What Are They Insuring?

MrGolf

Super Genius
100+ Post Club
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So I've been wondering about something here in my town lately... I live in a rural area of Kentucky. Whole county population of approximately 110,000. City population approximately 20,000. Yet we have three State Farm agencies, two Farm Bureau, one Shelter, one Nationwide and probably nine independent agencies along with a Federated agent who has popped up in the last year or two.

Now, seemingly the whole market in the county for both personal and commercial is controlled by our agency, two of the other independents, one of the State Farms and one of the Farm Bureaus. So what does that leave everyone else? I really have become curious, what are they insuring? I just don't see what there is left after all the "major players" get their share?

Edit** I also say that we and one of the other independents are basically the only agencies that go into a regional reach and even cross state lines. The others never leave the county line with the risks they write, even further making the pool limited.
 
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Let's assume 80K of the population are adults and through all their insurance needs spend only $1,000 a year for their home auto and commercial insurance needs.


$1,000 X 80,000 = $80Mil in premiums
Even if it is evenly divided into 20 local agencies, that is $4Mil each.


Granted some agencies will have $10Mil and some only $1Mil, there is plenty of premium for everyone to chase!
 
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