Insurance Premiums Climb to a Record $30 Billion in Missouri in 2011

Missouri experienced a number of insurance industry “firsts” in 2011, including a record number of premium sales dollars, the largest-ever amount in claims paid for a single event, and an historically high amount in additional claims funds recovered on behalf of insurance consumers.

In its annual report for 2011, the Missouri Department of Insurance, Financial Institutions and Professional Registration noted that it was a year of records.

According to the department:

• The May 22, 2011, tornado in Joplin is so far the largest insurance event in Missouri history, with paid claims at $1.3 billion at the end of 2011. That number is expected to approach $2 billion.
• Premium sales in Missouri’s insurance industry reached $30 billion for the first time.
• Consumers who filed complaints received an additional $19.2 million in insurance claims payments, the highest amount of recoveries in DIFP history. Consumers filed 12,460 complaints in 2011, compared to 7,692 in 2010.

Barton County Mutual

The department noted that in addition to its response to the Joplin tornado, one of its outstanding achievements for 2011 was the forging of an agreement between DIFP, Missouri Farm Bureau and the state Property and Casualty Guaranty Association, under which the Farm Bureau took on the policyholders of Barton County Mutual Group, which became insolvent after Joplin tornado claims.

Barton County Mutual had 41,000 insurance policyholders in southwest Missouri. The Farm Bureau invested $14 million and took over Barton County Mutual’s operations.

Complaints and Companies

The top insurance complaints for 2011 are as follows:

By Type of Insurance

By Reason

In workers’ compensation and homewners lines of insurance there were more companies offering coverage in Missouri at the beginning of 2011 than at the beginning of 2010.

Workers’ Compensation

The DFIP noted that the number of companies offering workers’ comp coverage at the beginning of 2012 increased by eight for a total of 311. As the number of companies offering coverage continues to grow, Missouri employers have a wider selection of insurance plans than ever before, the department said. It also noted that Missouri businesses now are paying less for coverage than they did in 1994.

DIFP and industry analysts have predicted decreases in overall claims payments (loss costs) for six consecutive years. The frequency of on-the-job injuries has declined for 15 straight years, with a total reduction of 50 percent during that time.

Other Stats

As of December 2011, Missouri reported a total of 1,900 licensed insurance companies, including 209 domestic (Missouri) insurers, 1,559 foreign (out-of-state) insurers and 132 alien (non-U.S.) insurers.

In 2011, the number of licenses issued to captive insurers increased by eight to 19. Captives topped the $1 billion mark in premium volume ($1.7 billion).

Premium taxes paid to the state’s general revenue and state school funds came to $229 million in 2011.

There were 127,368 licensed insurance producers (agents), 12,844 licensed business entity producers (agencies) and 1,409 surplus lines producers in Missouri as of the end of December 2011. The department conducted investigations of 1,788 agents in 2011 and brought actions against 109 of them.

Since 1870, Missouri’s insurance regulators have produced some form of published report, many of which were more than 200 pages long. The DIFP’s 2011 annual report is the second one intended exclusively for online viewers. The agency said it switched to the digital format in an effort to improve efficiencies and maximize technology.

DIFP’s 2011 Annual Report is available at the department’s website, difp.mo.gov.

Topics Claims Workers' Compensation Missouri