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 212,509 jobs in Florida in 2015. The Florida insurance industry accounted for about $14.5 billion in compensation in 2015.

GROSS STATE PRODUCT

The insurance industry contributed $22.7 billion to the Florida gross state product (GSP) in 2014, accounting for 2.72 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Florida totaled $690.2 million in 2015.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Florida totaled $44.9 billion in 2015. In addition, premiums written by life/health insurance companies totaled $45.3 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 $4.9 billion 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 Florida as measured by direct property/casualty incurred losses, were $22.0 billion. Life insurance claims and benefits payouts in Florida totaled $31.8 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. 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. Florida ranked fifth among the states with the greatest insured catastrophe losses in 2016 with $885.2 million in insured losses, according to the Property Claim Services unit of Verisk.  Florida experienced 48 tornadoes in 2016, ranking at number 7. The state ranked sixth in the nation for the number of wildfires, at 3,067, with 74,416 acres burned.

 

LEADING WRITERS

 

Top 10 Writers Of Commercial Insurance In Florida By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Assurant Inc.  $2,007,313 9.7%
2 American International Group (AIG) 947,526 4.6
3 Chubb Ltd. 921,461 4.4
4 Zurich Insurance Group (2) 824,938 4.0
5 Liberty Mutual  731,817 3.5
6 Travelers Companies Inc.  626,739 3.0
7 CNA Financial Corp.  610,351 2.9
8 Progressive Corp.  602,393 2.9
9 Citizens Property Insurance Corp. 545,117 2.6
10 Berkshire Hathaway Inc.  523,166 2.5

(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.

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Top 10 Writers Of Homeowners Insurance In Florida By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Universal Insurance Holdings $788,089 8.9%
2 Tower Hill Group                                  607,919          6.9
3 State Farm Mutual Automobile Insurance                                  581,448          6.6
4 Federated National Insurance Co.                                  430,041          4.9
5 Citizens Property Insurance Corp.                                  428,724          4.9
6 Heritage Insurance Holdings Inc.                                  398,206          4.5
7 USAA Insurance Group                                  382,149          4.3
8 HCI Group, Inc.                                  321,568          3.7
9 Progressive Corp.                                  311,885          3.5
10 Florida Peninsula Holdings LLC                                  301,021          3.4

(1) Before reinsurance transactions.

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

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

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 American International Group (AIG)   $2,359,011 7.2%
2 Prudential Financial Inc.   1,889,896 5.8
3 Lincoln National Corp.   1,870,828 5.7
4 AEGON   1,800,157 5.5
5 Jackson National Life Group   1,678,323 5.1
6 Nationwide Mutual Group   1,496,441 4.6
7 MetLife Inc.   1,409,497 4.3
8 Manulife Financial Corp.   1,175,344 3.6
9 New York Life Insurance Group   1,130,566 3.5
10 Massachusetts Mutual Life Insurance Co.   1,107,742 3.4

(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.

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Top 10 Writers Of Private Passenger Auto Insurance In Florida By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $3,952,147 22.8%
2 State Farm Mutual Automobile Insurance 2,806,322 16.2
3 Progressive Corp. 2,555,513 14.7
4 Allstate Corp. 1,850,652 10.7
5 USAA Insurance Group 1,190,476 6.9
6 Liberty Mutual 566,513 3.3
7 Infinity P&C Corp. 414,519 2.4
8 Travelers Companies Inc.  403,222 2.3
9 Farmers Insurance Group of Companies (2) 376,329 2.2
10 National General Holdings Corp. 358,842 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.

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