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SUMMER 2022
VIRGINIA
THE MAGAZINE FOR INDEPENDENT INSURANCE AGENTS
2021 Virginia P-C Marketplace Summary
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The Big I Virginia is a publication of the
Independent Insurance Agents of Virginia
8600 Mayland Drive, Richmond, VA 23294
Phone: 804.747.9300 / Toll-free: 800.288.IIAV (4428)
Fax: 804.747.6557 / E-mail: members@iiav.com / Website: iiav.com
IIAV IS AN ORGANIZATION DEVOTED TO
PROMOTING, ENHANCING, SERVING AND
ASSISTING INDEPENDENT INSURANCE AGENTS.
The Big “I” is a trademark owned by the Independent
Insurance Agents & Brokers of America, Inc. (“IIABA”), and is
being used with the permission of IIABA.
IIAV Staff
INSIDE
6 Message from the Chairman of the Board Mike Yeargy
8 Message from the President & CEO Robert N. Bradshaw Jr.
10 Message from the State National Director Michael Funkhouser
10 Save the Date: Young Agents Conference Oct. 26-28
12 Thank You 2022 Partners
13 2021 Virginia P-C Marketplace Summary
28 ICUMI Rough Notes: Mental Health Suppport in Everyday
Interactions
THANK YOU ADVERTISERS
32 Applied Underwriters
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16 Berkshire Hathaway
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3 Builders Mutual Insurance
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9 EMC Insurance
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7 Harford Mutual
HarfordMutual.com
5 Iroquois Group
IroquoisGroup.com
25 Penn National
PennNationalInsurance.com
31 SIAA
11 Summit Holdings
summitholdings.com
Robert N. Bradshaw, Jr., MAM
President & CEO
rbradshaw@iiav.com
Cell (804) 929-4134
Teri Chester
Executive Secretary/
Receptionist
& Membership Coordinator
tchester@iiav.com
Joe Hudgins, CPCU
Technical Consultant
jhudgins@iiav.com
Cell (804) 929-4138
Bonnie Joyce
Senior Insurance
Administrative Assistant
bjoyce@iiav.com
Linda Loving, CIC, AISM, AIAO
IIAV Chief Operating Officer
& VFSC Executive Vice President
lloving@iiav.com
Cell (804) 929-4133
Susan E. C. Perkins
Membership/Education
Coordinator
sperkins@iiav.com
Bonnie J. Warren,
ACSR, CPIW, DAE, RPLU
Insurance Account Executive
bwarren@iiav.com
Vera Wooden
Insurance Account Executive
vwooden@iiav.com
Donald W. Bragg,
CPCU, CIC, CPIA, MBA
Director of Membership
& Marketing
dbragg@iiav.com
Melanie DeCola
Insurance Account Executive
mdecola@iiav.com
Debbi Little
Director of Professional
Development and Programs &
Executive Director for VAIA
(804)747-6557
dlittle@iiav.com
6 Davenchar Group
davenchargroup.com
2 Jackson Sumner &
Associates
jsausa.com
Cover Photo 33721496 / Business Statistics © Didecs | Dreamstime.com
For more information on advertising, contact Eric Johnson
Blue Water Publishers, LLC / 9406 N. 107th St., Milwaukee, WI 53224
414-708-2059 / fax: 414-354-5317 / eric@bluewaterpublishers.com
The Big I Virginia is a publication of the Independent Insurance Agents
of Virginia and is published quarterly by Blue Water Publishers, LLC. The
Independent Insurance Agents of Virginia, Inc. reserves the right in its sole
discretion to reject advertising that does not meet IIAV qualifications or which
may detract from its business, professional or ethical standards. IIAV and Blue
Water Publishers, LLC do not necessarily endorse any of the companies
advertising in the publication or the views of its writers. The publisher cannot
assume responsibility for claims made by advertisers, content provided by
the editor, or for the opinions expressed by contributing authors.
4 THE BIG I VIRGINIA SUMMER 2022
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2022-23 CHAIRMAN OF THE BOARD
MICHAEL YERGEY
Rbradshaw@iiav.com
IIAV PROVIDES THE DATA AND INFORMATION
YOU WANT AND NEED
I
cannot tell you how honored I am to be elected
Chairman of IIAV — the largest and oldest insurance
trade association in the Commonwealth. We are
embarking on our 125th anniversary year and for any
corporation — profit or non-profit — that is a notable
milestone. We’ve gone through many changes and
certainly expect to go through many more. Many times, we
have heard about the demise of the independent agency
system, and we’ve proved them wrong. Consumers want
help when it comes to protecting their interests, their lives
and those of their families and their property and their
future — both personal and commercial.
IIAV serves to help our membership — the agencies and their
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and productive. I read recently, “We don’t get paid for the
hours we work. We get paid for the value we deliver.” That
goes for us professionally and for IIAV. I can tell you from
personal experience from when my dad introduced me to
IIAV to now, the staff at IIAV works tirelessly supporting and
representing the independent agency system. I appreciate
the responsibility and expectation to help guide all the
facets of IIAV in the direction of helping you, the IIAV
member, to include the Independent Insurance Agents of
Virginia, the Virginia Financial Services Corporation, The
Virginia Association of Insurance Agents and the Virginia
Agents Political Affairs Committee.
That said, in this issue of Big I Virginia we have the Second
Annual Virginia P/C Marketplace Summary updated
through 2021. In this, you will not only find
nationwide data on trends and statistics,
but this is also the ONLY place you will
find such detailed data for Virginia and
the markets we serve. I know a number of
you are going to want this entire report —
all 53 pages of it — and you can get this
report by contacting Bob Bradshaw at IIAV
at Rbradshaw@iiav.com.
The IIAV is known for providing the best
of information, professional development,
information resources and advocacy.
You will not find stronger and more
comprehensive benefits for everyone in
your agency. We’re proud to have you as
a member and I’m honored to serve you
this year.
Best,
Michael Yergey
Chairman, 2022-23
https://davenchargroup.com
6 THE BIG I VIRGINIA SUMMER 2022
PRESIDENT & CEO
ROBERT N.
BRADSHAW, JR., MAM
rbradshaw@iiav.com
IIAV PROGRAMS, SERVICES AND ADVOCACY
I echo Mike Yergey’s comments that you will not see the
data provided in IIAV’s 2021 Virginia P/C Marketplace
anywhere else. It’s exclusive to IIAV members and we know
of a number of agency members who pour over this data
annually. Again, the full report is available by contacting
me at Rbradshaw@iiav.com.
That said, one of the key membership benefits of IIAV
is our advocacy efforts on behalf of the independent
insurance agent/agency. When this magazine comes out,
it will be somewhat of a lull in the year where advocacy is
still an important activity of the association but is not all
encompassing as when the legislature is in session. There
are any number of commissions meeting and there’s carry
over legislation from the past session that we are working
on perhaps for the 2023 legislature.
During the session you know what we’re doing and what
we’re working on. Weekly we send out reports on what
legislation we’re looking at and general information on
the good, the bad and the ugly. With over 3,000 pieces
of legislation being introduced during the session there is
certainly some good legislation and there’s certainly a lot
of ugly legislation.
ASKING SOMEONE TO
TELL ME WHAT THEY
WOULD LIKE TO EARN
OR WHAT THEY ARE
MAKING NOW IS A
CRITICAL BASIS TO
ESTABLISH IF I CAN
AFFORD SOMEONE IN
THE FIRST PLACE.
One bill that was introduced last year that didn’t get a lot
of attention was SB 447 which prohibited an employer
from seeking or asking about wage or salary history from
prospective employees. Not only this, but there was a civil
penalty associated with the bill. I was so flummoxed by
the bill I called HR Affinity Group — our endorsed HR firm
— and asked for their read on the legislation. Apparently
this sort of idea has progressed among a number of
states. The intent of the bill is to require that people be
judged on their merits and not associated with a salary
range associated with any particular group. Organizations
“should know” what their budget would allow and asking
a prospective employee what they are currently making is
unfair and discriminatory.
What???? Maybe I’m old school. Asking someone to tell
me what they would like to earn or what they are making
now is a critical basis to establish if I can afford someone
in the first place. Once when working in Washington, D.C.,
and looking for an administrative assistant, someone
replied to our notice asking for $100,000 per year in salary.
This was over 30 years ago. They were certainly talented
but meeting with this person with that expectation was a
waste of everyone’s time.
When I spoke with the Senator and their aide who put in
the legislation I couldn’t help but think that these people
have never signed a paycheck in their life. They tried to
mollify me that the legislation would allow me to present
a salary range. It also scared me when the bill passed in
the Senate but following discussions and lobbying by a
number of business groups, the bill failed in the House.
This bill took way more time than I expected and took a
lot of discussions with legislators and business groups.
Lobbying is a full contact support and if someone tells you
that they can adequately provide for advocacy virtually
and by attending one committee meeting a week … they
are pulling the wool over your eyes, or trying to. As Joe
Hudgins frequently said during the past session: “You
can’t make this stuff up,” and “You just have to be there.”
IIAV takes our mission to advocate and support he interest
of our members at the legislature seriously. It’s not a virtual
effort. And by all means, we let you know what we’re doing.
Stay tuned.
8 THE BIG I VIRGINIA SUMMER 2022
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STATE NATIONAL DIRECTOR
MICHAEL F. FUNKHOUSER
mikehm@shentel.net
TAKE ADVANTAGE OF BIG ‘I’ HIRES TO FIND TALENT
In survey after survey that the IIABA conducted, the
need and request from members was always the
same: “Our agency needs help attracting talent!” In
fact, 44% of respondents to the 2018 Agency Universe
Study cited the inability to find new, qualified employees
as their number one issue.
Out of this need, Big “I” Hires was born. I can’t state it any
better than the “About Us” section of the Big “I” Hires
website:
Big “I” Hires is a program developed by the IIABA, and is
intended to be a comprehensive solution to finding and
recruiting new talent, then onboarding them with ease.
It was created as a one-stop resource for independent
insurance agencies to attract, identify, assess and train
top performing Producers and CSRs. An array of tools and
online resources are available for members to allow them
to find the right hires for their agency with a few simple
clicks!
The beauty of Big “I” Hires is that it doesn’t use a “one size
fits all” approach.
The “DIY” hiring toolkit guides you through the entire
hiring process from preparing your search, through
screening, and ultimately hiring and onboarding. The kit
includes sample job descriptions, job postings, interview
questions and template, sample offer letter and
confidentiality agreement, and four-week learning
objectives. These kits are available for targeting
both Personal and Commercial Producers and CSR’s
alike. The employer is responsible for posting their
job opportunity and descriptions to job boards, and
handling the recruiting process. Member price per
position is $99. Member price for a complete kit with
all positions is $299.
Because resumes and interviews may not give true
insight into the potential employee, other tools are
available to help you assess your candidate. Caliper
personality testing, technical knowledge testing, and
sales call reluctance testing are available as well, and
will help narrow down your search.
If a more robust hiring approach is needed, Big “I”
Hires has partnered with IdealTraits, a true recruiting
platform that streamlines the hiring process from
start to finish. It allows you to post your job offers
to multiple job boards in one submission, receive
candidate resumes, and organize hiring into stages.
Access to assessment tools is also included, so you
may identify and hire the best fit. Subscriptions to
this service are offered in 90 day at $449 per location,
and an annual plan at $949 per location.
Further details can be found at bigihires.com .
Big “I” Hires provides IIAV members another “arrow
in the quiver” to attract the best in the industry to
your agency!
10 THE BIG I VIRGINIA SUMMER 2022
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26
12 THE BIG I VIRGINIA SUMMER 2022
2021 VIRGINIA P-C
MARKETPLACE SUMMARY
PREMIUMS - DISTRIBUTIONS - LINE OF BUSINESS TRENDS
Source: © A.M. Best Company — Used by Permission; US Census Bureau
You are being provided this summary of the Virginia property and casualty (P-C) insurance marketplace as a benefit of your
membership in the Independent Insurance Agents of Virginia.
What follows is a graphic and numeric presentation of the Virginia P-C industry data from an independent agent’s
perspective. This summary emphasizes direct premiums, direct losses and the associated direct underwriting results
before reinsurance. As independent agents, this is the marketplace experience for the business we place (or compete
against) for our clients in Virginia. Included in this summary is data from nearly 3,000 insurers that are domiciled in the
United States. Then, if they have written premiums in Virginia, their data is included in this summary.
The summary starts with a direct premium listing of all 32 lines of business reported by P-C insurers, for all distribution
styles in Virginia. The presentation of data then focuses on the 26 lines of business independent agents work with most.
For these agent-focused lines of business, data is provided on loss ratios, growth rates, penetration rates by the various
distribution styles and commission rates. In addition, and important to independent agents, a breakout of surplus lines
activity is provided to show trends, and utilization rates. United States national data is provided for comparison purposes.
For those readers interested in the details, the full P/C Marketplace report is available by contacting IIAV directly at
members@iiav.com. Five-year premiums are provided, loss and combined ratios, penetration rates by distribution style
and information on the numbers and largest insurers. The lines of business are provided in alphabetical order, and the
applicable line of business detail page number is provided. . On the product details pages, any line of business in
the Top 10 is highlighted with a small pie chart which shows its relative position in the ranking of premiums written by
independent agents, in Virginia.
Last, appendices are provided for information on approaches taken to presenting the industry data, definitions and
additional information that may further interest the reader.
Continued on page 14 >>
SUMMER 2022 THE BIG I VIRGINIA 13
MARKETPLACE SUMMARY
PREMIUMS: ALL P-C LINES OF BUSINESS – ALL DISTRIBUTION STYLES
Source: © A.M. Best Company — used by permission.
Notes or Comments: The above chart shows all 32 lines of business that P-C insurers are required to report on in their
annual statement. The lines of business are listed in alphabetical order. The 26 agent-focused lines of business are
emphasized above with an asterisk (*). These are the lines of business that are included whenever a total is provided for
Total (IA-Focused Lines) in the remainder of this 2021 Virginia P-C Marketplace Summary. The lines of business that are
not included in Total (IA-Focused Lines) are Accident & Health, Aggregate Write-ins, Credit, Financial Guaranty, Mortgage
Guaranty, and Warranty. These 6 lines of business are about 2.5% of all premiums in 2021.
Additional data on all 32 lines of business is provided in Appendix #1: All Lines of Business-Additional Details.
14 THE BIG I VIRGINIA SUMMER 2022
MARKETPLACE SUMMARY
Virginia Total Premiums Perspective
The previous page showed total premiums and premiums by line of business. To add perspective to that, below are some
standardized measures of total premiums for Virginia compared to other states, from data similar to the above.
In the below table, Total (All Lines) includes premiums for all 32 lines of business shown above, including Credit. The
combined premiums for Personal Lines is All Private Passenger Auto, Homeowners Multi-Peril and Farmowners Multi-
Peril. Commercial Lines is all other lines of business except All Private Passenger Auto, Homeowners Multi-Peril, Farm
owners Multi-Peril and Credit.
United States
Smallest/Lowest
State
Largest/Highest
State
Virginia (Rank)
Total (All Lines) Premiums $785 Billion $1.4 Billion
(Vermont-#51)
$97.3 Billion
(California-#1)
$16.6 Billion (#13)
Total (All Lines) Per Capita
Premium
$2,369 $1,674 (Ohio-#51) $3,839 (North
Dakota-#1)
$1,924 (#46)
Personal Lines Per Capita
Premium
$1,163 $835 (District of
Columbia-#51)
$1,621 (Florida-#1) $1,039 (#34)
Commercial Lines Per Capita
Premium
$1,186 $730 (West
Virginia-#51)
$2,647 (North
Dakota-#1)
$870 (#44)
Source: © A.M. Best Company — used by permission.
PREMIUMS: TOP AGENT LINES OF BUSINESS
Source: © A.M. Best Company — used by permission.
Continued on page 16 >>
SUMMER 2022 THE BIG I VIRGINIA 15
MARKETPLACE SUMMARY
PREMIUMS: TOP AGENT LINES OF BUSINESS
Source: © A.M. Best Company — used by permission.
Notes or Comments: The above pie charts show which lines of business are the most important to independent agents
based on direct written premium. The top 10 lines of business are shown in each pie chart, with premium from all other
lines of business combined in the “All Other” pie section. The upper left pie chart shows the premiums for the top lines
of business in order of premiums written by independent agents in Virginia. The upper right pie chart shows the same
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16 THE BIG I VIRGINIA SUMMER 2022
MARKETPLACE SUMMARY
lines of business but with all distribution styles included in premium totals for each line of business. The bottom two pie
charts are the same approach, but based on total United States independent agent distribution and premiums.
In Appendix #2: Distribution Style Classifications, background is given on the classification of insurers into distribution
styles based on insurer reported marketing types.
Top Line of Business Perspective
The United States overall, and most states individually, see Private Passenger Auto as the largest premium line of business
through independent agents. This is case in about 80% of the states, but there are exceptions. Those exceptions are
a handful of Midwest states, which have Multi-Peril Crop as their highest premium line of business, followed by several
states with Other Liability (Occurrence) or Other Liability (Claims-Made), a few states with Workers’ Compensation, and
finally one state with Homeowners Multi-Peril.
There are consistencies in the highest premium generating lines of business. To get a sense for that, in the table below
are the lines that are present in at least one state’s Top 10, along with the percent of states where that line of business is
in the top 10. The percentages are approximate, as small changes in premiums can result in variances, particularly in the
last of the lines listed.
Line of Business States With Product in Top 10
All Commercial Auto 100%
All Private Passenger Auto 100%
Commercial Multiple Peril 100%
Inland Marine 100%
Other Liability (Occurrence) 100%
Homeowners Multi-Peril 80% to 95%
Other Liability (Claims-made) 80% to 95%
Workers' Compensation 80% to 95%
Fire 80% to 95%
Multi-Peril Crop 45%
Allied Lines 35%
Medical Professional Liability 10%
Surety 10%
Farmowners Multi-Peril 10%
Accident & Health Lines 5%
Private Crop 5%
Earthquake 5%
Aircraft(all perils) 2%
Ocean Marine 2%
Warranty 2%
Source: © A.M. Best Company — used by permission.
Continued on page 18 >>
SUMMER 2022 THE BIG I VIRGINIA 17
MARKETPLACE SUMMARY
LOSS RATIOS: AGENT-FOCUSED LINES OF BUSINESS
Source: © A.M. Best Company — used by permission. (International not shown as less than five years data is available)
Adjusted Calendar Year Loss Ratio =
Paid Losses+New Reserves ± Changes in Prior Reserves
Earned Premiums - Policy Dividends
Notes or Comments: The above bar chart shows loss ratios for the 26 lines of business focused on by independent
agents. Loss ratios are calculated as “adjusted calendar year loss ratios” (see algebraic formula above). For each line of
business, the losses used in the ratio of losses to earned premiums equals the paid losses that year, plus any estimates
of future losses that will be paid from claims that year (new reserves), plus any changes in reserves from previous years
made that year (prior reserves). The "adjusted" part is if dividends are paid out under a line of business, the loss ratio is
adjusted for that cost. When dividends paid out is a minor factor, the adjusted loss ratio and unadjusted loss ratio are
nearly the same. However, where dividends are a factor, it is important to include them in the calculation whenever loss
ratios of different lines of business are compared.
18 THE BIG I VIRGINIA SUMMER 2022
MARKETPLACE SUMMARY
Virginia Loss Ratio Perspective
As can be seen in the above, loss ratios can vary in the short run from the long run. Loss ratios can also vary by state.
For added perspective on Virginia’s loss ratios, below is a table of the 2021 Virginia loss ratios contrasted with the United
States average loss ratios.
2021 Virginia Loss Ratio 2021 United States Loss Ratio
Aircraft (all perils) 24% 54%
All Commercial Auto 58% 64%
All Private Passenger Auto 64% 69%
Allied Perils Only 34% 79%
Boiler & Machinery 91% 38%
Burglary & Theft 61% 52%
Commercial Multi-Peril 37% 61%
Earthquake -1% 3%
Excess Workers' Comp 7% 41%
Farmowners Multi-Peril 46% 65%
Federal Flood 6% 48%
Fidelity 43% 28%
Fire 39% 68%
Homeowners Multi-Peril 50% 69%
Inland Marine 65% 49%
Medical Malpractice 46% 55%
Multiperil Crop 61% 76%
Ocean Marine 64% 54%
Other Liability (Claims-made) 59% 56%
Other Liability (Occurrence) 52% 61%
Private Crop 62% 89%
Private Flood 2% 46%
Products Liability 45% 52%
Surety 10% 16%
Workers' Compensation (*) 43% 51%
Total (All Lines) 54% 63%
Source: © A.M. Best Company — used by permission (*Individual state experience for workers’ compensation in North
Dakota, Ohio, Washington and Wyoming is not used for highlights as these are monopolistic fund states and premiums
are small and loss ratios can vary widely. Also International is not shown due to limited data.)
Continued on page 20 >>
SUMMER 2022 THE BIG I VIRGINIA 19
MARKETPLACE SUMMARY
PREMIUM GROWTH RATES: AGENT-FOCUSED LINES OF BUSINESS
Source: © A.M. Best Company — used by permission. (International not shown, as less than 5 years data is available)
Notes or Comments: The above bar chart shows the percentage change in direct written premiums for the 26 lines of
business focused on by independent agents. The 1-year percentage is the percentage change in premiums from 2020
to 2021. The 5-year growth rate is the constant percentage from the first year to the last year to exactly equal the direct
written premium in 2021, when applied for the 4 previous annual periods on a compounded basis. The Total (IA-Focused
Lines) shown last is the average growth rates for the 26 lines of business focused on by independent agents.
20 THE BIG I VIRGINIA SUMMER 2022
MARKETPLACE SUMMARY
Virginia Growth Rate Perspective
Premium growth rates can vary considerably by line of business. They can also vary considerably by state. To provide
perspective on Virginia growth rates, below is the 1-year growth rates by line of business in Virginia contrasted with
average growth rates in United States.
Virginia 1-Year Growth
United States 1-Year Growth
Aircraft (all perils) 1% 14%
All Commercial Auto 16% 17%
All Private Passenger Auto 4% 5%
Allied Perils Only 6% 12%
Boiler & Machinery 10% 11%
Burglary & Theft 8% 7%
Commercial Multi-Peril 8% 8%
Earthquake 19% 11%
Excess Workers' Comp 4% 2%
Farmowners Multi-Peril 4% 5%
Federal Flood 1% 1%
Fidelity 5% 7%
Fire Peril Only 2% 13%
Homeowners Multi-Peril 7% 8%
Inland Marine 16% 15%
Medical Malpractice 21% 10%
Multi-Peril Crop 32% 37%
Ocean Marine 24% 13%
Other Liability (Claims-made) 36% 31%
Other Liability (Occurrence) 9% 16%
Private Crop 5% 14%
Private Flood 29% 45%
Products Liability -14% 4%
Surety -3% 7%
Workers' Compensation -3% 3%
Total (IA-Focused Lines) 8% 10%
Source: © A.M. Best Company — used by permission.
Continued on page 22 >>
SUMMER 2022 THE BIG I VIRGINIA 21
MARKETPLACE SUMMARY
PENETRATION: TOP AGENT-FOCUSED LINES OF BUSINESS
Source: © A.M. Best Company — used by permission
Penetration =
Independent Agent Written Premium by Line of Business
All Written Premium by Line of Business
Notes or Comments: The clustered bar chart above shows independent agent penetration trends for the top lines of
business. Shown are the top 10 lines of business in order of direct written premium written through independent agents.
The percentages above are calculated based on premiums through independent agents, divided by all premiums for
each line of business. The 1-year and 5-year average penetration is available for the 26 lines of business focused on by
independent agents in the Lines of Business: Product Details section later in this Summary. The trend for all 26 lines of
business focused on by independent agents is provided last.
Information on classification of insurers into distribution styles is in Appendix #2: Distribution Style Classifications.
22 THE BIG I VIRGINIA SUMMER 2022
MARKETPLACE SUMMARY
Virginia Penetration Rate Perspective
Independent agent penetrations vary by line of business but also by state. To give perspective on Virginia’s penetrations
rates, below is a table of the line of business penetration rates in Virginia contrasted with the average penetration in all
the United States.
Virginia Penetration
United States Average
Aircraft (all perils) 93% 95%
All Commercial Auto 85% 85%
All Private Passenger Auto 26% 32%
Allied Perils Only 76% 86%
Boiler & Machinery 95% 93%
Burglary & Theft 98% 96%
Commercial Multi-Peril 84% 84%
Earthquake 75% 87%
Excess Workers' Comp 99% 94%
Farmowners Multi-Peril 29% 40%
Federal Flood 68% 78%
Fidelity 90% 91%
Fire Peril Only 85% 88%
Homeowners Multi-Peril 43% 49%
Inland Marine 75% 77%
Medical Malpractice 84% 75%
Multi-Peril Crop 93% 96%
Ocean Marine 96% 96%
Other Liability (Claims-made) 90% 92%
Other Liability (Occurrence) 82% 86%
Private Crop 75% 96%
Private Flood 85% 84%
Products Liability 92% 94%
Surety 84% 86%
Workers' Compensation 91% 90%
Total (IA-Focused Lines) 55% 62%
Source: © A.M. Best Company — used by permission. (International not shown less than 5 years data is available)
Continued on page 24 >>
SUMMER 2022 THE BIG I VIRGINIA 23
MARKETPLACE SUMMARY
COMMISSIONS: TOP AGENT-FOCUSED LINES OF BUSINESS
Source: © A.M. Best Company — used by permission.
Commission %
Line of Business Direct and Contingent Commissions
Line of Business Written Premium
Notes or Comments: The above bar chart shows the commission rate paid by all insurers for 26 independent agentfocused
lines of business in alphabetical order. Shown last, Total (All Lines) is the average commission paid on all lines of
business.
The formula shows how commission percentages are calculated, where the Commission % equals the line of business
direct and contingent commissions divided by the line of business written premium.
Commission rates are based on a page in insurer annual reports called “Exhibit of Premiums and Losses (Statutory Page
14)” or the “State’s Page”. On this State’s Page insurers are required to break-out all lines of business by state and
provide data on each line of business for direct written premiums, direct earned premiums, direct incurred losses, and
commissions and brokerage expenses. The reader should note that the insurer annual report’s instructions tell insurers to
include contingent commissions.
24 THE BIG I VIRGINIA SUMMER 2022
MARKETPLACE SUMMARY
SURPLUS LINES: TOP LINES, PREMIUMS AND UTILIZATION RATE
Source: © A.M. Best Company — used by permission
Notes or Comments: In all the preceding charts and tables, surplus lines premiums are combined with admitted insurance
premiums. In the above pie and bar charts, the surplus lines premiums are shown separately. The pie chart shows the
lines of business where surplus lines
has the most premiums in Virginia.
Also provided are total direct written
premiums in surplus lines, and the
percentage those total direct written
premiums are to all direct written
premiums.
Readers should note the pie chart
and bar chart/line chart above are
premiums for insurers domiciled in
one of the 51 states or Washington,
DC and writing surplus lines insurance.
The premiums of these insurers are
identified by their licensed status.
Also, the above data does not include
alien insurers (that is, insurers not
domiciled in one of the 51 states).
If alien premiums were included, it
would increase the amount of surplus
lines premiums by approximately an
additional 10%. An example of an
alien surplus lines insurer is Lloyds
of London. Alien insurer data is
not included, as it is not tracked as
consistently across states nor in the
same time-frame.
Continued on page 26 >>
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SUMMER 2022 THE BIG I VIRGINIA 25
MARKETPLACE SUMMARY
Virginia Surplus Lines Perspective
The need for surplus lines varies widely by line of business and from state-to-state. Below are the line of business
utilization rates for Virginia contrasted with the average utilization with those lines of business in the United States.
Line of Business
Virginia Surplus Lines Usage
Rate
United States Surplus Lines
Usage Rate
Aircraft(all perils) 1.3% 2.1%
All Commercial Auto 3.0% 6.3%
All Private Passenger Auto 0.0% 0.2%
Allied Perils Only 23.4% 29.8%
Boiler & Machinery 5.4% 7.4%
Burglary & Theft 17.6% 19.8%
Commercial Multi-Peril 3.8% 8.7%
Earthquake 39.1% 44.5%
Excess Workers' Comp 0.0% 0.5%
Farmowners Multi-Peril 0.0% 0.4%
Federal Flood 0.9% 2.4%
Fidelity 1.8% 2.2%
Financial Guaranty 0.0% 0.0%
Fire Peril Only 26.7% 33.1%
Homeowners Multi-Peril 0.4% 2.3%
Inland Marine 3.4% 6.1%
International 0.0% 90.8%
Medical Malpractice 31.5% 24.4%
Multi-Peril Crop 0.0% 0.0%
Ocean Marine 1.2% 3.3%
Other Liability (Claims-made) 36.1% 34.9%
Other Liability (Occurrence) 19.8% 29.6%
Private Crop 0.0% 0.1%
Private Flood 48.0% 41.0%
Products Liability 35.2% 45.4%
Surety 0.4% 0.5%
Workers' Compensation 0.0% 0.5%
Total (All Lines) 5.7% 8.3%
Source: © A.M. Best Company — used by permission
26 THE BIG I VIRGINIA SUMMER 2022
MARKETPLACE SUMMARY
Virginia Lines of Business: Product Details
The following pages provide more in-depth detail on the
26 lines of business that independent agents in Virginia
focus on. The first line of business provided is a summary
for all lines combined, the Total All P-C Lines of Business
page. Then, the 26 lines of business detail pages are
presented in alphabetical order.
The details provided for each major line of business in
Virginia are:
• A summary bar chart of 5-years data on premiums for
all distribution types (dark blue), and premiums written
through independent agents (light blue). For the
premium chart the classification of premiums through
independent agents is based on a categorization
of agents by distribution style. The categorization
approach is explained in Appendix #2: Distribution
Style Classifications.
• 5-year average line charts, showing the Loss ratio
(dashed red line) and combined ratio (solid red line)
are provided.
• The direct written premium for independent agents,
exclusive-captive agents, and direct agents is provided
with the percentage of the total. Surplus Lines
premiums through any distribution style is provided
with its corresponding percentage of all premiums.
• The number of active insurers is provided with the
number of independent agents, exclusive-captive
agent and direct insurers provided for each line of
business. The number of active surplus lines insurers
is also provided.
• 1-year and 5-year growth rates are provided for
independent agent, exclusive-captive and direct
insurers. The percentage premiums through insurers
licensed as surplus lines is also provided.
• Top Insurers: The top 5 insurer groups in each line
of business is provided with that group’s premiums,
1-year loss ratio, and 1-year growth rate. Groups of
insurers sometimes are made up of multiple policyissuing
insurers in a particular group but it can also be
only one policy-issuing insurer in that group. After the
top groups, listed are the top policy-issuing insurers
distributing insurance through independent agents,
captive-exclusive agents, direct insurers, surplus lines
insurers and the top risk retention group (if any) for
the line of business. For each policy-issuing insurer
the premium for the insurer in that line of business
is shown with the 1-year loss ratio and 1-year growth
rate.
As you scroll through the following lines of business pages
take notice if a small pie chart thumbnail is presented at the
upper-right. If there is a pie chart present, that means the
product is in the top 10 lines of business for independent
agents in Virginia. The broken-out pie slice in that small
pie chart represents the position of that line of business,
and its rank-order based on independent agent premium
volume. The rank-order is based on direct written premium
and corresponds to the pie chart slice highlighted on Page
4 of this 2021 Virginia P-C Marketplace Summary. If a line
of business is in the top 10 for a state but not a line of
business generally focused on by independent agents it
has been added.
For further clarification on lines of business, Appendix
#3: NAIC Line of Business Definitions is provided for the
reader. And, a visual guide to the data and calculations
in the product details is provided in Appendix #4: Product
Details Explanation.
P-C Insurance Industry Summary Provided by
Real Insurance Solutions Consulting
This 2021 Virginia P-C Marketplace Summary has provided
the reader with both visual and numeric presentations of
the Virginia P-C marketplace data, as a benefit of your
membership with the Independent Insurance Agents of
Virginia. All questions and comments, or need for further
analysis, are welcomed at the contact information below.
Remember, you can get a copy of the entire report by
contacting members@iiav.com.
Real Insurance Solutions Consulting, LLC
Paul A. Buse, Principal
www.realinsurancesc.com
301-842-7472
SUMMER 2022 THE BIG I VIRGINIA 27
ICUMI - ROUGH NOTES
121946262 © Piyapong Thongcharoen | Dreamstime.com
MENTAL HEALTH SUPPORT IN
EVERYDAY INTERACTIONS
STARTING CONVERSATIONS, UPLIFTING LIVES
By Thomas A. McCoy, CLU
In January, we reported on the growing interest in
providing mental health support in the workplace.
Benefit plans are broadening their mental health
offerings, including digitally delivered solutions, and
these have the potential to make a real difference in
the lives of workers and their families.
Another dimension of mental health care takes place in the
human interactions that agents and brokers experience
every day with colleagues, family, friends and others in their
community. Agents give, as well as receive, mental health
support in their role as a boss, parent, coach, leader, mentor
and colleague.
The emphasis is on the every day. A broken bone may be
healed and never need attention again. Taking care of
mental health is more like the need for physical exercise and
a good diet; if neglected, there are consequences.
The struggle is real
“Most of the United States work-force is experiencing a
heightened amount of stress,” says Adele Spallone, head of
clinical operations for workers compensation and disability
at The Hartford. “We’re asking employers to educate their
workforce about mental health, to minimize stigma and
encourage their workers to seek help when they need it.
“It’s okay to talk to somebody. It’s okay to engage with some
of the digital apps or talk to someone on telehealth if you
don’t want to see a behavioral health professional in person.
It’s really all about the person experiencing a behavioral
health condition and understanding that they have a need
for help and that they are validated.”
Still, she points out, The Hartford’s 2021 Future of Benefits
Study shows that among workers in a wide range of
organizations “only 56% said the leadership at their
company encourages conversation around mental health.”
This compares to 77% of employers who said leadership
at their company encourages conversations about mental
health.
This statistic points to the difficulty inherent in starting
mental health conversations. It’s hard whether you’re an
executive in a large company or you’re an independent
agent with a much smaller workforce. You might suspect—
or maybe not—that someone you work with, live with, or
see regularly in the community needs encouragement to
seek mental health support. But knowing how to help them
isn’t easy.
Demographics
Recent research by employee benefits providers shows
that younger generations are prime candidates for mental
health support, both in terms of their need and their
interest in receiving support. A Swiss Re study of some
4,500 consumers conducted during the early stages of
the pandemic identified a target group of those most
enthusiastic about support for their mental well-being: 58%
were ages 25 to 40, 32% were 41 to 55, and 10% were 55
and above.
The Hartford’s 2021 Future of Benefits Study found that
workers experiencing the most frequent feelings of
depression or anxiety was delineated as Gen Z/Younger
Millennials (52%), Older Millennials (38%), Gen X (26%), and
Baby Boomers (10%).
“It can be more helpful just to be available to listen and
support and express understanding; and also letting
young people know that you have felt the same way …
.” —Dr. Erica Gibson, Division Chief of Medicine, UVM
Children’s Hospital
28 THE BIG I VIRGINIA SUMMER 2022
ICUMI - ROUGH NOTES
REGARDLESS OF THE TYPE
OF MENTAL HEALTH SUPPORT
AN INDIVIDUAL MAY NEED,
GETTING PAST THE INITIAL
HURDLE OF REACHING OUT FOR
SOME KIND OF HELP MAY BE
THE HARDEST.
Mental health needs, like physical health needs, are present
in all generations, but in reaching out to those in need, the
lower end of the age scale appears to be a priority. Dr. Erica
Gibson, division chief of medicine at the UVM Children’s
Hospital in Burlington, Vermont, spoke at a recent podcast
presented by the University of Vermont Health Network
about ways for parents to talk to their children who might
be struggling with their mental health.
“I think it’s really important to normalize emotions and
discuss them openly and acknowledge them,” she said. “It’s
not so helpful to tell people, ‘Don’t cry,’ or ‘Don’t worry.’
It can be more helpful just to be available to listen and
support and express understanding; and also letting young
people know that you have felt the same way can be very
helpful, too. And then working with them to help figure out
in their own way what they might need to feel better is really
important.
“We can be so quick to rush in with words and action steps
when people are in distress, and sometimes that’s really
necessary, but it can also be okay just to sit in silence and
listen.”
Overcoming barriers
Swapnil Prabha, vice president of digital offerings solutions
at Unum, says, “The events over the last two years have
normalized conversations around mental health to some
extent. However, the stigma associated with seeking
treatment for mental health remains a barrier.”
For agents and brokers looking for an opening to a
conversation with someone about their mental health, a wellknown
sports figure might be a good point of reference. Last
summer Simone Biles, who had been performing at the top
of the gymnastics world, removed herself from competition
at the Summer Olympics out of concern for her own mental
well-being. Her decision has been widely acclaimed by her
fellow athletes and leaders in many fields.
The National Football League has been running public
service video messages from players whose lives have been
changed by mental health issues. They
encourage people to talk openly about
mental health and seek help when
needed.
One video segment features Michael
Robinson, a former NFL fullback with
the Seattle Seahawks, where he says,
“As an athlete, the biggest challenge
regarding mental health is having to
express it. I was kind of from the old
school way of playing football, where
you never told anybody if you were
going through something at home. It
was a tough man’s kind of sport.”
The video begins with Robinson’s personal story. His uncle,
who lived with Robinson’s family, suffered from mental
health problems. “I knew at an early age how important it is
to have a support system around you when you’re dealing
with your mental health,” Robinson says in the video.
He talks about the pressure of playing in the NFL, where a
player’s job security can be quickly upended by competition
from the new players who are continually coming on board.
“It can definitely put some anxiety on you.
“About halfway through my career, I came to the Seattle
Seahawks, and that’s when the conversation started to
change,” Robinson continues. “Coach Pete Carroll did
a great job of nurturing good mental health. We would
actively talk about how you’re feeling, not about how you’re
playing.”
Words matter
Spallone, who is also a licensed behavioral health clinician,
says, “Openly talking about mental health is number one
in addressing the stigma that exists, but not everyone is
comfortable talking about it. Changing the language we
use can be very meaningful and helpful.”
For example, she says, “Maybe we can talk about ‘wellbeing’
instead of ‘mental health.’ When people hear ‘mental
health’ they think about a psychiatric illness versus a simple
medical condition.
“It’s important to avoid words tied to stigma.
“Changing the language we use can be very meaningful
and helpful … . We can talk about ‘well-being’ instead
of ‘mental health.’ … We can substitute the word
‘abuse’ for ‘misuse.’” —Adele Spallone, Head of Clinical
Operations, Workers Compensation and Disability, The
Hartford
Continued on page 30 >>
SUMMER 2022 THE BIG I VIRGINIA 29
ICUMI - ROUGH NOTES
“We can substitute the word ‘abuse’ for ‘misuse.’ Nobody
wants to think that they are ‘abusing substances,’ but we
have seen an increase in alcohol consumption during the
pandemic. It might be easier for someone to say, ‘maybe I
have been misusing alcohol.’”
In addition, The Hartford’s 2021 Future of Benefits report
notes that its non-profit partner, the National Association on
Mental Illness (NAMI), suggests avoiding the terms “suffer,”
“disorder” or “afflicted.” Consider using “treatment plan of
my choice” or “what works for me.”
In fact, the perfect slogan for taking care of mental health
care needs—in contrast with physical health care—could
well be “What works for me.” The human mind and the
emotions that make up a person are unique.
Accessing help
When mental health needs call for therapy, the cost and
access to therapists can be an obstacle. In a recent survey
of workers in various industries, Mercer provided a list of
mental health care solutions and asked the workers to rate
those they would most value from their employer. The
leading response (49%) was “a program that reduces the
cost of mental health treatment (including therapy and
medication).”
Online treatment of mental health, which can reduce
costs and improve access to care, has gained momentum
during the pandemic, along with telemedicine for physical
health. The Mercer survey reported that 42% of employees
expressed a preference for “virtual mental health counseling
to manage anxiety, sadness or personal relationship issues.”
The survey participants also said they value “virtual support
groups for those who are feeling alone and isolated” (39%)
and “tools that provide training on how to identify and
support others facing mental health challenges” (38%).
Just realizing that there could be insurance coverage
available can be important. A recent research report by
Swiss Re notes, “Mental health cover is available as part of
disability and medical insurance policies; even critical illness
typically covers severe mental health conditions.” Yet, Swiss
Re found that among the workers that the report identified
as most interested in receiving mental health support in the
workplace, 71% were unaware of policies offering coverage
for negative mental health episodes.
Work in progress
It could be comforting to an individual puzzling over whether
they should seek mental health care to realize that there is
a wide continuum of possible mental health needs, some of
which can be categorized as “preventative.” The Swiss Re
study found that almost half of those who were interested
in receiving mental health support (46%) consider-ed their
mental health to be “good” or “very good.”
Unum recently introduced to employers a behavioral health
solution in which a worker can enroll in one of three paths,
depending upon a guided assessment of their mental health
needs. One of those paths, as described by Unum, is a “selfguided
program” for those with “low levels of stress.” The
content in this path is designed to help “identify triggers
and opportunities for combatting stress as they build their
own wellness action plan.”
As more people begin to think of mental health care—like
physical health care—as something to approach in a proactive,
“preventative maintenance” way, we could be one
step closer to eliminating the stigma and normalizing the
mental health conversation.
Regardless of the type of mental health support an individual
may need, getting past the initial hurdle of reaching out for
some kind of help may be the hardest. That is where agents
and brokers, in their everyday roles as a mentor, boss,
colleague, parent or friend, may be the most important
contributor to someone’s mental health.
FOR MORE INFORMATION:
The Hartford
thehartford.com
National Alliance on Mental Illness
nami.org
NFL Mental Health Awareness
nfl.com/playerhealthandsafety/health-and-wellness/
mental-health/
Swiss Re
swissre.com
University of Vermont Health Network
medcenterblog.uvmhealth.org/category/behavioral-andmental-health/
Unum Insurance
unum.com
Thomas A. McCoy, CLU, is an Indiana-based freelance
insurance writer
Reprinted from the March 2022 issue of Rough Notes
magazine with permission.
30 THE BIG I VIRGINIA SUMMER 2022
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