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 22,309 jobs in Arkansas in 2016. The Arkansas insurance industry accounted for about $1.2 billion in compensation in 2016.

Gross State Product

The insurance industry contributed $2.1 billion to the Arkansas gross state product (GSP) in 2015, accounting for 1.73 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Arkansas totaled $192.0 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Arkansas totaled $4.9 billion in 2016. In addition, premiums written by life/health insurance companies totaled $4.0 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 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 2016 these payments in Arkansas as measured by direct property/casualty incurred losses, were $3.4 billion. Life insurance claims and benefits payouts in Arkansas totaled $2.8 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 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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb $138,237 5.9%
2 Travelers 137,482 5.8
3 CNA 109,968 4.7
4 Farm Bureau Mutual Insurance Company of Arkansas 101,333 4.3
5 Liberty Mutual 91,717 3.9
6 American International Group (AIG) 82,288 3.5
7 Nationwide 69,921 3.0
8 Zurich 64,010 2.7
9 Berkshire Hathaway Inc. 60,881 2.6
10 The Cincinnati Insurance Cos. 58,881 2.5

(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, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $246,486 26.2%
2 Farm Bureau Mutual Insurance Company of Arkansas 135,432 14.4
3 Shelter Insurance  79,151 8.4
4 Allstate Corp. 77,577 8.2
5 Farmers Insurance Group  64,255 6.8
6 USAA Insurance Group 53,078 5.6
7 Liberty Mutual 42,929 4.6
8 Nationwide Mutual Group 26,717 2.8
9 Auto-Owners Insurance Co. 23,929 2.5
10 State Auto 19,664 2.1

(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 And Annuity Considerations In Arkansas, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Jackson National Life Group   $177,988 6.1%
2  American International Group (AIG)  169,727 5.8
3 Prudential Financial Inc.   135,514 4.6
4 New York Life Insurance Group   131,692 4.5
5 MetLife Inc.   115,065 3.9
6 AEGON   106,542 3.7
7 Lincoln National Corp.   100,161 3.4
8 TIAA   98,755 3.4
9 Nationwide Mutual Group   97,132 3.3
10 Massachusetts Mutual Life Ins. Co.   97,024 3.3

(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 Arkansas By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $510,310 24.6%
2 Southern Farm Bureau Casualty 272,861 13.2
3 Shelter Insurance  180,848 8.7
4 Progressive 166,434 8.0
5 Allstate Corp. 148,040 7.1
6 Berkshire Hathaway Inc. 120,228 5.8
7 USAA Insurance Group 98,771 4.8
8 Farmers Insurance Group  81,076 3.9
9 Liberty Mutual 77,081 3.7
10 Nationwide Mutual Group 52,939 2.6

(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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