Anticipating State Variations in Performance


Mike Warner  
Conning, Inc.

Conning Research: With Economic Recovery, Personal Lines Insurance Performance Expectations Vary Widely by State

--Insurer analysis of state-level performance factors more critical than ever

(Hartford, CT) April 6, 2010—State level factors are always an important part of performance planning in the property-casualty industry, but are increasingly critical in the near-term economic climate, according to a new study by Conning Research & Consulting.

“The recession has had profoundly different effects on different states, and it is very likely that the recovery will as well,” said Alan Dobbins, analyst at Conning Research & Consulting. “Exposure growth, pricing, regulatory activity and other key factors have varied widely by state during the recession, and the differences may be dramatic looking forward as well. Some of the hardest charging states prior to the recession were hit very hard, and will take a longer time to climb out, while others may well spike in the coming recovery.”

The Conning Research study, “Anticipating State Variations in Personal Lines Performance” analyzes why individual states’ insurance market growth and profitability differ, and the implications for insurers and for regulators. The scope of this study is confined to homeowners and private passenger automobile insurance, but the concepts presented and the framework for analysis are broadly applicable to all lines of property-casualty insurance.

“Analyzing the key variables that influence state profit potential is critical in identifying opportunities and threats for the insurance organization,” said Stephan Christiansen, director of research at Conning. “Conditions can change quickly in a state, yielding big changes for market participants and big opportunities for those considering market entry. If we understand the unique characteristics of the states that create the conditions for out-performance and under-performance, then we can gain an understanding of how performance may change when either economic or local conditions are in flux.”

“Anticipating State Variations in Personal Lines Performance” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting

Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers.  Conning Research & Consulting has published independent insurance industry research for 50 years, including market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.