Massachusetts Firm Foundation

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

The insurance industry in Massachusetts 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 80,564 jobs in Massachusetts in 2014. The Massachusetts insurance industry accounted for about $7.9 billion in compensation in 2014.

GROSS STATE PRODUCT

The insurance industry contributed $13.2 billion to the Massachusetts gross state product (GSP) in 2013, accounting for 3.02 percent of the state GSP.

TAXES

All insurance companies pay a state tax based on their premiums. Other payments are made to states for licenses and fees, income and property taxes, sales and use taxes, unemployment compensation taxes and franchise taxes. Premium taxes paid by insurance companies in Massachusetts totaled $346.8 million in 2014.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Massachusetts totaled $13.2 billion in 2014. In addition, premiums written by life/health insurance companies totaled $18.6 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 Massachusetts surplus lines market accounted for $799.2 million in gross premiums written in 2014, 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 2014 these payments in Massachusetts as measured by direct property/casualty incurred losses, were $6.5 billion. Life insurance claims and benefits payouts in Massachusetts totaled $14.7 billion in 2014, 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.

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. Massachusetts was one of 14 states affected by August 2011’s Hurricane Irene, the first hurricane to hit the U.S. since Hurricane Ike in 2008. Irene impacted 14 states, causing a total of $4.3 billion in insured property damage, according to ISO, not including flood losses covered under the National Flood Insurance Program (NFIP). A study by AIR Worldwide put the insured value of coastal areas in Massachusetts at $849.6 billion in 2012, accounting for 54 percent of the state’s total insured property exposure. The state is also prone to wildfires.

 

LEADING WRITERS

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN MASSACHUSETTS BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $554,038 8.5%
2 American International Group (AIG) 478,562 7.3
3 Liberty Mutual 391,805 6.0
4 Chubb Corp. 279,168 4.3
5 CNA Financial Corp. 233,119 3.6
6 Zurich Insurance Group (2) 217,782 3.3
7 Hartford Financial Services 208,849 3.2
8 W. R. Berkley Corp. 208,110 3.2
9 Arbella Mutual Insurance Co. 191,738 2.9
10 ACE Ltd. 173,553 2.6

(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 SNL Financial.

Source: SNL Financial LC.

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LEADING WRITERS OF HOMEOWNERS INSURANCE IN MASSACHUSETTS BY DIRECT PREMIUMS WRITTEN, 2014 (1)

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE $266,821 12.9%
2 Liberty Mutual 227,357 11.0
3 Arbella Mutual Insurance Co. 152,207 7.3
4 Safety Insurance Group Inc. 148,561 7.2
5 Chubb Corp. 123,068 5.9
6 Andover Companies 123,016 5.9
7 Travelers Companies Inc. 97,440 4.7
8 Amica Mutual Insurance Co. 74,983 3.6
9 Vermont Mutual Insurance Co. 73,540 3.5
10 USAA Insurance Group 70,915 3.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN MASSACHUSETTS, 2014 (1)

Rank Group/company Premiums and annuity considerations ($000) Market share
1 MetLife Inc. $2,519,588 16.1%
2 Massachusetts Mutual Life Ins. Co. 1,433,995 9.2
3 New York Life Insurance Group 1,077,302 6.9
4 Manulife Financial Corp. 832,350 5.3
5 Jackson National Life Group 820,672 5.2
6 Prudential Financial Inc. 728,340 4.7
7 AEGON 633,055 4.0
8 TIAA-CREF 616,450 3.9
9 Lincoln National Corp. 520,495 3.3
10 Voya Financial Inc. 446,004 2.9

(1) Includes life Insurance, annuity consideration, deposit-type contract funds and other considerations; excludes accident and health insurance from life/health insurers. Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN MASSACHUSETTS BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE $1,117,473 24.9%
2 Liberty Mutual 590,599 13.2
3 Safety Insurance Group Inc. 462,238 10.3
4 Arbella Mutual Insurance Co. 393,317 8.8
5 Plymouth Rock Co. 297,880 6.6
6 Berkshire Hathaway Inc. 289,447 6.5
7 MetLife Inc. 203,981 4.6
8 Progressive Corp. 148,726 3.3
9 Amica Mutual Insurance Co. 138,874 3.1
10 Hanover Insurance Group Inc. 132,127 2.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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