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 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.

TAXES

Premium taxes paid by insurance companies in Arizona totaled $466.8 million in 2015.

PREMIUMS

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).

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 $468.0 million in gross premiums written in 2015, 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 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.

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 2016, Arizona ranked eighth in the nation for the number of wildfires, at 2,288 and seventh for the number of acres burned at 308,245.

LEADING WRITERS

 

Top 10 Writers Of Commercial Insurance In Arizona By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $292,163 7.3%
2 Liberty Mutual 215,693 5.4
3 CopperPoint Mutual Insurance Co. 210,983 5.3
4 American International Group (AIG) 209,431 5.3
5 Chubb Ltd. (2) 188,799 4.7
6 Zurich Insurance Group (3) 162,467 4.1
7 CNA Financial Corp. 140,218 3.5
8 Farmers Insurance Group of Companies (3) 124,931 3.1
9 Nationwide Mutual Group 121,629 3.1
10 Hartford Financial Services 113,853 2.9

(1) Before reinsurance transactions.
(2) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

View Archived Tables

 

 

Top 10 Writers Of Homeowners Insurance In Arizona By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $303,641 20.0%
2 Farmers Insurance Group of Companies (2) 214,771 14.1
3 Allstate Corp.  155,289 10.2
4 USAA Insurance Group 121,633 8.0
5 American Family Insurance Group 112,882 7.4
6 Liberty Mutual 111,101 7.3
7 Travelers Companies Inc.  47,200 3.1
8 Hartford Financial Services 44,225 2.9
9 CSAA Insurance Exchange 33,420 2.2
10 Chubb Ltd. (3) 29,507 1.9

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by SNL Financial.

Source: SNL Financial LC.

View Archived Tables

 

Top 10 Writers Of Life Insurance And Annuity Considerations In Arizona, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 MetLife Inc.   $750,159 8.7%
2 Prudential Financial Inc.   529,249 6.1
3  American International Group (AIG) 518,663 6.0
4 Jackson National Life Group  451,981 5.2
5 Nationwide Mutual Group  446,034 5.2
6 Lincoln National Corp.  398,868 4.6
7 New York Life Insurance Group  371,366 4.3
8 Pacific MHC 295,091 3.4
9 AEGON  292,289 3.4
10 American Equity Investment  289,391 3.3

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

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

View Archived Tables

 

Top 10 Writers Of Private Passenger Auto Insurance In Arizona By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $697,409 17.4%
2 Berkshire Hathaway Inc. 538,346 13.4
3 Progressive Corp. 387,400 9.7
4 Farmers Insurance Group of Companies (2) 354,125 8.8
5 Allstate Corp.  347,410 8.7
6 USAA Insurance Group 288,486 7.2
7 American Family Insurance Group 231,625 5.8
8 Liberty Mutual 214,790 5.4
9 Hartford Financial Services 114,120 2.8
10 CSAA Insurance Exchange 85,104 2.1

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

View Archived Tables

 

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 Arizona data only