A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The Vermont Economy

The insurance industry in Vermont 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 5,005 jobs in Vermont in 2016. The Vermont insurance industry accounted for about $391.8 million in compensation in 2016.

Gross State Product

The insurance industry contributed $1.2 billion to the Vermont gross state product (GSP) in 2015, accounting for 3.88 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Vermont totaled $59.1 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Vermont totaled $1.2 billion in 2016. In addition, premiums written by life/health insurance companies totaled $1.4 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 Vermont surplus lines market accounted for $65.8 million in gross premiums written in 2016, 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 2016 these payments in Vermont as measured by direct property/casualty incurred losses, were $549.9 million. Life insurance claims and benefits payouts in Vermont totaled $1.0 billion in 2016.

Leading Writers

Below are tables showing the state’s leading insurance companies, based on market share, and links to state by state comparison tables.

Top 10 Writers Of Commercial Insurance In Vermont By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual  $73,656 11.1%
2 W. R. Berkley Corp.  65,243 9.8
3 Travelers Companies Inc.  45,931 6.9
4 The Cincinnati Insurance Cos.  26,454 4.0
5 Berkshire Hathaway Inc.  22,096 3.3
6 AmTrust Financial  20,528 3.1
7 American International Group (AIG)  18,364 2.8
8 Vermont Mutual Insurance  18,233 2.7
9 MEMIC  18,014 2.7
10 Chubb  17,773 2.7

(1) Before reinsurance transactions.

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

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Top 10 Writers Of Homeowners Insurance In Vermont By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $25,278 12.2%
2 Vermont Mutual Insurance 25,094 12.2
3 Patrons Co-op Fire Insurance Co. 22,415 10.9
4 State Farm 15,475 7.5
5 Concord Group Insurance 11,871 5.8
6 USAA 11,746 5.7
7 Chubb 11,235 5.4
8 Allstate Corp. 10,467 5.1
9 Travelers 9,970 4.8
10 Union Mutual 9,461 4.6

(1) Before reinsurance transactions.

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 Vermont, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Jackson National Life Group   $87,816 8.5%
2 TIAA   77,569 7.5
3 Manulife Financial Corp.   76,196 7.4
4 Hartford Financial Services   68,175 6.6
5 New York Life Insurance Group   65,215 6.3
6 MetLife Inc.   56,061 5.5
7 Prudential Financial Inc.   53,648 5.2
8 AEGON   48,374 4.7
9 Massachusetts Mutual Life Insurance Co. 42,021 4.1
10 American International Group (AIG)   34,331 3.3

(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 Vermont By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Progressive  $68,688 17.7%
2 Berkshire Hathaway Inc.  57,791 14.9
3 Liberty Mutual  35,104 9.1
4 State Farm  31,769 8.2
5 Allstate Corp.  22,414 5.8
6 Concord Group Insurance  18,748 4.8
7 USAA  18,608 4.8
8 Travelers Companies Inc.  15,357 4.0
9 Vermont Mutual Insurance  15,131 3.9
10 Patrons Co-op Fire Insurance Co. 14,909 3.8

(1) Before reinsurance transactions.

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

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State By State Comparison Tables

Directories

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