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.
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.
Premium taxes paid by insurance companies in Minnesota totaled $401.0 million in 2013.
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).
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.
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.
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
THE FIFTEEN MOST COSTLY U.S. WINTER EVENTS BY INSURED LOSSES, 1980-2012 (1)
LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2012 (1)
LEADING WRITERS OF COMMERCIAL INSURANCE IN MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2012 (1)
LEADING WRITERS OF HOMEOWNERS INSURANCE IN MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2012 (1)
LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2012 (1)
STATE BY STATE COMPARISON TABLES
- Surplus Lines
- Gross State Product
- State Taxes
- Insurance Companies By State
- Catastrophes By State
- Residual Markets
- Captives By State
- Incurred Losses By State
- Insured Cars By State
- Insured Homes By State
- Businesses By State