North Carolina Firm Foundation
KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE NORTH CAROLINA ECONOMY
The insurance industry in North Carolina 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 77,615 jobs in North Carolina in 2014. The North Carolina insurance industry accounted for about $4.9 billion in compensation in 2014.
GROSS STATE PRODUCT
The insurance industry contributed $6.68 billion to the North Carolina gross state product (GSP) in 2013, accounting for 1.43 percent of the state GSP.
Premium taxes paid by insurance companies in North Carolina totaled $476.4 million in 2014.
Direct premiums written by property/casualty insurance companies in North Carolina totaled $13.7 billion in 2014. In addition, premiums written by life/health insurance companies totaled $20.0 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 North Carolina surplus lines market accounted for $683.0 million 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 North Carolina as measured by direct property/casualty incurred losses, were $6.8 billion. Life insurance claims and benefits payouts in North Carolina totaled $13.0 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, storm or wildfire. Five of the top 10 most costly hurricanes to hit the United States did damage in North Carolina: Hurricane Hugo in 1989, Hurricanes Charley, Ivan and Frances in 2004 and Hurricane Sandy in 2012. North Carolina is also heavily affected by wildfires and tornadoes. In 2014 North Carolina ranked third in the nation for wildfires with 4,625 fires that burned 15,601 acres. The state tied with Georgia and Illinois as the tenth highest state for tornadoes in 2014 with 35 storms.
LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN NORTH CAROLINA, 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