INSURANCE , ADMINISTRATIONdlslibrary.state.md.us/publications/Exec/MIA/IN11-338_2012.pdf · percent of the private passenger automobile insurance market, increasing to about 90.4vercent

INSURANCE , ADMINISTRATION

2013 Report on the Effect of Competitive Rating on the Insurance

Markets in Maryland

. October 15, 2013

Maryland Insurance Administration

2013 Report on the Effect of Competitive Rating on the Insurance Markets in Maryland

Table of Contents

I. Prefuce ___________________________________________________ l

II. Competitive Rating 1

III. Private Passenger Automobile Insurance 2

IV. Homeowners Insurance 4

V. Conclusion 5

VI. Exhibits ________________________ 6

I. Preface

Each year, the Maryland Insurance Commissioner ("Commissioner") is required to report

to the Governor and the General Assembly on the effect of competitive rating on the insurance

markets in the State. (See Ins. Art. §11-338) This report summarizes Maryland's competitive

rating law and provides information on competitiveness in two of the most important insurance

markets for consumers, private passenger automobile insurance and homeowners insurance, for

calendar year 2012.

II. Competitive Rating

The InsuranceReform Act of 1995 (BB 923, Competitive Rating) authorized insurers to

use rates for certain lines of property and casualty insurance without the prior approval of the

Commissioner. Each authorized insurer and each rating organization designated by an insurer

for the filing of rates must file with the Commissioner all rates and supplementary rate

information as well as any changes to rates or supplementary rate information on or before the

date they become effective. (See Ins. Art. § 11-307) Rates may not be excessive, inadequate, or

unfairly discriminatory. (Ins. Art. § 11-306(b)(1)) Under competitive rating, the Commissioner

may not find a rate to be excessive unless it is unreasonably high for the insurance provided and

the Commissioner has issued a ruling that a reasonable degree of competition does not exist in a

market to which the rate is applicable. (Ins'. Art. § 11-306)

States moved from prior approval of rates to competitive rating to allow insurers to react

quickly to business cycles. When claims experience is favorable, it is anticipated that insurers

generally will act to decrease rates andlor relax underwriting restrictions to increase their market

1

share. When claims experience deteriorates, it is anticipated that insurers generally will act to

increase rates andlor tighten their underwriting standards to accept less risk. Proponents of

competitive rating maintain that competition between insurers prevents excessive rates even

during a downturn in the underwriting business cycle because insurers are not willing to raise

rates to the point where they will lose significant market share to one or more competitors.

Moreover, competition encourages insurers to accept more risks, making insurance widely

available to consumers. Factors relevant to market competitiveness include, among other things,

the number of insurers providing coverage in the market; the market share concentration of those

insurers; and changes in market share of the insurers.

III. Private Passenger Automobile Insurance

During calendar year 2012, there were 158 companies actively providing private

passenger automobile insurance and related products in the State.of Maryland, compared to 157

companies in 2011. Many of these companies are owned by holding companies. This report

refers to two or more individual companies owned by a common holding company as an "insurer

groUp."l Exhibit 1 identifies all insurer groups, the individual companies comprising each

insurer group and the 2012 written premium for the insurer group as well as for each individual

company within the group. Ofthe 158 companies writing private passenger automobile

insurance, 60 are a part of a top ten insurer group.

The market share for the top ten insurer groups has remained relatively stable between

2006 and 2012. (See Exhibit la) In 2006, these top ten insurer groups accounted for about 87.7

1 Insurer groups are being used in this report as opposed to individual companies as this provides a more consistent comparison of data over the years due to individual company mergers and acquisitions.

2

percent of the private passenger automobile insurance market, increasing to about 90.4vercent in

2012.

A commonly accepted measure of market concentration is the Herfindahl-Hirschman

Index (HHI).2 Markets in which the HHI is between 1000 and 1800 points are considered to be

moderately concentrated and those in which the HHI is in excess of 1800 points are considered

to be concentrated. The following chart reflects the number of insurers offering private

passenger automobile insurance in Maryland for the five-year period from 2008 through 2011, as

well as the HHI for each year.

2008 2009 2010 2011 2012

Number 148 151 159 157 158 OfPPA Insurers

HHI 1188 1193 1189 1226 1248

The change in HHI from 2011 to 2012 may be attributable to a one half of one percent

increase in market share for the top three underwriters. Although there has been a modest

change in market concentration, an HHI of 1248 is indicative of a market that remains

moderately concentrated.

In the private passenger automobile insurance market, individuals with risk

characteristics that private passenger automobile insurers are unwilling to accept are able to

obtain coverage from the Maryland Automobile Insurance Fund (MAIF). Another indicator of

the competitiveness of the private passenger automobile insurance market is the market share

2 This is calculated by squaring the market share of each fIrm competing in the market and then summing the resulting numbers. The HHI takes into account the relative size and distribution ofthe fIrms in a market and approaches zero when a market consists of a large number of fIrms of relatively equal size. The HHI increases both as the number of fIrms in the market decreases and as the disparity in size between those fInns increases.

3

held by MAIF. Over the seven-year period from 2006 to 2012, MAIF's market share declined

from approximately 3.7 percent to approximately 1.8 percent. During that same period, market

share for the top insurer groups excluding MAIF increased from approximately 84.1 percent in

2006 to approximately 88.6 percent in 2012. These figures suggest that private passenger

automobile insurers have competed for greater market share by accepting more risk.

IV. Homeowners Insurance

During calendar year 2012, there were 124 companies actively providing homeowners

insurance in Maryland, c<;>mpared to 119 in 2011. Of the 124 companies actively writing

homeowners insurance, 46 belong to top ten insurer groups. Exhibit 2 identifies all insurer

groups, the individual companies comprising each insurer group and the 2012 written premium

for the insurer group as well as for each individual company within the group.

The market share for the top ten insurer groups remained essentially stable from 2006 (85

percent)3 to 2012 (85.7 percent). (See Exhibit 2a) The following chart reflects the number of

insurers offering homeowners insurance in Maryland for the five-year period from 2008 through

2012, as well as the HHI for each year.4

2008 2009 2010 2011 2012

Number of 117 129 129 119 124 Homeowner Insurers

BBI 1149 1135 1118 1107 1067

3 The top ten insurers have changed since 2006. Most notably, Allianz Insurance Group has fallen to number 11 and Alleghany Group has entered the top 10; therefore, if adding the 2006 market shares of the top ten in Exhibit 2a, the total will be less than 85%. 4 The HHI values for 2008 through 2011 differ slightly from prior years' reports. The HHI values for 2008 and 2009 only reflected the top ten insurers. In 2010 and 2011, one insurer did not report its data properly. The values have been corrected in this report and are accurately reflected in Exhibit 5.

4

An HHI of 1067 indicates the homeowners insurance market in Maryland remains moderately

concentrated.

Another indicator of competition is the percentage of business held by the Joint Insurance

Association ("JIA"), the State's residual property insurer. In 2012, JIA's market share was 0.10

percent, representing an approximately 55 percent reduction from its 2006 market share of 0.22

percent. These figures suggest that homeowners insurers have competed for greater market share

by accepting more risk.

v. Conclusion

When healthy competition exists in the private passenger automobile insurance and

homeowners insurance markets, Maryland insurance consumers have a variety of choices with

respect to insurers, products and pricing. In evaluating the competitiveness of the marketplace,

the MIA takes into consideration the number of insurers in the marketplace, the concentration of

the market shares of those insurers, and the changes in market share that occur over time.

The market share information for 2012 indicates that Maryland's private passenger

automobile insurance and homeowners insurance markets are moderately concentrated. For

private passenger automobile insurance, the number of competitors in the market and a declining

market share for MAIF suggest that this moderately concentrated market is competitive.

Likewise, for homeowners insurance, the number of competitors and small market share for the

residual market are indicators of a competitive market. The MIA will continue to monitor both

markets for changes in market concentration, competitiveness and availability.

5

VI. Exhibits

Exhibit 1: Groups Writing Private Passenger Automobile Insurance in Maryland in 2012

Including Each Company Within the Group

Exhibit la: Comparison of Market Share of the Top Ten Insurer Groups for Private Passenger

Automobile Insurance from 2006 to 2012

Exhibit 2: Groups Writing Homeowners Insurance in Maryland in 2012 Including Each

Company Within the Group

Exhibit 2a: Comparison of Market Share ofthe Top Ten Insurer Groups for Homeowners

Insurance from 2006 to 2012

Exhibit 3a: Maryland Private Passenger Automobile Insurance Written Premium and Market

Share by Insurer Group for 2012

Exhibit 3b: Maryland Homeowners Insurance Written Premium and Market Share by Insurer

Group for 2012

Exhibit 3c: Maryland Homeowners and Private Passenger Automobile Insurance Premium

Written by Insurer Group

Exhibit 3d: Private Passenger Automobile and Homeowners Insurance Written Premium by

Group as a Percentage of Total Written Premium for All Lines

Exhibit 4a: Homeowners, Private Passenger Automobile and All Other Lines ofP & C

Insurance as a Percentage of Total Written Premium from 2003 through 2012

Exhibit 4b: Growth in Written Premium of Homeowners, Private Passenger Automobile, All

Other Lines and Entire P & C Insurance Market from 1999 to 2012

Exhibit 5: HHI Values for Homeowners and Private Passenger Automobile Insurance from 2003

to 2012

6

i Groups Writing Private Passenger Automobile Insurance in Maryland in 2012 Including

2012

2 176 STATE FARM GRP

4 140 NATIONWIDE CORP GRP

Maryland 2013 Report on Competitive Rating

Each Company Within the Group

2012 Private

Passenger Auto

754,830,184

348,784,562

Page 1

STATE FARM MUT AUTO INS CO

STATE FARM FIRE & CAS CO '--

NATIONWIDE MUT INS CO

NATIONWIDE GEN INS CO

NATIONWIDE MUT FIRE INS CO

NATIONWIDE AFFINITY CO OF AMER

TITAN IND CO

AMCO INSCO

NATIONWIDE INS CO OF AMER

HARLEYSVILLE PREFERRED INS CO

VICTORIA FIRE & CAS CO

ALLIED PROP & CAS INS CO

NATIONWIDE PROP & CAS INS CO

NATIONWIDE ASSUR CO

DEPOSITORS INS CO

2012 Company

673,024,118

81,806,066

.. 5;O.3?i046' ··i,8~i,O~·31

117,937,784-

102,700,421

52,261,524-

50,858,140

10,640,895

4,780,698

4,304,217

2,255,946

1,575,067

654,594

502,263

276,777

36,236

Exhibit 1

6

8

Groups Writing Private Passenger Automobile Insurance in Maryland in 2012 Including


, • < ':::\/:'~F'~~>~ ;<." ~',

...... ,., ~':;;~;<

213 ERIE INS GRP

111 LIBERTY MUT GRP

2012 Private

Passenger Auto

267,418,458

191,574,841

ERIE INS EXCH

ERIE INS CO

LIBERTY MUT FIRE INS CO AMERICAN STATES PREFERRED INS CO

LM GEN INS CO

FIRST LIBERTY INS CORP

SAFECO INS CO OF IL OHIO CAS INS CO MONTGOMERY MUT INS CO

SAFECO INS CO OF AMER

LM INS CORP

LIBERTY INS CORP

WEST AMER INS CO

FIRST NATL INS CO OF AMER

Maryland 2013 Report on Competitive Rating Page 2

2012 Company

Premium

262,815,344

4,603,114

41,876;951: ; 23;483)657: 16;P,4P,~7ij 15,214;990j

.. 1,2521627!

, .... ~oi~41~:i

82,807,779

39,360,570

32,712,801

9,076,558

5,978,650

5,247,304

4,982,584

4,500,454-

4,104,432

1,431,651

1,235,023

137,035

Exhibit 1

2012 Rank

10

12



2012 Private Group Passenger Auto Code Group Name Group Premium Company Name

3548 TRAVELERS GRP 62,774,829

212 ZURICH INS GRP 27,078,598

TRAVELERS HOME & MARINE INS CO

TRAVELERS IN D CO

TRAVELERS COMMERCIAL INS CO

TRAVELERS IND CO OF AMER

STANDARD FIRE INS CO

TRAVCO INS CO

FOREMOST INS CO GRAND RAPIDS MI

21ST CENTURY CENTENNIAL INS CO

21ST CENTURY N AMER INS CO

FARMERS NEW CENTURY INS CO

21ST CENTURY PREMIER INS CO

TRUCK INS EXCH

MID CENTURY INS CO

21ST CENTURY IND INS CO

FOREMOST PROP & CAS INS CO


----------

2012 Company Premium

40,029,190

7,891,545

7,688,152

3,764,258

2,782,870

618,814

... ·.,;1;067,005:

• ···:55.?)o4q;j :i93)553:

7,223,361

6,187,468

5,268,269

3,733,067

2,049,939

1,446,538

774,976

232,774

162,206

Exhibit 1



2012

Rank

14

16

Group

Code

1278

Group Name

CALIFORNIA STATE AUTO GRP

250 DONEGAL GRP

18 215 KEMPER CORP GRP

20 o BRETHREN MUT INS CO


2012 Private

Passenger Auto

Group Premium

24,789,714

23,117,985

21,195,464

14,913,497

Page 4

Company Name

KEYSTONE INS CO

AAA MID ATLANTIC INS CO

STATE AUTO PROP & CAS INS CO

PENINSULA INS CO

DONEGAL MUT INS CO

ATLANTIC STATES INS CO

UNITRIN AUTO & HOME INS CO

KEMPER INDEPENDENCE INS CO

UNITRIN DIRECT INS CO

UNITRIN DIRECT PROP & CAS CO

RESPONSE WORLDWIDE INS CO

WARNER INS CO

MERASTAR INS CO

RESPONSE INS CO

BRETHREN MUT INS CO

2012 Company

Premium

23,538,111

1,251,603

11,441,603

17,878,644

2,951,839

2,287,502

14,090,824

3,554,274

1,407,900

873,339

477,418

327,729

292,217

171,763

14,913,497

Exhibit 1

2012

Rank

22

24

26

28

30

32



Group

Code

271

Group Name

PENNSYLVANIA NATL INS GRP

o PARAMOUNT INS CO

640 MUTUAL BENEFIT GRP

169 SENTRY INS GRP

761 ALLlANZ INS GRP

2538 AMTRUST GMACI MAIDEN GRP

2012 Private

Passenger Auto

Group Premium

11,874,871

9,208,178

8,897,488

6,315,670

4,760,669

3,828,283

Company Name

PENNSYLVANIA NATL MUT CAS INS CO

2012 Company 'Premium

11,874,871

:~~~~lff\ir{1K~.r .. A\~~"''PE1S~;1;f~'~s}€iit,0j11T':;;;1ii;~0tt~,~gS0A';11:rO;S79;7081 Jq'E1V~~INSc()·6FfHES(jufHEAst,·.:/~ j,1;+§t;Q741

PARAMOUNT INS CO

MUTUAL BENEFIT INS CO

DAIRYLAND INS CO

FIREMANS FUND INS CO

NATIONAL SURETY CORP

AMERICAN AUTOMOBILE INS CO

NATIONAL GEN ASSUR CO

NATIONAL GEN INS CO

9,208,178

8,897,488

6,315,670

3,597,214 1,163,477

-22

3,768,978 59,305

Maryland 2013 Report on Competitive Rating PageS Exhibit 1

2012

Rank

'33.

34

36

38

40

42

44



Group.

Code Group Name

300 HORACE MANN GRP

3478 HALLMARK FIN SERV GRP

408 AMERICAN NATL FIN GRP

54 CUMBERLAND GRP

3098 TOKIO MARINE HOLDINGS INC GRP

361 MUNICH RE GRP

2012 Private

Passenger Auto .

3,496,488

2,652,939

2,100,085

1,878,257

1,340,585

977,454

2012 Company

Premium

..',:,<' '."',726,1324j

?D~~~5<·.i;; ... . •. ', ...................•. ' ...........•...•............. ·.··.·.5 ... 9. 9 ..... , .. ·.~.·. 8 .. ·.3 .• · .• '.·.;,· .. : '.~.' ~:;.'.' ... ::.:: ::~. :" ...•.. ;": .~::.~':: .. ~'C:','" ...

TEACHERS INS CO

HORACE MANN PROP & CAS INS CO

HORACE MANN INS CO

HALLMARK NATL INS CO.

NATIONAL UNION FIRE INS CO OF Pins

UNITED FARM FAMILY INS CO

CUMBERLAND INS CO INC

PHILADELPHIA IND INS CO

AMERICAN MODERN HOME INS CO

AMERICAN FAMILY HOME INS CO

2,054,508

1,354,644-

87,336

2,652,939

1,560

2,100,085

1,878,257

1,340,585

828,625

148,829

Maryland 2013 Report on Competitive Rating Page 6 Exhibit 1

2012

Rank

46

48

50

52

54

56

58



2012 Private

Group Passenger Auto

Code Group Name Group Premium Company. Name

1129 WHITE MOUNTAINS GRP

4509 IRONSHORE GRP

o TRUSTSTAR INS CO

17 LIFE OF THE SOUTH CORP GRP

785 MARKEL CORP GRP

84 AMERICAN FINANCIAL GRP

o WESTERN GEN INS CO

643,763

351,329

204,830

163,565

142,113

15,354

6,852

ESSENTIA INS CO

IRONSHORE IND INC

TRUSTSTAR INS CO

LYNDON SOUTHERN INS CO

MARKEL AMER INS CO

NATIONAL INTERSTATE INS CO

TRIUMPHE CAS CO

WESTERN GEN INS CO


2012 Company

Premium

643,763

351,329

204,830

163,565

142,113

-11,966

3,388

6,852

Exhibit 1



2012 Private 2012 Group Passenger Auto

Rank Code Group Name Group Premium Company Name

60 313 AEGIS GRP 408 AEGIS SECURITY INS CO

INDUSTRY TOTALS 3,903,685,400


2012 Company

Premium

408

Exhibit 1

Comparison of Market Share of the Top Ten Insurer Groups for Private

Passenger Automobile Insurance from 2006 to 2012

25.00% ,--------------------------------------------------------------------------------------------

II'IIGEICO

I!IISTATE FARM

10.07% 9.14% 8.93%

5.28% 6.75% 7.14%

6.06% 6.68% 6.85%

6.06% 5.71% 5.42%

2.92% 4.17% 4.91%

3.10%

!ill TRAVELERS 7% 2.07% 1.91% 1.84% 1.77% 1.61%

Maryland 2013 Report on Competitive Rating Exhibit la

Groups Writing Homeowners Insurance in Maryland in 2012 Including


2012 Group 2012 Homeowners 2012 Company Rank' Code Group Name Group Premium Company Name Premium

--~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ . '1 176." . stATEFARKIi~~RR~;;':';::: ">'H):~;!t~:·~>~,;;.",:;,,;, .. '·.:?:'f:i?7~J4§7:~g.~4 ::;·;;";,~r~Jg'f~~N?lEI~'g';§e;q~X'~C:OX.i;.;" ..... ., \ ····21'3 ,4(:,1 j~04!

2 8 ALLSTATE INS GRP

4 213 ERIE INS GRP 125,914,487

6 200 UNITED SERV AUTOMOBILE ASSN GRP 115,692,768


ALLSTATE INS CO

ALLSTATE PROP & CAS INS CO

ENCOMPASS HOME & AUTO INS CO

ENCOMPASS INS CO OF AMER

ENCOMPASS IND CO

ALLSTATE IND CO

ERIE INS EXCH

UNITED SERV AUTOMOBILE ASSN

USAA CAS INS CO

USAA GEN IND CO

GARRISON PROP & CAS INS CO

130,987,134

32,778,640

19,108,621

10,449,030

5,916,667

957,804

125,914,487

63,825,077

38,868,617

8,150,081

4,848,993

Exhibit 2

8 38

10 91



CHUBB INC GRP 25,818,568

HARTFORD FIRE & CAS GRP 19,786,522

GREAT NORTHERN INS CO

FEDERAL INS CO

VIGILANT INS CO

PACIFIC IND CO

CHUBB NATL INS CO

HARTFORD INS CO OF THE MIDWEST

SENTINEL INS CO LTD

TWIN CITY FIRE INS CO CO

TRUMBULL INS CO

HARTFORD ACCIDENT & IND CO

HARTFORD CAS INS CO

HARTFORD UNDERWRITERS INS CO

HARTFORD FIRE IN CO

PROPERTY & CAS INS CO OF HARTFORD


11,426,784

5,387,548

5,159,445 3,409,569

435,222

13,266,382

2,200,679

1,912,362

1,665,399

329,649 272,358

89,822

47,030

2,841

Exhibit 2



2012 Group 2012 Homeowners Rank Code Group Name Group Premium Company Name

12 o BRETHREN MUT INS CO .

14 241 METROPOLITAN GRP

16 175 STATE AUTO MUT GRP


15,772,341

12,495,027

10,492,795

Page 3

BRETHREN MUT INS CO

METROPOLITAN PROP & CAS INS CO

METROPOLITAN GRP PROP & CAS INS CO

ECONOMY PREMIER ASSUR CO

STATE AUTO PROP & CAS INS CO

2012 Company Premium

·····10,01£)';2141 ·5223773: I. .j "', /:

....... 2,185,3881

........• ;;~::c~.*~~!~l 15,772,341

6,887,785 4,555,850 1,051,392

10,492,795

Exhibit 2

2012

Rank

18

20

22

24

26

28



Group

Code

28

242

19

Group Name

AMICA MUT GRP

SELECTIVE INS GRP

ASSURANT INC GRP

640 MUTUAL BENEFIT GRP

271 PENNSYLVANIA NATL INS GRP

4765 WBL GRP

2012 Homeowners

Group Premium

9,192,878

6,886,682

5,779,794

5,591,302

5,106,435

4,485,936

Company Name

AMICA MUT INS CO

SELECTIVE INS CO OF THE SOUTHEAST

SELECTIVE INS CO OF SC

SELECTIVE INS CO OF AMER

AMERICAN BANKERS INS CO OF FL

AMERICAN SECURITY INS CO

STANDARD GUAR INS CO

AMERICAN RELIABLE INS CO

MUTUAL BENEFIT INS CO

PENNSYLVANIA NATL MUT CAS INS CO

FIDELITY NATL PROP & CAS INS CO


2012 Company

Premium

9,192,878

3,756,286

3,071,980

58,416

4,594,646

1,034,829

146,242

4,077

5,591,302

5,106,435

4,485,936

Exhibit 2

2012

Rank

30

32

34

36

38

40

42



Group

Code

361

Group Name

MUNICH RE GRP

244 CINCINNATI FIN GRP

796 QBE INS GRP

70 FIRST AMER TITLE GRP

o ARMED FORCES INS EXCH

408 AMERICAN NATL FIN GRP

1344 ARX HOLDING CORP GRP

2012 Homeowners

Group Premium

4,029,542

3,202,391

2,779,205

1,991,151

1,516,101

1,399,504

1,031,269

Company Name

AMERICAN MODERN HOME INS CO

AMERICAN FAMILY HOME INS CO

CINCINNATI INS CO

PRAETORIAN INS CO

QBE INS CORP

FIRST AMER PROP & CAS INS CO

HORACE MANN INS CO

ARMED FORCES INS EXCH

UNITED FARM FAMILY INS CO

AMERICAN STRATEGIC INS CORP


2012 Company

Premium

3,129,158

900,384

3,202,391

1,945,901

833,304

1,991,151

870,435

1,516,101

1,399,504

1,031,269

Exhibit 2

-------~---~-~ -----------~~~-

Group



2012 Homeowners 2012 Company 2012 Rank Code Group Name Group Premium Company Name Premium

44 447 HARFORD GRP 912,964 HARFORD MUT INS CO 912,964

46 71 UNIVERSAL INS CO GRP 654,561 UNIVERSAL N AMER INS CO 654,561

48 o FARMERS MUT FIRE INS CO OF SALEM ( 455,367 FARMERS MUT FIRE INS CO OF SALEM CN 455,367

50 313 AEGIS GRP 300,275 AEGIS SECURITY INS CO 300,275"

52 o WESTMINSTER AMER INS CO 260,603 WESTMINSTER AMER INS CO 260,603

54 o GOODVILLE MUT CAS CO 117,088 GOODVILLE MUT CAS CO 117,088

50 313 AEGIS GRP 300,275 . AEGIS SECURITY INS CO 300,275

Maryland 2013 Report on Competitive Rating Page 6 Exhibit 2

2012

Rank

i' 57'

58

60



Group 2012 Homeowners

Code Group Name Group Premium Company Name

65 FM GLOBAL GRP 2,005 AFFILIATED FM INS CO

o CHURCH MUT INS CO 716 CHURCH MUT INS CO

INDUSTRY TOTALS 1,382,143,710


2012 Company

Premium

2,005

716

Exhibit 2

------------~ ... -- . __ ...

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

!III ALLSTATE INS CO

l\1IITRAVELERS

II1II ERIE INS EXCH

I!lI NATIONWIDE

l\1II HARTFORD FIRE & CAS GRP

lmJIA

Comparison of Market Share of the Top Ten Insurer Groups for

Homeowners Insurance from 2006 to 2012

2.4% 2.2% 2.0%

0.4% 0.5% 0.7% 1.0%

1.4% 1.5% 1.5% 1.6%

0.2% 0.1% 0.1%

Maryland 2013 Report on Competitive Rating Page 1 Exhibit 2a

----------------- - - ---

2012

Rank

1

2

3 4

5

6

7 8

9

10

i1 12

13

14

15

16

17

18

19

20

21 22

23 24

25

Maryland Private Passenger Autombile Insurance Written Premium

and Market Share by Insurer Group for 2012

2012

Group

Code

31

176

8

Group Name

BERKSHIRE HATHAWAY GRP

STATE FARM GRP . ALLSTATEINSGRP

140 NATIONWIDE CORP GRP

200 ". UNiTED SERV'AtlfQI\i1QSfLEASSNGRP 213 ERIE INS GRP 155······· PROGRESslvr(jRP··'Fr"';""~i':"· 111 LIBERTY MUT GRP

......... ·······o···I\I1AiF

3548

91

212

o

TRAVELERS GRP HARTFORD FlifE:8rEASGRP·'~x".:

ZURICH INS GRP

AGENCY INscOoFMb

1278 CALIFORNIA STATE AUTO GRP 175 . sf A TEAtJfH"M iJT;Gf{p:T'{~f:;' . 250 DONEGALGRP 241 METROpoHfAN'ciilp'it"iY£' "i"······· ·.·i,·.· .. ···

215 KEMPER CORP GRP . 28AMkA I\I1UT~'RP ','<,T",·,));;"'i:!""

o 4

BRETHREN MUT INS CO AMERiPRISE·FJN'GRP·i:;j:j~·j;i··.

271 PENNSYLVANIA NATL INS GRP 242 .... SELECTI'/EjNS .. · .. ···i,·'·' .. ,·.·,· .. · .. •• o o

PARAMOUNT INS CO E L.EPHANT·fNS:eQi'j .. :::>t;'

2012 Private

Passenger Auto Group

Premium

".847;126,674

754,830,184 ·4Q5:969::2~lti<· •. 348,784,562

'278;9isrO·33········· 267,418,458

·,··c·.,,,,'··"" •• ··,.,.·

191,574,841

2012 Market

Share

21.7%

19.3%

8.9%

7;1%

4.9% . .... ..;>:;>? <69;;~fs8i;65·4~ii;P(fT:. "f?'~::" .•.• 1. 8%

62,774,829 1.6% 1:2%' 0.7%

...•. i .. ·26,4JJ;860·":;;;';·ij;~>7'· '0:7%

24,789,714 0.6% ; ;~;~:~::~:'V "/24j161~553',';,'",

14,913,497 i.iii·i,',! .• ,'>i" •. 'i2~;3ibi71..~,!.'

,~1,481~~~~.0i;~ · 9,208,178

, ......... ,~.~' .. '

0.6% :0.6% .

0.5%

.... ····0;3%

0.3%

'm~3% 0.2%

0.2%'

Maryland 2013 Competitive Rating Report

2012 Cumulative

Market Share

21.7%

41.0% "53.7%1

62.7%

69.8%

76.7%

82:1%:

87.0% . 88:8%1

90.4%

91.6%

92.3%

92.9%1

93.6% 94;2%.

94.8%

95.4%;

95.9% ....... 96.4%'

96.8%

97.4%

97.:7%: 97.9% 98.2%:

Exhibit 3a, Page 1

2012

Rank

26

27 28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43 44

45 46

47

48

49

50

Maryland Private Passenger Autombile Insurance Written Premium


2012

Group

Code

640

38 169

33

761

Group Name

MUTUAL BENEFIT GRP

CHUBB INC

SENTRY INS GRP CALIFORNIACAS'M<3MT

ALLlANZ INS GRP , ........................... ~., .......... .

626 ACE LTD GRP

2538 AMTRUST GMACI MAIDEN GRP 311 MAIN STREI:T AMERIGRP.· '··'·'··"·C""·""·'··

300 244

3478

12

408

HORACE MANN GRP CINONNATiFIN'G'RP" .•

HALLMARK FIN SERV GRP ,. AMERICANINTLGRP

AMERICAN NATL FIN GRP o .. "IFA INsc:c)' 54 CUMBERLAND GRP 57 ... ,. E lECTR k:: TNS'G'R p' ·"';:'·'7·';·:;''f.;lf!\~>:;(:1'"

3098 TOKIO MARINE HOLDINGS INC GRP

19 361 MUNICH RE GRP

o "RIDERINS CO,:.,:;,:' , .................... .

1129 WHITE MOUNTAINS GRP 4664 ... PLj'RECOM'p)\f\rrES:GWp:ft!;'~;tlf;::: , ..:~:~:;>:i}'>:O 4509

o o

IRONSHORE GRP

. ARMED FORCES INS EXCH

TRUsTSTAR INS CO

2012 Private

Passenger Auto Group

Premium

8,897A88 ....... ,; ;"i;584}83S;f':

6,315,670

.··· .. ·.5,728;$35 4,760,669

2012 Market

Share

0.1%

3,828,283 0.1% . 3,597)'814 ••••• W~Gl~}\~~lF;i'···· '0]% 3A96A88

2,652,939

1,878,257 ;;<\.'1; 597;7t~ :;C'}")iPiCti1'j1;7.·'·'

1,340,585 ., ··7;rS~t~'l;'o26j875',.,.

977A54

643,763

204,830

0.1%

;"'0 .. 1% 0.1%

0.0% n'O··:·::O·O%'·'· ..... : . 0

0.0%

0.0%

0.0%


2012 Cumulative

Market Share

98.4% 98,6%]

98.8% 98.9%

99.0%

99;1%.

99.2% 99.3%'

99.4% ...................••.. ,','V

99,5%'

99.6% 99:6%: 99.7%

99.7%

,99.8%

99.8%'

99.9%

99.9%

99.9% 99.9%:

99.9%

10b.O%·'

100.0% ""'100.0%':

100.0%

Exhibit 3a, Page 2

2012

2012 Group Rank Code

51 3495

52 17

53 88

54 785

55 775

56 84

57 ······4716> 58 0

59 ···········289~f

60 313 ..

6i 3678

Maryland Private Passenger Autombile Insurance Written Premium'


Group Name INFINITY PROP & CAS INSGRP .

UFEOFTHESOUTHCORPGRP THE HAN 6VER'INS"GRP'''s"",' MARKEL CORP GRP

PHARMACIsTS MU,.:GRP, AMERICAN FINANCIAL GRP . F() RTR E!;K(fFfp'''7;r;':~,;;':;i;iI~;:':~.··

·::::·;'.:i<> ,.' " .•. ... , .. '.s .. · ..... :,

WESTERN GEN INS CO WESTERKrSEffV(ON'fRP;~T:GRP7:';;f .• ···; AEGIS GRP

INDUSTRY TOTALS

2012 Private Passenger Auto Group 2012 Market

Premium Share

163,565

142,113

15,354

408

3,903,685,400

0.0%

0.0%

0.0% r"O,O%'

0.0%

0.0%


2012 Cumulative Market Share

100.0%

100.0% 1()0.0%:

100.0% . 10'0.0%' 100.0% 166:0%1 100.0%

"'100.0%

100.0% 160.0%:

Exhibit 3a, Page 3

2012

2 3 ....

Group

Code

8

·.3548

Group Name

STATE FARM'GRpi

ALLSTATE INS GRP

Maryland Homeowners Insurance Written Premium


2012 Homeowners Group Premium

6 200 UNITED SERV AUTOMOBILE ASSN GRP

7111 8 38

12 o BRETHREN MUT INS CO 15,772,341

AMICA MUT GRP 9,192,878

i9 20 242 SELECTIVE INS GRP

21

22 ASSURANT INC GRP 5,779,794

24 640 MUTUAL BENEFIT GRP 5,591,302

26 271 PENNSYLVANIA NATL INS GRP 5,106,435

28 4765 WBLGRP 4,485,936


2012 Market 2012 Cumulative

1.1%

0.7%

0.4%

0.4%

0.4%

0.3%

Market Share ...... '19.8%.

34.3%

73.5% '···'»8O.8%'!

82.6%

85.5%

"'g6:'?%1 87.9%

92.9%

94.0%

94.9%

96.5%

97.1%

Exhibit 3b Page 1

2012

Rank 29···· .

30 ·31'.,·

..

32

33

34 ..... , 35 36

44

48 ···49·

50 r·:;····

51

52

54

Group

Code

4

70

447

313

0

0

MUNICH RE GRP

QBE INS GRP

FIRST AMER TITLE GRP

HARFORD GRP



2012 Homeowners Group

Premium

1,991,151

912,964

FARMERS MUT FIRE INS CO OF SALEM CN 455,367

AEGIS GRP 300,275

WESTMINSTER AMER INS CO 260,603

GOODVILLE MUT CAS CO 117,088



Share

0.1%

0.1%

0.0%

0.0%

0.0%

0.0%

Market Share

97.4%:

97.7%

99.0%

99.7%

99.9% ;99.9%1

99.9%

100.0%

100.0%

Exhibit 3b Page 2

2012

Rank

5S 56 57 58 59

60 ·61·

Group

Code

4663

Group Name

INDUSTRY TOTALS




2012 Homeowners Group

Premium

1,381,859,062


Share Market Share

100.0%:

Exhibit 3b Page 3

Maryland Homeowners and Private Passenger Automobile Insurance Premium Written by Insurer Group

Combined Percent 2012 Homeowners and 2012 Private Private

Combined Group Private Passenger 2012 Homeowners Percent Passenger Auto Passenger

Rank Code Group Name Auto Premium Group Premium Homeowners Group Premium Auto <'~' "- '". : .

2 31 BERKSHIRE HATHAWAY GRP 847,126,674 0 0.0% 847,126,674 100.0%

4 140 NATIONWIDE CORP GRP 473,936,731 125,152,169 26.4% 348,784,562 73.6%

10 o MAIF 69,258,654 o 0.0% 69,258,654 100.0%

12 212 ZURICH INS GRP 42,410,216 15,331,618 36.2% 27,078,598 63.8%

Maryland 2013 Report on Competitive Rating Exhibit 3c, Page 1

---------~--- -----~~--------


2012

Combined

Rank

26

42

46

48

50

Group

Code

4

4774 CLOISTER MUT & WINDSOR MOUNT JOY (

796 QBE INS GRP

57 ELECTRIC INS GRP

70 FIRST AMER TITLE GRP


Combined

Homeowners and

Private Passenger

Auto Premium

3,844,111

2,779,205

2,144,354

1,991,151

2012 Homeowners Percent

Group Premium Homeowners

3,844,111 100.0%

2,779,205 100.0%

546,635 25.5%

1,991,151 100.0%

2012 Private

Percent

Private

Passenger Auto Passenger

Auto

o 0.0%

o 0.0%

1,597,719 74.5%

o 0.0%

Exhibit 3c, Page 2


2012

Combined

Rank

58

60

Group

Code Group Name

o FARMERS & MECHANICS MUT INS ASSN C

1129 WHITE MOUNTAINS GRP


Combined

Homeowners and

Private Passenger

Auto Premium

2012 Homeowners Percent

Group Premium Homeowners

Percent

2012 Private Private

Passenger Auto Passenger

Auto

Exhibit 3c, Page 3


2012

Combined Group

Rank Code

76 0

Group Name

WESTERN GEN INS CO

INDUSTRY TOTALS

NUMBER OF GROUPS WITH PREMIUM

Number of Groups That Write Both

Number of Groups That Write Only One


Combined

Homeowners and

Private Passenger

Auto Premium

6,852

5,285,544,462

83

39

Percent

2012 Private Private

2012 Homeowners Percent Passenger Auto Passenger

Group Premium Homeowners Group Premium Auto

0 0.0% 6,852 100.0%

1,381,859,062 26.1% 3,903,685,400 73.9%

61 61

22 22

Exhibit 3c, Page 4

2012 Combined

Rank

30

Group

Private Passenger Automobile and Homeowners Insurance Written Premium by Group

as a Percentage of Total Written Premium for All Lines

Code Group Name

All Lines Written

Premium

Percent of Business That

is Homeowners and

Private Passenger Auto

84 AMERICAN FINANCIAL GRP 34,730,069 0.0%


Auto only

Exhibit 3d, Page 1

2012

Combined

Rank

60


as a Percentage of Total Written Premium for All lines

Group

Code Group Name

313 AEGIS GRP

All Lines Written

Premium

2,385,034


is Homeowners and

Private Passenger Auto

12.6%


Both

Exhibit 3d, Page 2

2012

Combined

Rank

Group


as a Percentage of Total Written Premium for All Lines


is Homeowners and

Code Group Name

All Lines Written

Premium Private Passenger Auto

~~~

INDUSTRY TOTALS FOR CARRIERS THAT

WRITE AT LEAST ONE OF HOMEOWNERS

OR PRIVATE PASSENGER AUTO


8,045,983,508 65.7%

Exhibit 3d, Page 3

Homeowners, Private Passenger Automobile and All Other Lines of P & C Insurance as a Percentage of Total Written Premium

from 2003 to 2012

--------_ ... _._ .. _--_._._ ....... -.. __ .. __ ... _-----_ .. _----._._---------_. __ ._ ... _._ ... _-_ .... _-._ .... _._-_ ... _------_ .... _ .. _ .. __ .. _--_ .. _----_._--_. __ ._----_._._.

50.0% ,-------------------------------------------------.---

45.0% -f---·---·...,----·-·---···---·-------··-····--···------·---

40.0%

35.0%

30.0%

25.0%

. 20.0%

15.0%

10.0%

5.0%

0.0%

!Il'lI Homeowners

tmlPPA

II Other Lines

Maryland 2013 Report on Competitive Rating Exhibit 4a

Growth in Written Premium of Homeowners, Private Passenger Automobile, All Other lines and Entire P & C

Market from 1999 to 2012

Private Passenger

Homeowners Change from Auto Written Change from All Other lines Change from Industry All lines Change from

Year Written Premium

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

541,365,927

578,122,050

630,780,641

727,327,229

876,052,251

1,012,116,403

1,116,407,983

1,165,539,041

1,189,734,842

1,199,945,275

1,248,004,991

1,276,859,367

1,310,357,053

1,381,859,062

Prior Year

6.8%

9.1%

15.3%

20.4%

15.5%

10.3%

4.4%

2.1%

0.9%

4.0%

2.3%

2.6%

5.5%


Premium

2,552,604,805

2,630,585,710

2,823,368,223

3,145,981,461

3,471,647,800

3,650,674,809

3,699,649,120

3,703,878,382

3,672,012,660

3,643,961,453

3,691,405,635

3,775,381,150

3,822,943,262

3,903,685,400

Prior Year Written Premium Prior Year Written Premium Prior Year

2,041,464,588 5,135,435,320

3.1% 2,363,690,821 15.8% 5,572,398,581 8.5%

7.3% 2,619,465,200 10.8% 6,073,614,064 9.0%

11.4% 3,055,566,757 16.6% 6,928,875,447 14.1%

10.4% 3,424,640,397 12.1% 7,772,340,448 12.2%

5.2% 3,668,521,319 7.1% 8,331,312,531 7.2%

1.3% 3,853,335,728 5.0% 8,669,392,831 4.1%

0.1% 4,057,493,889 5.3% 8,926,911,312 3.0%

-0.9% 3,988,593,247 -1.7% 8,850,340,749 -0.9%

-0.8% 4,047,717,157 1.5% 8,891,623,885 0.5%

1.3% 3,719,201,772 -8.1% 8,658,612,398 -2.6%

2.3% 3,735,522,775 0.4% 8,787,763,292 1.5%

1.3% 3,670,948,445 -1.7% 8,804,248,760 0.2%

2.1% 3,959,400,420 7.9% 9,244,944,882 5.0%

Exhibit 4b

._._._----_._------_ .. _._----_._ ..... _ ...... _ .... _._ ......... _ .. _ ... _ .. _--_ .. _. __ ._----_. __ ._-_._ .. _--------... __ ._._._._--_._ ............ _ .. _ .. _._._._ .. _._ .. _-----------_._---_._------_ .. _-.. -.-.... _ ........ _._ .. _.-... __ .]

HHI Values For Homeowners and Private Passenger Auto From 2003 to I

2012 I

1300 -r-------------------------------------------------------------------------------.--

1250 +---------------------------------------------------------------------

I 1200 +----------------------------------------------------------------------- I'

!

1150 +-- .. --.---.. --....... -..... -.-.---.. --.-.. ----........... -........ --.--.. --.-

1100

1050

1000

950

1101 1098 1162

1053 1084 1168 1180

Maryland 2013 Report on Competitive Rating Exhibit 5

Documents

INSURANCE , ADMINISTRATIONdlslibrary.state.md.us/publications/Exec/MIA/IN11-338_2012.pdf · percent of the private passenger automobile insurance market, increasing to about 90.4vercent