Social services provides nearly $2.4 billion in premium
Social services account for $2.36 billion in premium from some 1.04 million enterprises, according to data compiled by MarketStance, Middletown, Connecticut. The average premium per account of $2,260 indicates that this is a market dominated by small and medium-sized businesses, prime targets for independent agents.
While MarketStance anticipates that employment growth through 2011 for all businesses will be stagnant, social services are expected to enjoy a 2.8% annual growth in employment, making it an attractive and growing niche. Child day care services represents the largest subgroup in this category, followed by individual and family services; residential care; social services that are not classified elsewhere; and vocational rehabilitation services.
Workers comp represents the largest line in this niche, with $1.2 billion in premium, or 50.7% of the total premiums written in this niche, making it imperative that agents venturing into this line feature strong workers comp risk management services. Liability is the next largest premium segment, with $577 million in premium or 24.5% of the total; followed by commercial auto ($318 million, 13.5%); property ($107 million, 4.5%); BOP ($81 million, 3.4%); inland marine ($74 million, 3.2%); and boiler and machinery ($4 million, 0.2%).
Arizona is expected to enjoy the strongest employment growth through 2011 at 5.1% annually; followed by the District of Columbia (4.9%); Louisiana (4.8%); Texas (4.6%); and Oregon (4.5%).
For additional information on this or other niche markets, contact MarketStance at (888) 777-2587 or e-mail at email@example.com.