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.
U.S. Department of Commerce data show the insurance industry provided 259,251 jobs in Texas in 2014. The Texas insurance industry accounted for about $17.3 billion in compensation in 2014.
GROSS STATE PRODUCT
The insurance industry contributed $26.5 billion to the Texas gross state product (GSP) in 2013, accounting for 1.70 percent of the state GSP.
Premium taxes paid by insurance companies in Texas totaled $1,886.3 million in 2014.
Direct premiums written by property/casualty insurance companies in Texas totaled $47.4 billion in 2014. In addition, premiums written by life/health insurance companies totaled $46.0 billion (including life insurance, annuities, accident and health insurance, deposit type funds and other considerations).
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 $5.0 billion in gross premiums written in 2014, according to a survey by Business Insurance.
Insurance company claims payments help ensure the economic security of individuals and businesses and help sustain a number of related industries. In 2014 these payments in Texas as measured by direct property/casualty incurred losses, were $24.8 billion. Life insurance claims and benefits payouts in Texas totaled $27.6 billion in 2014, 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.
Two of the costliest hurricanes to hit the United States caused damage in Texas: Hurricane Ike in 2008 and Hurricane Rita in 2005. Texas is also vulnerable to tornadoes, hailstorms and wildfires. In 2015 Texas had 228 tornadoes, ranking it first in the nation. Tornadoes killed 17 people in the state in 2015. Texas ranked first for the number of hailstorms in 2015, with 783 major hail events. In April of 2016 the largest ever insured hailstorm hit the San Antonio area. The Insurance Council of Texas estimated insured losses from that storm at $1.4 billion. In 2015 Texas ranked first in the nation for wildfires with 9,272 fires. These fires burned 184,418 acres.
STATE BY STATE COMPARISON TABLES
- Surplus Lines
- Gross State Product
- State Taxes
- Insurance Companies By State
- Catastrophes By State
- Residual Markets
- Captives By State
- Incurred Losses By State
- Insured Cars By State
- Insured Homes By State
- Businesses By State