Texas Firm Foundation

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

The insurance industry in Texas 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 245,704 jobs in Texas in 2012. The Texas insurance industry accounted for about $15.0 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $24.7 billion to the Texas gross state product (GSP) in 2012, accounting for 1.69 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Texas totaled $1,788.5 billion in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Texas totaled $40.2 billion in 2012. In addition, premiums written by life/health insurance companies totaled $44.9 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 Texas surplus lines market accounted for $4.3 billion 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 Texas as measured by direct property/casualty incurred losses, were $23.7 billion. Life insurance claims and benefits payouts in Texas totaled $24.4 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

Two of the costliest hurricanes to hit the U.S. caused damage in Texas: Hurricane Ike in 2008 and Hurricane Rita in 2005 (see chart). Texas is also vulnerable to tornadoes, hailstorms and wildfires. In 2013 Texas had 65 tornadoes, ranking it second in a tie with Nebraska. The state ranked first in the nation for the number of hailstorms in 2013, with 651 major hail events.

 

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.

 

 

THE TEN MOST COSTLY WILDLAND FIRES IN THE UNITED STATES (1)

($ millions)

      Estimated insured loss
Rank Date Location Dollars when occurred In 2012 dollars (2)
1 Oct. 20-21, 1991 Oakland Fire, CA $1,700 $2,622
2 Oct. 21-24, 2007 Witch Fire, CA 1,300 1,412
3 Oct. 25-Nov. 4, 2003 Cedar Fire, CA 1,060 1,299
4 Oct. 25-Nov. 3, 2003 Old Fire, CA 975 1,195
5 Nov. 2-3, 1993 Los Angeles County Fire, CA 375 553
6 Sep. 4-9, 2011 Bastrop County Complex Fire, TX 530 539
7 Oct. 27-28, 1993 Orange County Fire, CA 350 516
8 Jun. 24-28, 2012 Waldo Canyon Fire, CO 450 450
9 Jun. 27-Jul. 2, 1990 Santa Barbara Fire, CA 265 423
10 Sep. 6-13, 2010 Fourmile Canyon Fire, CO 210 218

(1) Property coverage only for catastrophic wildfires. Effective January 1, 1997, Property Claim Services (PCS) defines catastrophes as events that cause more than $25 million in insured property damage and that affect a significant number of insureds and insurers. From 1982 to 1996, PCS used a $5 million threshold in defining catastrophes. Before 1982, PCS used a $1 million threshold.
(2) Adjusted for inflation through 2012 by ISO using the GDP implicit price deflator.

Source: Property Claim Services (PCS), a division of Verisk Analytics.

View Archived Tables

 

 

WILDFIRES BY STATE, 2013

State Number of fires Number of acres burned 
Alabama 1,284 25,623
Alaska 603 1,316,876
Arizona 1,756 105,281
Arkansas 881 14,733
California 9,907 577,675
Colorado 1,176 195,145
Connecticut 76 238
Delaware 4 17
Florida 101 7,660
Georgia 2,942 6,736
Hawaii (1) (1)
Idaho 1,471 722,204
Illinois 24 55
Indiana 19 806
Iowa 436 14,704
Kansas 16 7,137
Kentucky 1,030 25,084
Louisiana 1,027 17,883
Maine 426 743
Maryland 126 182
Massachusetts 1,132 879
Michigan 436 940
Minnesota 1,115 22,107
Mississippi 5 33
Missouri 51 1,660
Montana 1,723 124,209
Nebraska 10 63
Nevada 763 162,907
New Hampshire 85 137
New Jersey 1,013 1,430
New Mexico 1,064 221,951
New York 138 1,073
North Carolina 3,514 24,547
North Dakota 515 16,116
Ohio 31 152
Oklahoma 610 26,490
Oregon 2,848 350,786
Pennsylvania 639 1,788
Rhode Island 7 27
South Carolina 1,337 7,082
South Dakota 889 4,475
Tennessee 424 7,080
Texas 70 10,743
Utah 1,276 70,282
Vermont 124 281
Virginia 482 4,418
Washington 1,527 152,603
West Virginia 557 8,577
Wisconsin 671 9,196
Wyoming 468 44,016
United States (2) 47,579 4,319,546

(1) Hawaii had no wildfires in 2013.
(2) Includes Puerto Rico which had 750 fires that burned 4,716 acres.

Source: National Interagency Fire Center.

View Archived Tables

 

 

 

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,920,866 26.6%
2 Farmers Insurance Group of Cos. 851,139 11.8
3 Allstate Corp. 841,027 11.6
4 USAA Insurance Group 625,471 8.7
5 Liberty Mutual 566,059 7.8
6 Travelers Companies Inc. 271,938 3.8
7 Nationwide Mutual Group 234,812 3.3
8 Texas Farm Bureau 204,699 2.8
9 ARX Holding Corp. 172,032 2.4
10 Chubb Corp. 136,570 1.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $2,923,827 19.2%
2 Allstate Corp. 1,711,014 11.3
3 Farmers Insurance Group of Cos. 1,651,484 10.9
4 Progressive Corp. 1,329,425 8.7
5 Berkshire Hathaway Inc. 1,238,185 8.1
6 USAA Insurance Group 1,145,519 7.5
7 Texas Farm Bureau 570,737 3.8
8 Nationwide Mutual Group 540,909 3.6
9 Home State Insurance Group Inc. 528,694 3.5
10 Orpheus Group Ltd. 457,374 3.0

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 American International Group $1,574,738 7.4%
2 Travelers Companies Inc. 1,188,312 5.6
3 Liberty Mutual 1,091,016 5.1
4 Texas Mutual Insurance Co. 1,031,357 4.9
5 Zurich Insurance Group 1,015,595 4.8
6 CNA Financial Corp. 725,412 3.4
7 ACE Ltd. 658,808 3.1
8 Hartford Financial Services 554,416 2.6
9 Nationwide Mutual Group 524,489 2.5
10 Chubb Corp. 486,359 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

STATE BY STATE COMPARISON TABLES

DIRECTORIES

CREATE YOUR OWN BOOK

  • Click here to create your own customized book of national and state-by-state tables
  • Click here to view Texas data only