Colorado Firm Foundation
KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE COLORADO ECONOMY
The insurance industry in Colorado 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 54,861 jobs in Colorado in 2015. The Colorado insurance industry accounted for about $4 billion in compensation in 2015.
GROSS STATE PRODUCT
The insurance industry contributed $5.7 billion to the Colorado gross state product (GSP) in 2014, accounting for 1.87 percent of the state GSP.
Premium taxes paid by insurance companies in Colorado totaled $257.8 million in 2015.
Direct premiums written by property/casualty insurance companies in Colorado totaled $10.7 billion in 2015. In addition, premiums written by life/health insurance companies totaled $12.8 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 Colorado surplus lines market accounted for $726.2 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 Colorado as measured by direct property/casualty incurred losses, were $6.4 billion. Life insurance claims and benefits payouts in Colorado totaled $7.7 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 storm or wildfire. Colorado ranked fifth among the states by the largest catastrophe losses in 2013, with $907 million in insured losses. In 2015 Colorado ranked sixth on the list of states with the most tornadoes with 52 tornadoes for the year.
Top 10 Writers Of Commercial Insurance In Colorado By Direct Premiums Written, 2015 (1)
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Top 10 Writers Of Private Passenger Auto Insurance In Colorado By Direct Premiums Written, 2015 (1)