New York Firm Foundation
KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE NEW YORK ECONOMY
The insurance industry in New York State 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 196,781 jobs in New York in 2014. The New York insurance industry accounted for about $20.4 billion in compensation in 2014.
GROSS STATE PRODUCT
The insurance industry contributed $40.0 billion to the New York gross state product (GSP) in 2013, accounting for 3.02 percent of the state GSP.
Premium taxes paid by insurance companies in New York totaled $1,345.4 million in 2014.
Direct premiums written by property/casualty insurance companies in New York totaled $41.8 billion in 2014. In addition, premiums written by life/health insurance companies totaled $70.8 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 New York surplus lines market accounted for $3.4 billion in gross premiums written in 2014, 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 2014 these payments in New York as measured by direct property/casualty incurred losses, were $23.1 billion. Life insurance claims and benefits payouts in New York totaled $38.8 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.
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. Three of the costliest hurricanes to hit the United States, based on insured property losses, caused damage in New York, including 2004’s Hurricane Ivan and Hurricane Frances and 2012’s Hurricane Sandy, according to the Property Claim Services (PCS) unit of ISO. Hurricane Sandy, which made landfall on October 29, 2012, in New Jersey, caused extensive damage in the state as well as to New York, Pennsylvania and Connecticut. Sandy caused 72 deaths in the United States and $18.75 billion in insured property losses in 15 states and the District of Columbia, not including National Flood Insurance Program (NFIP) losses, according to the Property Claim Services (PCS) unit of ISO. This makes it the third costliest U.S. hurricane, topped only by Hurricane Katrina in 2005 and Hurricane Andrew in 1992.
LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN NEW YORK, 2014 (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