Louisiana Firm Foundation
KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE LOUISIANA ECONOMY
The insurance industry in Louisiana 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 35,037 jobs in Louisiana in 2012. The Louisiana insurance industry accounted for about $1.9 billion in compensation in 2012.
GROSS STATE PRODUCT
The insurance industry contributed $3.7 billion to the Louisiana gross state product (GSP) in 2012, accounting for 1.48 percent of the state GSP.
Premium taxes paid by insurance companies in Louisiana totaled $399.6 million in 2013.
Direct premiums written by property/casualty insurance companies in Louisiana totaled $9.5 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).
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 Louisiana surplus lines market accounted for $1.3 billion in gross premiums written in 2012, 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 2012 these payments in Louisiana as measured by direct property/casualty incurred losses, were $5.7 billion. Life insurance claims and benefits payouts in Louisiana totaled $5.1 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.
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. Louisiana experience extensive damage in 2005’s Hurricane Katrina, the costliest hurricane to hit the U.S, with a total of $47.4 billion in insured damage in all affected states (in 2012 dollars). The insured value of properties in coastal areas of Louisiana totaled $293.5 billion in 2012, according to an analysis by AIR Worldwide. Louisiana is also vulnerable to wildfires and tornadoes (see tables).
THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)
WILDFIRES BY STATE, 2013
TOP TEN STATES, BY NUMBER OF TORNADOES, 2013 (1)
ESTIMATED VALUE OF INSURED COASTAL PROPERTIES VULNERABLE TO HURRICANES BY STATE, 2012 (1)
LEADING WRITERS OF HOMEOWNERS INSURANCE IN LOUISIANA BY DIRECT PREMIUMS WRITTEN, 2013 (1)
LEADING WRITERS OF COMMERCIAL INSURANCE IN LOUISIANA BY DIRECT PREMIUMS WRITTEN, 2013 (1)
LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN LOUISIANA BY DIRECT PREMIUMS WRITTEN, 2013 (1)
LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN LOUISIANA BY DIRECT PREMIUMS WRITTEN, 2012 (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