A Firm Foundation: How Insurance Supports the Economy

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

The insurance industry in Arkansas 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 22,842 jobs in Arkansas in 2017. The Arkansas insurance industry accounted for about $1.2 billion in compensation in 2017.

Gross State Product

The insurance industry contributed $2.4 billion to the Arkansas gross state product (GSP) in 2016, accounting for 1.99 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Arkansas totaled $213.2 million in 2017.

Premiums

Direct premiums written by property/casualty insurance companies in Arkansas totaled $5.2 billion in 2017. Premiums written by life/annuity insurance companies totaled $3.9 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 Arkansas surplus lines market accounted for $230.6 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 2017 these payments in Arkansas as measured by direct property/casualty incurred losses, were $2.8 billion. Life insurance claims and benefits payouts in Arkansas totaled $2.9 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 such as a catastrophic hurricane or storm or wildfire. In recent years Arkansas has seen devastating tornadoes, wildfires and flooding.

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 Arkansas By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $149,746 6.0%
2 Chubb 148,457 5.9
3 CNA 108,229 4.3
4 Liberty Mutual 92,889 3.7
5 Farm Bureau Mutual Insurance Co. of Arkansas 90,397 3.6
6 American International Group (AIG) 82,433 3.3
7 Zurich 78,903 3.1
8 Berkshire Hathaway Inc. 74,859 3.0
9 Nationwide Mutual Group 74,277 3.0
10 Great American Insurance 65,773 2.6

(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 Arkansas By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $256,670 26.3%
2 Farm Bureau Mutual Insurance Co. of Arkansas 136,889 14.0
3 Shelter Insurance 81,358 8.3
4 Allstate Corp. 79,708 8.2
5 Farmers Insurance Group 64,084 6.6
6 USAA Insurance Group 56,960 5.8
7 Liberty Mutual 41,433 4.2
8 Auto-Owners Insurance Co. 27,457 2.8
9 Nationwide Mutual Group 25,466 2.6
10 State Auto 21,242 2.2

(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 Arkansas By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc.  $230,597 7.5%
2 American International Group (AIG) 142,683 4.7
3 Lincoln National Corp.  125,306 4.1
4 Athene Holding Ltd.  123,518 4.0
5 MetLife Inc.  120,057 3.9
6 Jackson National Life Group  116,066 3.8
7 New York Life Insurance Group  111,964 3.7
8 John Hancock Life Insurance Co. 111,104 3.6
9 Global Atlantic 98,066 3.2
10 TIAA 95,872 3.1

(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 Arkansas By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $493,963 23.4%
2 Southern Farm Bureau Casualty 278,243 13.2
3 Progressive 194,062 9.2
4 Shelter Insurance 186,993 8.9
5 Allstate Corp. 151,471 7.2
6 Berkshire Hathaway Inc. 135,995 6.5
7 USAA Insurance Group 101,929 4.8
8 Farmers Insurance Group 81,574 3.9
9 Liberty Mutual 73,404 3.5
10 Alfa Mutual Group 48,428 2.3

(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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