The U.S. Census Bureau’s Census 2000 estimated the population of the State of Maryland at 5,296,486. Approximately 84% of the adult residents had graduated from high school and about 31% had earned a bachelor’s degree or higher. The capital city, Annapolis, has a population of 35,838.
From an employment perspective, the primary industries in Maryland are:
From a P&C insurance perspective, Maryland accounted for $6,839,818,000 of direct written premium. Countrywide as of September 30, 2003 the aggregate is $313,781,216,000 of P&C insurance written. Maryland calendar year 2002 loss ratio of 76.8% was above the countrywide year to date September 30, 2003 loss ratio of 62.3%. It was interesting to note that Maryland’s Homeowners’ loss ratio for calendar year 2002 was 98.8% compared to the countrywide average at September 30, 2003 of 61.8%. This was likely the result of several winter storms and a tornado or two that struck Maryland during 2002. Homeowners’ insurance premium comprised 10.6% of the P&C premium written in Maryland and 10.7% of the premium written countrywide.
What surprised the most was that Maryland’s Medical Malprac-tice premium for calendar year 2002 was $209,685,000. I expected it to be less. It was 3.1% of the premium written in Maryland. The national average was 2.5%.
The Maryland economy is not yet robust; however, the employed civilian population comprises nearly one half of the population. It is distributed as follows:
Given the anticipated growth in the number of jobs in Maryland, the need for additional diversification of the economy and the need to decrease the average loss ratio, I would expect the growth rate of Maryland’s P&C direct written premium written to exceed the growth rate countrywide.
This article was written by Joseph L. Petrelli, President and founder of Demotech, Inc. Demotech, Inc. is a Columbus, Ohio based financial analysis and actuarial services firm. Mr. 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 Maryland Property Casualty
Was this article valuable?
Here are more articles you may enjoy.
Surplus Lines Commercial Growth; Fla. Litigation Costs Reach New High in 2023 
What Disruptions Have Been Reported After the Global Tech Outage? 
Progressive Q2 Net Income Skyrockets Over 320% 
Viewpoint: Deepfake Fraud Is On the Rise. Here’s How Insurers Can Respond 
From This Issue
