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 77,714 jobs in Michigan in 2012. The Michigan insurance industry accounted for about $4.6 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $12.3 billion to the Michigan gross state product (GSP) in 2012, accounting for 2.95 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Michigan totaled $294.3 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Michigan totaled $16.6 billion in 2013. In addition, premiums written by life/health insurance companies totaled $19.5 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 $581.2 million in gross premiums written in 2013, 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 2013 these payments in Michigan as measured by direct property/casualty incurred losses, were $13.5 billion. Life insurance claims and benefits payouts in Michigan totaled $15.8 billion in 2013. 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. In 2013, 436 wildfires burned 940 acres. The state has also suffered damage from several of the most severe winter storms.

 

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Auto-Owners Insurance Co. $367,280 5.7%
2 Travelers Companies Inc. 334,570 5.2
3 Ally Financial Inc. 328,367 5.1
4 American International Group 319,283 4.9
5 Liberty Mutual 237,763 3.7
6 Accident Fund Group 194,431 3.0
7 Zurich Insurance Group 185,938 2.9
8 Hanover Insurance Group Inc. 180,399 2.8
9 CNA Financial Corp. 177,897 2.8
10 Chubb Corp. 156,196 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $457,226 18.6%
2 Auto-Owners Insurance Co. 352,304 14.3
3 Auto Club Insurance Association Group 330,500 13.4
4 Allstate Corp. 233,297 9.5
5 Hanover Insurance Group Inc. 209,985 8.5
6 Michigan Farm Bureau 124,838 5.1
7 Liberty Mutual 105,386 4.3
8 Farmers Insurance Group of Cos. 100,003 4.1
9 Frankenmuth Mutual Insurance Co. 80,554 3.3
10 Pioneer State Mutual Insurance Co. 54,856 2.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN MICHIGAN BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Jackson National Life Group $1,211,025 7.5%
2 MetLife Inc. 1,077,865 6.7
3 Prudential Financial Inc. 912,629 5.6
4 AEGON 810,496 5.0
5 Lincoln National Corp. 786,159 4.9
6 Principal Financial Group Inc. 735,921 4.5
7 TIAA-CREF 727,872 4.5
8 Manulife Financial Corp. 671,562 4.2
9 Guggenheim Capital LLC 588,025 3.6
10 American International Group 578,505 3.6

(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.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,383,516 18.9%
2 Auto Club Insurance Association Group 1,243,937 17.0
3 Auto-Owners Insurance Co. 706,162 9.7
4 Allstate Corp. 682,826 9.3
5 Progressive Corp. 594,572 8.1
6 Hanover Insurance Group Inc. 455,390 6.2
7 Michigan Farm Bureau 328,893 4.5
8 Liberty Mutual 279,402 3.8
9 Farmers Insurance Group of Cos. 210,770 2.9
10 Berkshire Hathaway Inc. 193,160 2.6

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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