Arizona Firm Foundation

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

The insurance industry in Arizona 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 52,112 jobs in Arizona in 2012. The Arizona insurance industry accounted for about $3.0 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $8.3 billion to the Arizona gross state product (GSP) in 2012, accounting for 3.07 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Arizona totaled $424.4 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Arizona totaled $7.9 billion in 2012. In addition, premiums written by life/health insurance companies totaled $12.1 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 Arizona surplus lines market accounted for $339.8 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 Arizona as measured by direct property/casualty incurred losses, were $4.7 billion. Life insurance claims and benefits payouts in Arizona totaled $7.5 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. In 2013 there were 1,756 Arizona wildfires that burned 105,281 acres. Arizona ranked fifth in the nation for number of wildfires.

 

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.

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TOP TEN STATES FOR WILDFIRES RANKED BY NUMBER OF FIRES AND BY NUMBER OF ACRES BURNED, 2013

Rank State Number of fires Rank State Number of acres burned
1 California 9,907 1 Alaska 1,316,876
2 North Carolina 3,514 2 Idaho 722,204
3 Georgia 2,942 3 California 577,675
4 Oregon 2,848 4 Oregon 350,786
5 Arizona 1,756 5 New Mexico 221,951
6 Montana 1,723 6 Colorado 195,145
7 Washington 1,527 7 Nevada 162,907
8 Idaho 1,471 8 Washington 152,603
9 South Carolina 1,337 9 Montana 124,209
10 Alabama 1,284 10 Arizona 105,281

Source: National Interagency Fire Center.

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LEADING WRITERS

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN ARIZONA BY DIRECT PREMIUMS WRITTEN, 2011 (1)

Rank Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance  $560,885 17.2%
2 Farmers Insurance Group of Cos.  382,295 11.7
3 Progressive Corp.  333,317 10.2
4 Berkshire Hathaway Inc.  308,141 9.4
5 Allstate Corp.  301,176 9.2
6 USAA Insurance Group  231,368 7.1
7 American Family Mutual  213,180 6.5
8 Liberty Mutual  123,500 3.8
9 Hartford Financial Services  109,969 3.4
10 AAA Northern CA NV & Utah Insurance  71,665 2.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

 

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN ARIZONA BY DIRECT PREMIUMS WRITTEN, 2011 (1)

Rank Group Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $225,496 7.3%
2 Liberty Mutual  219,640 7.1
3 American International Group  219,602 7.1
4 Mutual Insurance Co. of Arizona 123,335 4.0
5 CNA Financial Corp.  115,683 3.7
6 Zurich Insurance Group Ltd.  109,320 3.5
7 Hartford Financial Services  101,186 3.3
8 Farmers Insurance Group of Cos  100,790 3.2
9 CopperPoint Mutual Insurance Co.  90,315 2.9
10 ACE Ltd.  90,042 2.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

 

 

LEADING WRITERS OF HOMEOWNERS INSURANCE IN ARIZONA BY DIRECT PREMIUMS WRITTEN, 2011 (1)

Rank Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance  $256,867 21.0%
2 Farmers Insurance Group of Cos.  178,530 14.6
3 Allstate Corp.  143,587 11.7
4 American Family Mutual  85,587 7.0
5 USAA Insurance Group  81,416 6.7
6 Liberty Mutual  55,137 4.5
7 Hartford Financial Services  49,362 4.0
8 Travelers Companies Inc.  39,697 3.2
9 MetLife Inc.  32,627 2.7
10 AAA Northern CA NV & Utah Insurance  23,370 1.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

 

 

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

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $1,427,657 17.0%
2 MetLife Inc. 1,132,339 13.5
3 Jackson National Life Group 389,386 4.6
4 Lincoln National Corp. 341,887 4.1
5 Nationwide Mutual Group 296,764 3.5
6 Guggenheim Capital LLC 247,974 3.0
7 American International Group 244,039 2.9
8 New York Life Insurance Group 239,998 2.9
9 AEGON NV 212,180 2.5
10 Manulife Financial Corp. 206,424 2.5

(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.

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STATE BY STATE COMPARISON TABLES

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