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.
U.S. Department of Commerce data show the insurance industry provided 65,141 jobs in Arizona in 2015. The Arizona insurance industry accounted for about $4.2 billion in compensation in 2015.
GROSS STATE PRODUCT
The insurance industry contributed $6.8 billion to the Arizona gross state product (GSP) in 2014, accounting for 2.43 percent of the state GSP.
Premium taxes paid by insurance companies in Arizona totaled $466.8 million in 2015.
Direct premiums written by property/casualty insurance companies in Arizona totaled $9.6 billion in 2015. In addition, premiums written by life/health insurance companies totaled $12.4 billion (including life insurance, annuities, accident and health insurance, deposit type funds and other considerations).
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 $468.0 million in gross premiums written in 2015, according to a survey by Business Insurance.
Insurance company claims payments help ensure the economic security of individuals and businesses and help sustain a number of related industries. In 2015 these payments in Arizona as measured by direct property/casualty incurred losses, were $5.4 billion. Life insurance claims and benefits payouts in Arizona totaled $8.7 billion in 2015, on a direct basis before reinsurance, and includes life insurance, death benefits, matured endowments, annuity benefits and other life insurance benefits. Does not include accident and health.
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 2015 there were 1,662 Arizona wildfires that burned 160,152 acres. That year Arizona ranked eighth in the nation for number of acres burned.
Top 10 Writers Of Commercial Insurance In Arizona By Direct Premiums Written, 2015 (1)
Top 10 Writers Of Life Insurance And Annuity Considerations In Arizona, 2015 (1)
Top 10 Writers Of Private Passenger Auto Insurance In Arizona By Direct Premiums Written, 2015 (1)
STATE BY STATE COMPARISON TABLES
- Surplus Lines
- Gross State Product
- State Taxes
- Insurance Companies By State
- Catastrophes By State
- Residual Markets
- Captives By State
- Incurred Losses By State
- Insured Cars By State
- Insured Homes By State
- Businesses By State