A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Arizona 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 71,743 jobs in Arizona in 2017. The Arizona insurance industry accounted for about $5 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $7.3 billion to the Arizona gross state product (GSP) in 2015, accounting for 2.51 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Arizona totaled $545.1 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Arizona totaled $10.2 billion in 2016. In addition, premiums written by life/health insurance companies totaled $13.0 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 Arizona surplus lines market accounted for $557.9 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 2016 these payments in Arizona as measured by direct property/casualty incurred losses, were $6.3 billion. Life insurance claims and benefits payouts in Arizona totaled $8.9 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 such as a catastrophic hurricane or storm or wildfire. In 2016, Arizona ranked eighth in the nation for the number of wildfires, at 2,288 and seventh for the number of acres burned at 308,245.

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 Arizona By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers $284,717 6.2%
2 Liberty Mutual 250,758 5.5
3 Chubb 196,265 4.3
4 CopperPoint Insurance Companies 194,812 4.3
5 Zurich 165,527 3.6
6 CNA 153,981 3.4
7 American International Group (AIG) 152,557 3.3
8 Farmers Insurance 128,662 2.8
9 Tokio Marine 125,491 2.7
10 The Hartford 122,948 2.7

(1) Before reinsurance transactions.

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

View Archived Tables

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $303,259 18.0%
2 Farmers Insurance Group  219,578 13.0
3 USAA Insurance Group 146,815 8.7
4 Liberty Mutual 145,779 8.6
5 Allstate Corp. 145,772 8.6
6 American Family Insurance Group 136,600 8.1
7 Travelers Companies Inc. 69,712 4.1
8 Hartford Financial Services 40,901 2.4
9 CSAA Insurance Exchange 37,265 2.2
10 Chubb  32,892 1.9

(1) Before reinsurance transactions.

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

View Archived Tables

Top 10 Writers Of Private Passenger Auto Insurance In Arizona By Direct Premiums Written, 2016 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 MetLife Inc.  $731,783 8.2%
2 Prudential Financial Inc.  567,240 6.3
3 American International Group (AIG) 524,462 5.9
4 Nationwide Mutual Group  444,917 5.0
5 New York Life Insurance Group  420,757 4.7
6 Jackson National Life Group  339,627 3.8
7 Lincoln National Corp.  309,878 3.5
8 John Hancock Life Insurance Co. 294,939 3.3
9 Sammons Enterprises Inc.  277,985 3.1
10 Allianz Group  271,148 3.0

(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.

View Archived Tables

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $829,422 15.7%
2 State Farm 817,363 15.5
3 Progressive 632,441 12.0
4 USAA Insurance Group 420,513 8.0
5 Farmers Insurance Group  410,379 7.8
6 Allstate Corp. 400,770 7.6
7 American Family Insurance Group 302,036 5.7
8 Liberty Mutual 290,719 5.5
9 Hartford Financial Services 107,264 2.0
10 CSAA Insurance Exchange 104,573 2.0

(1) Before reinsurance transactions.

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

View Archived Tables

State By State Comparison Tables

Directories

Create Your Own Book

  • Click here to create your own customized book of national and state-by-state tables
  • Click here to view Arizona data only