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TitleBusiness of 2017
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Table of Contents
                            Letter to the Governor
Mission Statement
Wisconsin Insurance Commissioners
Introduction
Table of Contents
I. 
Administration of the Office
	Organizational Chart
	Organizational Structure
	Management Staff
	Office Personnel
	Finances
II. 
Executive Initiatives
	Regulatory Developments and Trends
	Lean Government Initiatives
	Advisory Boards, Committees,
 and Councils
	National Association of Insurance Commissioners' (NAIC) Activities
	Bulletins to Insurers
	Legislation
	Administrative Rules
	Administrative Actions
III.  Legislative Relations
 and Communications
	Public Information and Communications
	Consumer Publications
IV. 
Funds and Program Management
	Management Analysis and Planning
	Alternative Work Patterns
	Information Services Section
	Injured Patients and Families Compensation Fund
	Local Government Property Insurance Fund
	State Life Insurance Fund
V. 
Division of Regulation and Enforcement
	Bureau of Financial Analysis and Examinations
		Companies Examined in 2017
		Changes in Corporate Licenses
		Companies in Liquidation or Rehabilitation
	Bureau of Market Regulation
		Policy Submissions and Rate Filings
		Trends in Complaints
		Managed Care Specialist
		Agent Licensing Section
		Rate Review
VI. 
Financial and Statistical Data
	Notes to Tables
	Explanation of Terms Used in Tables
	Table A	Insurers Authorized to Write Insurance in Wisconsin
	Table B	Wisconsin Operations of All Insurers by Type of Company
	Table C	Nationwide Financial Operations of Wisconsin Insurers
	Table D	Wisconsin Operations of All Insurers by Line of Insurance
	Table E Wisconsin Market Shares
	Table F Property and Casualty Insurers
	Table G Life and Health
 Insurers
	Table H Other Health Insurers
	Table I Town Mutual Insurers
VII. 
Directory of Licensed Insurers
                        
Document Text Contents
Page 2

The Honorable Scott Walker
Governor, State of Wisconsin
115 East State Capitol
Madison, WI 53702

Dear Governor Walker:

I am pleased to submit the 148th Wisconsin Insurance Report covering calendar year 2016 activities.

This report provides you with details regarding the industry’s participants and the Office of the Commissioner of
Insurance’s (OCI) activities.

Insurers play an important role in Wisconsin’s economy. Over the past year, Wisconsin’s tradition of sound solvency
regulation, combined with robust consumer protections, continued to support a healthy and competitive insurance
market. Over 2,100 companies, 380 domiciled in Wisconsin, are vying for a share of Wisconsin’s insurance market.
Wisconsin is the fifth largest insurance market in the country. This competitive environment allows for a consumer
friendly marketplace with choices among all lines of insurance resulting in some of the lowest insurance premiums
in the country.

This report also highlights OCI’s progress with enhancing efficient and reliable services. Among those, OCI
launched a newly redesigned Web site aimed to improve access to information and usability of OCI’s services such
as the consumer complaint portal. In addition, OCI launched a Twitter account making it easier for consumers and
members of industry to stay informed on OCI’s latest news.

Overall, I am confident to report Wisconsin’s insurance marketplace remains a strong, vibrant and competitive place
to conduct business. This industry protects Wisconsin’s consumers, provides jobs and contributes to Wisconsin’s
growing economy.

Respectfully submitted,

Theodore K. Nickel
Commissioner

State of Wisconsin / OFFICE OF THE COMMISSIONER OF INSURANCE
125 South Webster Street • P.O. Box 7873

Madison, Wisconsin 53707-7873
Phone: (608) 266-3585 • Fax: (608) 266-9935

E-Mail: [email protected]
Web Address: oci.wi.gov

Scott Walker, Governor
Theodore K. Nickel, Commissioner

Wisconsin.gov

WISCONSIN IS OPEN FOR BUSINESS

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114

Explanation of Terms Used in Tables

Wisconsin Operations columns report the direct
premiums and losses for Wisconsin-only business
for 2017. Nationwide Operations columns report
the net premiums and losses for all operations
for 2017.

Direct business refers to business for which the
insurer issued an insurance policy and accepted
the premium. Net business is direct business plus
reinsurance assumed and less reinsurance ceded.

Reinsurance is the transfer of risk between insurance
companies. Almost all direct writing companies
use reinsurance to transfer a portion of the risk
associated with its direct policies. Reinsurance
assumed is accepting the risk of other insurers,
while reinsurance ceded is transferring the risk
to other insurers. Some companies specialize in
providing reinsurance to other companies versus
writing business directly.

Premium Written is usually defined as premium
billed by fire and casualty companies. Rules of
life insurance accounting require reporting premi-
ums actually collected. Premium written is a
measure of sales activity for the year.

Premium Earned is the result of premiums written
in the current and previous years and, in some
instances, premiums to be written in the future
for current coverages. It is approximately the pro
rata portion of the premium charged for each
policy for the portion of coverage provided within
the calendar year.

Losses Incurred equals losses paid, plus an estimate
at the close of the current year of the amounts to
be paid in the future for all unsettled claims as
of the financial statement date, less the corre-
sponding estimate made at the end of the prior
year. If the estimates were exactly correct, then
the incurred losses would be the actual cost
of all claims arising from coverage provided
during the current year. The estimates would also
include amounts for IBNR claims (incurred but
not reported). Loss adjustment expenses are also
included in the losses incurred for nationwide
operations of title companies.

Financial and Statistical Data, Explanation of Terms Used in Tables

Annuity Considerations is revenue received for
annuity contracts during the year. The amount
corresponds to premiums written on insurance
contracts.

Deposits are amounts placed with the insurer that do
not incorporate risk from the death or disability
of the policyholder and are more comparable to
financial or investment instruments than insur-
ance contracts.

Other Considerations are annuity considerations
or other deposits which are not allocated to a
specific policy but include an insurable risk.

Net Loss Ratio is equal to net losses incurred plus
net loss adjustment expenses incurred, divided
by net premiums earned.

Expense Ratio is equal to underwriting expenses
divided by net premiums written. The loss ratio
is determined based on net premiums earned
as losses occur randomly throughout the policy
term which matches the period the premiums are
earned. The expense ratio is determined using
net premiums written, because most underwriting
expenses (commissions, home office underwrit-
ing, and clerical expenses) are incurred at the
time the policy is written, not evenly throughout
the policy term.

Wisconsin Direct Loss Ratio is a pure loss ratio equal
to the direct losses incurred divided by the direct
premiums earned for Wisconsin business. This
ratio does not include Loss Adjustment Expenses.
For insurers with small direct premiums earned,
this ratio may not be a meaningful representa-
tion of their overall operations. Negative losses
incurred would result from the company overes-
timating the cost to settle open claims as of the
end of the prior year or the receipt of salvage or
other recoveries from claims paid in prior years
which were in excess of amounts incurred for the
current year claims.

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115

Financial and Statistical Data, Tables A and B

TABLE A
Summary of Insurers Authorized to Write Insurance in Wisconsin

as of December 31, 2017
Counts by Type and Domicile

DOMESTIC NONDOMESTIC
TYPE OF COMPANY COMPANIES COMPANIES TOTAL

REGULATED ENTITIES
STOCK LIFE AND HEALTH 25 381 406
MUTUAL LIFE AND HEALTH 3 21 24
FRATERNALS 5 36 41
HEALTH MAINTENANCE ORGANIZATIONS 23 0 23
OTHER HEALTH INSURERS 17 0 17
DOMESTIC SURPLUS LINES 2 0 2
STOCK PROPERTY AND CASUALTY 80 759 839
MUTUAL PROPERTY AND CASUALTY 34 60 94
RECIPROCAL EXCHANGES 0 16 16
TOWN MUTUALS 54 0 54
SUBTOTAL 243 1,273 1,516

OTHER ENTITIES SUBJECT TO
LIMITED REGULATION *

CARE MANAGEMENT ORGANIZATIONS 5 0 5
CONTINUING CARE RETIREMENT COMMUNITIES 22 1 23
LIFE SETTLEMENT PROVIDER 0 11 11
MOTOR CLUBS 0 26 26
SERVICE CONTRACT PROVIDER 50 102 152
VEHICLE PROTECTION PLANS 0 32 32
WARRANTY PLANS 10 103 113
SUBTOTAL 87 275 362

GRAND TOTAL 330 1,548 1,878

TABLE B
2017 Summary of Wisconsin Operations of All Insurers by Type of Company

DIRECT PREMIUM DIRECT
TYPE OF COMPANY WRITTEN * BENEFITS PAID *

STOCK LIFE AND HEALTH $14,073,001,484 $13,702,905,863
MUTUAL LIFE AND HEALTH 1,778,554,393 2,069,836,344
FRATERNALS 972,050,852 825,494,919
TOTALS $16,823,606,729 $16,598,237,126

DIRECT DIRECT
PREMIUM LOSSES LOSS
TYPE OF COMPANY EARNED PAID RATIO

HEALTH MAINTENANCE ORGANIZATIONS $ 9,296,475,665 $ 8,159,425,959 88
OTHER HEALTH INSURERS 1,468,844,155 1,268,952,469 86
STOCK PROPERTY AND CASUALTY 7,408,967,863 4,044,121,660 55
MUTUAL PROPERTY AND CASUALTY 3,034,804,508 1,709,290,986 56
RECIPROCAL EXCHANGES 348,697,712 228,547,936 66
TOWN MUTUALS 58,991,135 34,676,697 59
TOTALS $21,616,781,038 $15,445,015,707 71

* See Notes to Tables.

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227

Wisconsin Insurance Report Business of 2017
Directory of Licensed Insurers

Commenced
State of Company Incorporated Business in
Name of Company, Society, or Association Domicile Type or Organized Wisconsin

WISCONSIN AUTOMOBILE INS PLAN WI PC 1967 1967

WISCONSIN COLLABORATIVE INS CO WI HMO 2016 2016

WISCONSIN COMPENSATION RATING BUREAU WI RS 1975 1975

WISCONSIN COUNTY MUTUAL INS CORP WI PC 1987 1987

WISCONSIN HEALTH CARE LIABILITY INS PLAN WI PC 1976 1976

WISCONSIN INS PLAN WI PC 1970 1970

WISCONSIN LAWYERS MUTUAL INS CO WI PC 1986 1986

WISCONSIN MUNICIPAL MUTUAL INS CO WI PC 1987 1987

WISCONSIN MUTUAL INS CO WI PC 1903 1903

WISCONSIN PHYSICIANS SERVICE INS CORP WI LAH 1977 1977

WISCONSIN REINS CORP WI PC 1972 1972

WOLVERINE MUTUAL INS CO MI PC 1917 2004

WOMAN'S LIFE INS SOCIETY MI FR 1897 1897

WOODMEN OF THE WORLD LIFE INS SOCIETY NE FR 1891 1893

WORK FIRST CAS CO DE PC 1936 2008

WORKMENS BENEFIT FUND OF THE UNITED STATES OF AMER NY FR 1899 1944

WPS HEALTH PLAN INC WI HMO 2005 2005

WRIGHT NATIONAL FLOOD INS CO TX PC 2002 2012

WRM AMERICA INDEMNITY CO INC NY PC 1991 1992

WYNNS EXTENDED CARE INC CA WP 1972 1999

WYSSTA INS CO INC WI LAH 2005 2005

XL INS AMERICA INC DE PC 1945 1959

XL INS CO OF NY INC NY PC 1994 1984

XL REINS AMERICA INC NY PC 1929 1938

XL SPECIALTY INS CO DE PC 1979 1988

Y & D CORP WI SCP 1994 2013

YCI INC OK PC 1979 1991

YORKVILLE AND MT PLEASANT MUTUAL INS CO WI TM 1874 1874

YOSEMITE INS CO IN PC 1964 1974

ZACHO SPORTS CENTER INC WI SCP 2012 2013

ZALE DELAWARE INC DE WP 1986 2012

ZALE INDEMNITY CO TX PC 1973 2007

ZALE LIFE INS CO AZ LAH 1964 2007

ZENITH INS CO CA PC 1949 1996

ZURICH AMERICAN INS CO NY PC 1913 1913

ZURICH AMERICAN INS CO OF IL IL PC 1973 1985

ZURICH AMERICAN LIFE INS CO IL LAH 1979 1981

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