Georgia Firm Foundation

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

The insurance industry in Georgia 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 95,203 jobs in Georgia in 2012. The Georgia insurance industry accounted for about $6.6 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $8.9 billion to the Georgia gross state product (GSP) in 2012, accounting for 2.04 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Georgia totaled $329.2 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Georgia totaled $13.9 billion in 2012. In addition, premiums written by life/health insurance companies totaled $18.7 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 Georgia surplus lines market accounted for $802.5 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 Georgia as measured by direct property/casualty incurred losses, were $7.9 billion. Life insurance claims and benefits payouts in Georgia totaled $9.6 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. Four of the 10 most costly hurricanes to hit the United States caused insured property damage in Georgia: Hurricane Katrina in 2005; Hurricane Ivan in 2004, Hurricane Hugo in 1989, and Hurricane Frances in 2004. The insured value of properties in coastal areas of Georgia totaled $106.7 billion in 2012, according to an analysis by AIR Worldwide. The state is also prone to wildfires and tornadoes (see tables). In 2013 Georgia ranked third in the nation for the number of wildfires, with 2,942 fires that burned 6,736 acres.

 

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.

 

 

TOP TEN STATES FOR WILDFIRES RANKED BY NUMBER OF FIRES AND BY NUMBER OF ACRES BURNED, 2013

Rank State Number of fires Rank State Number of acres burned
1 California 9,907 1 Alaska 1,316,876
2 North Carolina 3,514 2 Idaho 722,204
3 Georgia 2,942 3 California 577,675
4 Oregon 2,848 4 Oregon 350,786
5 Arizona 1,756 5 New Mexico 221,951
6 Montana 1,723 6 Colorado 195,145
7 Washington 1,527 7 Nevada 162,907
8 Idaho 1,471 8 Washington 152,603
9 South Carolina 1,337 9 Montana 124,209
10 Alabama 1,284 10 Arizona 105,281

Source: National Interagency Fire Center.

View Archived Tables

 

 

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.

View Archived Tables

 

 

TORNADOES AND RELATED DEATHS BY STATE, 2013 (1)

State Tornadoes Fatalities Rank (2) State Tornadoes Fatalities Rank (2)
Alabama 27 0 15 Montana 10 0 25
Alaska 0 0 (3) Nebraska 65 0 2
Arizona 1 0 38 Nevada 0 0 (3)
Arkansas 30 2 13 New Hampshire 0 0 (3)
California 6 0 31 New Jersey 3 0 33
Colorado 27 0 15 New Mexico 0 0 (3)
Connecticut 3 0 33 New York 9 0 27
D.C. 0 0 (3) North Carolina 12 0 23
Delaware 1 0 38 North Dakota 17 0 19
Florida 37 0 10 Ohio 26 0 15
Georgia 27 1 15 Oklahoma 56 34 5
Hawaii 0 0 (3) Oregon 3 0 33
Idaho 5 0 32 Pennsylvania 9 0 27
Illinois 69 8 1 Rhode Island 0 0 (3)
Indiana 41 0 9 South Carolina 8 0 29
Iowa 30 1 13 South Dakota 15 0 20
Kansas 58 0 4 Tennessee 43 0 8
Kentucky 50 0 7 Texas 65 7 2
Louisiana 34 0 12 Utah 1 0 38
Maine 1 0 38 Vermont 0 0 (3)
Maryland 10 0 25 Virginia 3 0 33
Massachusetts 1 0 38 Washington 2 0 37
Michigan 13 0 22 West Virginia 0 0 (3)
Minnesota 11 0 24 Wisconsin 15 0 20
Mississippi 36 2 11 Wyoming 8 0 29
Missouri 54 0 6 United States 942 (4) 55  

(1) Ranked by total number of tornadoes.
(2) States with the same number receive the same ranking.
(3) State had no tornadoes in 2013.
(4) The U.S. total will not match data used in other charts because it counts tornadoes that cross state lines.

Source: U.S. Department of Commerce, Storm Prediction Center, National Weather Service.

View Archived Tables

 

LEADING WRITERS

 

LEADING WRITERS OF HOMEOWNERS INSURANCE IN GEORGIA BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $680,174 28.9%
2 Allstate Corp. 343,884 14.6
3 Travelers Companies Inc. 169,420 7.2
4 USAA Insurance Group 162,980 6.9
5 Liberty Mutual 142,163 6.1
6 GA Farm Bureau Mutual Insurance Co. 133,713 5.7
7 Nationwide Mutual Group  83,130 3.5
8 Auto-Owners Insurance Co. 81,103 3.5
9 COUNTRY Financial 81,046 3.5
10 Farmers Insurance Group of Companies 41,358 1.8

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN GEORGIA BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Group Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $417,283 6.9%
2 American International Group  369,276 6.1
3 Liberty Mutual  354,321 5.9
4 Zurich Insurance Group Ltd.  269,067 4.5
5 CNA Financial Corp.  199,693 3.3
6 Auto-Owners Insurance Co.  196,068 3.3
7 ACE Ltd.  188,445 3.1
8 Hartford Financial Services  174,512 2.9
9 Chubb Corp.  160,065 2.7
10 Nationwide Mutual Group  150,927 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN GEORGIA BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Company/Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,226,165 22.4%
2 Progressive Corp.  680,767 12.4
3 Allstate Corp.  655,640 12.0
4 Berkshire Hathaway Inc.  543,687 9.9
5 USAA Insurance Group  402,872 7.4
6 Liberty Mutual  268,492 4.9
7 Nationwide Mutual Group  182,694 3.3
8 GA Farm Bureau Mutual Insurance Co.  170,489 3.1
9 Travelers Companies Inc.  151,086 2.8
10 Auto-Owners Insurance Co.  106,881 2.0

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $1,323,128 10.6%
2 Massachusetts Mutual Life Insurance Co. 834,884 6.7
3 MetLife Inc. 833,327 6.7
4 Lincoln National Corp. 652,917 5.2
5 American International Group 600,278 4.8
6 Manulife Financial Corp. 571,153 4.6
7 AEGON NV 534,182 4.3
8 Jackson National Life Group 479,565 3.8
9 Hartford Financial Services 378,993 3.0
10 New York Life Insurance Group 335,569 2.7

(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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