2021 colorado summary p and c marketplace summary

PIIAC has partnered with Real Insurance Solutions Consulting LLC to provide PIIAC members a summary of the 2023 Colorado Property Casualty Insurance Marketplace.

The marketplace summary is a graphic and numeric presentation of the Colorado P&C industry data from an independent agent’s perspective. This summary emphasizes direct premiums, direct losses, and the associated direct underwriting results before reinsurance. As independent agents, this is the marketplace experience for the business we place (or compete against) for our clients in Colorado. Included in this summary is data from nearly 3,000 insurers that are domiciled in the United States. Then, if they have written premiums in Colorado, their data is included in this summary.

In 2023, Colorado P&C premiums reached $21 billion, ranking Colorado 13 of 51 in total premiums in the United States. That is 2.2% out of $953 Billion in premiums nationwide. On a relative comparative basis, per capita premiums rank Colorado 8 of 51 for all P&C premiums combined, 2 of 51 for Personal Lines, 11 of 51 for Commercial Lines, and 20 of 51 for Agricultural Lines.

The summary starts with a direct premium listing of all 32 lines of business reported by P&C insurers, for all distribution styles in Colorado. The presentation of data then focuses on the 26 lines of business independent agents work with most. For these agent-focused lines of business, data is provided on loss ratios, growth rates, penetration rates by the various distribution styles and commission rates. In addition, and important to independent agents, a breakout of surplus lines activity is provided to show trends, and utilization rates. United States national data is provided for comparison purposes.

Highlights of the 2023 CO P&C Marketplace summary are included here. PIIAC members may receive a copy of the full report by clicking here or emailing skylar@piiac.com.

Colorado IA vs. National IA Premium

The clustered bar chart above shows independent agent penetration trends for the top lines of business. Shown are the top 10 lines of business in order of direct written premium written through independent agents.

The bar chart to the right shows the commission rate paid by all insurers for 26 independent agent-focused lines of business in alphabetical order. Shown last, Total (All Lines) is the average commission paid on all lines of business.

Commission rates are based on a page in insurer annual reports called “Exhibit of Premiums and Losses” or the “State’s Page”. On this State’s Page insurers are required to break-out all lines of business by state and provide data on each line of business for direct written premiums, direct earned premiums, direct incurred losses, and commissions and brokerage expenses. Note that the insurer annual report’s instructions tell insurers to include contingent commissions.

Surplus Lines: Top Lines, Premiums, and Utilization Rate

The pie chart shows the lines of business where surplus lines has the most premiums in Colorado. Also provided are total direct written premiums in surplus lines, and the percentage those total direct written premiums are to all direct written premiums.

Note the pie chart and bar chart/line chart are premiums for insurers domiciled in one of the 50 states or Washington, DC and writing surplus lines insurance. The premiums of these insurers are identified by their licensed status. Also, the above data does not include alien insurers (that is, insurers not domiciled in one of the 50 states).

All questions and comments, or need for further analysis are welcomed at the contact information below:

Real Insurance Solutions Consulting, LLC
Paul A. Buse, Principal

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