Ever wondered how modern-day fire departments began? Or why agents buy E&O coverage? What about when the first business owners policy launched?
Insurance Industry by Numbers
- Property/casualty industry’s net premiums written total $426 billion
- 2,689 P/C insurance companies in U.S.
- U.S. insurance industry employs 2.2 million people
- Insurance industry paid $15.8 billion in premium taxes in 2010
- Of 23 top P/C insurers, 12 had 100+ combined ratio in latest quarter
- Insurers’ 2011 nine-month profit down 60 percent from last year
The business owners policy (BOP) was first introduced in 1976. This was the first time commercial risks were offered property and liability coverage in the same coverage form without the need to piecemeal the parts together in a package.
The average renters insurance policy premium is about $173 a year, according to the National Association of Insurance Commissioners (NAIC). Still, only 43 percent of renters buy renters insurance, according to the Insurance Research Council. More than 96 percent of homeowners have insurance on their home.
Independent Agents’ E&O
The vast majority of agency owners (86.5 percent) say they buy agency E&O coverage to protect the assets of their agency, according to Insurance Journal‘s 2011 Agency E&O Survey.
In 2009, 6 percent of insured homes had a claim, according to ISO. About 95 percent of those claims were for property damage, including theft.
Revenue per Employee
Revenue per agency employee remained flat in 2010 with the average for agencies under $5 million in revenues just over $150,000 and agencies with more than $5 million at $172,000, according to the Insurance Agents & Brokers of America’s 2011 Best Practices Study.
Backbone of U.S. Economy
The insurance industry continues to be a major sector in the American economy, in terms of the business it generates, the number of people it employs, and the amount of tax it pays to Uncle Sam. P/C and life/health insurance companies paid $15.8 billion in premium taxes in 2010, or $51 for every person living in the United States
Insurance carriers and related activities accounted for $425 billion, or 3.0 percent of U.S. gross domestic product in 2009, according to the Insurance Information Institute.
The U.S. insurance industry’s net premiums totaled $1.0 trillion in 2010, with premiums recorded by life/health insurers accounting for 58 percent and premiums by P/C insurers accounting for 42 percent. Net premiums written totaled $426 billion in 2010, according to SNL Financial.
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