Three-Year Trends in New York’s P&C Insurance Marketplace
Premium Growth and Market Scale:
New York’s P&C insurance marketplace continued its upward trajectory over the past three years, with Direct Premium Written (DPW) growing from $58.7 billion in 2022, to $63.6 billion in 2023, and then to $69.0 billion in 2024. Year-over-year growth rates improved slightly from +7.8% in 2023 to +8.4% in 2024, although still below the national growth pace of +9.6%.
Loss Ratios Performance:
Loss ratios in New York remained relatively stable but slightly elevated compared to the national average. Across all P&C lines, New York posted:
- 2022: 64%
- 2023: 65.2%
- 2024: 64.8%
Notable stress areas included Commercial Auto (rising from 76% in 2022 to 101.4% by 2024) and Products Liability, which reached a critical 139.7% in 2024. In contrast, personal lines like Homeowners improved, falling from 53% in 2022 to 42.7% in 2024.
Independent Agent Penetration:
Independent agents maintained a dominant share of the marketplace, though there was a slight decline:
- 2022: 68%
- 2023: 67.6%
- 2024: 66.5%
Despite this, New York consistently outperformed the national average (~61.5%) in agent penetration, particularly in commercial lines, where independent agents remain the preferred distribution channel.
Commission Rates:
Commissions remained stable, averaging:
- 2022: 12.2%
- 2023: 12.1%
- 2024: 12.2%
These figures consistently exceeded the U.S. average (~11.4%-11.5%).
Surplus Lines Utilization:
Use of surplus lines grew steadily over the three-year period:
- 2022: 9.9%
- 2023: 9.9%
- 2024: 10.6%
How New York Compares Nationally: A Focus on Personal Lines and Key Loss Ratios
While New York ranks 4th in total P&C premiums, its per capita personal lines premium remains below the national average. In 2024, New York’s personal lines per capita premium was $1,411 (ranked 32nd), trailing the national average of $1,563, and far behind high-cost states like Florida ($2,230). This gap has been consistent since at least 2022, where New York ranked 29th at $1,122, compared to the U.S. average of $1,233.
In terms of loss ratios, New York’s performance in key personal lines has been mixed:
- Private Passenger Auto: Despite improvements nationally, New York’s loss ratio stayed elevated, at 84% in 2022, 84.7% in 2023, and 75.9% in 2024, still higher than the national average of 66.3% in 2024.
- Commercial Auto: Loss ratios surged from 76% in 2022 to 87.3% in 2023, peaking at 101.4% in 2024, making New York the worst-performing state in this line.
- Homeowners Multi-Peril: A bright spot, New York’s loss ratio improved from 53% in 2022 to 50.1% in 2023, and further to 42.7% in 2024, outperforming the U.S. average of 61.8%.
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