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 66,331 jobs in Arizona in 2016. The Arizona insurance industry accounted for about $4.5 billion in compensation in 2016.

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 $479.2 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 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, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $267,952 6.1%
2 Liberty Mutual 246,947 5.7
3 CopperPoint Insurance Companies 201,289 4.6
4 Chubb Ltd. 183,108 4.2
5 Zurich Insurance Group (2)  169,693 3.9
6 American International Group (AIG) 160,087 3.7
7 CNA Financial Corp. 151,377 3.5
8 American Financial Group Inc. 151,360 3.5
9 Farmers Insurance Group of Companies (2) 127,857 2.9
10 Nationwide Mutual Group 114,840 2.6

(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 Arizona By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $294,086 18.3%
2 Farmers Insurance Group of Companies (2) 221,129 13.7
3 Allstate Corp. 145,228 9.0
4 USAA Insurance Group 138,445 8.6
5 Liberty Mutual 135,762 8.4
6 American Family Insurance Group 128,301 8.0
7 Travelers Companies Inc. 59,227 3.7
8 Hartford Financial Services 41,848 2.6
9 CSAA Insurance Exchange 36,605 2.3
10 Chubb Ltd. 32,344 2.0

(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 Life Insurance And Annuity Considerations In Arizona, 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.

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Top 10 Writers Of Private Passenger Auto Insurance In Arizona By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $818,982 16.9%
2 Berkshire Hathaway Inc. 723,482 14.9
3 Progressive  513,333 10.6
4 Farmers Insurance Group of Companies (2) 393,157 8.1
5 Allstate Corp. 369,153 7.6
6 USAA Insurance Group 362,766 7.5
7 Liberty Mutual 279,343 5.8
8 American Family Insurance Group 276,833 5.7
9 Hartford Financial Services 109,174 2.2
10 CSAA Insurance Exchange 100,187 2.1

(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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State By State Comparison Tables

Directories

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