The annual Louisiana Department of Insurance (LDI) market share reports, colloquially known as the Top 20 reports, are an important metric to assess the health of Louisiana’s various markets by line.
Louisiana Comp Blog spoke to John Tobler, LDI Deputy Commissioner of Public Affairs, Warren Byrd and Charles Hansberry Deputy Commissioners at LDI’s Office of Property & Casualty about how the data are collected.
The 2018 workers’ comp market share report shows that LWCC leads the state with 26.02 percent of the total market, which included $821,350,662 in direct written premium across 256 standard carriers. LUBA Workers’ Comp followed LWCC with 7.02 percent. LWCC has led the market in all of the available reports, peaking in 2004 at 34.6 percent.
Comp Blog: From which databases are the numbers for the Top 20 derived?
Byrd: It’s based on direct written premium. It is reported to us on a calendar year annual basis by the workers’ comp carriers in their financial filings. One categorization that we look at is direct written premium and the market share. On the lower end, some carriers go in and some carriers go out over the years. It’s reported to us and the National Association of Insurance Commissioners. The reports only include insurance companies, not group self-insurance funds.
Comp Blog: On a terminology note, what is the difference between market share and cumulative market share in these reports?
Hansberry: Market share is just the percentage of the direct written premium statewide. Cumulative market share adds as it goes down the Top 20 list to give us the total cumulative market share for the Top 20 workers’ comp insurers to reach that 64.49 percent number, which is the market share for those 20 companies. Then you get the remainder, which is 35.51 percent for the rest of the admitted carriers in 2018.
Comp Blog: When in the calendar year are these reports issued?
Hansberry: The companies are required to report by March 15th for the prior calendar year closure. We then compile that data and release that shortly after.
The workers’ compensation reports from 2004 through 2018 are available on the LDI website here.