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 74,070 jobs in North Carolina in 2012. The North Carolina insurance industry accounted for about $4.1 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $6.26 billion to the North Carolina gross state product (GSP) in 2012, accounting for 1.38 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in North Carolina totaled $542.6 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in North Carolina totaled $12.4 billion in 2012. In addition, premiums written by life/health insurance companies totaled $20.9 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 North Carolina surplus lines market accounted for $575.8 million 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 North Carolina as measured by direct property/casualty incurred losses, were $6.9 billion. Life insurance claims and benefits payouts in North Carolina totaled $13.1 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. 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 tornadoes and wildfire (see tables below).

 

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.

 

 

TORNADOES AND RELATED DEATHS BY STATE, 2013 (1)

State Tornadoes Fatalities Rank (2) State Tornadoes Fatalities Rank (2)
Alabama 27 0 15 Montana 10 0 25
Alaska 0 0 (3) Nebraska 65 0 2
Arizona 1 0 38 Nevada 0 0 (3)
Arkansas 30 2 13 New Hampshire 0 0 (3)
California 6 0 31 New Jersey 3 0 33
Colorado 27 0 15 New Mexico 0 0 (3)
Connecticut 3 0 33 New York 9 0 27
D.C. 0 0 (3) North Carolina 12 0 23
Delaware 1 0 38 North Dakota 17 0 19
Florida 37 0 10 Ohio 26 0 15
Georgia 27 1 15 Oklahoma 56 34 5
Hawaii 0 0 (3) Oregon 3 0 33
Idaho 5 0 32 Pennsylvania 9 0 27
Illinois 69 8 1 Rhode Island 0 0 (3)
Indiana 41 0 9 South Carolina 8 0 29
Iowa 30 1 13 South Dakota 15 0 20
Kansas 58 0 4 Tennessee 43 0 8
Kentucky 50 0 7 Texas 65 7 2
Louisiana 34 0 12 Utah 1 0 38
Maine 1 0 38 Vermont 0 0 (3)
Maryland 10 0 25 Virginia 3 0 33
Massachusetts 1 0 38 Washington 2 0 37
Michigan 13 0 22 West Virginia 0 0 (3)
Minnesota 11 0 24 Wisconsin 15 0 20
Mississippi 36 2 11 Wyoming 8 0 29
Missouri 54 0 6 United States 942 (4) 55  

(1) Ranked by total number of tornadoes.
(2) States with the same number receive the same ranking.
(3) State had no tornadoes in 2013.
(4) The U.S. total will not match data used in other charts because it counts tornadoes that cross state lines.

Source: U.S. Department of Commerce, Storm Prediction Center, National Weather Service.

View Archived Tables

 

 

TOP TEN STATES FOR WILDFIRES RANKED BY NUMBER OF FIRES AND BY NUMBER OF ACRES BURNED, 2013

Rank State Number of fires Rank State Number of acres burned
1 California 9,907 1 Alaska 1,316,876
2 North Carolina 3,514 2 Idaho 722,204
3 Georgia 2,942 3 California 577,675
4 Oregon 2,848 4 Oregon 350,786
5 Arizona 1,756 5 New Mexico 221,951
6 Montana 1,723 6 Colorado 195,145
7 Washington 1,527 7 Nevada 162,907
8 Idaho 1,471 8 Washington 152,603
9 South Carolina 1,337 9 Montana 124,209
10 Alabama 1,284 10 Arizona 105,281

Source: National Interagency Fire Center.

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LEADING WRITERS

 

LEADING WRITERS OF HOMEOWNERS INSURANCE IN NORTH CAROLINA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $424,723 19.5%
2 Nationwide Mutual Group 290,629 13.3
3 NC Farm Bureau Mutual Insurance Co. 279,252 12.8
4 Allstate Corp. 162,582 7.5
5 USAA Insurance Group 140,992 6.5
6 Erie Insurance Group 111,536 5.1
7 Liberty Mutual 103,266 4.7
8 Travelers Companies Inc. 73,748 3.4
9 Auto-Owners Insurance Co. 61,770 2.8
10 Farmers Insurance Group of Cos. 50,004 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group/company Direct premiums written ($000) Market share
1 Nationwide Mutual Group $813,502 17.2%
2 State Farm Mutual Automobile Insurance 660,842 14.0
3 NC Farm Bureau Mutual Insurance Co. 459,393 9.7
4 Allstate Corp. 433,231 9.2
5 Berkshire Hathaway Inc. 406,096 8.6
6 Integon National Group 338,405 7.2
7 USAA Insurance Group 334,296 7.1
8 Progressive Corp. 216,486 4.6
9 Liberty Mutual 173,513 3.7
10 Erie Insurance Group 153,557 3.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF COMMERCIAL INSURANCE IN NORTH CAROLINA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $400,675 6.6%
2 American International Group 328,399 5.4
3 Liberty Mutual 306,204 5.0
4 Nationwide Mutual Group 257,634 4.2
5 Zurich Insurance Group 233,561 3.8
6 Hartford Financial Services 224,508 3.7
7 W. R. Berkley Corp. 183,555 3.0
8 NC Farm Bureau Mutual Insurance Co. 166,062 2.7
9 QBE Insurance Group Ltd. 155,957 2.6
10 ACE Ltd. 153,943 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $1,965,954 12.4%
2 Massachusetts Mutual Life Insurance Co. 1,724,038 10.8
3 AEGON NV 1,464,246 9.2
4 MetLife Inc. 745,270 4.7
5 Jackson National Life Group 712,453 4.5
6 New York Life Insurance Group 685,188 4.3
7 Lincoln National Corp. 677,830 4.3
8 American International Group 519,530 3.3
9 Manulife Financial Corp. 398,415 2.5
10 AXA 333,781 2.1

(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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