Kentucky Firm Foundation
KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE KENTUCKY ECONOMY
The insurance industry in Kentucky 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 39,981 jobs in Kentucky in 2013. The Kentucky insurance industry accounted for about $2.6 billion in compensation in 2013.
GROSS STATE PRODUCT
The insurance industry contributed $3.7 billion to the Kentucky gross state product (GSP) in 2012, accounting for 2.10 percent of the state GSP.
Premium taxes paid by insurance companies in Kentucky totaled $139.5 million in 2013.
Direct premiums written by property/casualty insurance companies in Kentucky totaled $6.5 billion in 2013. In addition, premiums written by life/health insurance companies totaled $6.6 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 Kentucky surplus lines market accounted for $159.0 million in gross premiums written in 2013, 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 2013 these payments in Kentucky as measured by direct property/casualty incurred losses, were $3.2 billion. Life insurance claims and benefits payouts in Kentucky totaled $4.9 billion in 2013. 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.
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. In 2013 there were 1,030 Kentucky wildfires that burned 25,084 acres. Also that year, the state ranked seventh in the nation for tornadoes, with 50 storms. The state was also hit by 40 major hail events in 2013, according to the National Weather Service.
LEADING WRITERS OF COMMERCIAL INSURANCE IN KENTUCKY BY DIRECT PREMIUMS WRITTEN, 2013 (1)
LEADING WRITERS OF HOMEOWNERS INSURANCE IN KENTUCKY BY DIRECT PREMIUMS WRITTEN, 2013 (1)
LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN KENTUCKY BY DIRECT PREMIUMS WRITTEN, 2013 (1)
LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN KENTUCKY BY DIRECT PREMIUMS WRITTEN, 2013 (1)
STATE BY STATE COMPARISON TABLES
- Surplus Lines
- Gross State Product
- State Taxes
- Insurance Companies By State
- Catastrophes By State
- Residual Markets
- Captives By State
- Incurred Losses By State
- Insured Cars By State
- Insured Homes By State
- Businesses By State