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 2,595 jobs in Alaska in 2017. The Alaska insurance industry accounted for about $175.8 million in compensation in 2017.

Gross State Product

The insurance industry contributed $329 million to the Alaska gross state product (GSP) in 2016, accounting for 0.67 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Alaska totaled $62.5 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Alaska totaled $1.6 billion in 2017. 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 $120.1 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 Alaska as measured by direct property/casualty incurred losses, were $845.0 million. Life insurance claims and benefits payouts in Alaska totaled $1.0 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. 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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Alaska National Insurance Co. $109,423 11.7%
2 Liberty Mutual 98,735 10.6
3 American International Group (AIG) 64,473 6.9
4 Western National Insurance 40,291 4.3
5 Travelers 38,356 4.1
6 Zurich 34,961 3.7
7 State Farm 34,644 3.7
8 Chubb 33,809 3.6
9 Berkshire Hathaway Inc. 30,534 3.3
10 Great American Insurance 28,324 3.0

(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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $55,290 32.2%
2 USAA Insurance Group 32,207 18.8
3 Allstate Corp. 31,785 18.5
4 Liberty Mutual 16,665 9.7
5 COUNTRY Financial 14,187 8.3
6 Western National Insurance Group 11,136 6.5
7 Horace Mann 2,990 1.7
8 Farmers Insurance Group  2,297 1.3
9 IAT Insurance  1,476 0.9
10 Hartford Financial Services 1,402 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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 John Hancock Life Insurance Co. $144,460 13.1%
2 Lombard Insurance Co. 136,063 12.3
3 New York Life Insurance Group  110,579 10.0
4 Prudential Financial Inc.  87,403 7.9
5 MetLife Inc.  67,823 6.1
6 Lincoln National Corp.  59,675 5.4
7 Mutual of America Life Insurance Co. 30,578 2.8
8 American International Group (AIG) 25,884 2.3
9 Voya Financial Inc.  24,512 2.2
10 Principal Financial Group Inc.  22,573 2.0

(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.

Top 10 Writers Of Private Passenger Auto Insurance In Alaska By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $140,992 29.0%
2 USAA Insurance Group 88,645 18.2
3 Berkshire Hathaway Inc. 87,888 18.1
4 Allstate Corp. 59,974 12.3
5 Progressive 50,269 10.3
6 Liberty Mutual 17,803 3.7
7 COUNTRY Financial 14,894 3.1
8 Hartford Financial Services 10,102 2.1
9 Western National Insurance Group 5,184 1.1
10 Horace Mann 4,588 0.9

(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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