The Sooner State – Garth Brooks, Wheat and Parking Meters

The United States Census Bureau’s Census 2000 estimated Oklahoma’s population at 3,450,654. Approximately 81 percent of the adult residents had graduated from high school and about 20 percent had earned a bachelor’s degree or higher. The capital, Oklahoma City, has a population of 506,132.

From an employment perspective, the primary industries in Oklahoma are:

• Agriculture, forestry, fishing/hunting, and mining: 62,743
• Construction: 107,302
• Manufacturing: 193,887
• Wholesale trade: 52,807
• Retail trade: 185,789
• Transportation, warehousing, utilities: 85,769
• Information: 41,686
• Finance, insurance, real estate, rental and leasing: 93,239
• Professional, scientific, management, administrative, waste management services: 113,063
• Educational, health, social services: 316,456
• Arts, entertainment, recreation, accommodation and food services: 115,167
• Other services (except public administration): 85,927
• Public administration: 91,461

From a property and casualty insurance perspective, Oklahoma accounted for $4,450,229,000 of direct written premium. Countrywide as of Sept. 30, 2003 the aggregate is $313,781,216,000 of P/C insurance written. Oklahoma calendar year 2002 loss ratio of 62.4 percent was virtually identical to the countrywide year to date Sept. 30, 2003 loss ratio of 62.3 percent. It was interesting to note that Oklahoma’s medical malpractice loss ratio for calendar year 2002 was 96.2 percent compared to the countrywide average at Sept. 30, 2003 of 73.6 percent. When loss adjustment expenses are added, the Oklahoma loss and defense cost containment ratio for medical malpractice was 132.9 percent. This is well above the acceptable loss and loss adjustment expense ratio for any line of insurance.

What surprised me the most was that Oklahoma had nearly $13,000,000 of ocean marine insurance premium for calendar year 2002.

The employed civilian population comprises less than one-half of Oklahoma’s
population. The employed civilian population 16 years and over totaled 1,545,296. Occupational distribution is as follows:

• Management, professional, and related: 468,088
• Service: 239,812
• Sales and office: 411,153
• Farming, fishing, forestry: 13,721
• Construction, extraction and maintenance: 174,539
• Production, transportation and material moving: 237,983

Given the anticipated growth in jobs located in Oklahoma and the diversification of the Oklahoma economy, I would expect the growth rate of Oklahoma’s P/C insurance marketplace, as measured by direct
premium written, to exceed the growth rate experienced on a countrywide basis.

Joseph L. Petrelli is president and founder of Demotech Inc., a Columbus, Ohio-based financial analysis and actuarial services firm. Additional information can be found at www.demotech.com.

Topics Oklahoma Property Casualty