A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Washington State 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 56,958 jobs in Washington in 2017. The Washington insurance industry accounted for about $4.6 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $8.2 billion to the Washington gross state product (GSP) in 2016, accounting for 1.67 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Washington totaled $604.0 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Washington totaled $11.9 billion in 2017. Premiums written by life/annuity insurance companies totaled $12.5 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 Washington surplus lines market accounted for $899.5 million in gross premiums written in 2017, 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 2017 these payments in Washington as measured by direct property/casualty incurred losses, were $6.9 billion. Life insurance claims and benefits payouts in Washington totaled $9.1 billion in 2017.

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 or storm or wildfire. In 2016 Washington ranked eighth in the nation for the number acres burned by wildfires, with 293,717 acres.

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 Washington By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $633,460 10.7%
2 Chubb 299,927 5.1
3 American International Group (AIG) 298,843 5.0
4 Travelers Companies Inc. 286,715 4.8
5 CNA 214,130 3.6
6 Zurich 207,163 3.5
7 Tokio Marine Group 186,210 3.1
8 Farmers Insurance Group 171,952 2.9
9 Nationwide Mutual Group 149,686 2.5
10 Hartford Financial Services 143,643 2.4

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

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Top 10 Writers Of Homeowners Insurance In Washington By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $328,916 16.8%
2 Liberty Mutual 268,503 13.7
3 Farmers Insurance Group 227,062 11.6
4 Allstate Corp. 189,983 9.7
5 USAA Insurance Group 175,264 8.9
6 American Family Insurance Group 140,996 7.2
7 PEMCO Mutual Insurance Co. 120,610 6.1
8 Travelers Companies Inc. 63,813 3.3
9 Mutual of Enumclaw 57,718 2.9
10 Hartford Financial Services 49,300 2.5

(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/Annuities In Washington By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc.  $978,355 10.1%
2 New York Life Insurance Group  678,580 7.0
3 MetLife Inc.  458,217 4.8
4 Principal Financial Group Inc.  443,310 4.6
5 John Hancock Life Insurance Co. 390,279 4.1
6 Lincoln National Corp.  380,487 3.9
7 American International Group (AIG) 352,931 3.7
8 TIAA 337,841 3.5
9 Nationwide Mutual Group  297,548 3.1
10 Transamerica 265,631 2.8

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

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

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Top 10 Writers Of Private Passenger Auto Insurance In Washington By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $589,137 11.1%
2 American International Group (AIG) 307,402 5.8
3 Chubb 273,385 5.1
4 Travelers Companies Inc. 257,541 4.8
5 CNA 203,457 3.8
6 Zurich 189,019 3.5
7 Tokio Marine Group 178,376 3.3
8 Farmers Insurance Group 166,862 3.1
9 Nationwide Mutual Group 139,285 2.6
10 State Farm 118,553 2.2

(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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