Alabama Firm Foundation

KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE ALABAMA ECONOMY

The insurance industry in Alabama has a significant impact on the state’s economy that extends well beyond its responsibilities to collect premiums and settle claims. It employs licensed professionals, pays taxes, owns municipal bonds and serves people in their times of greatest need.

EMPLOYMENT

U.S. Department of Commerce data show the insurance industry provided 36,775 jobs in Alabama in 2012. The Alabama insurance industry accounted for about $ 2.3 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $3.5 billion to the Alabama gross state product (GSP) in 2012, accounting for 1.85 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Alabama totaled $298.0 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Alabama totaled $6.8 billion in 2012. In addition, premiums written by life/health insurance companies totaled $7.0 billion (including life insurance, annuities, accident and health insurance, deposit type funds and other considerations).

SURPLUS LINES

The surplus lines market, a group of highly specialized insurers exists to provide coverage that is not available through licensed insurers in the standard insurance market. For the many thousands of businesses that rely on some level of surplus line protection to keep their doors open, surplus lines is an important segment of the market. The Alabama surplus lines market accounted for $452.1 million in gross premiums written in 2012, according to a survey by Business Insurance.

CLAIMS PAYMENTS

Insurance company claims payments help ensure the economic security of individuals and businesses and help sustain a number of related industries. In 2012 these payments in Alabama as measured by direct property/casualty incurred losses, were $3.9 billion. Life insurance claims and benefits payouts in Alabama totaled $4.9 billion in 2012.  On a direct basis before reinsurance.  Includes life insurance, death benefits, matured endowments, annuity benefits and other life insurance benefits. Does not include accident and health.

CATASTROPHES

The insurance industry plays a vital role in helping individuals and businesses prepare for and recover from the potentially devastating effects of a disaster such as a catastrophic hurricane or storm or wildfire. The total value of insured coastal property in Alabama was $118.2 billion in 2012, accounting for 13 percent of the state’s total insurance property exposure, according to AIR Worldwide Corporation. Three of the 10 costliest hurricanes in U.S. history have impacted Alabama: hurricanes Katrina and Rita in 2005 and Hurricane Ivan in 2004. Alabama is also prone to tornadoes and wildfires (see tables).

 

THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2013
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $47,622
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 23,386
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 19,033
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 13,426
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 11,934
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 8,939
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ,
NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 8,502
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 6,937
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,520
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,495

(1) Includes hurricanes occurring through 2013.                    
(2) Property coverage only. Does not include flood damage covered by the federally adminstered National Flood Insurance Program.                    
(3) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.                    
                    
Source: The Property Claim Services® (PCS®) unit of ISO, a Verisk Analytics company.

 

 

WILDFIRES BY STATE, 2013

State Number of fires Number of acres burned 
Alabama 1,284 25,623
Alaska 603 1,316,876
Arizona 1,756 105,281
Arkansas 881 14,733
California 9,907 577,675
Colorado 1,176 195,145
Connecticut 76 238
Delaware 4 17
Florida 101 7,660
Georgia 2,942 6,736
Hawaii (1) (1)
Idaho 1,471 722,204
Illinois 24 55
Indiana 19 806
Iowa 436 14,704
Kansas 16 7,137
Kentucky 1,030 25,084
Louisiana 1,027 17,883
Maine 426 743
Maryland 126 182
Massachusetts 1,132 879
Michigan 436 940
Minnesota 1,115 22,107
Mississippi 5 33
Missouri 51 1,660
Montana 1,723 124,209
Nebraska 10 63
Nevada 763 162,907
New Hampshire 85 137
New Jersey 1,013 1,430
New Mexico 1,064 221,951
New York 138 1,073
North Carolina 3,514 24,547
North Dakota 515 16,116
Ohio 31 152
Oklahoma 610 26,490
Oregon 2,848 350,786
Pennsylvania 639 1,788
Rhode Island 7 27
South Carolina 1,337 7,082
South Dakota 889 4,475
Tennessee 424 7,080
Texas 70 10,743
Utah 1,276 70,282
Vermont 124 281
Virginia 482 4,418
Washington 1,527 152,603
West Virginia 557 8,577
Wisconsin 671 9,196
Wyoming 468 44,016
United States (2) 47,579 4,319,546

(1) Hawaii had no wildfires in 2013.
(2) Includes Puerto Rico which had 750 fires that burned 4,716 acres.

Source: National Interagency Fire Center.

View Archived Tables

 

 

TOP TEN STATES, BY NUMBER OF TORNADOES, 2013 (1)

Rank State Number of tornadoes
1 Illinois 69
2 Nebraska 65
3 Texas 65
4 Kansas 58
5 Oklahoma 56
6 Missouri 54
7 Kentucky 50
8 Tennessee 43
9 Indiana 41
10 Florida 37

(1) Includes tornadoes that cross state lines.

Source: U.S. Department of Commerce, Storm Prediction Center, National Weather Service.

View Archived Tables

 

LEADING WRITERS

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN ALABAMA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $197,366 6.4%
2 American International Group 173,195 5.7
3 Liberty Mutual 136,437 4.5
4 Zurich Insurance Group 128,128 4.2
5 Auto-Owners Insurance Co. 115,385 3.8
6 CNA Financial Corp. 102,930 3.4
7 ACE Ltd. 92,274 3.0
8 Nationwide Mutual Group 89,784 2.9
9 Cincinnati Financial Corp. 87,894 2.9
10 ProAssurance Corp. 73,673 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF HOMEOWNERS INSURANCE IN ALABAMA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $461,918 29.7%
2 Alfa Mutual Group 216,132 13.9
3 Allstate Corp. 164,232 10.6
4 Farmers Insurance Group of Cos. 109,888 7.1
5 Travelers Companies Inc. 89,407 5.7
6 USAA Insurance Group 84,064 5.4
7 Liberty Mutual 54,015 3.5
8 Nationwide Mutual Group 49,737 3.2
9 COUNTRY Financial 49,378 3.2
10 Auto-Owners Insurance Co. 35,207 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN ALABAMA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $604,955 23.9%
2 Alfa Mutual Group 390,185 15.4
3 Allstate Corp. 270,293 10.7
4 Berkshire Hathaway Inc. 228,534 9.0
5 Progressive Corp. 171,360 6.8
6 USAA Insurance Group 151,411 6.0
7 Nationwide Mutual Group 97,039 3.8
8 Farmers Insurance Group of Cos. 85,110 3.4
9 Liberty Mutual 62,525 2.5
10 Travelers Companies Inc. 55,880 2.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN ALABAMA BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $476,686 8.8%
2 MetLife Inc. 380,455 7.1
3 Lincoln National Corp. 311,579 5.8
4 Jackson National Life Group 287,279 5.3
5 American International Group 244,207 4.5
6 Manulife Financial Corp. 237,486 4.4
7 New York Life Insurance Group 209,288 3.9
8 Principal Financial Group Inc. 179,635 3.3
9 Hartford Financial Services 165,076 3.1
10 Protective Life Corp. 149,934 2.8

(1) Includes life insurance, annuity consideration, deposit-type contract funds, other considerations; excludes accident and health insurance from life/health insurers. Before reinsurance transactions.

Source: SNL Financial LC.

 

STATE BY STATE COMPARISON TABLES

DIRECTORIES

CREATE YOUR OWN BOOK

  • Click here to create your own customized book of national and state-by-state tables
  • Click here to view Alabama data only