Where the Homeowners Insurance Premium Dollar Goes in US
Homeowners insurance accounted for 11% of all P/C premiums and
21% of all personal lines insurance in 2000.
In 1999 (latest US figures available at close of publishing) claims
accounted for $75 of every $100 earned in homeowners insurance premiums
in the US, down from $77 reported in 1998.
US expenses—commissions, state premium taxes, general overhead
expenses—accounted for $30 out of every $100 in premium dollars
earned in 1999 (compared to $32 in 1998).
1999 investments added $11 to income, compared to $12 in 1998.
The bottom line worked out to $4 after-tax profit for every $100
in premiums in the US, which is up from the $2 reported in 1998.
Of note, property damage claims and theft in 1999 accounted for
79% of claims payments (74% in 1998), and liability claims accounted
for 6% (10% in 1998). The cost of settling these claims in 1999
accounted for the remaining 15% of total claim costs, compared to
16% in 1998.
(1) Includes vandalism and malicious mischief
(2) Includes interest, dividends and realized capital gains on all
assets
(3) Based on 35% corporate tax income
* Not included as a line item in 1999
Source: Estimated by the Insurance Information Institute
(III), based on data from Insurance Services Office, Inc. and the
National Association of Insurance Commissioners
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| Note: These charts are based on every $100
of revenue plus investment income of $11, for a total of $111.
Percentages are rounded up and therefore don’t necessarily
equal 100%. |
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