Michigan Firm Foundation

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

The insurance industry in Michigan 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 79,301 jobs in Michigan in 2014. The Michigan insurance industry accounted for about $5.1 billion in compensation in 2014.

GROSS STATE PRODUCT

The insurance industry contributed $12.06 billion to the Michigan gross state product (GSP) in 2013, accounting for 2.77 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Michigan totaled $362.4 million in 2014.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Michigan totaled $17.6 billion in 2014. In addition, premiums written by life/health insurance companies totaled $20.8  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 Michigan surplus lines market accounted for $598.4 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 Michigan as measured by direct property/casualty incurred losses, were $12.8 billion. Life insurance claims and benefits payouts in Michigan totaled $17.1 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, storm or wildfire. The state has also suffered damage from four of the fifteen most severe winter storms in the United States.

 

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Auto-Owners Insurance Co.  $379,178 5.5%
2 Travelers Companies Inc.  344,862 5.0
3 American International Group (AIG)  323,966 4.7
4 Ally Financial Inc.  323,591 4.7
5 Liberty Mutual  285,988 4.1
6 Accident Fund Group  199,179 2.9
7 Zurich Insurance Group  199,131 2.9
8 CNA Financial Corp.  187,499 2.7
9 Hanover Insurance Group Inc.  175,790 2.5
10 American Road Insurance Co. 170,338 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $464,200 18.2%
2 Auto-Owners Insurance Co.  367,173 14.4
3 Auto Club Insurance Association Group 341,095 13.4
4 Allstate Corp.  242,756 9.5
5 Hanover Insurance Group Inc.  203,466 8.0
6 Michigan Farm Bureau  136,090 5.3
7 Liberty Mutual  119,140 4.7
8 Farmers Insurance Group of Companies (2) 103,623 4.1
9 Frankenmuth Mutual Insurance Co.  81,000 3.2
10 USAA Insurance Group  62,458 2.5

(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 LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN MICHIGAN, 2014 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Lincoln National Corp. $1,546,371 8.9%
2 MetLife Inc. 1,293,786 7.4
3 Prudential Financial Inc. 1,262,043 7.3
4 Jackson National Life Group 1,170,023 6.7
5 AEGON 816,188 4.7
6 Manulife Financial Corp. 670,454 3.9
7 TIAA-CREF 660,217 3.8
8 Allianz Group 605,052 3.5
9 American International Group (AIG) 592,363 3.4
10 Principal Financial Group Inc. 491,790 2.8

(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 MICHIGAN BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,427,243 18.4%
2 Auto Club Insurance Association Group 1,252,192 16.1
3 Auto-Owners Insurance Co. 754,530 9.7
4 Allstate Corp. 742,718 9.6
5 Progressive Corp. 733,203 9.4
6 Hanover Insurance Group Inc. 458,275 5.9
7 Michigan Farm Bureau 354,448 4.6
8 Liberty Mutual 333,128 4.3
9 Berkshire Hathaway Inc. 237,170 3.1
10 USAA Insurance Group 187,469 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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