D.C. Firm Foundation

KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE D.C. ECONOMY

The insurance industry in D.C. 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 4,569 jobs in D.C. in 2014. The D.C. insurance industry accounted for about $629.2 million in compensation in 2014.

GROSS STATE PRODUCT

The insurance industry contributed $1.2 billion to the D.C. gross state product (GSP) in 2013, accounting for 1.04 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Florida totaled $87.5 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in D.C. totaled $1.7 billion in 2014. In addition, premiums written by life/health insurance companies totaled $2.9 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 D.C. surplus lines market accounted for $176.9 million in gross premiums written in 2014, 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 2014 these payments in D.C. as measured by direct property/casualty incurred losses, were $624.0 million. Life insurance claims and benefits payouts in D.C. totaled $2.3 billion in 2014, 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. Washington, D.C. was impacted by Hurricane Sandy in October 2012, along with some dozen states. Sandy caused $18.75 billion in property losses, excluding flood insurance claims covered by the federal flood insurance program, according to estimates from ISO’s PCS unit. Sandy was the third most costly U.S. hurricane, after hurricanes Katrina and Andrew.

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb Ltd. (2) $116,174 9.9%
2 American International Group (AIG) 111,875 9.5
3 Travelers Companies Inc. 111,732 9.5
4 Liberty Mutual 86,823 7.4
5 Hartford Financial Services 74,190 6.3
6 Zurich Insurance Group (3) 53,195 4.5
7 CNA Financial Corp. 48,666 4.1
8 Attorneys' Liability Assrance Society 36,736 3.1
9 Tokio Marine Group 30,142 2.6
10 W. R. Berkley Corp. 29,190 2.5

(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.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $34,683 23.0%
2 Travelers Companies Inc. 31,122 20.6
3 Chubb Ltd. (2) 18,748 12.4
4 USAA Insurance Group 14,714 9.7
5 Allstate Corp. 13,771 9.1
6 Liberty Mutual 8,094 5.4
7 Nationwide Mutual Group 6,645 4.4
8 Erie Insurance Group 5,004 3.3
9 Hartford Financial Services 3,700 2.4
10 Assurant Inc. 2,654 1.8

(1) Before reinsurance transactions.
(2) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.

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

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LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN D.C., 2014 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 MetLife Inc. $434,634 20.7%
2 Lincoln National Corp. 185,326 8.8
3 Prudential Financial Inc. 185,197 8.8
4 Manulife Financial Corp. 176,243 8.4
5 TIAA-CREF 146,493 7.0
6 New York Life Insurance Group 121,423 5.8
7 Principal Financial Group Inc. 91,820 4.4
8 Voya Financial Inc. 90,600 4.3
9 Massachusetts Mutual Life Ins. Co. 58,908 2.8
10 AEGON 43,592 2.1

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

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $106,293 34.8%
2 State Farm Mutual Automobile Insurance 60,511 19.8
3 Progressive Corp. 28,084 9.2
4 USAA Insurance Group 26,584 8.7
5 Allstate Corp. 22,640 7.4
6 Nationwide Mutual Group 12,171 4.0
7 Liberty Mutual 11,148 3.6
8 Travelers Companies Inc. 10,049 3.3
9 Erie Insurance Group 6,866 2.2
10 Hartford Financial Services 5,768 1.9

(1) Before reinsurance transactions.

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

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