Virginia Firm Foundation
KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE VIRGINIA ECONOMY
The insurance industry in Virginia 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 66,237 jobs in Virginia in 2014. The Virginia insurance industry accounted for about $4.7 billion in compensation in 2014.
GROSS STATE PRODUCT
The insurance industry contributed $6.2 billion to the Virginia gross state product (GSP) in 2013, accounting for 1.38 percent of the state GSP.
Premium taxes paid by insurance companies in Virginia totaled $460.0 million in 2014.
Direct premiums written by property/casualty insurance companies in Virginia totaled $12.2 billion in 2014. In addition, premiums written by life/health insurance companies totaled $15.9 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 Virginia surplus lines market accounted for $635.5 million 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 Virginia as measured by direct property/casualty incurred losses, were $6.3 billion. Life insurance claims and benefits payouts in Virginia totaled $11.0 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.
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. The insured value of properties in coastal areas of Virginia totaled $176.7 billion in 2012, according to an analysis by AIR Worldwide, accounting for 10 percent of the state’s total insured property exposure.
LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN VIRGINIA, 2014 (1)
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