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 2,631 jobs in Alaska in 2016. The Alaska insurance industry accounted for about $174 million in compensation in 2016.

Gross State Product

The insurance industry contributed $354 million to the Alaska gross state product (GSP) in 2015, accounting for about 1 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Alaska totaled $64.4 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Alaska totaled $1.6 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 Alaska surplus lines market accounted for $121.6 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 Alaska as measured by direct property/casualty incurred losses, were $749 million. Life insurance claims and benefits payouts in Alaska totaled $1.2 billion in 2016.

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, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Alaska National Insurance Co. $120,825 13.0%
2 Liberty Mutual 95,582 10.3
3 American International Group (AIG) 66,145 7.1
4 Zurich Insurance Group (2) 41,464 4.5
5 Western National Insurance Group 36,792 4.0
6 Travelers Companies Inc. 34,883 3.8
7 State Farm  33,575 3.6
8 Chubb Ltd. 32,812 3.5
9 American Financial Group Inc. 29,214 3.2
10 CNA Financial Corp. 26,981 2.9

(1) Before reinsurance transactions.            
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.            
            
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, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share 
1 State Farm  $52,400 31.9%
2 Allstate Corp. 32,133 19.6
3 USAA Insurance Group 29,617 18.0
4 Liberty Mutual 15,142 9.2
5 COUNTRY Financial 13,803 8.4
6 Western National Insurance Group 10,734 6.5
7 Horace Mann Educators Corp. 3,106 1.9
8 Farmers Insurance Group of Companies (2) 2,279 1.4
9 Hartford Financial Services 1,433 0.9
10 IAT Insurance 1,280 0.8

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

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 Alaska By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $133,816 28.6%
2 USAA Insurance Group 83,687 17.9
3 Berkshire Hathaway Inc. 82,637 17.6
4 Allstate Corp. 59,507 12.7
5 Progressive  50,922 10.9
6 Liberty Mutual 16,337 3.5
7 COUNTRY Financial 14,042 3.0
8 Hartford Financial Services 10,332 2.2
9 Tiptree Inc. 4,938 1.1
10 Horace Mann Educators Corp. 4,748 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

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