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.

EMPLOYMENT

U.S. Department of Commerce data show the insurance industry provided 39,614 jobs in Kentucky in 2012. The Kentucky insurance industry accounted for about $2.5 billion in compensation in 2012.

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.

TAXES

Premium taxes paid by insurance companies in Kentucky totaled $139.5 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Kentucky totaled $6.1 billion in 2012. In addition, premiums written by life/health insurance companies totaled $8.2 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 Kentucky surplus lines market accounted for $143.0 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 Kentucky as measured by direct property/casualty incurred losses, were $5.1 billion. Life insurance claims and benefits payouts in Kentucky totaled $4.4 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. 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

 

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

Rank Company/Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $520,073 21.9%
2 KY Farm Bureau Mutual Insurance Co. 479,746 20.2
3 Progressive Corp. 176,334 7.4
4 Allstate Corp. 166,198 7.0
5 Liberty Mutual 162,008 6.8
6 Berkshire Hathaway Inc. 138,015 5.8
7 USAA Insurance Group 94,545 4.0
8 Nationwide Mutual Group 85,831 3.6
9 State Auto Insurance Companies 63,254 2.7
10 Shelter Mutual Insurance Co. 48,383 2.0

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Company/Group Direct premiums written ($000) Market share
1 Liberty Mutual $238,775 9.0%
2 Travelers Companies Inc. 161,805 6.1
3 Kentucky Employers' Mutual Insurance 125,813 4.8
4 American International Group 123,842 4.7
5 Zurich Insurance Group Ltd. 96,639 3.7
6 KY Farm Bureau Mutual Insurance Co. 90,250 3.4
7 CNA Financial Corp. 89,704 3.4
8 Cincinnati Financial Corp. 88,330 3.3
9 Chubb Corp. 66,264 2.5
10 Underwriters at Lloyd's London-KY 61,189 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Company/Group Direct premiums written ($000) Market share
1 KY Farm Bureau Mutual Insurance Co. $232,641 24.3%
2 State Farm Mutual Automobile Insurance 221,637 23.2
3 Liberty Mutual 83,718 8.8
4 Allstate Corp. 66,314 6.9
5 State Auto Insurance Companies 32,600 3.4
6 USAA Insurance Group 31,640 3.3
7 Travelers Companies Inc. 30,510 3.2
8 Auto-Owners Insurance Co. 28,258 3.0
9 Nationwide Mutual Group 26,303 2.8
10 Cincinnati Financial Corp. 22,348 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group Direct premiums written ($000) Market share
1 MetLife Inc. $695,611 12.0%
2 New York Life Insurance Group 668,008 11.5
3 Prudential Financial Inc. 515,189 8.9
4 Massachusetts Mutual Life Insurance Co. 320,416 5.5
5 Lincoln National Corp. 262,112 4.5
6 AEGON NV 248,591 4.3
7 Jackson National Life Group 213,795 3.7
8 Manulife Financial Corp. 186,425 3.2
9 Principal Financial Group Inc. 182,801 3.2
10 American International Group 178,116 3.1

(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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