©COPYRIGHT: The Rough Notes Magazine, 1999
Wholesalers of durable goods provide $5.42 billion in premium in the United States, or some 4.3% of total commercial lines premiums written. They employ nearly 3.72 million people. The loss ratio is 61.6%.
"There are 314,560 wholesalers of durable goods in the United States," notes Lindsay Smith, president of IMR (Insurance Market Research) Corp. "The majority of these businesses are small or medium in size, making them important targets for independent agents. Loss ratios are generally good, although they vary widely, ranging from lows in the 30s to highs exceeding 100, indicating a clear need for careful underwriting before a market is approached."
There are 271,533 small facilities (employing fewer than 20 people) in this niche market in the United States, which account for $2.33 billion in premium for an average premium of $8,565 per account. There are 39,414 medium-sized accounts (20-99 employees) providing $2.21 billion in premium for an average of $55,965 per account. The 3,445 large facilities (100-499 employees) account for $737.1 million in premium and an average of $213,965 per account. The 187 jumbo accounts (over 500 employees) provide $150.9 million in premium for an average of more than $903,580 per account.
These businesses provide $1.02 billion in premium in the Rough Notes Midwest region. The loss ratio is 60.2%. There are 58,140 wholesalers of durable goods in the Midwest, employing 767,883 people. The 49,053 small wholesalers (those employing fewer than 20 people) account for $391.4 million in premium for an average of $7,980 per account. The 8,254 medium-sized accounts (20-99 employees) provide $435.4 million in premium for an average of $52,755 per account. The 790 large wholesalers (100-499) account for $155.8 million in premium for an average of $197,215 per account. The 43 jumbo accounts (over 500 employees) provide $35.7 million in premium for an average of $831,110 per account.
Wholesalers of industrial machinery and equipment represent the largest subgroup in the Midwest, with $114.0 million in premium and a loss ratio of 51.1%, followed by metals service centers and offices ($107.6 million; 51.0%); wholesalers of automobiles and other motor vehicles ($99.6 million; 80.7%); wholesalers of farm and garden machinery ($77.5 million; 45.9%); wholesalers of construction and mining machinery ($59.1 million; 71.5%); wholesalers of motor vehicle supplies and new parts ($54.4 million; 78.4%); and wholesalers of industrial supplies ($43.5 million; 51.8%).
Information on this niche market is available from IMR at 39 E. Hanover Ave., Morris Plains, NJ 07950, or call (888) 237-7066.
©COPYRIGHT: The Rough Notes Magazine, 1999