Florida Firm Foundation

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

The insurance industry in Florida 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 193,124 jobs in Florida in 2012. The Florida insurance industry accounted for about $11.8 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $19.1 billion to the Florida gross state product (GSP) in 2012, accounting for 2.48 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Florida totaled $657.7 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Florida totaled $35.8 billion in 2012. In addition, premiums written by life/health insurance companies totaled $43.9 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 Florida surplus lines market accounted for $4.2 billion 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 Florida as measured by direct property/casualty incurred losses, were $18.0 billion. Life insurance claims and benefits payouts in Florida totaled $27.7 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. The total value of insured coastal property in Florida was $2.9 trillion in 2012, accounting for 79 percent of the state’s total insurance property exposure, according to AIR Worldwide Corporation. Seven of the 10 costliest hurricanes in U.S. history have impacted Florida. Six of the storms affecting Florida occurred within just two years: 2004 and 2005. In addition, Florida ranked tenth in the nation for tornadoes, with 37 storms in 2013.

 

THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2013
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $47,622
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 23,386
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 19,033
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 13,426
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 11,934
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 8,939
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ,
NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 8,502
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 6,937
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,520
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,495

(1) Includes hurricanes occurring through 2013.                    
(2) Property coverage only. Does not include flood damage covered by the federally adminstered National Flood Insurance Program.                    
(3) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.                    
                    
Source: The Property Claim Services® (PCS®) unit of ISO, a Verisk Analytics company.

 

 

ESTIMATED VALUE OF INSURED COASTAL PROPERTIES VULNERABLE TO HURRICANES BY STATE, 2012 (1)

($ billions)

Rank State Coastal Total exposure (2) Coastal as a
percent of total
1 New York  $2,923.1 $4,724.2 62%
2 Florida  2,862.3 3,640.1 79
3 Texas  1,175.3 4,580.7 26
4 Massachusetts  849.6 1,561.4 54
5 New Jersey  713.9 2,129.9 34
6 Connecticut  567.8 879.1 65
7 Louisiana  293.5 823.0 36
8 South Carolina  239.3 843.6 28
9 Virginia  182.3 1,761.7 10
10 Maine  164.6 285.5 58
11 North Carolina  163.5 1,795.1 9
12 Alabama  118.2 917.8 13
13 Georgia  106.7 1,932.2 6
14 Delaware  81.9 208.9 39
15 New Hampshire  64.0 278.7 23
16 Mississippi  60.6 468.5 13
17 Rhode Island  58.3 207.5 28
18 Maryland  17.3 1,293.4 1
  All states above  $10,642.2 $28,331.4 38%
  Total U.S.  $10,642.2 $64,624.3 16%

(1) Includes residential and commercial properties, as of December 31, 2012. Ranked by value of insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including the full replacement value of structures and their contents, additional living expenses and the time value of business interruption coverage.

Source: AIR Worldwide.

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LEADING WRITERS

 

LEADING WRITERS OF HOMEOWNERS INSURANCE IN FLORIDA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Citizens Property Insurance Corp. $1,272,336 14.5%
2 Universal Insurance Holdings 695,951 7.9
3 State Farm Mutual Automobile Insurance 646,851 7.4
4 Tower Hill Group 607,700 6.9
5 USAA Insurance Group 427,704 4.9
6 HCI Group, Inc. 311,550 3.6
7 Florida Peninsula Holdings LLC 310,353 3.5
8 United P&C Insurance Co. 263,178 3.0
9 St. Johns Insurance Co. 255,852 2.9
10 ARX Holding Corp. 249,888 2.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF COMMERCIAL INSURANCE IN FLORIDA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Citizens Property Insurance Corp. $1,489,302 8.2%
2 Assurant Inc. 923,993 5.1
3 American International Group 919,766 5.1
4 Zurich Insurance Group 812,469 4.5
5 Travelers Companies Inc. 660,917 3.6
6 Liberty Mutual 641,590 3.5
7 ACE Ltd. 548,095 3.0
8 CNA Financial Corp. 521,236 2.9
9 American Financial Group Inc. 472,511 2.6
10 Nationwide Mutual Group 441,233 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN FLORIDA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $2,707,730 19.2%
2 State Farm Mutual Automobile Insurance 2,410,915 17.1
3 Progressive Corp. 1,840,709 13.0
4 Allstate Corp. 1,671,344 11.8
5 USAA Insurance Group 894,943 6.3
6 Liberty Mutual 530,038 3.8
7 Farmers Insurance Group of Cos. 466,711 3.3
8 Infinity P&C Corp. 433,577 3.1
9 Travelers Companies Inc. 316,545 2.2
10 Nationwide Mutual Group 248,865 1.8

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $5,172,071 16.0%
2 MetLife Inc. 2,260,888 7.0
3 AEGON NV 1,760,520 5.5
4 Jackson National Life Group 1,633,214 5.1
5 Lincoln National Corp. 1,602,380 5.0
6 American International Group 1,505,027 4.7
7 Manulife Financial Corp. 1,258,631 3.9
8 Massachusetts Mutual Life Insurance Co. 1,105,824 3.4
9 Nationwide Mutual Group 945,943 2.9
10 ING U.S., Inc. 900,463 2.8

(1) Includes life insurance, annuity consideration, 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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