Connecticut P&C Marketplace Three-Year Trends
Overall Premium Trends
Connecticut’s P&C insurance market has grown steadily over the past three years. Direct Premiums Written (DPW) increased from $10.3 billion in 2022 to $11.5 billion in 2023 and reached $12.7 billion in 2024. This represents an annual growth rate of about 10% from 2023 to 2024, outperforming the national average premium growth of 9.6%.
Loss Ratios
Loss ratios remained fairly stable. In 2022 and 2023, the average loss ratio across all P&C lines hovered around 60%, increasing slightly to 62.1% in 2024. Notably, certain lines like Medical Malpractice (119.9%), Aircraft (234.1%), and Other Liability (Occurrence) (110.7%) experienced particularly high loss ratios in 2024, signaling areas of concern for insurers and agents alike.
Independent Agent Market Share
Independent agents continued to be a dominant force in Connecticut’s P&C distribution, maintaining control of approximately 66.6% of the marketplace in 2024—significantly above the national average of 61.5%.
Commission Trends
Commission rates have shown a modest increase. Connecticut agents earned an average commission rate of 12.4% across all lines in 2024, up from 11.7% in 2023. This remains above the national average of 11.5%, reflecting Connecticut’s continued support for the independent agency model.
Surplus Lines Activity
Surplus Lines premiums grew substantially over the three-year period. In 2020, 5.5% of P&C premiums were directed to Surplus Lines carriers. By 2023, that figure increased to 7.5%, and in 2024 it rose again to 7.7%. This uptick signals a continued demand for specialized or hard-to-place risks—especially in lines like Other Liability (Occurrence), Other Liability (Claims-made), and Fire Peril Only.
How Connecticut Compares Nationally: A Focus on Commercial Auto & Personal Lines
Per Capita Premiums
Connecticut ranks above the national average in per capita premium. In 2024:
- Personal Lines per capita premium was $1,769 (6th out of 51 jurisdictions), significantly above the U.S. average of $1,563.
- Commercial Lines per capita premium was $1,163 (also 6th), compared to the national average of $943.
Loss Ratios Comparison: Key Personal Lines
- Private Passenger Auto: Connecticut’s 2022 loss ratio was 80% in 2022 and has improved to 71.1% in 2024, tracking higher than the national loss ratio of 66.3%.
- Commercial Auto: Connecticut’s was 66% in 2022 and rose slightly to 68.6% in 2024, slightly better than the 73.2% national average.
- Homeowners Multi-Peril: In 2022, Connecticut posted a 49% loss ration and has seen a modest increase to 55.5% in 2024. This is still notably lower than the national average of 61.8%, signaling relatively favorable performance in homeowners insurance.
Overall, Connecticut has shown strong premium growth, consistent agent penetration, and stable underwriting performance across most lines.
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