Minnesota Firm Foundation

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

The insurance industry in Minnesota 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 81,113 jobs in Minnesota in 2012. The Minnesota insurance industry accounted for about $7.3 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $10.8 billion to the Minnesota gross state product (GSP) in 2012, accounting for 3.62 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Minnesota totaled $401.0 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Minnesota totaled $9.3 billion in 2012. In addition, premiums written by life/health insurance companies totaled $13.0 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 Minnesota surplus lines market accounted for $356.4 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 Minnesota as measured by direct property/casualty incurred losses, were $5.0 billion. Life insurance claims and benefits payouts in Minnesota totaled $9.0 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 storm or wildfire. There were 1,115 wildfires in Minnesota in 2013 that burned 22,107 acres. The state has suffered damage from several of the most severe winter storms in the Midwest and is also prone to hail events (see charts below). In 2013 Minnesota ranked tenth in the nation for major hail events, with 165 events.

 

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.

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THE FIFTEEN MOST COSTLY U.S. WINTER EVENTS BY INSURED LOSSES, 1980-2012 (1)

($ millions)

        Losses when occurred  
Rank Date Event Location Overall Insured (2) Deaths
1 Mar. 11-14, 1993 Blizzard  24 states affected $5,000 $1,980 270
2 Apr. 13-17, 2007 Winter storm, tornadoes, floods Northeast, Southeast, South, CT;
D.C.; DE; GA; LA; MA; MD; ME;
MS; NC; NH; NJ; NY; PA; RI; SC;
TX; VA; VT; WV
2,000 1,575 19
3 Dec. 10-13, 1992 Winter storm Northeast, Midwest, VA; MD; DE; PA; NJ; NY; CT; RI; MA; NE 3,000 1,000 19
4 Jan. 31-Feb. 3, 2011 Winter storm, snowstorms, winter damage TX; CT; MA; IL; NY; OK; OH; PA; RI; IN 1,300 975 36
5 Dec. 17-30, 1983 Winter damage, cold wave FL; GA; ID; IL; IN; IA; KS; KY; LA; MD; MA; MI; MN; MS; MO; MT; NE; NJ; NY; NC; ND; OH; OK; OR; PA; RI; SC; SD; TN; TX; UT; VA; WA; WV; WI; WY 1,000 880 500
6 Jan. 17-20, 1994 Winter damage, cold wave PA; NJ; NY; OH; MA; IN; NC; VA; WV; KY; MD; NH; DE; ME; RI; VT; CT; IL; TN; SC 1,000 800 70
7 Feb. 10-12, 1994 Winter damage South, Southeast, TX; OK; AR; LA; MS; AL; TN; GA; SC; NC; VA 3,000 800 9
8 Jan. 1-4, 1999 Winter storm South, Midwest, Southeast, Northeast, TX; OK; AR; MO; LA; MS; AL; GA; FL; SC; NC; TN; IL; IN; OH; PA; WV; VA; MD; DE; NJ; NY; CT; RI; MA; ME 1,000 775 25
9 Jan. 4-9, 2008 Winter storm South, Southwest, Midwest, North, Northeast, Northwest, AR; CA; CO; IL; IN; KS; MI; MO; NY; OH; OK; OR; WA; WI; NV 1,000 745 12
10 Jan. 31-Feb. 6, 1996 Winter damage 31 states affected 1,500 735 16
11 Oct. 28-31, 2011 Winter storm, winter damage CT; NJ; MA; NY; PA; NH 900 665 28
12 Jan. 6-9, 1996 Snowstorm Midwest, Northeast 1,200 600 85
13 Feb. 9-14, 2010 Winter storm, blizzards, winter damage VA; KY; SC; MS; MD; DC; DE; PA; NJ; NY; RI; MA; OH; IL; IA; TX; OK; NC; WV 800 600 NA
14 Jan. 13-16, 1999 Winter damage, ice storm Midwest, North, Northeast, Southeast, IL; IN; MI; OH; PA; WV; VA; MD; NJ; NY; CT; MA; VT; NH; ME 750 575 NA
15 Jan. 26-28, 2009 Winter damage, ice storm Southeast, South Central, East, Midwest, AR; IN; KY; MO; OH; OK; WV 1,100 565 58

(1) Most costly U.S. blizzards and winter storms/damages based on insured losses when occurred.
(2) Based on property losses including, if applicable, agricultural, offshore, marine, aviation and National Flood Insurance Program losses in the United States and may differ from data shown elsewhere.

NA=Data not available.

Source: © 2013 Munich Re, Geo Risks Research, NatCatSERVICE.

 

 

LEADING WRITERS

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Company/Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $652,729 23.0%
2 Progressive Corp. 396,388 14.0
3 American Family Mutual 326,803 11.5
4 Farmers Insurance Group of Companies 253,986 9.0
5 Allstate Corp. 147,033 5.2
6 Liberty Mutual 93,387 3.3
7 Auto-Owners Insurance Co. 84,121 3.0
8 Auto Club Insurance Association Group 81,963 2.9
9 Berkshire Hathaway Inc. 72,987 2.6
10 USAA Insurance Group 69,889 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF COMMERCIAL INSURANCE IN MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Company/Group Direct premiums written ($000) Market share
1 Allianz Group $345,598 7.0%
2 Travelers Companies Inc. 281,380 5.7
3 American International Group 238,284 4.9
4 QBE Insurance Group Ltd. 231,744 4.7
5 Liberty Mutual 181,668 3.7
6 ACE Ltd. 174,248 3.5
7 Auto-Owners Insurance Co. 162,314 3.3
8 Zurich Insurance Group Ltd. 132,571 2.7
9 Chubb Corp. 125,171 2.6
10 CNA Financial Corp. 119,243 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF HOMEOWNERS INSURANCE IN MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Company/Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $449,213 26.3%
2 American Family Mutual 222,143 13.0
3 Farmers Insurance Group of Companies 153,922 9.0
4 Auto-Owners Insurance Co. 95,693 5.6
5 Allstate Corp. 91,509 5.4
6 Liberty Mutual 72,640 4.3
7 Travelers Companies Inc. 59,779 3.5
8 USAA Insurance Group 48,775 2.9
9 Nationwide Mutual Group 46,249 2.7
10 Auto Club Insurance Association Group 45,188 2.6

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group Direct premiums written ($000) Market share
1 MetLife Inc. $1,253,488 11.3%
2 Prudential Financial Inc. 762,834 6.9
3 Securian Financial Group 649,529 5.9
4 Jackson National Life Group 551,594 5.0
5 Manulife Financial Corp. 541,796 4.9
6 Lincoln National Corp. 524,261 4.7
7 Northwestern Mutual Life Insurance Co. 498,875 4.5
8 Massachusetts Mutual Life Insurance Co. 478,247 4.3
9 Ameriprise Financial Inc. 417,862 3.8
10 Principal Financial Group Inc. 415,615 3.7

(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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