January 5, 2012 – First of a series (2009-2011)
The Massachusetts property and casualty industry enjoyed a $10 billion market for calendar year 2009. This $10 billion was split between personal lines and commercial lines with $5.2 billion or 52% in favor of personal lines and $4.8 billion or 48% of the premium from commercial lines.
The following graph from the Division of Insurance using the NAIC database shows the breakdown between the various lines of business in each category.
The importance of private passenger automobile to the main street agent continued with private passenger premiums totaling just over 35% of the state’s total premium count.
When fixed auto commissions phase out things may change
The expiration of fixed private passenger automobile insurance commissions on April 1, 2012, along with the continued development of competitive rating could have over the course of the next 2 to 3 years a dramatic effect on individual agencies’ commission income and mix of business.
The seven American agency companies in the top ten private passenger auto writers had 78% of the market
For calendar year 2009, the top 10 underwriters of private passenger automobile insurance [Click for this post] were responsible for booking almost 86% of the premium written. The American agency companies in the top 10 underwriters accounted for $2.4 billion or 78% of the automobile insurance premiums written that year.
AgencyChecklists will endeavor to update this post with the calendar year 2010 premiums and then with the calendar year 2011 premiums when they become available to show the developing trends with regard to agency market penetration.