance costs continued to rise.

Private insurers can sell and service these flood policies through the "Write-Your-Own" program, with the federal government paying the claims and operating expenses from policyholder premiums, not taxes. The roster of participating companies includes All-state, Hartford Financial Services, State Farm and Travelers, among others.

More than 4.2 million of these policies are in force, representing $559 billion worth of coverage, the national program said. Yet federal officials estimate that only one-third of those who live in heavy flood zones apply for policies under the federal program, which is the primary provider of this coverage.

Flood Alliance

One insurer that is actively seeking to grow its book of flood coverage is Selective Insurance Group of Branch-ville, NJ. Selective, a holding company for five property/casualty insurers, recently won the endorsement of the Independent Insurance Agents of America for its "Write-Your-Own" national flood insurance program, meaning that the alliance will try to steer its 300,000-plus agents to Selective.

"We are underwriting the flood business through the National Flood Insurance Program, just like any other flood risk would be written," said Sharon Cooper, company spokeswoman. "The reason why the federal government is in this program is it's been deemed complete adverse selection. And that's really why it's a line not offered by the insurance industry. Our role is as a servicing contractor, providing underwriting, claims and marketing services."

For Selective, the partnership with the trade association amounts to another growth opportunity, providing an avenue to expand its flood operation nationwide. Currently the company's total book of business on the flood side is $43 million, said Robert Butler, president of FloodConnect, Selective's flood-processing vendor.

The firm does all of its business through independent agents. "There's still a good number of agencies that haven't availed themselves of the benefits of going with a 'Write-Your-Own' company and are still doing business directly with the NFIP," Butler said.

Under the new partnership, IIAA will help agents who are unfamiliar or uncomfortable with the product through its new National Flood Office. The trade association "will provide them all the assistance and hand-holding that they may need to get the business done," Butler said. "For the larger agencies that are more familiar with the product and are comfortable with it, we provide an enhanced commission schedule and better tools to help them more easily administer their books of business."

The new tools include free rating software, online processing and inquiry, free flood-zone determinations and access to excess flood coverage. The tiered-commission structure ranges from 15% to 20.5% for agencies with smaller volumes as well as agencies with larger books of business, IIAA said.

"A lot of agents currently are not writing that many flood policies," said Ryann C. Harris, IIAA's national program director. "It's not a tough, coverage, but it can be a problematic coverage for agents who have never written flood coverage." But Harris said IIAA expects this program "to shape up quickly," due in large measure to the new support that her group is offering to agents interested in selling this coverage.

If IIAA and companies like Selective see prospects for growth in standard flood insurance, firms that offer excess flood coverage already are experiencing increased demand. The burgeoning development of coastal areas in recent years has raised concerns about heavy catastrophe losses. The Insurance Reform Act of 1994 increased the limits of flood insurance coverage for single-family residences to $250,000 on structure and $100,000 on contents, and for businesses to $500,000 for the building and $500,000 for the contents. But some in the industry cite increasing interest from owners of high-end businesses and homes who want to supplement the federal plan with excess flood coverage because the national program just doesn't go far enough.

John Pinelli, vice president of Partners Specialty Group, a brokerage based in Norristown, Pa., says the demand for excess flood insurance is growing. Partners Specialty has seen its book of business in flood coverage grow by 20% over the last two years, he said.

Pinelli's firm regularly gets calls from owners who want to be certain that their investments in their homes or businesses are adequately insured against flood, just as they would want adequate coverage against the peril of fire, Pinelli said.

"A lot of the time, insurance companies or mortgage companies require higher limits for flood peril," he said. That's when his firm comes on the scene to find a carrier willing to write that risk. "More likely than not, coverage will come from overseas--we write a lot with Lloyd's," Pinelli said, referring to the London-based insurance marketplace. "There are some markets in the States, but there are more access points in floyd's."

Modeling the Risk

The leading catastrophe-modeling companies also are eyeing the flood insurance market with increased interest. These firms provide insurers and reinsurers with modeling software that assesses the flood risk for structures in a given area. Eqecat, based in Oakland, Calif., for example, has had its new product out for 18 months and thinks this market is poised to take off Risk Management Solutions is currently developing a model. And Applied Insurance Research, Boston, says that based upon its development of flood models in other regions, it has the data and expertise to launch a new U.S. model quickly, should demand warrant it.

Eqecat, which has marketed a Lower Thames River catastrophe model in the United Kingdom for a number of years, has a new Continental U.S. model for river and coastal flooding. This can estimate flood depths, assess the losses for properties, assess business interruption and provide a full probabilistic loss-exceedance curve for insurers, said Mahmoud Khater, senior vice president and chief science and technology officer.

Swiss Re has licensed this model and is using it on a daily basis for underwriting, said Rick Clinton, Eqecat's president. "Other companies have come to us for a look-up type of process, where they send us information about a risk and we return the flood information," Clinton said, noting that these companies also used the reports in their underwriting process.

"It's something that is out there, and it's starting to create a lot of interest;' he said. "I would not say it's taken off at this point in time, but it is right there, ready to go."

Clinton thinks this developing interest is fueled far more by the commercial market than the residential market.

"Under the residential side, for many years the limit provided by the flood program would pretty much take care of the exposure," Clinton said, "Now with higher values, that is becoming more of a problem."

But he thinks that at this time, many affected homeowners are reluctant to pay higher premiums for excess coverage and will tend to rely on the federal flood program for any Claims.

But the number of recent losses from rising waters has put commercial insurers on guard. "If you look back in 2000 and look at what's caused the major catastrophe losses, you're going to see flood as very prominent," Clinton said.

Shah of RMS said that while flood peril has always been on the agenda for his company and the insurance industry as a whole, it's run a distant second to the natural perils of hurricanes and earthquakes. Not so in the United Kingdom, he noted, where flood is one of the major perils and has tended to be insured to a greater degree. But in the United States, "Tropical Storm Allison has definitely raised the profile of flood here," Shah said.

He knows of many commercial lines insurers that are eager to have improved tools such as state-of-the-art catastrophe models to use in their underwriting and portfolio accumulation. Traditionally, these companies have used the Federal Emergency Management Agency's flood maps as their principal underwriting tool, he said. "While that's a good starting point, those aren't comprehensive enough to really differentiate the risk and pinpoint the risk," Shah said.

Although the insured losses for Allison are relatively modest when compared with the projected $30 billion in losses associated with the World Trade Center catastrophe or the $15.3 billion in losses from Hurricane Andrew, they carry a disproportionate impact because they were largely felt in the commercial-lines sector, he said. In an earthquake or hurricane, most of the insured losses are from personal lines, Shah noted.

"So as a result of this concentration, the losses are turning up in the reinsurance markets," he said. "And given reinsurance capacity these days, that's going to cause even more of a challenge."

More Data Needed

One of the hurdles to developing a U.S. flood model is the difficulty in obtaining high-quality data, Khater said. "Flood needs high-resolution databases, like digital elevation, streamflow and basin characteristics. The quality of the data significantly affects the quality of the results," he said. "It's difficult to find a nationwide database with enough resolution to provide accurate results. We had to spend a significant effort to find, purchase and reconcile these databases."

His company also relied on a building stock database, similar to those used to formulate its earthquake and wind models, but of much finer resolution, as well as a census block data level to capture all the important elements of flood.

To Clinton, flood is "probably the most complex natural hazard to model, because there are so many issues that you need to get your head around," he said. They include the amount of rainfall; how the water accumulates and runs off into rivers, catch basins or viaducts; how it overflows; and how it gets into basements.

"All of that needs to be done on a relatively high geographic resolution, because it's a very specific peril;' he said. "Elevation and land changes on a small scale can affect one's flood risk quite significantly. So for a number of reasons, it's a very complicated peril to model."

Every region's terrain needs to be carefully studied in creating an accurate flood model, said Uday Virkud, vice president of Applied Insurance Research, Boston. "You need to know what buildings and elevation components need to be studied in every region where there is a potential for surges and floods," he said.

AIR, in fact, has a flood-assessment tool in the form of the storm-surge feature in its U.S. Atlantic Base and Hurricane model, Virkud said. But the company does not yet have a river and flood model or rain-flood model, which is a component in the federal coverage of residential flood policies.

Until recently, he acknowledged, the U.S. insurance industry had not been that focused on flood-modeling needs. "But that could be changing, given some of the current events," such as flooding in Florida from Tropical Storm Gabrielle in September and the big impact of Tropical Storm Allison, Virkud said. "This coverage by the federal government in the U.S. at least could change."

Virkud said his company's numerical-prediction technology and its climate-prediction center, which uses this technology to forecast and estimate rain from storms in other regions, will come into play once it decides to pursue a new U.S. flood model.

[Graph omitted]
Homeowners Multiple Peril Reinsurers, Top Writers--2000



 Total Lines
Company Assumed Assumed

Amencan Agncultural Insurance Co $188,727,493 $556,445,601
Gerling Global Re Corp of America 114,729,493 970,192,333
Transatlantic Reinsurance Co 54,207,970 1,541,998,030
Zurich Reinsurance (NA) Inc 45,598,414 1,219,313,211
GE Reinsurance Corp 39,695,977 1,370,242,708

American Re-Insurance Co 39,123,262 3,224,860,119
Everest Reinsurance Co 37,517,832 1,175,972,329
Swiss Reinsurance America Corp 36,854,674 1740,387,468
Axa Corporate Solutions Re Co 31,426,263 296,532,431
Partner Reinsurance Co of US 30,512,889 348,142,557

General Reinsurance Corp 21,906,520 3,379,611,808
Odyssey America Reinsurance Corp 21,497,232 599,702,580
Employers Reinsurance Corp 21,409,103 2,347,010,792
Scor Reinsurance Co 20,061,330 422,561,961
Dorinco Reinsurance Co 7,923,873 178,825,163

XL Reinsurance America Inc 4,153,875 572,084,826
Odyssey Reinsurance Corp 3,399,332 109,210,341
PartnerRe Insurance Co of NY 3,379,791 33,917,422
QBE Reinsurance Corp 2,565,518 148,289,011
Sorema North America Reinsurance Co 2,144,160 191,106,323

Berkley Insurance Co 1,159,262 363,994,410
Toa Reinsurance Company of America 477,764 178,755,188
Insurance Corporation of Hannover 206,811 226,605,506
Shelter Reinsurance Co 149,853 36,728,542
Gerling Global Reinsurance Corp USB 52,411 1,366,449

Total U.S. P/C Industry $1,764,555,269 $43,151,669,490


 % Total
 Assumed
 From
Company All lines

Amencan Agncultural Insurance Co 33.9
Gerling Global Re Corp of America 11.8
Transatlantic Reinsurance Co 3.5
Zurich Reinsurance (NA) Inc 3.7
GE Reinsurance Corp 2.9

American Re-Insurance Co 1.2
Everest Reinsurance Co 3.2
Swiss Reinsurance America Corp 2.1
Axa Corporate Solutions Re Co 10.6
Partner Reinsurance Co of US 8.8

General Reinsurance Corp 0.7
Odyssey America Reinsurance Corp 3.6
Employers Reinsurance Corp 0.9
Scor Reinsurance Co 4.8
Dorinco Reinsurance Co 4.4

XL Reinsurance America Inc 0.7
Odyssey Reinsurance Corp 3.1
PartnerRe Insurance Co of NY 10.0
QBE Reinsurance Corp 1.7
Sorema North America Reinsurance Co 1.1

Berkley Insurance Co 0.3
Toa Reinsurance Company of America 0.3
Insurance Corporation of Hannover 0.1
Shelter Reinsurance Co 0.4
Gerling Global Reinsurance Corp USB 3.8

Total U.S. P/C Industry 4.1


Source: A.M. Best Statement and Competitive Analysis Report Products
Homeowners Multiple Peril Reinsurance, Top Users--2000

Rank is based on total ceded homeowners premiums.


 Direct Premiums
Company/Group AMB# Written

Continental Insurance Co 02118 $247,487,262
Clarendon National Insurance Co 01975 188,396,731
Nationwide Mutual Insurance Co 02358 74,275,398
Clarendon Select Insurance Co 10827 133,975,289
Fire Insurance Exchange 02172 1,168,643,862

St Paul Fire & Marine Insurance Co 02452 98,423
United States Fidelity & Guaranty Co 02539 31,744,638
State Farm Florida Insurance Co 12235 583,296,400
North Carolina Farm Bureau Mutual 00708 107,843,711
American Bankers Ins Company of Florida 00120 87,710,355

State Farm Fire & Casualty Co 02477 5,114,070,136
QualSure Insurance Corp 12379 32,749,248
Cotton States Mutual Insurance Co 00299 57,256,496
United Services Auto Association 00934 837,211,018
Prudential P&C Insurance Company of NJ 00710 114,521,039

CGU Insurance Co 02196 18,435,302
Liberty Mutual Insurance Co 02283 22,924,828
New York Central Mutual Fire 00700 94,271,385
Regency Insurance Co 10600 43,466,207
Hartford Fire Insurance Co 02231 46,970,229

Total U.S. Companies $34,675,509,035


 Total Homeowners
 Ceded to
Company/Group Nonaffiliates

Continental Insurance Co $429,718,128
Clarendon National Insurance Co 160,113,756
Nationwide Mutual Insurance Co 143,754,351
Clarendon Select Insurance Co 118,023,754
Fire Insurance Exchange 103,384,687

St Paul Fire & Marine Insurance Co 95,228,228
United States Fidelity & Guaranty Co 92,425,255
State Farm Florida Insurance Co 88,183,499
North Carolina Farm Bureau Mutual 77,908,680
American Bankers Ins Company of Florida 63,734,039

State Farm Fire & Casualty Co 57,321,408
QualSure Insurance Corp 49,834,018
Cotton States Mutual Insurance Co 48,817,401
United Services Auto Association 47,881,199
Prudential P&C Insurance Company of NJ 47,348,424

CGU Insurance Co 44,095,555
Liberty Mutual Insurance Co 41,290,285
New York Central Mutual Fire 40,567,888
Regency Insurance Co 37,858,073
Hartford Fire Insurance Co 37,161,122

Total U.S. Companies $3,724,879,643


 Total All
 Lines Ceded to
Company/Group Nonaffiliates

Continental Insurance Co $1,953,384,789
Clarendon National Insurance Co 1,158,435,376
Nationwide Mutual Insurance Co 413,285,618
Clarendon Select Insurance Co 120,153,095
Fire Insurance Exchange 151,039,407

St Paul Fire & Marine Insurance Co 1,024,844,978
United States Fidelity & Guaranty Co 394,550,321
State Farm Florida Insurance Co 94,105,592
North Carolina Farm Bureau Mutual 168,075,261
American Bankers Ins Company of Florida 815,344,117

State Farm Fire & Casualty Co 329,288,430
QualSure Insurance Corp 68,836,028
Cotton States Mutual Insurance Co 105,043,346
United Services Auto Association 88,404,190
Prudential P&C Insurance Company of NJ 55,404,700

CGU Insurance Co 270,742,562
Liberty Mutual Insurance Co 1,182,869,902
New York Central Mutual Fire 140,145,464
Regency Insurance Co 44,382,348
Hartford Fire Insurance Co 838,264,556

Total U.S. Companies $55,963,825,211


 Homeowners
 Ceded to All
Company/Group Lines Ceded (%)

Continental Insurance Co 22.0
Clarendon National Insurance Co 13.8
Nationwide Mutual Insurance Co 34.8
Clarendon Select Insurance Co 98.2
Fire Insurance Exchange 68.5

St Paul Fire & Marine Insurance Co 9.3
United States Fidelity & Guaranty Co 23.4
State Farm Florida Insurance Co 93.7
North Carolina Farm Bureau Mutual 46.4
American Bankers Ins Company of Florida 7.8

State Farm Fire & Casualty Co 17.4
QualSure Insurance Corp 72.4
Cotton States Mutual Insurance Co 46.5
United Services Auto Association 54.2
Prudential P&C Insurance Company of NJ 85.5

CGU Insurance Co 16.3
Liberty Mutual Insurance Co 3.5
New York Central Mutual Fire 29.0
Regency Insurance Co 85.3
Hartford Fire Insurance Co 4.4

Total U.S. Companies 6.7


Source: A.M. Best Statement and Competitive Analysis Report Products.
Homeowners Multiple Peril, Top Writers--2000

Homeowners coverage is designed to protect an owner or renter of a
dwelling. It typically combines property coverage for the dwelling
structure, personal property coverage for the contents and personal
liability coverage.

 2000 Direct
 Premiums % Change
Company/Group ($ Thousands) in Premium

State Farm Group $7,379,163 1.2
Allstate Insurance Group 3,971,990 6.7
Zurich/Farmers Group 2,899,188 25.7
Nationwide Group 1,553,195 7.9
Travelers/Citigroup Co 1,303,265 7.3

USAA Group 1,230,483 8.6
Chubb Group of Insurance Cos 830,873 12.6
Safeco Insurance Cos 756,897 2.7
American Family Insurance Group 734,601 10.8
Liberty Mutual Insurance Cos 691,339 6.2

Hartford Insurance Group 573,856 9.1
CNA Insurance Cos 480,176 3.0
CGU Group 471,823 0.3
Prudential of America Group 439,912 3.5
MetLife Auto & Home Group 411,429 6.9

Allianz of America 400,265 6.4
Auto-Owners Group 376,510 13.1
HDI US Group 360,543 7.8
Erie Insurance Group 354,971 10.4
Southern F B Group 321,011 6.2

Top 20 Companies $25,541,491 7.2
Total U.S. Companies $34,451,869 6.6


 Market Share (%)
Company/Group 2000 1999 1998

State Farm Group 21.4 22.6 22.7
Allstate Insurance Group 11.5 11.5 11.5
Zurich/Farmers Group 8.4 7.1 7.2
Nationwide Group 4.5 4.5 4.3
Travelers/Citigroup Co 3.8 3.8 3.8

USAA Group 3.6 3.5 3.4
Chubb Group of Insurance Cos 2.4 2.3 2.2
Safeco Insurance Cos 2.2 2.3 2.3
American Family Insurance Group 2.1 2.1 1.9
Liberty Mutual Insurance Cos 2.0 2.0 2.0

Hartford Insurance Group 1.7 1.6 1.6
CNA Insurance Cos 1.4 1.4 1.5
CGU Group 1.4 1.5 1.6
Prudential of America Group 1.3 1.3 1.4
MetLife Auto & Home Group 1.2 1.2 1.3

Allianz of America 1.2 1.2 1.2
Auto-Owners Group 1.1 1.0 1.0
HDI US Group 1.0 1.0 0.8
Erie Insurance Group 1.0 1.0 0.9
Southern F B Group 0.9 0.9 0.9

Top 20 Companies 74.1 73.8 73.4
Total U.S. Companies 100.0 100.0 100.0


 Adjusted Loss Ratios [*]
Company/Group 2000 1999

State Farm Group 71.3 62.7
Allstate Insurance Group 58.7 60.7
Zurich/Farmers Group 73.7 79.7
Nationwide Group 70.1 69.9
Travelers/Citigroup Co 65.0 60.2

USAA Group 57.3 67.9
Chubb Group of Insurance Cos 54.7 58.1
Safeco Insurance Cos 75.9 67.6
American Family Insurance Group 89.3 78.5
Liberty Mutual Insurance Cos 68.3 61.7

Hartford Insurance Group 56.6 58.0
CNA Insurance Cos 68.6 62.9
CGU Group 71.0 62.6
Prudential of America Group 51.8 55.3
MetLife Auto & Home Group 75.3 55.8

Allianz of America 62.0 55.5
Auto-Owners Group 84.6 79.6
HDI US Group 28.1 29.7
Erie Insurance Group 64.9 66.9
Southern F B Group 68.4 66.7

Top 20 Companies 67.3 64.5
Total U.S. Companies 66.7 64.0

 % of
 Company's
Company/Group 1998 Premiums

State Farm Group 62.8 22.4
Allstate Insurance Group 55.5 20.2
Zurich/Farmers Group 65.9 15.8
Nationwide Group 72.4 15.7
Travelers/Citigroup Co 57.1 12.0

USAA Group 56.4 21.7
Chubb Group of Insurance Cos 44.5 15.0
Safeco Insurance Cos 66.9 16.2
American Family Insurance Group 113.7 19.4
Liberty Mutual Insurance Cos 66.9 7.5

Hartford Insurance Group 55.9 8.4
CNA Insurance Cos 71.3 4.7
CGU Group 71.9 10.1
Prudential of America Group 53.5 24.4
MetLife Auto & Home Group 67.1 19.6

Allianz of America 39.9 8.4
Auto-Owners Group 88.7 16.5
HDI US Group 32.7 23.1
Erie Insurance Group 60.9 16.1
Southern F B Group 64.6 22.2

Top 20 Companies 62.7 16.1
Total U.S. Companies 63.8 10.9

(*)Adjusted loss ratio is direct losses incurred divided by the
difference between direct premiums earned and dividends paid to
policyholders.

Source: A.M. Best Statement and Competitive Analysis Report Products.
Homeowners Multiple Peril, Top Writers by State--2000

Rank based on direct premiums written.

($ Thousands)

 % of %
 No. of Direct U.S. Prem.
State Rank Cos. Premiums Total Chg.

Ala. 20 206 $619,515 1.8 7.1
Alaska 47 76 73,369 0.2 6.3
Ari. 23 234 561,086 1.6 9.9
Ark. 32 209 297,861 0.9 8.1
Calif. 1 282 3,750,088 10.9 5.1

Colo. 16 224 674,424 2.0 9.5
Conn. 24 200 541,297 1.6 5.0
Del. 46 170 79,380 0.2 6.0
D.C. 48 135 66,388 0.2 6.3
Fla. 3 312 2,852,286 8.3 7.9

Ga. 10 264 935,706 2.7 8.5
Hawaii 42 87 127,596 0.4 0.0
Idaho 43 180 113,058 0.3 5.9
Ill. 6 340 1,319,639 3.8 4.9
Ind. 13 282 716,565 2.1 6.9

Iowa 33 212 261,224 0.8 4.5
Kan. 28 233 409,257 1.2 6.2
Ky. 29 229 399,840 1.2 8.8
La. 19 208 631,866 1.8 6.5
Maine 40 156 154,594 0.4 4.9

Md. 22 240 577,926 1.7 6.8
Mass. 12 216 865,212 2.5 6.6
Mich. 7 209 1,295,663 3.8 8.4
Minn. 21 238 608,861 1.8 9.6
Miss. 30 200 341,515 1.0 4.8

Mo. 17 256 661,073 1.9 5.8
Mont. 44 145 100,907 0.3 9.1
Neb. 35 182 211,992 0.6 7.1
Nev. 34 163 218,218 0.6 10.3
N.H. 39 174 157,685 0.5 6.8

N.J. 9 218 1,077,109 3.1 4.7
N.M. 37 179 185,423 0.5 7.2
N.Y. 4 288 2,328,289 6.8 4.0
N.C. 11 237 899,109 2.6 9.6
N.D. 51 145 61,049 0.2 8.4

Ohio 8 302 1,124,900 3.3 5.4
Okla. 26 214 495,767 1.4 7.3
Ore. 31 198 329,133 1.0 7.2
Pa. 5 325 1,456,397 4.2 4.8
R.I. 41 172 138,803 0.4 4.5

S.C. 25 225 529,638 1.5 11.5
S.D. 49 167 65,687 0.2 7.0
Tenn. 18 275 655,682 1.9 5.6
Texas 2 303 3,066,773 8.9 6.9
Utah 36 185 199,040 0.6 5.1

Vt. 45 154 84,565 0.2 5.1
Va. 14 251 713,211 2.1 8.9
Wash. 15 214 675,324 2.0 8.8
W.Va. 38 161 184,024 0.5 2.6
Wis. 27 282 492,909 1.4 10.4
Wyo. 50 139 64,946 0.2 5.1

U.S. Total 1,160 $34,451,869 100.0 6.6

 Market Share
 Agency Direct
State ALR [1] DDCCE [2] Writer [3] Writer [4]

Ala. 74.1 1.7 23.0 77.0
Alaska 63.0 3.4 15.1 84.9
Ari. 63.4 2.1 23.2 76.8
Ark. 100.7 2.0 19.5 80.5
Calif. 52.1 4.0 22.8 77.2

Colo. 44.1 1.1 21.7 78.3
Conn. 57.6 1.8 58.8 41.2
Del. 67.7 1.7 37.0 63.0
D.C. 50.3 1.8 53.2 46.8
Fla. 31.9 1.8 45.3 54.7

Ga. 71.6 1.2 32.6 67.4
Hawaii 18.1 4.5 45.6 54.4
Idaho 70.4 2.1 35.5 64.5
Ill. 97.8 2.1 24.1 75.9
Ind. 90.9 1.6 35.8 64.2

Iowa 77.6 1.0 35.3 64.7
Kan. 62.9 1.4 24.5 75.5
Ky. 71.1 1.4 38.6 61.4
La. 119.5 2.0 29.3 70.7
Maine 56.9 2.0 65.2 34.8

Md. 71.2 1.2 38.8 61.2
Mass. 47.5 1.5 81.8 18.2
Mich. 87.7 1.9 44.6 55.4
Minn. 129.7 2.2 32.3 67.7
Miss. 57.5 1.6 20.2 79.8

Mo. 66.9 1.5 23.0 77.0
Mont. 60.0 2.6 37.5 62.5
Neb. 56.4 0.7 34.7 65.3
Nev. 58.7 1.5 20.4 79.6
N.H. 56.6 1.6 54.5 45.5

N.J. 51.2 2.4 51.1 48.9
N.M. 85.4 1.7 26.0 74.0
N.Y. 47.0 1.5 52.8 47.2
N.C. 62.0 0.8 29.7 70.3
N.D. 94.5 0.7 37.9 62.1

Ohio 77.6 1.5 47.1 52.9
Okla. 70.3 0.9 21.3 78.7
Ore. 58.6 1.5 32.1 67.9
Pa. 60.5 1.9 51.1 48.9
R.I. 52.6 1.5 48.7 51.3

S.C. 79.8 1.3 27.0 73.0
S.D. 85.1 1.3 43.9 56.1
Tenn. 68.0 1.5 30.1 69.9
Texas 82.9 4.2 17.8 82.2
Utah 45.8 1.2 25.0 75.0

Vt. 63.7 1.3 67.1 32.9
Va. 84.8 1.1 33.1 66.9
Wash. 62.9 2.0 37.6 62.4
W.Va. 64.2 1.9 36.1 63.9
Wis. 123.3 1.9 41.2 58.8
Wyo. 51.6 1.5 28.4 71.6

U.S. Total 66.7 2.1 35.6 64.4

 %
 Market
State Leading Writer Share

Ala. State Farm Group 29.7
Alaska State Farm Group 34.7
Ari. State Farm Group 21.0
Ark. State Farm Group 26.0
Calif. State Farm Group 22.1

Colo. State Farm Group 24.6
Conn. Travelers/Citigroup 11.2
Del. State Farm Group 26.2
D.C. State Farm Group 21.8
Fla. State Farm Group 20.4

Ga. State Farm Group 32.4
Hawaii State Farm Group 26.3
Idaho State Farm Group 18.1
Ill. State Farm Group 31.5
Ind. State Farm Group 25.1

Iowa State Farm Group 22.2
Kan. State Farm Group 23.5
Ky. State Farm Group 19.8
La. State Farm Group 32.7
Maine CGU Group 20.0

Md. State Farm Group 22.4
Mass. Andover Cos 8.1
Mich. State Farm Group 18.0
Minn. State Farm Group 21.9
Miss. State Farm Group 30.3

Mo. State Farm Group 24.3
Mont. State Farm Group 22.6
Neb. State Farm Group 24.7
Nev. Zurich/Farmers Group 25.4
N.H. Liberty Mutual Ins Cos 11.5

N.J. State Farm Group 12.9
N.M. State Farm Group 25.6
N.Y. State Farm Group 17.6
N.C. State Farm Group 18.9
N.D. State Farm Group 16.6

Ohio State Farm Group 21.4
Okla. State Farm Group 27.4
Ore. State Farm Group 24.4
Pa. State Farm Group 17.3
R.I. Nationwide Group 10.3

S.C. State Farm Group 24.9
S.D. State Farm Group 19.6
Tenn. State Farm Group 24.6
Texas State Farm Group 30.6
Utah State Farm Group 22.5

Vt. Vermont Mutual Group 14.4
Va. State Farm Group 21.3
Wash. State Farm Group 16.5
W.Va. State Farm Group 27.2
Wis. American Family Ins Group 26.7
Wyo. State Farm Group 27.2

U.S. Total State Farm Group 21.4

 %
 Market
State Second Leader Share

Ala. Alfa Ins Group 20.0
Alaska Allstate Ins Group 30.2
Ari. Zurich/Farmers Group 20.6
Ark. Southern Farm Bureau Group 20.8
Calif. Zurich/Farmers Group 19.6

Colo. Zurich/Farmers Group 19.3
Conn. Allstate Ins Group 11.1
Del. Nationwide Group 17.5
D.C. Travelers/Citigroup 20.9
Fla. HDI US Group 11.6

Ga. Allstate Ins Group 12.3
Hawaii CNA Insurance Cos 16.3
Idaho Zurich/Farmers Group 16.4
Ill. Allstate Ins Group 13.1
Ind. United Farm Bureau of Ind. Grp 9.0

Iowa Nationwide Group 14.2
Kan. American Family Ins Group 15.1
Ky. Kentucky Farm Bureau Group 18.1
La. Allstate Ins Group 17.4
Maine State Farm Group 9.0

Md. Allstate Ins Group 15.8
Mass. Commerce Group Inc 7.2
Mich. Auto-Owners Group 11.4
Minn. American Family Ins Group 15.6
Miss. Southern Farm Bureau Group 20.7

Mo. American Family Ins Group 19.2
Mont. Zurich/Farmers Group 16.5
Neb. Farmers Mutual Ins Neb. 12.7
Nev. State Farm Group 22.1
N.H. State Farm Group 9.1

N.J. Prudential of America Group 10.6
N.M. Zurich/Farmers Group 19.4
N.Y. State Farm Group 12.5
N.C. State Farm Group 17.5
N.D. American Family Ins Group 15.1

Ohio Nationwide Group 11.5
Okla. Zurich/Farmers Group 25.4
Ore. Zurich/Farmers Group 19.7
Pa. Erie Ins Group 12.6
R.I. Amica Mutual Group 10.0

S.C. Allstate Ins Group 16.3
S.D. American Family Ins Group 15.4
Tenn. Tennessee Farmers Cos 16.4
Texas Zurich/Farmers Group 20.4
Utah Zurich/Farmers Group 18.0

Vt. Co-Operative Ins Cos 10.8
Va. Allstate Ins Group 12.5
Wash. Zurich/Farmers Group 16.4
W.Va. Nationwide Group 16.7
Wis. State Farm Group 13.5
Wyo. Zurich/Farmers Group 16.8

U.S. Total Allstate Ins Group 11.5

(1)ALR: Adlusted loss ratio is direct losses incurred divided by the
differece 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 and Competitive Analysis Report Products.
COPYRIGHT 2001 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
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Title Annotation:flood insurance industry, includes market share data
Comment:A Rising Market.(flood insurance industry, includes market share data)
Author:Bowers, Barbara
Publication:Best's Review
Article Type:Industry Overview
Geographic Code:1USA
Date:Nov 1, 2001
Words:5910
Previous Article:BESTS CAPTIVE DIRECTORY.
Next Article:Managing Workers' Comp.
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