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 43,623 jobs in Kentucky in 2015. The Kentucky insurance industry accounted for about $3.1 billion in compensation in 2015.

GROSS STATE PRODUCT

The insurance industry contributed $4.8 billion to the Kentucky gross state product (GSP) in 2014, accounting for 2.55 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Kentucky totaled $146.5 million in 2015.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Kentucky totaled $6.9 billion in 2015. In addition, premiums written by life/health insurance companies totaled $6.5 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 $211.7 million 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 Kentucky as measured by direct property/casualty incurred losses, were $4.3 billion. Life insurance claims and benefits payouts in Kentucky totaled $5.0 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.

 

LEADING WRITERS

 

Top 10 Writers Of Commercial Insurance In Kentucky By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $209,904 7.1%
2 Zurich Insurance Group (2) 165,374 5.6
3 Travelers Companies Inc. 155,608 5.3
4 American International Group (AIG) 146,505 4.9
5 Kentucky Employers' Mutual Insurance 141,384 4.8
6 Chubb Ltd. (3) 135,569 4.6
7 Cincinnati Financial Corp. 105,112 3.5
8 CNA Financial Corp. 103,537 3.5
9 Kentucky Farm Bureau Mutual Insurance Co. 102,263 3.5
10 American Financial Group Inc. 63,656 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.
(3) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.

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

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Top 10 Writers Of Homeowners Insurance In Kentucky By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $276,861 24.8%
2 KY Farm Bureau Mutual Insurance Co. 243,685 21.8
3 Liberty Mutual 115,342 10.3
4 Allstate Corp.  79,523 7.1
5 USAA Insurance Group 47,971 4.3
6 State Auto Insurance Companies 29,326 2.6
7 Travelers Companies Inc. 28,096 2.5
8 Nationwide Mutual Group 27,612 2.5
9 Auto-Owners Insurance Co. 27,230 2.4
10 Cincinnati Financial Corp. 27,106 2.4

(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 Kentucky, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 MetLife Inc.   $320,567 6.5%
2 AEGON   274,435 5.6
3 American International Group (AIG)   267,751 5.5
4 Lincoln National Corp.   235,526 4.8
5 Jackson National Life Group   226,432 4.6
6 Voya Financial Inc.   216,440 4.4
7 Prudential Financial Inc.   214,216 4.4
8 New York Life Insurance Group   205,347 4.2
9 Manulife Financial Corp.   180,373 3.7
10 Massachusetts Mutual Life Insurance Co.   163,224 3.3

(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 Kentucky By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $646,504 24.5%
2 Kentucky Farm Bureau Mutual Insurance Co. 475,891 18.0
3 Allstate Corp. 200,775 7.6
4 Liberty Mutual 192,206 7.3
5 Progressive Corp. 184,779 7.0
6 Berkshire Hathaway Inc. 172,561 6.5
7 USAA Insurance Group 115,827 4.4
8 Nationwide Mutual Group 91,922 3.5
9 State Auto Insurance Companies 50,459 1.9
10 Shelter Mutual Insurance Co. 49,402 1.9

(1) Before reinsurance transactions.

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

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