Tennessee Firm Foundation

KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE TENNESSEE ECONOMY

The insurance industry in Tennessee 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 62,258 jobs in Tennessee in 2012. The Tennessee insurance industry accounted for about $3.9 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $6.5 billion to the Tennessee gross state product (GSP) in 2012, accounting for 2.33 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Tennessee totaled $686.3 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Tennessee totaled $9.2 billion in 2012. In addition, premiums written by life/health insurance companies totaled $12.0 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 Tennessee surplus lines market accounted for $510.1 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 Tennessee as measured by direct property/casualty incurred losses, were $6.1 billion. Life insurance claims and benefits payouts in Tennessee totaled $7.6 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. In 2013 Tennessee was struck by 43 tornadoes, the eighth-highest tally among the states. In 2013 there were 424 wildfires in Tennessee that burned 7,080 acres.

LEADING WRITERS

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN TENNESSEE BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Company/Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $729,190 24.1%
2 Tennessee Farmers Mutual Insurance Co. 570,850 18.8
3 Allstate Corp. 212,265 7.0
4 Berkshire Hathaway Inc. 191,384 6.3
5 Progressive Corp. 153,203 5.1
6 USAA Insurance Group 145,259 4.8
7 Liberty Mutual 143,384 4.7
8 Nationwide Mutual Group 137,319 4.5
9 Travelers Companies Inc. 87,892 2.9
10 Farmers Insurance Group of Cos. 84,396 2.8

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF COMMERCIAL INSURANCE IN TENNESSEE BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Company/Group Direct premiums written ($000) Market share
1 Liberty Mutual  $548,244 12.2%
2 Travelers Companies Inc.  296,906 6.6
3 American International Group  243,756 5.4
4 ACE Ltd.  160,674 3.6
5 Zurich Insurance Group Ltd.  145,840 3.2
6 CNA Financial Corp.  123,837 2.8
7 State Volunteer Mutual 113,848 2.5
8 Auto-Owners Insurance Co.  113,539 2.5
9 Hartford Financial Services  105,956 2.4
10 Chubb Corp.  102,211 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF HOMEOWNERS INSURANCE IN TENNESSEE BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Company/Group Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $420,340 26.1%
2 Tennessee Farmers Mutual Insurance Co. 316,140 19.6
3 Allstate Corp. 141,067 8.8
4 Liberty Mutual 98,068 6.1
5 Travelers Companies Inc. 91,980 5.7
6 USAA Insurance Group 69,447 4.3
7 Farmers Insurance Group of Companies 62,346 3.9
8 Nationwide Mutual Group 61,768 3.8
9 Auto-Owners Insurance Co. 34,959 2.2
10 Erie Insurance Group 28,314 1.8

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $1,213,916 13.4%
2 MetLife Inc. 599,087 6.6
3 Jackson National Life Group 453,800 5.0
4 Massachusetts Mutual Life Insurance Co. 418,965 4.6
5 Manulife Financial Corp. 416,707 4.6
6 Lincoln National Corp. 366,391 4.1
7 American International Group 330,386 3.7
8 ING U.S., Inc. 288,829 3.2
9 AEGON NV 285,009 3.2
10 Nationwide Mutual Group 223,247 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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