2011 State Specialists

The Demotech Company Classification System Reveals State Specialist Property/Casualty Insurers

By Douglas A. Powell

The Demotech Company Classification System categorizes insurers into one of eleven categories based on an analysis of data reported by the companies to the National Association of Insurance Commissioners.  The eleven categories that comprise the system are Nationals, Near Nationals, Super Regionals, Regionals, State Specialists, Coverage Specialists, Strategic Subsidiaries, Risk Retention Groups, Surplus Lines Carriers, Reinsurers and Companies with less than $1 million in direct written premium.

To be categorized as a State Specialist, a carrier must be an individual, active company reporting data to the NAIC using the P&C annual statement format at 12/31/2010.  It must write at least $1,000,000 at 12/31/2010 with 90 percent or more in one state.  Further, it cannot be a surplus lines company, risk retention group or reinsurance company.

In total, 814 companies were categorized as State Specialists for 2011.  This is approximately thirty percent of the nearly 2,750 companies that reported data at 12/31/2010.  This group wrote about 15 percent of the industry’s direct written premium in 2010.

“State Specialists are typically the independent agent’s most reliable and consistent markets.  These companies are dedicated to a geographic area, understand it and consistently strive to serve it.  Demotech is pleased to provide State Specialists with the attention they deserve,” said Demotech’s President, Joseph Petrelli.

A full list of State Specialists is available by contacting dpowell@demotech.com.

Click here for the complete 2011 State Specialists article including a listing of the 341 State Specialists that are not affiliated with a group.