South Carolina Firm Foundation

KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE SOUTH CAROLINA ECONOMY

The insurance industry in South 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 41,408 jobs in South Carolina in 2012. The South Carolina insurance industry accounted for about $2.2 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $3.7 billion to the South Carolina gross state product (GSP) in 2012, accounting for 2.05 percent of the state GSP.

TAXES

All insurance companies pay a state tax based on their premiums. Other payments are made to states for licenses and fees, income and property taxes, sales and use taxes, unemployment compensation taxes and franchise taxes.Premium taxes paid by insurance companies in South Carolina totaled $150.2 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in South Carolina totaled $7.0 billion in 2012. In addition, premiums written by life/health insurance companies totaled $8.3 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 South Carolina surplus lines market accounted for $463.4 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 South Carolina as measured by direct property/casualty incurred losses, were $3.7 billion. Life insurance claims and benefits payouts in South Carolina totaled $5.2 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 South Carolina, including 1989’s Hurricane Hugo and 2004’s Hurricane Charley and Hurricane Frances (see chart). South Carolina ranked ninth in the nation for the number of wildfires, with 1,337 wildfires. These fires burned 7,082 acres.

 

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.

 

 

ESTIMATED VALUE OF INSURED COASTAL PROPERTIES VULNERABLE TO HURRICANES BY STATE, 2012 (1)

($ billions)

Rank State Coastal Total exposure (2) Coastal as a
percent of total
1 New York  $2,923.1 $4,724.2 62%
2 Florida  2,862.3 3,640.1 79
3 Texas  1,175.3 4,580.7 26
4 Massachusetts  849.6 1,561.4 54
5 New Jersey  713.9 2,129.9 34
6 Connecticut  567.8 879.1 65
7 Louisiana  293.5 823.0 36
8 South Carolina  239.3 843.6 28
9 Virginia  182.3 1,761.7 10
10 Maine  164.6 285.5 58
11 North Carolina  163.5 1,795.1 9
12 Alabama  118.2 917.8 13
13 Georgia  106.7 1,932.2 6
14 Delaware  81.9 208.9 39
15 New Hampshire  64.0 278.7 23
16 Mississippi  60.6 468.5 13
17 Rhode Island  58.3 207.5 28
18 Maryland  17.3 1,293.4 1
  All states above  $10,642.2 $28,331.4 38%
  Total U.S.  $10,642.2 $64,624.3 16%

(1) Includes residential and commercial properties, as of December 31, 2012. Ranked by value of insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including the full replacement value of structures and their contents, additional living expenses and the time value of business interruption coverage.

Source: AIR Worldwide.

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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 SOUTH CAROLINA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $349,011 23.8%
2 Allstate Corp. 161,093 11.0
3 USAA Insurance Group 107,726 7.4
4 Nationwide Mutual Group 90,965 6.2
5 Travelers Companies Inc. 86,148 5.9
6 SC Farm Bureau Federation 70,208 4.8
7 Liberty Mutual 68,389 4.7
8 Farmers Insurance Group of Cos. 48,701 3.3
9 American International Group 41,394 2.8
10 Auto-Owners Insurance Co. 41,187 2.8

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $192,897 6.2%
2 American International Group 191,308 6.2
3 Travelers Companies Inc. 191,018 6.1
4 Hartford Financial Services 131,223 4.2
5 Zurich Insurance Group 127,772 4.1
6 Nationwide Mutual Group 124,129 4.0
7 Auto-Owners Insurance Co. 105,850 3.4
8 ACE Ltd. 91,538 2.9
9 CNA Financial Corp. 77,768 2.5
10 American Financial Group Inc. 73,489 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $695,728 24.4%
2 Allstate Corp. 413,083 14.5
3 Berkshire Hathaway Inc. 279,149 9.8
4 Nationwide Mutual Group 275,061 9.7
5 USAA Insurance Group 218,042 7.7
6 Progressive Corp. 186,888 6.6
7 Liberty Mutual 126,963 4.5
8 SC Farm Bureau Federation 113,626 4.0
9 Travelers Companies Inc. 95,772 3.4
10 Auto-Owners Insurance Co. 48,427 1.7

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $862,970 14.4%
2 MetLife Inc. 418,013 7.0
3 Jackson National Life Group 369,854 6.2
4 Lincoln National Corp. 281,283 4.7
5 Great-West Insurance Group 232,392 3.9
6 American International Group 209,524 3.5
7 New York Life Insurance Group 202,438 3.4
8 Manulife Financial Corp. 179,137 3.0
9 AEGON NV 159,377 2.7
10 Hartford Financial Services 152,712 2.5

(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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