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.

EMPLOYMENT

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.

TAXES

Premium taxes paid by insurance companies in North Carolina totaled $476.4 million in 2014.

PREMIUMS

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).

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 North Carolina surplus lines market accounted for $683.0 million in gross premiums written in 2014, 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 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.

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. 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 2015 North Carolina ranked third in the nation for wildfires with 3,828 fires that burned 15,220 acres.

LEADING WRITERS

 

Top 10 Writers Of Commercial Insurance In North Carolina By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $411,397 6.3%
2 American International Group (AIG) 317,548 4.9
3 Zurich Insurance Group (3) 297,603 4.6
4 Nationwide Mutual Group 292,112 4.5
5 Chubb Ltd. (2) 291,359 4.5
6 Liberty Mutual 287,594 4.4
7 Hartford Financial Services 208,339 3.2
8 W. R. Berkley Corp. 189,921 2.9
9 Cincinnati Financial Corp. 169,071 2.6
10 Auto-Owners Insurance Co. 166,829 2.6

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.
(3) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In North Carolina By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $453,676 19.1%
2 NC Farm Bureau Mutual Insurance Co. 297,316 12.5
3 Nationwide Mutual Group 288,873 12.2
4 USAA Insurance Group 174,970 7.4
5 Allstate Corp. 173,921 7.3
6 Erie Insurance Group 135,129 5.7
7 Liberty Mutual 91,948 3.9
8 Auto-Owners Insurance Co. 66,173 2.8
9 Travelers Companies Inc. 61,827 2.6
10 Farmers Insurance Group of Companies (2) 53,385 2.2

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN NORTH CAROLINA, 2014 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 AEGON $1,844,868 12.4%
2 Prudential Financial Inc. 1,200,845 8.1
3 Lincoln National Corp. 846,020 5.7
4 American International Group (AIG) 740,044 5.0
5 Jackson National Life Group 690,018 4.6
6 New York Life Insurance Group 583,070 3.9
7 TIAA-CREF 523,742 3.5
8 MetLife Inc. 471,100 3.2
9 Allianz Group 446,433 3.0
10 Massachusetts Mutual Life Ins. Co. 376,254 2.5

(1) Includes life Insurance, annuity consideration, deposit-type contract funds and other considerations; excludes accident and health insurance from life/health insurers. Before reinsurance transactions.

Source: SNL Financial LC.

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Top 10 Writers Of Private Passenger Auto Insurance In North Carolina By Direct Premiums Written, 2015 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Nationwide Mutual Group $819,201 15.9%
2 State Farm Mutual Automobile Insurance 758,819 14.7
3 Berkshire Hathaway Inc. 485,922 9.4
4 NC Farm Bureau Mutual Insurance Co. 478,891 9.3
5 Allstate Corp. 476,543 9.2
6 USAA Insurance Group 383,217 7.4
7 Integon National Group 380,031 7.4
8 Progressive Corp. 248,828 4.8
9 Erie Insurance Group 183,987 3.6
10 Liberty Mutual 169,098 3.3

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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