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.

EMPLOYMENT

U.S. Department of Commerce data show the insurance industry provided 190,027 jobs in New York in 2012. The New York insurance industry accounted for about $18.6 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $42.0 billion to the New York gross state product (GSP) in 2012, accounting for 3.28 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in New York totaled $1,435.2 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in New York totaled $35.2 billion in 2012. In addition, premiums written by life/health insurance companies totaled $79.9 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 New York surplus lines market accounted for $2.6 billion 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 New York as measured by direct property/casualty incurred losses, were $32.4 billion. Life insurance claims and benefits payouts in New York totaled $35.6 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 hurricane or storm or wildfire. Three of the costliest hurricanes to hit the U.S., 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 U.S. 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.

 

THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2013
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $47,622
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 23,386
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 19,033
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 13,426
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 11,934
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 8,939
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ,
NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 8,502
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 6,937
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,520
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,495

(1) Includes hurricanes occurring through 2013.                    
(2) Property coverage only. Does not include flood damage covered by the federally adminstered National Flood Insurance Program.                    
(3) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.                    
                    
Source: The Property Claim Services® (PCS®) unit of ISO, a Verisk Analytics company.

 

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $725,851 14.7%
2 Allstate Corp. 716,597 14.6
3 Travelers Companies Inc. 512,999 10.4
4 Chubb Corp. 440,142 8.9
5 Liberty Mutual 410,433 8.3
6 Tower Group International Ltd.  188,041 3.8
7 NYCM Insurance Group 165,270 3.4
8 Nationwide Mutual Group 152,074 3.1
9 MetLife Inc. 134,875 2.7
10 American International Group 121,711 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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

Rank Group/company Direct premiums written ($000) Market share
1 State Insurance Fund Workers' Comp $2,283,287 9.8%
2 American International Group 1,835,277 7.9
3 Travelers Companies Inc. 1,347,756 5.8
4 Chubb Corp. 1,098,013 4.7
5 Liberty Mutual 1,064,076 4.6
6 Zurich Insurance Group 786,458 3.4
7 Nationwide Mutual Group 728,595 3.1
8 Hartford Financial Services 720,832 3.1
9 CNA Financial Corp. 652,187 2.8
10 Medical Liability Mutual Insurance Co. 546,311 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $3,216,565 29.0%
2 Allstate Corp. 1,724,838 15.5
3 State Farm Mutual Automobile Insurance 1,384,293 12.5
4 Progressive Corp. 765,285 6.9
5 Liberty Mutual 720,584 6.5
6 Travelers Companies Inc. 525,378 4.7
7 Nationwide Mutual Group 322,307 2.9
8 NYCM Insurance Group 291,320 2.6
9 USAA Insurance Group 282,679 2.5
10 Hartford Financial Services 219,310 2.0

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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

Rank Group Direct premiums written ($000) Market share
1 MetLife Inc. $32,245,667 44.4%
2 Prudential Financial Inc. 7,532,506 10.4
3 New York Life Insurance Group 5,071,692 7.0
4 Massachusetts Mutual Life Insurance Co. 2,912,694 4.0
5 ING U.S., Inc. 2,271,374 3.1
6 AXA 2,073,932 2.9
7 TIAA-CREF 1,973,463 2.7
8 Manulife Financial Corp. 1,660,402 2.3
9 AEGON NV 1,425,234 2.0
10 Principal Financial Group Inc. 1,384,178 1.9

(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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