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 80,165 jobs in Michigan in 2015. The Michigan insurance industry accounted for about $5.3 billion in compensation in 2015.

GROSS STATE PRODUCT

The insurance industry contributed $12.2 billion to the Michigan gross state product (GSP) in 2014, accounting for 2.72 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Michigan totaled $323.0 million in 2015.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Michigan totaled $18.1 billion in 2015. In addition, premiums written by life/health insurance companies totaled $19.8 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 2015 these payments in Michigan as measured by direct property/casualty incurred losses, were $11.2 billion. Life insurance claims and benefits payouts in Michigan totaled $16.8 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.

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. Michigan has suffered damage from five of the fifteen most severe winter storms in the United States.

 

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Auto-Owners Insurance Co.  $386,972 5.5
2 Travelers Companies Inc.  349,871 4.9
3 Ally Financial Inc.  311,556 4.4
4 Liberty Mutual 306,972 4.3
5 Zurich Insurance Group (2) 293,899 4.2
6 Chubb Ltd. (3) 274,298 3.9
7 American International Group (AIG) 257,375 3.6
8 AF Group 216,307 3.1
9 CNA Financial Corp. 203,620 2.9
10 American Road Insurance Co. 199,995 2.8

(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 Michigan By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $489,667 18.4%
2 Auto-Owners Insurance Co. 381,871 14.4
3 Auto Club Insurance Association 363,981 13.7
4 Allstate Corp. 249,468 9.4
5 Hanover Insurance Group Inc. 205,170 7.7
6 Michigan Farm Bureau 146,752 5.5
7 Liberty Mutual 134,344 5.1
8 Farmers Insurance Group of Companies (2) 106,104 4.0
9 Frankenmuth Mutual Insurance Co. 83,319 3.1
10 USAA Insurance Group 72,679 2.7

(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 Michigan, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Jackson National Life Group   $1,162,238 7.1%
2 MetLife Inc.   1,068,096 6.5
3 Prudential Financial Inc.   851,443 5.2
4 Lincoln National Corp.   761,048 4.6
5 TIAA   735,429 4.5
6 Manulife Financial Corp.   708,771 4.3
7 American International Group (AIG)   662,394 4.0
8 AEGON   565,921 3.5
9 Massachusetts Mutual Life Insurance Co.   556,249 3.4
10 Principal Financial Group Inc.   528,742 3.2

(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 Michigan By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,496,940 18.5%
2 Auto Club Insurance Association  1,284,046 15.9
3 Progressive Corp.  885,241 11.0
4 Auto-Owners Insurance Co. 775,363 9.6
5 Allstate Corp.  726,139 9.0
6 Hanover Insurance Group Inc. 462,349 5.7
7 Liberty Mutual 374,837 4.6
8 Michigan Farm Bureau 365,506 4.5
9 USAA Insurance Group 215,755 2.7
10 Berkshire Hathaway Inc. 191,802 2.4

(1) Before reinsurance transactions.

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

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