Largest U.S. City and Home to Thousands of Fallen Heroes

The United States Census Bureau’s Census 2000 estimated the population of the State of New York at 18,976,457. Approximately 79 percent of the adult residents had graduated from high school and about 27 percent had earned a bachelor’s degree or higher. The capital, New York City, has a population of 8,008,278.

From an employment perspective, the primary industries in New York are:

From a property/casualty insurance perspective, New York accounted for $29,726,389,000 of direct written premium. Countrywide as of Sept. 30, 2003, the aggregate is $313,781,216,000 of P/C insurance written. The aggregate New York calendar year 2002 loss ratio of 70.3 percent was above the countrywide year-to-date Sept. 30, 2003, loss ratio of 62.3 percent. For calendar year 2003 New York’s homeowners insurance will move above the 47.8 percent that was reported in 2002. Winter storms struck upstate New York in December 2003 and an aggressive plaintiff’s bar has expanded the liability coverage packaged with homeowners multiple peril.

The New York economy is diversified, however, the employed civilian population comprises less than half of New York’s population. It is distributed as follows:

Given the anticipated growth in the number of jobs located in New York and the diversification of the New York economy, I would expect the growth rate of New York’s P/C insurance marketplace, as measured by direct premium written, to exceed the growth rate experienced on a countrywide basis.

Joseph L. Petrelli is president and founder of Demotech Inc., a Columbus, Ohio-based financial analysis and actuarial services
firm. Petrelli is a member of the Casualty Actuarial Society, American Academy of Actuaries and the Conference of Actuaries in
Public Practice. Additional information can be found at www.demotech.com.

Topics USA New York Property Casualty