Weiss Says 8 Insurers Are Exposed to 74.5% of Homeowners Risk in Western Fire-Prone States

In seven western fire-prone states, just eight large property and casualty insurers are exposed to 74.5 percent of the home insurance risk, according to a recent analysis by Weiss Ratings Inc., a provider of independent insurance company ratings and analyses.

Western states ranked by acres burned from Jan. 1, 2001 to Aug. 19, 2001 according to the National Interagency Fire Center were Nevada (570,755); Oregon (448,509); California (227,149); Alaska (221,940); Washington (153,948); Idaho (118,129); and Utah (114,376).

At year-end 2000, eight carriers commanded 85.9 percent of the market in Alaska; 77.1 percent in California; 60.4 percent in Idaho; 76.4 percent in Nevada; 71.3 percent in Oregon; 65.4 percent in Utah; and 63 percent in Washington.

Those eight companies are: State Farm Group; Zurich Financial Services Group; Allstate Group; Safeco Group; USAA Group; CA State Auto Group; Allianz; and Auto Club of Southern California.

Just three companies — State Farm, Zurich, and Allstate — controlled 55.8 percent of the total market share in the western fire-prone states last year. Their combined homeowners exposure ranged from a low of 37.6 percent in Washington to a high of 70.6 percent in Alaska.

At year-end 2000, the top eight homeowners insurers in the nation controlled a record 58 percent of the national market, compared to only 26 percent in 1965. State Farm and Allstate, the two largest homeowners insurers in the nation, have increased their market penetration even more dramatically, up from just 6 percent of the national market in 1965 to 33.3 percent in 2000.

Weiss issues safety ratings on more than 15,000 financial institutions.

Topics California Carriers Washington Homeowners Alaska