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 62,775 jobs in Tennessee in 2015. The Tennessee insurance industry accounted for about $4.1 billion in compensation in 2015.

GROSS STATE PRODUCT

The insurance industry contributed $7.2 billion to the Tennessee gross state product (GSP) in 2014, accounting for 2.41 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Tennessee totaled $809.6 million in 2015.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Tennessee totaled $10.5 billion in 2015. In addition, premiums written by life/health insurance companies totaled $13.1 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 $592.3 million in gross premiums written in 2015, 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 2015 these payments in Tennessee as measured by direct property/casualty incurred losses, were $5.8 billion. Life insurance claims and benefits payouts in Tennessee totaled $8.3 billion in 2015, 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, storm or wildfire. In 2014 Tennessee ranked eighth in the nation by number of acres burned by wildfires, with 156,391 acres burned in 1,249 fires.

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $290,427 6.1%
2 Chubb Ltd. (2) 281,337 5.9
3 American International Group (AIG) 268,707 5.7
4 Liberty Mutual 215,822 4.5
5 Zurich Insurance Group (3) 196,737 4.1
6 CNA Financial Corp. 142,591 3.0
7 Plymouth Rock of New Jersey 131,232 2.8
8 Auto-Owners Insurance Co. 126,070 2.7
9 W. R. Berkley Corp. 120,662 2.5
10 Nationwide Mutual Group 120,338 2.5

(1) Before reinsurance transactions.
(2) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.
(3) 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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Top 10 Writers Of Homeowners Insurance In Tennessee By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $478,179 25.0%
2 Tennessee Farmers Mutual Insurance Co. 366,280 19.2
3 Allstate Corp.  148,049 7.8
4 Liberty Mutual 144,643 7.6
5 USAA Insurance Group 112,719 5.9
6 Farmers Insurance Group of Companies (2) 77,248 4.0
7 Plymouth Rock of New Jersey 75,840 4.0
8 Travelers Companies Inc. 73,421 3.8
9 Erie Insurance Group 68,787 3.6
10 Auto-Owners Insurance Co. 36,023 1.9

(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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Top 10 Writers Of Life Insurance And Annuity Considerations In Tennessee, 2015 (1)

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Principal Financial Group Inc.   $1,402,831 13.7%
2 Jackson National Life Group   530,148 5.2
3 Prudential Financial Inc.   497,459 4.8
4 American International Group (AIG)   419,103 4.1
5 Lincoln National Corp.   417,119 4.1
6 Manulife Financial Corp.   403,613 3.9
7 Global Atlantic Financial Group 386,558 3.8
8 MetLife Inc.   384,900 3.8
9 Massachusetts Mutual Life Insurance Co. 368,867 3.6
10 AEGON   367,740 3.6

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

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

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $840,738 23.6%
2 Tennessee Farmers Mutual Insurance Co. 605,559 17.0
3 Berkshire Hathaway Inc. 255,917 7.2
4 Allstate Corp.  253,467 7.1
5 Progressive Corp. 230,789 6.5
6 Liberty Mutual 196,012 5.5
7 Plymouth Rock of New Jersey 187,527 5.3
8 Nationwide Mutual Group 164,230 4.6
9 Erie Insurance Group 84,830 2.4
10 Farmers Insurance Group of Companies (2) 78,632 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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