Arkansas Firm Foundation

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

The insurance industry in Arkansas 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 22,031 jobs in Arkansas in 2012. The Arkansas insurance industry accounted for about $1.0 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $1.6 billion to the Arkansas gross state product (GSP) in 2012, accounting for 1.35 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Arkansas totaled $163.0 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Arkansas totaled $4.2 billion in 2012. In addition, premiums written by life/health insurance companies totaled $4.1 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 Arkansas surplus lines market accounted for $193.6 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 Arkansas as measured by direct property/casualty incurred losses, were $2.2 billion. Life insurance claims and benefits payouts in Arkansas totaled $2.8 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 881 Arkansas wildfires that burned 14,733 acres.

 

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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LEADING WRITERS

 

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

Rank Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $347,167 23.8%
2 Sothern Farm Bureau Casualty Insurance Group 202,378 13.9
3 Shelter Mutual Insurance Co. 124,223 8.5
4 Allstate Corp. 102,504 7.0
5 Farmers Insurance Group of Cos. 92,445 6.4
6 Progressive Corp. 83,231 5.7
7 Berkshire Hathaway Inc. 75,345 5.2
8 Nationwide Mutual Group 61,351 4.2
9 USAA Insurance Group 56,868 3.9
10 Liberty Mutual 29,225 2.0

(1) Before reinsurance transactions.

Source: SNL Financial LC.

 

 

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

Rank Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $167,413 24.0%
2 Farm Bureau Mutual Insurance Co. of Arkansas 132,603 19.0
3 Allstate Corp. 60,287 8.6
4 Shelter Mutual Insurance Co. 55,025 7.9
5 Farmers Insurance Group of Cos. 54,183 7.8
6 Travelers Companies Inc. 30,393 4.4
7 Nationwide Mutual Group 23,387 3.4
8 Munich-American Holding Corp. 22,532 3.2
9 USAA Insurance Group 21,521 3.1
10 Liberty Mutual 15,416 2.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

 

 

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

Rank Group Direct premiums written ($000) Market share
1 American International Group $176,962 9.1%
2 Travelers Companies Inc. 121,336 6.3
3 Farm Bureau Mutual Ins Co. of Arkansas 99,130 5.1
4 Liberty Mutual 96,592 5.0
5 CNA Financial Corp. 83,035 4.3
6 Zurich Insurance Group Ltd. 58,082 3.0
7 ACE Ltd. 48,695 2.5
8 Old Repub International Corp. 46,391 2.4
9 W.R. Berkley Corp. 46,173 2.4
10 Nationwide Mutual Group 42,112 2.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

 

 

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

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $253,627 9.0%
2 MetLife Inc. 187,510 6.7
3 Jackson National Life Group 158,637 5.6
4 American International Group 125,717 4.5
5 New York Life Insurance Group 108,245 3.8
6 TIAA-CREF 104,150 3.7
7 Manulife Financial Corp. 97,645 3.5
8 Nationwide Mutual Group 84,306 3.0
9 Lincoln National Corp. 81,761 2.9
10 AEGON NV 73,372 2.6

(1) Includes life insurance, annuity considerations, 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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