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 80,566 jobs in Massachusetts in 2012. The Massachusetts insurance industry accounted for about $7.4 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $13.7 billion to the Massachusetts gross state product (GSP) in 2012, accounting for 3.16 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 $403.8 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Massachusetts totaled $11.8 billion in 2012. In addition, premiums written by life/health insurance companies totaled $20.9 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 $659.3 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 Massachusetts as measured by direct property/casualty incurred losses, were $6.1 billion. Life insurance claims and benefits payouts in Massachusetts totaled $12.3 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. 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 (see table).

 

THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2013
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $47,622
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 23,386
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 19,033
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 13,426
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 11,934
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 8,939
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ,
NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 8,502
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 6,937
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,520
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,495

(1) Includes hurricanes occurring through 2013.                    
(2) Property coverage only. Does not include flood damage covered by the federally adminstered National Flood Insurance Program.                    
(3) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.                    
                    
Source: The Property Claim Services® (PCS®) unit of ISO, a Verisk Analytics company.

 

 

ESTIMATED VALUE OF INSURED COASTAL PROPERTIES VULNERABLE TO HURRICANES BY STATE, 2012 (1)

($ billions)

Rank State Coastal Total exposure (2) Coastal as a
percent of total
1 New York  $2,923.1 $4,724.2 62%
2 Florida  2,862.3 3,640.1 79
3 Texas  1,175.3 4,580.7 26
4 Massachusetts  849.6 1,561.4 54
5 New Jersey  713.9 2,129.9 34
6 Connecticut  567.8 879.1 65
7 Louisiana  293.5 823.0 36
8 South Carolina  239.3 843.6 28
9 Virginia  182.3 1,761.7 10
10 Maine  164.6 285.5 58
11 North Carolina  163.5 1,795.1 9
12 Alabama  118.2 917.8 13
13 Georgia  106.7 1,932.2 6
14 Delaware  81.9 208.9 39
15 New Hampshire  64.0 278.7 23
16 Mississippi  60.6 468.5 13
17 Rhode Island  58.3 207.5 28
18 Maryland  17.3 1,293.4 1
  All states above  $10,642.2 $28,331.4 38%
  Total U.S.  $10,642.2 $64,624.3 16%

(1) Includes residential and commercial properties, as of December 31, 2012. Ranked by value of insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including the full replacement value of structures and their contents, additional living expenses and the time value of business interruption coverage.

Source: AIR Worldwide.

View Archived Tables

 

 

WILDFIRES BY STATE, 2013

State Number of fires Number of acres burned 
Alabama 1,284 25,623
Alaska 603 1,316,876
Arizona 1,756 105,281
Arkansas 881 14,733
California 9,907 577,675
Colorado 1,176 195,145
Connecticut 76 238
Delaware 4 17
Florida 101 7,660
Georgia 2,942 6,736
Hawaii (1) (1)
Idaho 1,471 722,204
Illinois 24 55
Indiana 19 806
Iowa 436 14,704
Kansas 16 7,137
Kentucky 1,030 25,084
Louisiana 1,027 17,883
Maine 426 743
Maryland 126 182
Massachusetts 1,132 879
Michigan 436 940
Minnesota 1,115 22,107
Mississippi 5 33
Missouri 51 1,660
Montana 1,723 124,209
Nebraska 10 63
Nevada 763 162,907
New Hampshire 85 137
New Jersey 1,013 1,430
New Mexico 1,064 221,951
New York 138 1,073
North Carolina 3,514 24,547
North Dakota 515 16,116
Ohio 31 152
Oklahoma 610 26,490
Oregon 2,848 350,786
Pennsylvania 639 1,788
Rhode Island 7 27
South Carolina 1,337 7,082
South Dakota 889 4,475
Tennessee 424 7,080
Texas 70 10,743
Utah 1,276 70,282
Vermont 124 281
Virginia 482 4,418
Washington 1,527 152,603
West Virginia 557 8,577
Wisconsin 671 9,196
Wyoming 468 44,016
United States (2) 47,579 4,319,546

(1) Hawaii had no wildfires in 2013.
(2) Includes Puerto Rico which had 750 fires that burned 4,716 acres.

Source: National Interagency Fire Center.

View Archived Tables

 

LEADING WRITERS

 

LEADING WRITERS OF HOMEOWNERS INSURANCE IN MASSACHUSETTS BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE $251,132 12.9%
2 Liberty Mutual 215,301 11.0
3 Arbella Mutual Insurance Co. 144,327 7.4
4 Safety Insurance Group Inc. 134,277 6.9
5 Chubb Corp. 121,863 6.2
6 Andover Companies 115,747 5.9
7 Travelers Companies Inc. 102,888 5.3
8 Amica Mutual Insurance Co. 70,941 3.6
9 Vermont Mutual Insurance Co. 70,145 3.6
10 USAA Insurance Group 67,673 3.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN MASSACHUSETTS BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $564,916 9.1%
2 American International Group 450,393 7.2
3 Liberty Mutual 419,747 6.8
4 Chubb Corp. 273,006 4.4
5 CNA Financial Corp. 226,424 3.6
6 Zurich Insurance Group 217,458 3.5
7 Hartford Financial Services 202,939 3.3
8 Arbella Mutual Insurance Co. 183,232 3.0
9 W. R. Berkley Corp. 183,099 2.9
10 Hanover Insurance Group Inc. 165,879 2.7

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN MASSACHUSETTS BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE $1,126,161 26.3%
2 Liberty Mutual 558,841 13.1
3 Safety Insurance Group Inc. 459,737 10.7
4 Arbella Mutual Insurance Co. 378,541 8.8
5 Plymouth Rock Co. 281,644 6.6
6 Berkshire Hathaway Inc. 213,119 5.0
7 MetLife Inc. 197,096 4.6
8 Amica Mutual Insurance Co. 144,487 3.4
9 Progressive Corp. 138,847 3.2
10 Travelers Companies Inc. 132,301 3.1

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $3,731,996 20.7%
2 MetLife Inc. 2,172,699 12.0
3 Massachusetts Mutual Life Insurance Co. 2,013,473 11.1
4 Jackson National Life Group 918,547 5.1
5 Manulife Financial Corp. 904,820 5.0
6 New York Life Insurance Group 903,330 5.0
7 ING U.S., Inc. 653,500 3.6
8 TIAA-CREF 597,248 3.3
9 Lincoln National Corp. 468,377 2.6
10 AEGON NV 415,587 2.3

(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.

View Archived Tables

 

STATE BY STATE COMPARISON TABLES

DIRECTORIES

CREATE YOUR OWN BOOK

  • Click here to create your own customized book of national and state-by-state tables
  • Click here to view Massachusetts data only