A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Alaska 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 2,614 jobs in Alaska in 2018. The Alaska insurance industry accounted for about $180.3 million in compensation in 2018.

Gross State Product

The insurance industry contributed $400 million to the Alaska gross state product (GSP) in 2017, accounting for 0.77 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Alaska totaled $79.8 million in 2019.

Premiums

Direct premiums written by property/casualty insurance companies in Alaska totaled $1.6 billion in 2019. Premiums written by life/annuity insurance companies totaled $1.5 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 Alaska surplus lines market accounted for $132.7 million in gross premiums written in 2018, 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 2019 these payments in Alaska as measured by direct property/casualty incurred losses, were $748.4 million. Life insurance claims and benefits payouts in Alaska totaled $1.2 billion in 2019.

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. Earthquakes, landslides, floods, wildfires and volcanic eruptions are some of the natural disasters that have occurred or could occur in Alaska.

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 Alaska By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 CopperPoint Insurance Companies $102,987 10.7%
2 Liberty Mutual 99,525 10.3
3 American International Group (AIG) 45,247 4.7
4 Western National Insurance Group 45,120 4.7
5 Chubb 36,973 3.8
6 Allianz 36,492 3.8
7 Travelers Companies Inc. 35,815 3.7
8 Zurich 35,463 3.7
9 State Farm 35,163 3.7
10 Berkshire Hathaway Inc. 31,473 3.3

(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 Alaska By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $54,845 32.1%
2 Allstate Corp. 31,835 18.6
3 USAA Insurance Group 30,096 17.6
4 Liberty Mutual 17,499 10.2
5 COUNTRY Financial 14,696 8.6
6 Western National Insurance Group 11,135 6.5
7 Horace Mann 2,904 1.7
8 Farmers Insurance Group 2,297 1.3
9 IAT Insurance 1,866 1.1
10 Hartford Financial Services 1,299 0.8

(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 Alaska By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Lombard International   $164,897 14.1%
2 John Hancock   119,241 10.2
3 New York Life   112,668 9.6
4 Prudential Financial Inc.   82,705 7.1
5 Lincoln Financial   60,557 5.2
6 CUNA Mutual   57,679 4.9
7 AIG   34,803 3.0
8 Equitable Holdings   31,726 2.7
9 Mutual of America Life Insurance Co. 27,957 2.4
10 Global Atlantic   24,076 2.1

(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 Alaska By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $147,709 29.0%
2 Berkshire Hathaway Inc. 93,631 18.4
3 USAA Insurance Group 91,367 18.0
4 Allstate Corp. 61,311 12.1
5 Progressive 53,107 10.4
6 Liberty Mutual 18,593 3.7
7 COUNTRY Financial 16,308 3.2
8 Hartford Financial Services 9,353 1.8
9 Tiptree Inc. 5,072 1.0
10 Western National Insurance Group 5,013 1.0

(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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