Data Analysis Report
Executive Summary
While FYTD 2021 results were strong, FYTD 2022 are even stronger. Submitted premium rose 39.6% over the same period last year. Comparatively, 2020 to 2021 rose 24.2%. This means since 2020, the beginning of the pandemic, we’ve seen an astonishing 73% growth in submitted surplus lines premium. Since our baseline remains at an average of 5-6 days, we are experiencing comparable results with our registered premium. Growth since FYTD 2020 totals 76%. Exceptional growth is also occurring with average premium. Currently, average premium is at $17,202 compared to $14,304, a 20% jump since 2021. Since 2020, average premium has grown 32%.
With the rise in average premium, stamping fees have also climbed 45.5% over last year. Since 2020, the growth in transactions, average premium and the stamping fee increase from 0.20% to 0.25% drove stamping fees 103% to $20MM. Virtually all the premium collected in 2022 was calculated at the 0.25%. Top ten broker contribution has been consistent over the past three years at 58%.
Registered transactions are up 34.5% since 2020. Another positive improvement has been the slow, but steady decline in tags to transactions. This past year, we’ve seen a decline of 8.6% over 2021. We anticipate that our new tag enhancements will further reduce tags in future months.
Additionally, late filing tags has declined over 2021 results, another positive result. We attribute this improvement to the growing number of employees returning to a normal work pattern after the pandemic.
We continue to improve our error free rate with a 5.4% improvement over last year. Our goal is to achieve a 90% or better.
The tables below provide greater detail of our results.
Fiscal Year Comparison – Financial
| Dimension | FYTD May 2022 | FYTD May 2021 | Difference | % Change |
| Submitted Premium | $8,057,380,178 | $5,770,821,329 | $2,286,558,849 | 39.6% |
| Registered Premium | $8,106,217,713 | $5,614,562,949 | $205,095,915 | 44.4% |
| Average Registered Premium | $17,202 | $14,304 | $2,897 | 20.3% |
| Stamping Fees | $20,151,735 | $13,853,493 | $6,298,242 | 45.5% |
| Average Stamping Fee | $42.76 | $35.30 | $7.47 | 21.2% |
| Top 10 Broker Premium | $4,641,227,303 | $3,331,096,650 | $1,310,130,653 | 39.3% |
| Top 10 % Contribution | 56.8% | 58.8% | (2.0%) | (3.4%) |
Fiscal Year Comparison – Operations
| Dimension | FYTD May 2022 | FYTD May 2021 | Difference | % Change |
| Created Transactions | $457,942 | $401,156 | $56,786 | 14.2% |
| Registered Transactions | $471,247 | $392,504 | $78,743 | 20.1% |
| Tags Assigned | $174,715 | $159,209 | $15,506 | 9.7% |
| Late Filings Tags | $128,813 | $119,799 | $9,014 | (1.5%) |
| Tags / Transactions | 37.1% | 40.6% | -3.5% | (8.6%) |
| Error Free Rate | 85.4% | 80.0% | 5.4% | 6.8% |
| Hourly Production | 9.5 | 10.0 | (0.5) | (5.0%) |
Project Update
This year, we launched our tag enhancement initiative for the purpose of improving communication with our brokers by minimizing confusion in tag assignment, and providing clear, consistent messaging with every tag assignment. To ensure a successful launch, we asked several brokers to participate in focus groups to evaluate our approach. These brokers provided critical feedback for improvement prior to initiating the program. We began processing tags under the enhancements May 9, 2022. While we are still early in the process, the feedback we have received is positive.
Our second project for this year is the coverage code restructure for the SLA. We have worked closely with our IT department to map current classifications to our new structure. We have also reached out to the Department of Insurance to inform them of the new structure. Our target launch for the code restructuring will be in July.
DA will also be deploying the CRM program which successfully launched earlier this month. Our staff of seventy-four analysts, managers and support will participate in training the week of June 21.
Finally, we have started a new plan to visit key brokers to discuss their results, with comparisons to the surplus line markets in areas such as the North American Industry Classifications, lines of coverage, and tag activity. Our goal with these visits is to strengthen the relationships between our analytical team and our broker stakeholders. We have conducted three visits so far with tremendous success. We anticipate this program will be extremely valuable to both the SLA and our member brokers.