In this issue, we kick off the year with a look at the 10 largest niche markets in the United States. These markets provide a total of $35.12 billion in commercial lines premium or 27.7% of total commercial premiums written, according to data obtained from IMR (Insurance Market Research) Corp. The loss ratio is 56.7%.
"The 10 largest markets include 1,133,135 individual business establishments, employing more than 32 million people," notes Lindsay Smith, president of IMR Corp., one of the PLP Companies. "The largest niche market in the United States (as defined by SIC Code) is trucking and courier services, except air, which provides more than $9 billion in premium and a loss ratio of 62.2%. The fact that the health care sector is growing faster than general inflation is reflected in the next two largest markets--offices and clinics of medical doctors, with nearly $5 billion in premium and a loss ratio of 57.6% and hospitals, with $3.36 billion and a loss ratio of 47.2%."
Rounding out the top 10 are general contractors and operative builders ($3.32 billion, 55.2% loss ratio); eating places ($2.99 billion, 58.0%); beef cattle, except feedlots ($2.84 billion, 64.5%); local governments ($2.63 billion, 43.4%); hogs ($2.24 billion, 61.8%); scheduled air transportation ($1.99 billion, 60.7%); and plumbing, heating and air conditioning ($1.77 billion, 41.1%).
There are 927,444 small establishments (employing fewer than 20 people) in this group which account for $12.86 billion in premium for an average premium of $13,865 per account. There are 183,951 medium-sized accounts (20-99 employees) providing $10.62 billion in premium for an average of $57,720. The 18,230 large firms (100-499 employees) account for $5.85 billion in premium and an average of $320,940 per account. The 3,510 jumbo accounts provide $5.79 billion for an average of $1.65 million per account.
These businesses provide $6.30billion in premium in the Rough Notes Southwest region. The loss ratio is 56.8%. Trucking and courier services represent the largest subgroup, accounting for $1.41billion in premium and a loss ratio of 64.6%. Beef cattle are next, with $1.18 billion and a loss ratio of 63.7%. They are followed by hogs ($809.7 million, 60.9%); offices and clinics of medical doctors ($609.8million, 62.2%); hospitals ($490.2 million, 46.0%); general contractors and operative builders ($444.8 million, 47.3%); eating places ($410.4 million, 53.1%); local governments ($354.5 million, 41.5%); scheduled air transportation ($336.3million, 45.0%); and plumbing, heating and air conditioning ($246.4 million, 34.2%).
There are 231,790 establishments in this group in the Southwest, employing 6.52 million people. The 184,928 small firms (those employing fewer than 20 people) account for $2.12 billion in premium for an average of $11,450 per account. The 41,262 medium-sized accounts (20-99 employees) provide $1.96 billion in premium for an average of $47,620 per account. The 4,992 large firms (100-499) account for $1.39 billion for an average of $277,815 per account, and the 608 jumbo accounts provide $829.6 million for an average of $1.36 million per account.
Information on this niche market is available from IMR at 39 E. Hanover Ave., Morris Plains, NJ 07950, or call (888) 237-7066. *
©COPYRIGHT: The Rough Notes Magazine, 1999